As most people probably know, there has been a lot of talk of what is going to happen with companies who manufacture overseas when the impending tariffs are put into place. While the appeal of overseas manufacturing was once the lower costs, this will no longer hold true. However, many brands are under the impression that manufacturing in the United States is just as costly. Not only is this untrue, but there are a ton of other incredible benefits.
Let’s break down pricing. While the typical belief is that American manufacturing (whether it be apparel, automobiles or any other industry) is more costly, this is no longer true. If you were to look at the labor units costs, (what it costs you to pay a member of your team to create one unit of your product) you will realize that those costs have decreased in the US and have increased everywhere else. This means that while there might be a slight initial increase in overall production costs, the ROI of keeping production in the States is much higher.
We’ve mentioned before how when you produce in the United States, you are going to receive higher quality products. What this means is that you can charge more for the products. While some companies may fear that this will deter customers, it will actually do the opposite. 80% of consumers look for a “Made in the USA” label and 60% are ready to pay up to 10% more for products that have brought their production back home. This number is only going to climb as more and more consumers demand to know the story behind their product and that is nearly impossible to do when your supply chain is fragmented and sent to other countries.
Manufacturing in the US will allow for your brand to not feel backed into the corner for a high Minimum Order Quantity (MOQ). Overseas manufacturers pressure brands of all sizes to order an unnecessary amount of products, leaving them with excess product and wasted money. In the US, however, manufacturers are able to work with you at as little as 50 units. This allows brands to order only the quantities they need and then have their supply chain close enough that if they need more, they’ll be able to keep up with their consumers’ demands.
The best part of all of this is that you can sell the story of being an American-made brand. As mentioned earlier, a product’s story will be what is going to drive consumer behavior moving forward. If you can account for exactly where your product was made, who made the product and how well those people are getting treated, you’ve already created a ton of marketing and selling points for your brand. Telling your customers that you are supporting a manufacturer that treats their employees fairly and are creating hundreds of new jobs right here in local areas are all causes that many consumers are looking to support. Having that be a part of who your company will allow you to capitalize on your investment into US-based manufacturing.
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