Do Americans Really Want Made in America Products?

The label "Made in USA" could mean something harder to come by in the contemporary, global economy. Even if workers at U.S. manufacturers assemble a product on American shores, parts may come from Mexico, Canada, China or Japan. Further, some American companies have foreign investors who rely on finished products as exports.

A survey conducted by Consumer Reports reveals as many as 80 percent of Americans would rather purchase a product labeled made in America than an import. More than 60 percent of respondents said they would pay an extra 10 percent for something manufactured solely in the United States. The problem with the label remains U.S. manufacturers increasingly rely on foreign companies, either through supply-chain dynamics or investments, to operate at a profit. Plus, not a lot of high-end products carry the "Made in the USA" movement.

For example, automobile manufacturers such as Toyota, Honda and Nissan all have plants in the United States. Consumer electronics and clothing, two industries with huge customer bases and lots of shoppers who buy things on a regular basis, commonly come from other countries due to labor costs. In the past, U.S. manufacturers have not been able to keep up with demand.

A recent reshoring movement may change that. Between rising labor costs in Asia and cheaper energy prices due to shale oil and natural gas in the United States, as many as 300 U.S. manufacturers have returned operations to the United States after having plants in other countries. American manufacturing output grew by 45 percent between 2009 and 2014, with more than 646,000 jobs filled and another 243,000 open positions.

The main reason for U.S. manufacturers and the uptick in production remains the research and development side of the industry. New technology that integrates software, mobile devices, cloud computing, metrics and automation originates from engineers in the United States. Companies that remain close to the research and development process see end products reach shelves faster. Higher technology standards require workers with advanced knowledge of the systems that run a plant rather than grunt work from unskilled production line workers. Ironically, automation may stimulate the manufacturing boom, but not by hiring more production workers.

Consumers who look for a "Made in USA" label should know that means most, if not all, of the product has parts from American companies and the final product was assembled in the United States. Some manufacturers make "qualified" claims that state a vast percentage of the product was made in America, such as GE refrigerators with 87 percent U.S. content. Companies and consumers that feel manufacturers violate the rules can report a company to the Federal Trade Commission.

A consumer survey in 2013 noted that as many as 42 of American consumers feel they get a higher-quality product with an American-made item. This perception leads to lower prices when more people purchase more American goods, which, in turn, supports American workers, American jobs and consumer spending that drives the contemporary economy.

Americans would love to purchase something made entirely in the United States, even at a higher price, but many companies do not add the label due to foreign investors. The conundrum continues as the global economy helps and hinders the growth of U.S. manufacturers who ascribe to the "Made in America" push.

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