Final Blow to US Manufacturing: Last Terry Plant Shuts Down

The closure of the last remaining terry plant in the United States marks a significant milestone in the decline of domestic manufacturing. This development serves as a somber reminder of the uphill battle faced by American producers in the global economy. Rising operational costs and the allure of cheap labor overseas have made it increasingly challenging for domestic manufacturers to compete.

However, the ramifications of this closure extend far beyond the plant itself. The impact on local communities, small businesses, and the overall American economy cannot be understated. As we explore the implications of this closure, it becomes clear that the future of the domestic textile industry is at stake.

In order to revive and sustain American manufacturing, innovative strategies and a reevaluation of trade policies will be crucial. The closure of the last terry plant serves as a wake-up call, highlighting the urgent need for action and the potential consequences if we fail to address this issue.

Read more

Buy American Made: Ways to Express Your Values With Your Pocket Book

In today’s global market, where products are manufactured has become a significant consideration for consumers. Many individuals seek to align their purchasing choices with their personal values, particularly by buying American-made products.

This article explores the importance of buying American-made goods and provides strategies for identifying truly American products in a market that can sometimes be misleading.

By making informed decisions and supporting local businesses, consumers have the potential to positively impact both the economy and society as a whole.

Key Takeaways

  • Purchasing American-made products allows individuals to align their spending with their values.
  • Buying American-made products can support local communities and small businesses.
  • Labels such as USDA Organic and Made in USA Certified help consumers make environmentally conscious choices.
  • Identifying truly American products can be challenging, so buyers should do their own research and remain cautious.

The Power of Purchasing: How Buying American-Made Products Reflects Your Values

Purchasing American-made products allows consumers to align their values with their spending choices, reflecting their commitment to supporting local businesses and ethical manufacturing practices. When consumers choose to buy American-made products, they are not only supporting the local economy, but also promoting fair labor practices and sustainable sourcing of materials.

Ethically sourced materials play a significant role in the production of American-made products, ensuring that the supply chain is transparent and free from exploitation.

Additionally, consumer education plays a crucial role in promoting the purchase of American-made products. By educating consumers about the benefits of buying American-made, they can make informed decisions and actively contribute to a more sustainable and ethical economy.

Ultimately, purchasing American-made products empowers consumers to make a positive impact by supporting local businesses and promoting ethical manufacturing practices.

Supporting Local Agriculture: Ethical Food Choices That Align With Your Pocket Book

Supporting local agriculture and making ethical food choices allows consumers to contribute to their community and promote sustainable farming practices. By purchasing locally grown or raised products, consumers support local farmers and reduce the distance between producers and consumers. This not only helps to strengthen the local economy but also allows consumers to have a direct impact on the quality and safety of their food.

Additionally, choosing food labels such as USDA Organic, free range, hormone-free, and grass-fed helps consumers make environmentally conscious choices. These labels indicate that the food has been produced using sustainable farming methods and supports the well-being of animals.

Finding Authentic American-Made Products: Tips and Resources to Guide Your Purchasing Decisions

One way to ensure the authenticity of American-made products is by checking for specific labels or certifications that indicate their origin. These labels serve as reliable resources for consumers who want to make informed purchasing decisions.

The ‘Made in the USA’ label, regulated by the Federal Trade Commission (FTC), is an important indicator of a product’s origin. However, it is essential for buyers to remain cautious and do their own research, as some companies may misuse this label. The FTC also receives complaints about mislabeled products, but investigations and penalties are limited.

To find authentic American-made products, consumers can rely on resources such as the National Center for Employee Ownership, which provides a list of companies owned by their employees. Additionally, regional and national firms are the main source of American-made products, and their status can be easily checked.

Assessing the American Content: Understanding the Criteria for Identifying Truly American Products

The American Automobile Labeling Act (AALA) requires automobiles and trucks to display the percentage of domestically produced content. This act aims to provide consumers with information about the origin of the components used in their vehicles.

To further assess the American content of vehicles, the Kogod Made in America Auto Index incorporates the AALA and adds additional criteria. This index allows consumers to compare the American content of different vehicles and make informed purchasing decisions.

However, outside of automobiles, textiles, and furs, there is no specific identification of product origin or components required. This poses challenges in identifying truly American products, as companies can claim a product is ‘Made in the USA’ as long as it has negligible foreign content and final assembly or processing in the U.S.

Buyers should therefore remain cautious and do their own research when relying on the ‘Made in the USA’ label.

Overall, the AALA and the Kogod American Content Index provide valuable tools for assessing the American content of products and making informed purchasing decisions.

Navigating Challenges: Ensuring Your Purchases Reflect Your Values Amidst Misleading Claims

Amidst misleading claims, it is crucial to carefully navigate the challenges of ensuring that your purchases truly align with your values.

While the Federal Trade Commission (FTC) regulates the ‘Made in the USA’ label, investigations and penalties are limited. The FTC often receives complaints from manufacturing competitors, but settlements with no civil penalties are common.

However, California has stricter regulations and higher penalties for misusing the ‘Made in the USA’ label. Buyers should remain cautious and do their own research when relying on the label.

It is important to be aware of FTC regulations and the potential penalties in California to avoid falling victim to misleading claims. By understanding these regulations and penalties, consumers can make informed decisions and ensure that their purchases reflect their values.

Frequently Asked Questions

How Can Buying American-Made Products Reflect Your Values?

Buying American-made products allows individuals to support their local economy and preserve American jobs. By making conscious purchasing choices, consumers align their values with their pocketbooks, contributing to the well-being of their community and the nation.

What Are Some Resources to Help You Find Authentic American-Made Products?

Online directories and local craft fairs are valuable resources for finding authentic American-made products. These platforms provide access to a wide range of products, allowing consumers to support local businesses and make informed purchasing decisions.

What Criteria Are Used to Assess the American Content of Vehicles?

Assessment criteria are used to evaluate the American content of vehicles, including the American Automobile Labeling Act and the Kogod Made in America Auto Index. Manufacturing regulations require companies to accurately label products as "Made in the USA."

How Does the Federal Trade Commission Regulate the "Made in the Usa" Label?

The Federal Trade Commission regulates the ‘Made in the USA’ label, ensuring that companies claiming this designation meet certain criteria, such as negligible foreign content and final assembly or processing in the U.S. However, investigations and penalties are limited, and buyers should exercise caution when relying on this label.

What Challenges Do Consumers Face in Identifying Truly American Products?

Identifying American products can pose challenges for consumers. The Federal Trade Commission regulates the "Made in the USA" label, but investigations and penalties are limited. Consumers should remain cautious and do their own research to ensure product origin.

Attracting Future Generations of US Manufacturing Workers

We’ve got a real problem on our hands in America. A gap’s growing between US manufacturing workers set to retire in the next 10 to 15 years and those on the other end of the spectrum. Despite the exciting and innovative things happening in the industry, millennials’ outdated perception of shop-floor jobs increasingly precludes them from following the career path. And Gen-Z, thumb deep in their smartphones, face an even more significant disconnect. Read more

How You Can Make ‘Made in America’ Cool Again

In a world where products from every corner of the globe flood our markets, the allure of locally made items, specifically ‘Made in America,’ is experiencing a resurgence. The charm of homegrown craftsmanship, the reassurance of quality, and the boost to our economy are some compelling reasons to rekindle our love affair with products made on American soil.

This blog aims to spark a conversation on the significance of supporting local businesses and how we can make ‘Made in America’ cool again. Let’s delve into this exciting journey of rediscovering and redefining American coolness!

Read more

Why It’s Time to Bring Manufacturing Back Home to the U.S.A.

In the last decade, we’ve lost millions of manufacturing jobs to outsourcing. According to U.S. News and World Report, there are now 5.1 million fewer American manufacturing jobs than in 2001. The lure of low wages, tax advantages, and other cost savings has made for a seemingly straightforward calculus, and manufacturer after manufacturer, supported by intricate spreadsheets, has abandoned ship until offshoring has become the emerging mantra of the new millennium. U.S. companies that still manufacture locally have slowly become outliers.

Read more

Asian, Black, and Hispanic Americans Suffer from Loss of High Paying Manufacturing Jobs

On May 24th, the Coalition for a Prosperous America released a new working paper, “Job Quality Index for Black, Hispanic and Asian American workers. In this working paper, Jeff Ferry, CPA Chief Economist, and Amanda Mayoral, CPA Economist, present Job Quality Indexes for three important minority groups within the U.S. workforce: Asian, Black, and Hispanic Americans.

Read more

Mobile Maker Spaces Help Entrepreneurs Grow New Manufacturing Businesses

Makerspaces are a good idea for any community that wants to accelerate the development of manufacturing businesses in their region. According to Makerspaces.com, a Makerspace “is a collaborative work space inside a school, library or separate public/private facility for making, learning, exploring and sharing that uses high tech to no tech tools.  These spaces are open to kids, adults, and entrepreneurs and have a variety of maker equipment including 3D printers, laser cutters, CNC machines, soldering irons and even sewing machines.”

Read more

Maketory Grows New Manufacturing Companies in San Diego

It’s exciting to have a new Maker Space in Southern California. Maketory is an industrial coworking facility that provides flexible fabrication and manufacturing in a 26,000 sq. ft. building in the Miramar/Mira Mesa area of San Diego, California. Since opening in December 2019, Maketory has become a hub of creativity and innovation for inventors, innovators, and entrepreneurs as the only Maker Space south of Carlsbad in North San Diego County.

Read more

Biden Administration Must Maintain Tariffs on Chinese Goods

During his campaign, Biden laid out his economic agenda for the country: “Build Back Better, which includes a $700 billion investment in procurement and research and development for new technologies such as biotech, clean energy, and artificial intelligence.” The goal is that “the new plan will help create 5 million new jobs.” As Vice President under President Obama, Biden advocated engagement with China but changed his tune during the campaign, “calling Chinese President Xi Jinping a “thug. ” While he repeatedly criticized “Trump’s trade and tariff war with China as being ineffective and failing to protect the US economy,” the Biden Administration must maintain the steel and aluminum tariffs to have any hope of achieving his goal.

Read more

How has the COVID Pandemic Affected Maker Spaces

How has the COVID Pandemic Affected Makerspaces?

In the past several years, I have visited four makerspaces in southern California, and I recently decided to see how the COVID pandemic had affected these facilities. Makerspaces play a role in reviving the entrepreneurial “maker spirit” necessary to rebuild and grow American manufacturing.

Read more

What is the Vision for the Factory of the Future

In April 2017, the Manufacturing Leadership Council published its “Vision 2030: The Factory of the Future, which was a Frost & Sullivan White Paper sponsored by General Electric and Intel. In their vision, the factory of the future “will look like an integrated hardware and software system and “is highly automated and information-intensive… fueled by vast quantities of information from every corner of the enterprise and beyond, moderated by analytical systems that can identify and extract insights and opportunities from that information, and comprised of intelligent machines that learn, act, and work alongside highly skilled human beings in safe and collaborative environments.”

Read more

Manufacturing is Critical to Our National Defense

Manufacturing is Critical to Our National Defense

The final reason that manufacturing is important is that manufacturing ensures that the U.S. has a strong industrial base to support its national security objectives. We need to preserve our national and homeland security to be able to produce the goods that allow us to defend our national sovereignty.

Read more

Manufacturing is the Engine of American Technology Development and Innovation

The fourth reason why manufacturing is important is that American manufacturers are responsible for more than two-thirds of all private sector R&D, which ultimately benefits other manufacturing and non-manufacturing activities. Nearly 60 percent of new patents derive from the manufacturing sector and the closely integrated engineering and technology-intensive services.

Read more

U.S. Manufacturing Generates Exports

U.S. Manufacturing Generates Exports

The third reason why manufacturing is important is that the United States is still a top leader in generating manufacturing exports.

The U.S. was the world’s largest exporter until 1992, when Germany took over this position. The U.S. maintained a position as the second-highest exporter, until China surpassed it in 2008. Germany remained number one until 2009, when China surpassed it to become the world’s top exporter. The U.S. overtook Germany as the second-highest exporter in 2014. The latest data for world exports is from 2019 when China’s exports totaled $1.8 trillion, down from $2.49 trillion in 2018; the U.S. exports totaled $1.24, down from $1.66 trillion in 2018, and Germany’s exports were $1.12, down from $1.55 trillion in 2018.

Read more

Manufacturing Jobs Pay Higher Wages

Manufacturing Jobs Pay Higher Wages than Retail or Service Jobs

Continuing my series on why manufacturing is important to America, the second reason is that wages and benefits for manufacturing jobs are approximately 21 percent higher than for non-manufacturing jobs.

Read more

Why Manufacturing is Important to America

Why Manufacturing is Important to America

This week’s article begins a series of short articles on why manufacturing is important to the American economy. Our country’s Founding Fathers recognized the importance of developing a domestic manufacturing base instead of continuing to rely on imports from England, France, and the Netherlands. They established the U.S. patent system and protected the developing manufacturing industry with tariffs to discourage imports. This allowed the United States to be the world’s number one manufacturer for more than 100 years, accounting for as much as 25 percent of global manufacturing output in 2007. In 2010, China overtook the U.S. to become the world’s top manufacturing country by output.

Read more

Apprenticeship Programs Support Growing Manufacturers

Ford Adding Jobs in Chicago Area, Investing $1Billion

Ford is investing $1 billion, adding jobs at Chicago factories as it makes cuts overseas. They are investing about $1 billion in assembly and stamping plants in Chicago. The automaker is expanding production of the new Ford Explorer, Lincon Aviator, and Police Interceptor. Read more

Americans Willing to Pay More For Products With a Made In USA Label

Can the United States win against ‘Made in China 2025’?

Meet the NEW Made in Michigan Ford Truck

A V8-Powered, Manual, Lifted, Jeep-Slaying 2020 Ford Truck! Read more

College Degree Not Necessary In Today’s Job Market

At a steel factory dwarfed by the adjacent Auto Club Speedway, Fernando Esparza is working toward his next promotion.

Esparza is a 46-year-old mechanic for Evolution Fresh, a subsidiary of Starbucks that makes juices and smoothies. He’s taking a class in industrial computing taught by a community college at a local manufacturing plant in the hope it will bump up his wages. Read more

This Day, Some Well-Earned Respect For Factory Workers

Workers who make things in America always get a lot of love from the lips of politicians. Always. Before Clinton and Trump, there was Reagan, Bill, Bush, and Obama. Because shaking hands with a hard-hat is always a good photo opportunity for an elected official. Read more

Will The Skills Gap Impact Advanced Manufacturing In Small Town USA?

Most of us, regardless of our age, have heard the song popularized by Sophie Tucker and Eddie Cantor after World War I: “How Ya Gonna Keep ‘Em Down on the Farm (After They’ve Seen Paree?).” Read more

President Trump Invites The Made in America Movement to the White House

The First National Reshoring Award Scheduled For This Year

The Reshoring Initiative (Kildeer, IL) and the Precision Metalforming Association (PMA; Independence, OH) invite companies that have successfully reshored parts or tooling made primarily by metal forming, fabricating or machining to apply for the first National Reshoring Award. There will be one award for buyers and one for suppliers. Read more

Made in USA: The 2017 Most American-Made Vehicles Are…

In the United States, American-made products are highly regarded, with good reason, as they obviously boost the local economy as opposed to foreign-made products. However, are all the domestic-brand vehicles really assembled with components sourced from the United States? That’s what the Kogod School of Business figured out. Read more

The Advanced Manufacturing Landscape: How Veterans are Saving the Day

Advanced manufacturing is already one of the most in-demand industries in America due to workforce retirements and natural business growth, but it’s also an industry with a severe shortage of skilled workers. Read more

Chicago Factory’s Rare Mission: Manufacture Eyewear in U.S.A.

Millions of Americans wear glasses every day to correct their vision. But the eyewear (frames) are mostly made outside the country. Read more

How The U.S. Could Bring Back Manufacturing American Jobs

Many companies that offshored manufacturing American jobs didn’t really do the math.

For decades, U.S. companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market.

Now, a broader focus on Total Cost of Ownership (TCO quantifies all relevant costs, risks, and strategic factors) and advanced manufacturing together have the potential to end the manufacturing stagnation of the past 30 years and create millions of manufacturing jobs in the U.S.

Over the past 20 years, the boom in offshoring drove our goods trade deficit up by about $640 billion a year, costing us three to four million manufacturing American jobs.

The most direct way to reduce the trade deficit, is to substitute domestic production for imports, i.e. via reshoring and foreign direct investment (FDI) in the U.S. The result of eliminating the trade deficit would be a rapidly growing manufacturing workforce for the first time in 40 years, a rise in average wages and a 25% to 30% increase in manufacturing output and American jobs.

Related Article: Read about The Made in America Roundtable at the White House

Many companies that offshored manufacturing didn’t really do the math. An Archstone study revealed that 60% of offshoring decisions used only rudimentary cost calculations, typically just price or labor costs and ignored other costs such as freight, duty, carrying the cost of inventory, delivery and impact on innovation. Most of the true risks and cost of offshoring were being ignored.

Now is a good time to re-evaluate the cost of domestic vs. offshore production.

Chinese wages have been rising by about 15% a year since 2000. As a result, the Chinese labor cost in dollars per unit of output is now about four times what it was in 2000. We estimate that about 25% of what is now offshored would come back if companies quantified the total cost. These products would generally have characteristics such as high freight cost vs. labor cost, frequent design changes, volatility in demand, intellectual property risk, and regulatory and compliance requirements.

For these most-reshorable products, such as large appliances with high freight costs, medical devices requiring high technology and quality standards, and plastic products that are getting cheaper thanks to declining natural gas and oil prices, the offshore manufacturing cost gap vs. the U.S. is now smaller than the offshoring “hidden costs” mentioned earlier.

[clickToTweet tweet=”About 25% of what is now offshored would come back if companies quantified total cost. | #reshore ” quote=”About 25% of what is now offshored would come back if companies quantified the total cost. “]

These costs are readily quantified using the Reshoring Initiative’s free online TCO Estimator. Since our trade deficit represents four million manufacturing American jobs, the returnable 25% is equal to 1 million manufacturing American jobs.

In addition to the 25% reshorable if companies would just do the math correctly, another 25% of the offshored manufacturing jobs could come back if America can become just 15% more competitive via sustainable strategies like advanced manufacturing using robots and other forms of automation, lower corporate tax rates, and regulations and a lower U.S. dollar. In total, adding approximately two million manufacturing jobs over the next 10 to 15 years is feasible. A 3.6 multiplier effect, as per the Manufacturers Alliance for Productivity and Innovation, would take the total to a gain of about 7 million jobs across the economy.

Advanced manufacturing helps level the global playing field for the U.S. First, the number of labor hours per unit of output is reduced. Second, the gap in the labor cost per hour shrinks. For example, a highly skilled robot engineer in China makes a third to a half of American pay and not the small fraction (5% or 10%) of the low-skilled Chinese workers.

In addition, acquiring capital equipment is more expensive in China because of China’s value-added tax of 13% or 17% on imports. Fortunately, the U.S. can have automation and more jobs as we reshore and draw down the four million jobs lost to offshoring.

The jobs won’t be the same, but we see a huge potential for economic growth.

The U.S. will need to fill approximately 3.5 million manufacturing American jobs over the next 10 years, according to a recent study from Deloitte and The Manufacturing Institute. Given our low rate of training, they estimate there will be a shortage of 2 million skilled workers. This shortage is one of the largest barriers to reshoring. Fortunately, high visibility for reshoring will help increase the rate of recruitment, as students increasingly understand that manufacturing is, once again, a solid career choice.

[clickToTweet tweet=”Good news is the bleeding of #manufacturing #jobs to #offshore has stopped. #reshore #mfg” quote=”The good news is that the bleeding of manufacturing jobs to offshore has stopped.”]

According to Reshoring Initiative data, the availability of a skilled workforce and training are essential for bringing jobs back, ranking second among the reasons given by U.S. companies moving jobs back to the U.S. and foreign companies creating manufacturing facilities here. When companies reshored and failed to find the needed workforce, the transition was painful. The availability of a sufficient quality and quantity of skilled workers is often the No. 1 criterion in selecting the location for a factory and a key issue for retention and expansion.

The good news is that the bleeding of manufacturing jobs to offshore has stopped. Reshoring, including FDI, balanced offshoring in 2015, as it did in 2014. In comparison, in 2000-2003 the United States lost a net 200,000 or so manufacturing jobs a year to offshoring.

The Road Home

There are many alternative paths that might lead to a dramatic reduction in the trade deficit: stronger skilled workforce, lower corporate taxes, and regulations, border adjustment tax, lower health-care costs, lower U.S. dollar, etc.

The Reshoring Initiative is currently developing a Competitiveness Toolkit. Our objective is to offer President Trump and Congress their choice of a mix of paths that will achieve the desired reduction in the trade deficit while minimizing domestic and international resistance and unintended consequences such as inflation.

We have a long, difficult journey ahead; we need to pick the best paths.

Harry Moser is the founder and president of the Reshoring Initiative and worked for several decades in manufacturing. Sandy Montalbano is a consultant to the Reshoring Initiative.

SOURCE: MarketWatch



Did you know that buying Made in USA has a bigger impact than you know? Click here for the top 4 reasons. 

Learn how you can become a MAM brand ambassador and help support the Made in America Movement.