With discussions of
outsourcing and supply chain logistics, I began to reflect on Americans and
their affinity for products “Made in the U.S.A.” Due to personal preference,
overt national pride, or support of jobs for Americans, it seems that many
people appreciate the stamp stating that the product they bought was made in
America. It seems that this trend had started becoming more prevalent in the
past ten years, but has recently escalated in importance. I wondered how
significant people’s preferences for “Made in America” really were, and if it
was enough to dictate manufacturing locations and change supply chain
logistics.
Evidence supports that
U.S. manufacturing is becoming more preferred, and therefore more competitive.
In addition to rising labor costs in China and other countries, consumers seem
to be emphatic about purchasing goods manufactured in the United States [1].
And it is not only Americans that will pay more money for products made in
their own countries, as many European nations prefer products made in their own
countries, but interestingly enough, 61 percent of Chinese consumers would pay
a premium for products manufactured in America as opposed to goods made in
China [1]. Part of this makes sense – it seems natural that Americans prefer products
made in the United States and are willing to pay more for a higher quality
product that is made in America [2]. What becomes more intriguing is the fact
that almost half of Chinese consumers, too, prefer American-made products to
equivalent Chinese-made products, and are willing to pay almost 80 percent more
for certain types of products if they are manufactured in the United States
[2]. If this trend continues, manufacturing may in fact be moving back to
America, having serious implications on supply chain logistics and product
consumption.
It seems that the
tables are turning due to a multitude of factors, but consumer
attitudes and quality preferences cannot go unnoticed: American manufacturing
has certain advantages, one of which is the simple stamp stating “Made in
America.”
Question to consider:
1. Boston Consulting Group conducted a study in August 2011 on
manufacturing in America highlighting economic trends leading to the new surge
in American manufacturing [3]. What other factors – aside from labor costs and
consumer attitudes – can be attributed to the “Made in America” sensation?
[1] Kim, Kathleen.
“Study: Consumers Prefer ‘Made in USA’.” Inc. November 18,
2012. http://www.inc.com/kathleen-kim/consumers-prefer-products-labeled-made-in-the-usa.html.
[2] McCue, TJ. “Made
in America Has a New Ring.” Forbes. November 19, 2012. http://www.forbes.com/sites/tjmccue/2012/11/19/made-in-america-has-a-new-ring/.
[3] Sirkin, Harold L.,
Michael Zinser, and Douglas Hohner. “Made in America, Again.” Boston Consulting Group. August 25,
2011. https://www.bcgperspectives.com/content/articles/manufacturing_supply_chain_management_made_in_america_again/.
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