Buffalo Tablet Maker BAK USA Grows After Microsoft Deal, Finds USA Assembly Costs Less Than Expected

BAK USA, a tablet maker that assembles its devices in Buffalo, New York, was growing after becoming an official Microsoft original equipment manufacturer, The Buffalo News reported on March 16, 2016. The company also said assembling in the USA cost far less extra than it had expected.

The cost gap

The company first figured that production in Buffalo would cost about 20% more than in China. Chairman J.P. Bak said the real gap turned out to be under 5%. “We knew we couldn’t compete with China, but we thought the Made in the USA label would compensate for the added cost,” he said. “What we found out is that the cost gap is actually much lower than people think.”

New tablet and hiring

• BAK started work in Buffalo a little more than a year earlier. It hired and trained refugees and other workers who had trouble finding jobs.
• It had 32 employees, 20 of them in production, and planned to hire more.
• Working with Microsoft, BAK brought out the Seal 8, a rugged Windows 10 tablet for business users, priced at about $450 to $700. Microsoft partner engineers in China helped develop the device, partner suppliers made the parts, and BAK assembled it in Buffalo.
• Each tablet is put together from start to finish by one worker instead of on an assembly line.

Sourcing parts in the USA

BAK imported its components from China. It was talking with Western New York manufacturers about making parts such as the camera and housing locally. It was also working with Corning, whose Gorilla Glass reached BAK by way of China, in hopes of buying the glass domestically. The company said it wanted to open production sites of about 100 workers in low-income neighborhoods around the country.