Made in the USA
Where do the products you use on a regular basis get made? Many of us don’t even look. We just buy whatever we’re used to or whatever is on sale and don’t think about it. There’s a push, though, to increase manufacturing in the US. However, this is contingent on the law of supply and demand. If consumers in the US demand US-made goods, manufacturers will begin to supply more US-made goods. It really is down to us to vote with our purchasing power as to where our products originate. Is it really important, though? Why, yes, it is.
Growth
Even with the small grass-roots push for more American-made goods, manufacturing increased in both 2019 and 2020. The projection for manufacturing in the US in 2021 is for more growth, but less than in the two previous years while still out-pacing the growth of the general economy. The growth occurs for three reasons. One is the push by Americans for more US-made goods. The other two are increased exports and increased capital gains.
Other Factors
While these are big reasons why manufacturing is experiencing growth in the US, there are other influences that have a big impact. Our slowly strengthening economy works towards manufacturing’s benefit, as does the quality of output from American workers. Transportation and energy costs are fairly level, which aids manufacturing growth. Our government chips in by providing a both a favorable regulatory situation and tax policies.
Don’t underestimate how important a skilled workforce is. American manufacturing employees have had to balance maintaining the quality of their production with a changing landscape that includes incorporating robotics into their day-to-day functions, updated environmental laws and significant technological advances like 3D printing.
Community Impact
We’ve all seen what happens when a manufacturing plant leaves a community and it’s not pretty. The converse is also true: attracting a manufacturing plant to your location has a positive impact. Not only does the business employ local people, the tax revenue from both the business and the increased salaries bolsters your local government. Then there are the support businesses attracted to your location. Some of these support businesses are utilized on the company level like suppliers and goods transportation companies. Others like grocery stores, department stores and even car dealerships are there to serve the company employees. These supplemental businesses employ people from your local community, too.
While ensuring a “Made in the USA” label on your products can inspire pride, it also provides a practical way of supporting both our American workforce and economy.
