At the same time, the picture is not simple. Some plants are booming while others are cutting staff. Companies are investing billions in U.S. facilities, but the number of jobs created is smaller than in past eras, because today’s factories are more automated and more efficient. To understand the promise of today’s factory jobs, we need to look at how technology, policy, and people are changing what “Made in America” really means.
Tag Archive for: made in USA
A few months ago, while searching for a birthday gift for a friend, I thought I’d struck gold with a coffee mug stamped “Made in USA.” Imagine my embarrassment when, after some digging (and a slightly suspicious price tag), I discovered it was Made in China.
Turns out, I’m far from alone: the Federal Trade Commission (FTC) is getting tough on companies faking their “Made in USA” claims, disrupting not just shoppers’ trust but the entire marketplace. Let’s dig into why this crackdown is a big deal for brands and buyers, and how you (and I) can avoid being duped again.
TL;DR: The FTC’s push for honest ‘Made in USA’ labeling means bigger consequences for cheats—and more chances for authentic American brands to shine. Seek out transparency, ask questions, and support the makers who truly keep it local. Read more
Why “Made in the USA” Still Matters
For generations, the label “Made in the USA” has stood as a symbol of quality, patriotism, and economic strength. In today’s globalized economy, the significance of American manufacturing has evolved but remains more crucial than ever. As reshoring/insourcing and buying local gain traction, consumers, businesses, and policymakers are revisiting what it means to support American-made goods.
In recent times, Kubota North America Corporation, a prominent player in the tractor and heavy equipment manufacturing industry, has been handed a hefty $2 million civil penalty by the Department of Justice. This penalty, the result of a legal wrangle involving allegations of misrepresenting the origins of replacement parts, has been dictated by the Federal Trade Commission (FTC).
The FTC claims that Kubota has breached the Made in USA labeling rule, asserting that the company failed to amend product labels to denote the true origins of parts accurately. This instance is not the first of its kind, as it echoes a similar violation by a Kubota subsidiary in 1999.
It’s critical to note that Kubota is displaying an active commitment to resolving these issues, cooperating fully with the U.S. government and putting into place improved labeling accuracy measures. Such an unprecedented case brings into question the broader implications for other manufacturers and the enforcement of the Made in USA Labeling Rule.
Read moreBuy 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.
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.
When I wrote the chapter on what manufacturers can do to save themselves for my first book, Can American Manufacturing be Saved? Why we should and how we can, published in 2009, one of my top recommendations was to begin the Lean journey to become a Lean manufacturer.
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Millions of Americans wear glasses every day to correct their vision. But the eyewear (frames) are mostly made outside the country. Read more
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.
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.
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It began as a ripple and is becoming a powerful wave. I’m talking about the reverse migration of manufacturing from China to the U.S.A. — known as reshoring — that appears to be gaining momentum.
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Historically there has been a lot of hype around the American-made topic, but there is a heightened awareness in recent years, which has drawn more attention to this subject now more than ever. This is primarily due to reshoring by major manufacturers, the US Government with SelectUSA and STEM programs, and all of the issues we face with counterfeiting and sub-par products.
Almost every day, I find an article or a label that says, “Made in USA” or “American made.” Products I see with the Made in USA label range anywhere from batteries, hand tools, and hardware, to outdoor furniture and household appliances, to groceries and dog food — not to mention the Made in USA mandate for many government-driven programs. This is similar to every time I communicate with my wife and kids because whenever there is a lot of talk, there are also a lot of misunderstandings, misstatements, and misconceptions.
Related: Buying American Made: Ways To Express Your Values with Your Pocket Book
What exactly is American-made, and why does it matter?
If we want to get technical, American-made can mean many things. Is it South American-made? North American-made? Is it made in Mexico? What is it?
What exactly is Made in USA?
According to the Federal Trade Commission, a product is made in the USA if it is “all or virtually all” made in the USA. What does “all or virtually all” mean? That phrase “means that all significant parts and processing that go into the product must be of US origin. That is, the product should contain no — or negligible — foreign content.” My interpretation is that, most importantly, you be honest. Say so if it is made in the USA with domestic and imported components. Say so if it is manufactured in the USA and packaged in Mexico. Say so if it is designed and assembled in the USA but manufactured in China.
Now on to the heart of the subject, why does it matter? Why should I care? I want the best price … It matters more than we accept.
RELATED: If you are a manufacturer, a service provider, a producer of goods, or if you employ American citizens and are creating jobs, find out how a MAM partnership will help you
Why it matters
- The manufacturing powerhouse After WWII, the US was almost 50% of the global economy, bringing manufacturing to its peak. We produced 80% of the world’s automobiles during America’s manufacturing peak. Almost all of the products we used were manufactured in the US. We manufactured steel, textiles, furniture, planes, appliances, and shoes, to name a few. Well, since 2001, more than 56,000 factories have left the US. Now, I am not suggesting every single product we use needs to be manufactured here in the US, but we need to be and remain the world’s manufacturing powerhouse.
- Manufacturing employs people — At its height, US manufacturing employed more than 19 million people. Over the last couple of decades, along with losing our factories, we have lost our jobs. According to the National Association of Manufacturers (NAM) and the Bureau of Labor Statistics (BLS), manufacturing in the US currently employs just over 12 million people. Although losing more than 7 million jobs is alarming, what is more alarming is that, unlike the service sector, for every manufacturing job, there are approximately 1.6 jobs created. For example, in The American-Made Movie, we see the Louisville Slugger, an American-made product supporting a great American tradition. To create one baseball bat, there are loggers to cut trees, truck drivers to deliver them to the mill, mill workers to create billets, truck drivers to deliver them to the factory to manufacture the bats, marketers to market them, and retailers to sell them. Manufacturing employs people.
- Manufacturing keeps the US competitive — According to the NAM review of National Science Foundation reports, manufacturers in the US perform two-thirds of all private sector R&D in the nation, driving more innovation than any other sector. Our engineers, techs, and science professionals keep us abreast of technological advancements and developments.
What are your thoughts? Does it matter to you? Does it matter enough to consider a change? Let us know in the comments below.
Need help to find things that are Made in USA? Check out a few of our favorite places to shop.
Do you have a favorite brand or shop? Let us know! We are always looking for new brands to celebrate. S
Did you know that buying Made in USA has a more significant impact than you know? Click for top 4 reasons.
Learn how you can become a MAM brand ambassador and help support the Made in America Movement.
See the MAM Approved top companies that are Made in USA:
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