He tried building smartphones in the US over a decade ago. He has advice for companies trying it today

In 2013, Motorola embarked on a bold venture to capture a larger share of the smartphone market, which was predominantly held by giants like Apple and Samsung, by promoting the idea of products 'Made in the USA.' Dennis Woodside, who was the CEO of Motorola at the time and currently leads Freshworks, shared insights with CNN about the initial appeal this strategy had for consumers. However, Motorola's ambitious plans were short-lived. Just a year later, the company closed its Texas factory and halted domestic assembly of the Moto X, its flagship model aimed at rivaling popular devices like the iPhone and Samsung Galaxy. Woodside's experiences highlight the ongoing struggles that many tech companies face when attempting to manufacture smartphones in the U.S. The challenges are multifaceted, stemming not only from the proximity to essential suppliers and lower labor costs elsewhere but also from a significant skills gap and difficulties in hiring for factory roles. As the landscape evolves, the relevance of Motorola's past efforts resurfaces, particularly as pressure mounts from political figures like President Donald Trump, who has urged companies to shift their production back to American soil amidst looming tariffs on imports from China. India has emerged as the leading exporter of smartphones to the U.S., yet it too faces the threat of increased tariffs on its exports. Woodside's advice for companies considering U.S. smartphone production today is clear: the challenge of finding and retaining skilled workers should not be underestimated. He emphasizes the necessity of offering a compelling value proposition to employees and being strategic in the use of automation to remain competitive. Motorola's attempt to manufacture the Moto X in Fort Worth, Texas, was not only aimed at attracting domestic buyers but also allowed for greater customization of the device. Customers could personalize aspects of the phone, a feature that required manufacturing to be closer to the consumer base. Yet, despite assembling units stateside, key components were still sourced from Asia, which ultimately contributed to the decision to cease local assembly when sales did not meet expectations. Woodside notes that the costs associated with U.S. manufacturing were higher, compounded by the complexities of a fragmented supply chain. The Moto X's production serves as a rare case of large-scale smartphone assembly in the U.S., with other smaller efforts lacking the same scale. The challenge of training and retaining a workforce presented significant obstacles, as potential employees often opted for more accessible jobs in other sectors. As the U.S. faces a labor shortage in manufacturing, the situation is starkly different in countries like China, where a robust workforce is readily available for tech assembly. Recent statistics reveal that China employs approximately 123 million people in manufacturing, making it a powerhouse in the industry. The contrasting approaches to workforce development highlight the difficulties faced by American manufacturers in scaling operations effectively. Experts assert that new manufacturing roles will increasingly demand skills related to coding and data analytics, especially as automation and AI become integral to production processes. Woodside warns that companies aiming to establish electronics manufacturing in the U.S. need to be realistic about their ability to secure the necessary skilled labor. Understanding the specific demands of the product and the training required for workers is essential, a lesson that Motorola learned the hard way. The journey of Motorola serves as a compelling case study for current and future tech companies exploring the potential of American manufacturing in the face of evolving economic landscapes.