Americans Want to Buy Made in the USA
Our friends and partners in the bring our jobs home movement, The Reshoring Initiative, reshorenow.org, provided some data and explanations below on how some manufacturing industries are coming back to the USA. The reshoring initiative does the math for corporations and analyzes how, in many cases, it makes financial sense to make their products in the USA, and reshore jobs back home.
We believe that every American corporation should be required to sit down with The Reshoring Initiative to analyze their cost of doing business. The shareholders of these corporations should demand that this small effort be made to see if it is more profitable to bring our jobs home.
Harry Mosher, the founder of The Reshoring Initiative, recently commented on President-elect Trump’s efforts to keep some of the jobs at the Carrier Air Conditioning Manufacturing plant in Indiana.
“In effect Trump is reminding Carrier that the company benefits immensely from U.S.: economic size and stability; military spending; legal system; etc. In most other countries, companies know these benefits and act on them. U.S. companies have done the most offshoring despite having a broad range of cost alternatives in the U.S… Most companies do not allow for all of the costs, risks and strategic factors they should consider when offshoring. The ‘nudge’ balances these off.”
Most Americans want their President, Senators and Congressmembers to do what Trump did, and nudge these corporations into keeping their existing jobs and plants in the USA, and to nudge them to bring their jobs and plants home.
“When President Obama said that the manufacturing jobs and plants that disappeared from our country were never coming back, he was wrong. We need to remind these corporations of the benefits of hiring Americans, and the positive PR they can receive from making it in America. I hope in the summer of 2017 that all of us buy a Carrier Air Conditioner,” said Frank Spotorno, co-founder of bringourjobshome.com.
Some of the manufacturing jobs have started to slowly come back to the USA. The Reshoring Initiative’s 2015 data report shows that Government incentives, ecosystems/localization, proximity to customers, and skilled workforce topped the list of reasons that corporations have resourced jobs back home. At the same time, companies cited lower quality, supply interruption, high freight costs and delivery as leading problems offshore. Cumulatively since 2010, rising wages and total cost have been the major drivers of reshoring decisions.
Americans want to buy more Made in USA products, and this preference can be an important impetus for bringing U.S. manufacturing back home. Recent consumer preference surveys, show there is a decisive preference for, and an overall positive perception of, American-made goods: 97% have a positive view of goods manufactured in the U.S. (AAM, 2012) Americans on the whole also have a positive opinion of companies that manufacture in the U.S. (91%), believe it is important to manufacture in the U.S., and think the government should take steps to support American manufacturing. (AAM, 2012)
About 265,000 manufacturing jobs have been brought to the U.S. from offshore in the last six years, according to the Reshoring Initiative’s calculations. That job gain is the result of both new reshoring by U.S. headquartered companies and FDI (Foreign Direct Investment) by foreign companies. The gain represents about 31% of the total increase in U.S. manufacturing jobs since the low of 11.45 million in February 2010. About 12.32 million Americans are now employed in the manufacturing sector. In fact, our research shows that as much new manufacturing work is now coming to the U.S. as is leaving the country each year.
The most glaring fact from The Reshoring Initiative, is that 25% of the products now offshored, representing about 1 million manufacturing jobs, would come back if companies allowed for all relevant costs, risks and strategic impacts of offshoring. The longer term challenge is to balance the trade deficit and bring back another 3-4 million manufacturing jobs from offshore. By reducing our trade deficit, reshoring has the potential to increase U.S. manufacturing by 25%, curtail unemployment and the budget deficit, improve income equality, strengthen our defense industry and motivate skilled workforce recruitment. Achieving this potential requires your help at your company, in your community and at the store!