What it takes to have it MADE IN THE U.S.A. →

Made in the U.S.A.

Why are American people willing to pay more for products made in the U.S.A. versus the products manufactured in other countries? Why do American companies pass up on larger margins to keep the manufacturing, and all facets of operations in the United States? With these questions we'll begin unraveling what it really means to have it made in the U.S.A.

There are many factors which influence consumers decision-making process, things like TV and radio ads,  friends Facebook likes, discount coupons in local magazines, emails with special offers, internet search, the list goes on. In the modern day consumer behavior is a constantly changing platform, here's what marketing strategists think of what influences consumers.

Companies play an influential part in this process as well by pushing their brand awareness, packaging that stands out, price matching, rewards programs for their loyal buyers, just to name a few. 

Consumers make conscious decisions on what to buy mainly based on sociological, psychological, rational, and practical reasons, however majority of buyers may not consider the origin of the products they pay for, or what it took to make the product, the quality of materials used in making, and who was behind the assembly line.

Over 88% of American people buy American made products to support the American economy, and manufacturing jobs. That's just American mentality, but there is more to it. 

Integrity of American Manufacturers

For over a decade American corporations have outsourced their manufacturing, and operations to the foreign countries, where labor, tax breaks, rental, utility costs were significantly lower than in the U.S. However, despite of all these attractive advantages, other countries posed political, and intellectual property risks. 

 In 2010, following the Reshoring Initiative, the migration of manufacturing jobs began, re-establishing local sourcing and production, as the costs of running foreign factories started to rise. Other obvious reasons are, people want to buy products that say "Made in the U.S.A.", and the culture of the modern day manufacturers, which has a hunger for innovations, and automation.  

Moving forward, the United States positions itself competitively in the global markets, and why wouldn't it?! All new technological advances come from the states, to what other countries can't compete due to their local legislation, lack of infrastructure, shortage of skilled labor, and lack of financing. U.S. factories employ robotics to replace manual labor intensive jobs, thus increasing productivity, quality, achieving better product pricing., and more. The basis of manufacturing has been shifting towards research, and development, and this trend got a new name - brainfacturing. 

This video is provided by Science Channel, for more interesting insights on manufacturing processes, watch How It's Made.

When integrity means everything to a manufacturer, they are passionate about making a product that their customer needs, and would enjoy. They are not in business to make a quick profit by selling something they made. Manufacturers, who value integrity, will make something that, they believe, will change the world. With that thought in mind, they deliver the best product they can imagine, and turn into a reality, and to do so, these manufacturers spend millions of dollars researching, continuously testing, until their precision work produces an absolutely perfect prototype, giving people a genuine product they deserve, and pay for. Their integrity is in the integrity of their product.

American corporations annually allocate millions of dollars in support of various charities, including donations for medical researches to forward medicine, and not just for themselves, but for everyone in the world.

History of American Manufacturing

In colonial days local craftsmen were serving their communities by basing their manufacturing stations in their households. The very first factory in the United States was built by Samuel Slater in 1790, a cotton-spinning mill based off of Pawtucket, Rhode Island. Slater used the technology he brought from England. This was the start of American industrial revolution. People started importing machines from England, forming new larger businesses, and moving manufacturing out of their homes. That formed factories. 

Inside Slater Mill, Hetherington Spinning Mule - Picture provided by Slater Mill Historic Site

Inside Slater Mill, Machine Shop over the water mill - picture provided by Slater Mill Historic Site  

These brave craftsmen, and entrepreneurs, faced excessive challenges. It forced them to build harsh working environments for their employees in the early 1800s. Factory workers had to work long hours,  and have no breaks in between. Other challenges included costly English machines that had to go through exporting restrictions, expensive duties, packaging, transportation. These challenges influenced the local scientists, engineers, and mechanics to invent new ones that best fitted their needs. They were cheaper, easier to operate, and the new machines helped to save in labor. Soon American manufacturers designed, and made machines that started excelling the ones made by the British, which led the United States to export some of the finest products, such as high-pressure, and steam engines to England, Russia, and South America.

By the time of the American Civil War (1861 - 1865), there were 1200 cotton factories, 1500 woolen factories, in the United States. The total number of factories during the Civil War, when the United States was divided into 3 parts, there was 101,000 factories with 1.1 million factory workers in the Union States, 21,000 factories with 111,000 factory workers in the Confederate States, and 9,000 factories with 70,000 factory workers in the Border States.

Civilian Occupation in the U.S.A. during the Civil War

Other historical events that played a big role in building the American manufacturing were Statehood, the Gold Rush, and the Great Depression of the 1930s. 

The automotive industry was born here in the U.S., and the biggest historic figure, who played a vital role in it was Henry Ford with his famous Model T, the affordable car that made it a necessity, and not a play toy for the rich, and his invention of the assembly line method of manufacturing, which helped to reduce the price of the cars he manufactured. Both of these big innovations happened in the same year of 1908.

American middle class was built on manufacturing. By the 1920's 20% of the nation's population was working in the manufacturing industry. Cities were created around the industrial areas, the existing cities grew larger. Women became independent through the jobs they held in the textile factories, getting paid triple to house servants wages. 

Making Greener Choices

The twenty first century is the era of awakening for all manufacturers around the world. They've had a good run for a few hundred years, not worrying about the environmental impact they were causing, even though for the past few decades they've heard scientists, and environmentalists tirelessly warning of the effects brought onto the environment. 

Solar Collectors on the rooftop of Walmart - picture provided by CleanTechnica

Hydroelectric dam in Wisconsin - picture provided by Journal Sentinel

Industrialists with the goal to build sustainable manufacturing have rapidly started investing in researching, and developing renewable energy, and clean technology. With renewable resources of our planet we can create electricity through solar collectors, hydroelectric power, wind turbines, and biomass. With these environmentally friendly energy supply systems we can potentially reduce pollution, and carbon footprint, waste, and slow global warming, as well as reduce the use of natural resources. To assure a more cost effective transition of factories to use these alternative energy technologies, special financing programs have been put into the effect. Despite of all the efforts, none of these investments will be effective without the enacting legislation that will go hand in hand with "green" manufacturing.

Wind Turbines - picture provided by Apple

Manufacturers have come to understand the time to act on climate change is now. The process of permafrost thawing has begun, what caused it is massive carbon emissions. More signs of global warming are evident through irregular sparks of wildfires, rising seas, and animal migrations. All this is happening in the state of Alaska. 

From large to small-sized businesses, including start-ups  in the industries of healthcare, consumer products, high technology, education, and retail, have been taking leadership in the efforts of finding solutions to our environmental issues. The number of American companies, going "green", is growing every year. Newsweek in partnership with Corporate Knights Capital considered close to 500 companies in ranking America's Greenest Companies 2014, the world's largest companies on corporate sustainability and environmental impact.   

True or Fake? 

It was out of question, for over a decade China was the best place to build manufacturing plants. It had the low-cost labor, rapidly growing domestic consumer base, and government regulatory incentives. A tremendous wave of foreign investments boosted Chinese economy, resulting in the growth of its middle class, which consequently led to the wages, and benefits of the Chinese factory workers going up by 15%-20% a year.

The long years of outsourcing resulted in the decline of U.S. manufacturing base, thus causing material shortage, and many companies were forced to have parts to the products made overseas. There comes a problem, each company had their own interpretation of what was considered American made. 

Even though the Federal Trade Commission (FTC)  has little to no say in what wording companies can use when marketing, and branding their product, but FTC clearly outlines standards to who, and why someone can use "Made in the U.S.A." label, and they make sure customers receive a clear message about where the product came from. For instance, Apple products read "Designed by Apple in California. Assembled in China." The company would have been in trouble if it didn't state where the products were actually originated, and imported from. The Fair Packaging and Labeling Act of 1967 regulates what information has to be disclosed, including the names, and locations of manufacturers, packers, or distributors. However, there might be no details about where the contents were originated. 

Consumer Reports conducted a survey, where it was revealed that consumers of appliances preferred American made products compared to the ones made abroad for their higher quality. The high quality comes as a reflection of increasingly flexible, and skilled workforce, resilient corporate sector, and U.S. workers higher productivity. Some companies might place labels, or design features of the American flag with the intention to mislead, playing on consumer sentiment. 

The Federal Trade Commission standards determine which company is committing fraud by slapping "Made in the U.S.A." label on the products, and which company has a legitimate claim. The presence of an American flag on the packaging, or other labels does not verify the products origin. Another way of testing the product is to look for the "Country of Origin" marks that are placed by the U.S. Customs and Border Protection on products imported in to the United States. Accordingly, the products manufactured within the country do not bear this type of stickers. There are lots of sources, where you can find the list of companies, or products that are truly originated in the U.S. 

Foreign Labor Laws

We are seeing tendencies of workers in developing countries of Asia, Africa, and Latin America, coming together, organizing unions in the battle to improve the laws that regulate overall working conditions, set fair wages, limit daily, and weekly working hours, and protect workers rights. Many developing countries, including China do not meet labor law standards. The workers rights are ignored, they face daily threats, violence, and sexual harassment. In the countries of Colombia, and Guatemala, workers can not freely exercise their rights without risking their lives. Unfortunately, the labor unions in the developing countries represent a powerful political force, thus distorting the true reason of labor unions existence.

What's worse is that the reduced government regulations allow child labor. According to UNICEF there are 246 million children between ages 5 and 14 being employed around the world. This discussion is beyond the talks about skilled labor versus hiring cheap unqualified workers, or how these companies should acknowledge that the greatest asset of any company is its employees. Among countries that forces  child labor is Uzbekistan, the world's fifth largest cotton supplier in the world.

Some of the largest retailers are taking a big part in the continuous opposition to the forced child labor by signing a Pledge Against Child and Adult Forced Labor, committing to not source Uzbek cotton for the manufacturing of any of their products.

One of the most important questions we should ask ourselves before buying anything, giving our money, and contributing to companies, who run unethical manufacturing operations is, where the product came from, if it's made of harmless materials, if a forced child labor was used in making the product, if the company selling it to you is transparent about the product contents. These are the questions, which should be running through our heads, before we even think of the price. Wouldn't you pay 10%-20% more for a clean product with the fully disclosed manufacturing background of it?

American manufacturing is a proud tradition with the spirit for innovation, and passion for making the finest quality products. Management, talented and qualified workforce, automation, continuous development are all key elements of gaining the competitive edge by the U.S. manufacturers in the worldwide arena. American manufacturers are proud to say that their products are "Made in the U.S.A."