Manufacturers Come Back to America
U.S. companies contemplating bringing some/all their manufacturing back to the States take heed: Most Americans want to buy American – and are willing to pay more for domestically made items, new survey data reveals.
More than 69% of consumers and industrial buyers prefer buying U.S. made products – and more than 83% are willing to pay up to 20% more to have a “Made in the USA” sticker on said product.
These results are according to a survey earlier this year conducted by the Reshoring Institute, Shale Directories reports.
The head of the Reshoring Institute, Rosemary Coates, will be a featured speaker at the Eighth Annual Utica Downstream Conference, scheduled for Nov. 19, at the Holiday Inn Canton (Ohio). The one-day program is produced by Shale Directories and the Canton Regional Chamber of Commerce.
The primary reason buyers are willing to pay more for U.S.-built goods is one word: quality, or at least perceived better quality of Made in the USA goods, according to the Reshoring Institute survey.
The survey results are important because they give teeth to anecdotal evidence that more and more companies are “reshoring” at least a portion of their manufacturing – foregoing usually cheaper labor costs for more control of the manufacturing process, and lowering transportation costs.
And now, as the world deals with the Covid-19 pandemic, the importance to U.S. companies to have manufacturing in their “backyard” has become more critical.
“Reshoring is today’s hottest topic in business,” according to Rosemary Coates, executive director and Chairperson of the California-based Reshoring Institute, told Shale Directories.
“We are pleased to have Rosemary at our Eight Annual Utica Downstream Conference on November 19th at the Holiday Inn at Belden Village in North Canton, Ohio,” said Joe Barone, President and Founder, Shale Directories. He further added, “Her presentation will make Ohio business and government officials aware of American strong desire to Made in the U.S.A.”
Coates said while the reshoring movement began in 2012 during the (Mitt) Romney-(Barack) Obama Presidential race, the 2017 Tax Reform Act and trade wars with various countries, primarily China, fueled the momentum.
“But the pandemic has had the greatest impact (on reshoring) because it has exposed manufacturing risk and vulnerability,” Coates told Shale Directories. “Now, companies are actively working to bring manufacturing back (to the U.S.).”