Jumping on the "Made in the U.S.A." Bandwagon

18 June 2014 Manufacturing Industry Advisor Blog

Retailers are increasingly praising the importance of  placing the “Made in the USA” phrase on their product packaging and labels. Customers, not only in the U.S. but worldwide, are now demanding “Made in America” merchandise. The time is ripe for savvy manufacturers and retailers to take advantage of this trend or risk being left behind.

As American-made products continue to grow in popularity with consumers, big box retailers and many others are scrambling to stock these products. Walmart recently committed to stocking $250 billion worth of domestically sourced products in the next 10 years. Additionally, many other companies are signing similar contracts with suppliers, as Reshoring trends continue to gain momentum.

Ali Murphy, CEO of William Roam, notes that her company’s hotel amenities manufacturing business uses “Made in the USA” branding as one of its major focuses. Ali says that “Most amenities are now made in China or Mexico, and it’s a real point of differentiation to be made in the USA.”  She further explains that “It’s somewhat more expensive, obviously, but the benefits are significant.”

A recent Time Magazine article championed the trend stating, “perhaps the best economic news the U.S. has witnessed since the rise of Silicon Valley: Made in the USA is making a comeback.” Boston Consulting Group also released a 2012 study finding that more than 80% of U.S. consumers are willing to pay more for products labeled “Made in the USA.” Even 60% of Chinese consumers surveyed said they would buy American over products labeled “Made in China.”

The reasons that consumers desire products from the USA are many, including:

  • Supporting the U.S. Economy – According to Industry Edge, a survey of 1,000 Americans found that 81% would buy U.S. made products because they believe it will help our economy. They know relatives and friends who are out of work, and view the product as a strategic purchase.
  • Higher Quality – The same survey found that 42% believe it will be a higher quality product.
  • Patriotism – 38% said that buying American was important in showing patriotism.

As Boston Consulting Group senior partner Harold L. Sirkin noted, “These findings suggest that there’s a big opportunity for manufacturers and retailers to command a price premium by promoting the Made in USA brand — not only in the U.S. but also in China.”

Businesses that take advantage of this current environment may indeed see increased sales and market visibility.

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