Made in the USA: The Pros and Cons of Domestic Manufacturing

My travels around the world have made me devoutly patriotic, and I know firsthand how lucky Americans are to be born in this time and place. However, making things in the USA is not always a no-brainer for a company trying to make a profit. It is possible, and in some cases, it's easier—but the decision to produce in the USA versus overseas depends squarely on the product you're making and the margins you need. If manufacturing in the USA is critical to your decision, there is usually a way and a path to explore. The challenge, as you might guess, is going to be the price. Most USA manufacturers are paying the same taxes and buying the same expensive groceries as you are, which means they normally have to charge a bit more than their overseas competitors. That said, I've seen exceptions to the rule and have even found factories in the USA that produce cheaper than my factories in China.

The Upside of American Manufacturing

One of the primary advantages of manufacturing in the USA is the control you have over the production process. With domestic manufacturing, you can speak to the factory more clearly and visit the factory more frequently, ensure quality standards are met, and make adjustments quickly. This level of oversight can be invaluable, particularly for complex products that require precision or a high level of customization.

Another significant benefit is the reduced lead time. Manufacturing closer to home means shorter shipping times, which can be a critical factor in industries where speed to market is essential. This is especially true for smaller accessories and apparel, where trends can change rapidly, and getting your product on the shelves quickly can make or break your success.

Moreover, the "Made in the USA" label carries a strong appeal for many consumers. It has become a symbol of quality, craftsmanship, and ethical production practices. For businesses, this can translate into a higher perceived value for their products, which can justify a higher price point. Additionally, producing domestically supports the local economy and creates jobs, which resonates with consumers who are increasingly mindful of the social impact of their purchasing decisions.

What Products Are Best Made in the USA?

While it's true that certain industries have shifted production overseas to capitalize on lower labor costs, there are specific product categories where domestic manufacturing still shines. For example:

• High-end consumer goods: Products like luxury items, custom-made accessories, and premium apparel often benefit from being made in the USA, where quality and craftsmanship are paramount.

• Smaller accessories: Items such as belts, wallets, and other small leather goods can be cost-effectively produced in the USA, especially in regions with a strong tradition of craftsmanship.

• Apparel: With the resurgence of "slow fashion," more consumers are willing to pay a premium for clothes that are ethically made and built to last. Domestic production allows for better quality control and faster response to fashion trends.

• Specialized goods: Products that require advanced manufacturing techniques or materials that are more readily available in the USA, such as aerospace components or medical devices, are often better produced domestically.

  
  

The Reshoring Trend

In recent years, there's been a noticeable trend of industries returning to American soil, a phenomenon known as reshoring. Several factors contribute to this, including rising labor costs in traditionally low-cost countries, supply chain disruptions, and the desire for more sustainable manufacturing practices. Additionally, advances in automation and manufacturing technology have made it possible for American factories to compete more effectively with overseas producers.

Industries like automotive, aerospace, and electronics have been leading the reshoring movement, but consumer goods are not far behind. Companies are increasingly recognizing the benefits of manufacturing closer to their customer base, which includes reducing shipping costs, minimizing tariffs, and improving supply chain reliability.

Examples of Successful Products Made in the USA

Several iconic brands have built their reputation on American-made products, and their success stories can serve as inspiration for companies considering domestic production:

• New Balance: This footwear brand has maintained a strong commitment to manufacturing in the USA, producing a significant portion of their shoes domestically. Their "Made in USA" collection is a testament to the quality and durability that American craftsmanship offers.

• Tom Bihn: Known for their high-quality travel bags and accessories, Tom Bihn produces all their products in Seattle, Washington. Their commitment to local manufacturing has garnered them a loyal customer base that values sustainability and ethical production.

• Klein Tools: This company has been making hand tools in the USA for over 160 years. Their products are trusted by professionals across various industries, and their commitment to domestic manufacturing has ensured a consistent level of quality.

  
  

My Unique Connection: Working with the Amish

One of the most intriguing and rewarding aspects of my experience with American manufacturing has been working with Amish communities in Ohio and Pennsylvania. The Amish are traditionally known for their exceptional woodworking skills, but in recent years, they have significantly ramped up their technology and capabilities. Most people are unaware that these communities are producing not just wood products, but also plastics, metals, and composites at a high level of quality.

This is a niche sourcing area that I’ve been fortunate enough to stumble upon and develop relationships within. I love visiting the Amish. I love the simplicity of their lives and the pleasantry of their personalities. I also find them incredibly interesting to philosophize with and listen to their stories ( have some crazy ones). What’s most remarkable about working with Amish manufacturers is their ability to combine old-world craftsmanship with modern technology, resulting in products that are both durable and finely made. In some cases, I’ve found that Amish factories can produce wood, plastic, and metal products for a third of what I’ve paid in China. This is not just about cost savings—it’s about the level of skill and attention to detail that goes into each product.

For instance, the same expertise that has made the Amish renowned for their furniture-making is now being applied to a broader range of products, allowing them to compete with and even outperform more conventional manufacturers. Their strong community values and focus on quality make them reliable partners, and their adoption of technology has allowed them to expand their capabilities without sacrificing the craftsmanship they are known for.

Conclusion: Is Manufacturing in the USA Right for You?

Manufacturing in the USA is not just a possibility—it’s a viable option for many businesses, depending on the product and the goals of the company. While the cost may be higher in some cases, the benefits of quality control, shorter lead times, and the "Made in the USA" label can often outweigh the price difference. If your product fits within the categories where domestic production excels, exploring American manufacturing options could be the right move for your business. As I’ve experienced firsthand, with the right strategy and partners, producing in the USA can lead to successful, cost-effective, and high-quality outcomes.