Local business owner leads movement encouraging consumers to buy … – Lancaster Newspapers

Don Rongione believes every person has the power to revive the economy and create hundreds of thousands of jobs.

His message is simple: Buy American.

The longtime CEO of the Adamstown-based Bollman Hat Co. is the founder of American Made Matters, an organization that says consumers can make a difference by making an effort to buy products produced domestically.

The concept is something many local business and economic leaders are on board with.

Tom Baldrige, president of the Lancaster Chamber of Commerce & Industry, says any effort that promotes local manufacturing is one he can get behind.

“Manufacturing is an absolutely essential part of our economy and it adds value to Lancaster County in so many ways beyond simply the products that are produced,” he said.

Lancaster County Workforce Investment Board executive director Scott Sheely is excited about how the movement could bring good-paying jobs back to communities.

But Ken Smith, chair of Millersville University’s economics department, is a little skeptical the campaign will be effective.

He says the question is simple: Will people support the message if it means paying more at the cash register?

Building message

Rongione is hoping they will.

“Our mission is to educate consumers that buying American-made products strengthens the American dream,” he said.

The goal is a personal one for Rongione, who oversees Bollman’s 275 employees — 100 of whom are directly involved in the manufacturing process.

About 10 years ago, Bollman saw an onslaught of hats coming in from foreign countries, like China, that took a big chunk of its business.

“We were losing over $3 million a year,” he said. “We just didn’t have enough orders coming in to support the workforce we had, so we have to lay off about 100 employees — some that had 30 or 40 years of service.”

Rongione said it was the most painful business decision he ever had to make and it got him thinking about what he could do to prevent it from ever happening again.

That’s when he came up with the idea for American Made Matters.

In 2009, Rongione recruited a few manufacturers from other industries that had the same interest. The group now boasts more than 220 member companies from 38 states that focus on trying to convince consumers that they can bring back the American dream one purchase at a time.

Rongione says that for every new manufacturing job, there is potential to create three additional jobs. Those positions range from research and development to engineering to truck driving.

“Our country became the world leader that we are largely on the back of the strong manufacturing base that existed in this country,” he said.

That industrial strength that we had, he argues, allowed us to improve our standard of living and provide opportunities to buy houses and send our kids to school.

But there came a time when people thought we could send manufacturing jobs elsewhere and focus on being high-tech innovators, but the plan was flawed.

“Once those jobs go someplace else, the research and technology goes with it because you want that as closely connected with your factories as possible to accelerate the process,” he said.

The only way to bring jobs back now, he said, is for consumers to exercise their economic clout by looking for the American Made Matters logo.

The organization has two criteria for allowing its member organizations to use its label on goods: at least 50 percent of product costs (labor, materials and overhead) must be incurred in the U.S. and its final assembly must take place here.

“By buying 5 percent more U.S. products we can create a million jobs,” he said. “The ripple effect that could have on communities, from raising the tax base to lowering unemployment, would be phenomenal.”

To encourage people to do just that, the organization has declared Nov. 19 the first annual American Made Matters Day.

On Nov. 19, consumers are asked to purchase at least one American-made product to show their support for U.S. manufacturing. Rongione hopes the movement will continue throughout the holiday shopping season.

The average American will spend $700 on holiday gifts and goodies this year, the National Retail Federation estimates. If everyone spent just $64 on American-made goods, the result would be 200,000 new jobs, Rongione estimates.

That statistic was enough to get Manheim lawmaker Mindy Fee on board with the movement.

“I really wasn’t looking at labels before I learned about all this, but I am now,” she said.

The Republican state representative likes the idea so much that she stepped forward to support a resolution that officially recognizes Nov. 19 as American Made Matters Day. The bill passed unanimously in the House and is awaiting approval in the Senate.

Rongione acknowledged that it may be cheaper to purchase products made overseas, but believes people are willing to pay more when quality and durability are a concern.

He stressed that he’s not asking everyone to buy only American-made products — just 5 percent more.

But finding items made in America can sometimes be a challenge, so the organization has made it easy for consumers to find its approved products on its website.

The bottom line

An advocate for all industries, Baldrige says he also understands why companies have decided to relocate. Competing in the free market, domestically and internationally, is a vital part of staying afloat.

“Over the years, American companies jumped on the opportunity to expand their markets across the world, and nobody can blame them for that,” he said.

Smith said business leaders were simply trying to do what they’re supposed to do — make money.

But, he pointed out, corporate owners aren’t the people who profited from the move overseas. Consumers benefit from lower prices, which are a big reason why inflation remains under control.

Smith said campaigns similar to American Made Matters have failed to capture the kind of success needed to make a lasting impact on the business market.

“The concept sounds good but when it comes time to buy a pair of jeans, will people pay an extra $10 for a ‘made in America’ label?” he asked.

Smith, who teaches labor economics, said there are studies to support the idea that consumers will pay more for products in America. However, as long as energy and labor costs remain low in foreign countries, he believes profits will keep production overseas.

“It generally comes down to the bottom line, that most companies answer to shareholders who want to keep profits up,” he said. “Production will only come back to the U.S. if it becomes profitable again.”

Which, according Smith, might not be that far down the road.

“Energy and labor costs are starting to rise in places like China, and it could end up being more cost-effective to move manufacturing back,” he said.

Baldrige recognizes that as well.

“Now, as other countries become more developed and sophisticated, there certainly is a renewed push to bring those jobs back,” he said.

The workforce

Sheely says finding enough skilled workers when those companies come back is something he devotes his time to.

Sheely is concerned about the “skills gap” — a shortage of workers with the abilities and knowledge necessary to fill manufacturing jobs.

“Lancaster actually has a good number of these jobs compared to many other counties in the state, but companies need workers who won’t need on-the-job training because they’ve gotten it in school,” he said.

To fix that problem, Lancaster County has joined a state initiative, PA Made Again, aimed at creating and retaining manufacturing jobs by ramping up efforts to get workers the education they need.

And the group recently found out they are getting a boost to do exactly that.

The organization, which includes 52 counties in the state, received $1.8 million to use toward projects that support skill development and encourage reshoring of advanced manufacturing jobs.

The grant is part of the Make It in America Challenge, a program initiated by President Barack Obama’s administration to spur job creation and business investment.

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