Benefits of Manufacturing in the USA

Whether the goal is to reduce labor costs, take advantage of mass production opportunities or improve scalability, many U.S. companies now rely on overseas manufacturing. While these businesses may reap short-term benefits when shifting production to other countries, they miss out on the advantages of making products in the U.S.

Why Manufacture in the USA?

There are many benefits of moving manufacturing back to the USA or not relocating production operations in the first place:

• More jobs for Americans: Cheaper overseas labor is attractive to the bottom line of any manufacturing operation. However, this outsourcing takes well-paying jobs away from Americans, many of whom do not have college degrees or other training that enables them to earn comparable wages. By keeping jobs in the U.S., manufacturers contribute to a stronger workforce and a more robust national economy, which benefits every American.
• Lower shipping and logistics costs: While manufacturers are often able to produce goods overseas more cheaply, they may experience higher shipping costs. Expenses related to sending finished products back to the U.S. have increased significantly in recent years. The longer supply chain also creates logistical issues that can increase delivery times and reduce service levels. The cost savings of keeping manufacturing at home may offset any labor cost reductions from using overseas workers.
• Enhanced quality control: A substantial issue with outsourcing overseas is that the manufacturer often has less control over the production operation. By keeping the process closer to home, companies can more closely monitor the manufacturing materials to ensure they meet the highest quality standards. It’s also easier and more practical to implement stringent quality control procedures to detect and correct problems faster.
• More eco-friendly: Manufacturing and selling products within the U.S. helps alleviate issues related to international shipping, such as the emissions of greenhouse gases from ocean vessels. It also helps companies avoid manufacturing their goods in countries that may not adhere to strict environmental protection standards.
• Keeps tax dollars in the U.S.: Companies that make products overseas typically must pay taxes to the host governments. Another benefit of manufacturing in the U.S. is that it keeps these tax dollars at home. The money from the collected taxes serves valuable purposes such as supporting education, paying for infrastructure upgrades, investing in technology and funding health programs like Medicare and Medicaid.
• Contributes to nationwide morale: Manufacturing has traditionally provided a path for Americans to move into the middle class. Keeping production within U.S. borders helps ensure that opportunities for dignified, meaningful jobs will continue. Many Americans also take great pride in purchasing goods made in the USA.