The Resurgence of the "Made in America" Movement

The resurgence of the “Made in America” movement is a direct response to the amount of jobs, particularly manufacturing, that are being sent overseas. While importing a majority of our goods does often lead to cheaper prices, it leaves Americans with fewer jobs, overall lower incomes, and generally worse quality products. With the recent presidential election, both parties have turned their attention towards this growing movement and the dedication of federal spending to rebuild infrastructure and American manufacturing. In support of states where manufacturing jobs are heavily relied upon, the President has already imitated plans in support of his “buy American, hire American” campaign slogan.

In early February 2017, President Trump himself made a visit to Boeing’s South Carolina manufacturing plant. This trip, which followed previous commitments from other US-based manufacturers, including Carrier, to keep re-invest in manufacturing in the US, was strictly in support of his “America First” message. President Trump is quoted saying, "Our goal as a nation must be to rely less on imports and more on products made here in the USA.” The President has also spoken of future plans and proposals, including a substantial penalty for companies who move their jobs outside of the US, in order to help kick-start growth in America’s original industry.

And the President isn’t the only person in the country who believes in this movement. Many companies are proudly advertising their Made in America status, despite the cost and competition challenges that come with manufacturing products domestically. Keeping manufacturers inside our borders allows companies to have better control of supply chain efficiency, product quality, and results in more money in the pockets of US employees.

What does a “Made in America” Future Look Like?

Studies have shown that the companies whose suppliers and customers are in the same country will be the ones that ultimately survive economic recessions financial hardship. This is a result of two main factors:

  1. Intricate global supply chains have higher cost variances as a result of global politics. Additionally, risk is significantly larger leaving companies vulnerable to supply disruptions and quality control problems
  2. Labor rates, which are the primary reason why companies choose to outsource production, are slowly catching up with that of the Western world. In due time, the cost of logistics along with reduced cost savings from labor, will outweigh the cost of domestic production.

A future where America is indeed put first looks promising for both US citizens and US industry. This movement could bring more manufacturing jobs back to the US and ultimately begin to re-balance the global economy.

How can we help?

InsideTheBox (ITB) is a US based industrial product development consulting company. Supporting American manufacturing since 2016, ITB helps US-based manufacturers efficiently and effectively manage through the lifecycle of industrial production. Regardless if you out-source or maintain US operations, ITB can help you mitigate risk, discover cost efficiency, and improve operational performance.