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"Made in America" Comeback Good for Manufacturers

Posted 6:29 PM by

As the U.S. continues to work its way out of the most recent recession and with unemployment remaining fairly high, many consumers are starting to become more aware of where products are being are made. The idea of of buying "Made in America" is growing among consumers, and the timing could not be any better for U.S. manufactures. 

For example, as China's economy has grown, so has the cost of doing business in China.  The average wage in China has increased 10%-25% in the past year, in addition to the increased shipping costs from high oil prices. Therefore, many U.S. manufacturers have been looking at bringing production back to the U.S. as part of an inventory cost management plan

When you put these two factors together, it is a perfect time for a manufacturing company to perform an operational assessment, as well as evaluate its manufacturing production planning process to determine if operations previously off-shored should be evaluated to be "re-shored."

About the Author

Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group as well as being a member of the Not-for-Profit and Governmental Services Groups. Justin works with clients to help them avoid risk and maximize efficiencies by keeping an eye on their bottom line and helping ensure accurate financial reporting. Connect with him on LinkedIn.

Comments (1)
Gregg Markley wrote
For 25 years (BSU 86') I've watched manufacturing move out of America. As a distributor of Fasteners that are manufactured in numerous locations across the globe, I have seen manufacturing shifts for several years. The last two years, however, are very encouraging. The TARP projects brought on by the stimulus package have required "Made in America" components. This has driven our sales to an all time high. 2011 was our best year ever and we are currently up over 17%. I fear this may not continue however, because the majority of the America does not want "the government" making stipulations like "made in America". Business' wants to make their own decisions, and normally that means "buy cheaper", even if it is not "Made in America". I understand that feeling but we have benefitted greatly from the "Made in America" stipulations.
Posted Aug 1 2012 10:10 AM
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