Posted On: July 3, 2017
Today, American customers are slowly warming up to the idea of “Made in the USA” concept. What does it mean? From 1940’s through 1960’s, America was a lead player in the manufacturing sector. In 1960’s, only 10% of goods were imported into America. Over the years, American manufacturing industry has seen drastic changes. Today, almost half of the goods in America are imported from third world countries.
The manufacturing sector in America has seen a gradual decline, since 1970’s. This is because less-expensive goods from overseas markets started flooding American markets. These imports allowed American based companies to control their production, labor, and marketing costs, and gain large profit margins. The downside of these imports were poor quality goods, and declining trust in American products. Also, American manufacturers’ were accused of faking ignorance towards dangerous working conditions and child labor existing in their importing countries.
Since last few years, the focus on American-made goods has increased due to reshoring attempts by top American manufacturers. In recent years, the US Government has encouraged manufacturers to adopt STEM and SELECTUSA programs.
A recent study report released by Consumer Reports National Research Center suggests the term Made in the USA has influenced Americans deeply. The study concluded that if given a chance to select from an American made product, and a similar overseas made product, nearly 80% people would prefer their country made product. There are several other reasons why Made in the USA has become more than a patriotic call for most American manufacturers and consumers. Read this post to know a few whys.
What does Made in USA mean?
The Federal Trade Commission defines a product as American made, only if all its parts are virtually made in the USA. This means the product and all its significant parts, and its machining or processing must be performed in the US. The product should contain no foreign content – be it parts, raw materials, machining or processing.
Why Made in USA Matters?
The following reasons suggest why the American made certification matter to an America-based manufacturer:
• Re-establishing America on a Manufacturing Roadmap: America was a major contributor of the world economy after WWII, with manufacturing playing a key role. In 1950’s, automobile manufacturing was the top industry in America. There was a huge demand for American manufactured goods. According to Made in America Movement (MAM), more than 56,000 manufacturers have left the country, since 2001. In 2017, American manufacturing industry has witnessed a huge shift due to relaxed sanctions, increased confidence, and low taxes. This has encouraged hundreds of large and small auto and product companies to reshore their manufacturing operations, and invest in the American workforce.
• Manufacturing will Create 1 Million Jobs: Recent studies suggest, that if every American agrees to spend 5% extra on American made products, they will help in creating 1 million jobs! Unlike the services sector, every manufacturing project creates 1.6 jobs. For example, consider a manufacturer creating an aerospace part, he/she will depend on several sources. There might be many people involved in a supply chain such as a raw material supplier, truck drivers to deliver raw material to the manufacturing facility, factory workers, including machining experts, engineers, and supervisors who help in production, and cargo people who collect and deliver finished products.
• Guaranteed Quality and Environment-friendly: The term “made in the USA” ensures excellent quality. Many recent studies suggest that US-based manufacturers perform 2/3rd of R&D in the private sector. They are always keen to invest in advanced and environmentally friendly technologies. When a person purchases a 100% American made product, he can expect quality, as well as contribute to a cleaner environment.
All the above-mentioned factors suggest why purchasing American made products matter. So on July 4th – Independence Day, buy a 100% American made product or opt for services of any reliable American manufacturer. This investment will definitely make you a key contributor in a 1 million mark!
BDE Inc. wishes everyone a Happy Independence Day!