With an increase in consumer demand for Made in the USA products, a number of businesses are now reshoring their production in the states. What’s more, many retailers are now looking to potentially capitalize in the sudden surge of interest in American made products.
Buying American Contributes To Improvement Of Economy
Consumer Reports did a recent write up revealing some interesting statistics related to consumers and products made in the US. They conducted a survey and found that some 80 percent of those asked felt that buying American made products not only contributed to the improvement of the economy, but helped create jobs for Americans, and both were reasons people were willing to buy US produced merchandise. In fact, many of those surveyed were willing to pay upward of 25% extra just to get a product made in the US. Many consumers feel that American made products are of greater quality, and some consumers simply like the patriotic expression found in purchasing American made merchandise.
At one time, the United States manufactured everything from steels to cars to textiles. However, compare statistics in 2010 to those in the early 1940s and America had definitely declined in the manufacturing arena. Now, change is in the air, and with the cost of natural gas on the decline and wages in China on the rise, manufacturing is coming back home to the states.
Consumers Interested In American Made
Consumers are interested in American Made products because it is their way of being supportive of their country. What’s more, there is a strong belief that Made in the USA merchandise is not only better quality, but considerably safer than products from overseas.
Consumers are increasingly gravitating toward Made in the USA products because they want to support the local economy and job growth, as well as because of the belief such products are safer and of higher quality. According to a recent Consumer Reports survey, “almost 8 in 10 American consumers say they would rather buy an American-made product than an imported one,” with more than 60 percent of consumers willing to pay 10 percent more for it.
What is considered a product made in the US, and what can retailers do to capitalize on increasing consumer interests?
Made in the US products must be almost entirely or entirely made within the boundaries of the United States according to the FTC. Essentially, all processing and major components need to be from the United States. To be considered a USA made product it cannot contain “foreign content.” As per information made available from the Reshoring Initiative, over 300 businesses have re-shored their manufacturing since 2010, and it resulted in nearly 40K in jobs by 2013.
Retailers would be wise to invest in Made in the USA products, and in doing so would be emulating the likes of Walmart. Retailers will however, have to be wary of imported imposters claiming American made status, as some companies create misleading labels and the true country of origin only appears in the fine print.
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