Staying Competitive: 'Made in USA' or Otherwise

Over the past few years, “Buy American” has been a popular slogan and sign of patriotism. But when you see a label or tag that states “Made in USA”, is that really accurate? The answer isn’t as clear cut as you think and can be as confusing as the question “What is still manufactured here?” For example, a single product such as a car rolling off a Detroit production line can be made up of parts mostly produced overseas. Technically, an item that is assembled and mostly incurs costs here can be labeled as American made, but this also depends on the product itself. The origin of apparel, for instance, is based on where the majority of materials come from.

All of this serves as straightforward and revealing example of the global economy that impacts every aspect of our daily lives whether or not we like it. According to Newsweek, American icons such as the Etch-a-Sketch, Levi’s jeans, and even baseballs in our national pastime aren’t made here. Pretty soon, people will tell me that you can make a mock apple pie with Ritz crackers (actually you can).

This all goes to show you how convoluted and complex our supply chains have become. While one company provides one part, another provides a connecting part and so on. While typical consumers could care less how the supply chain works, they’re likely be the first to be heard from when facing fewer choices and empty shelves. With the shaky state of the economy and the continued economic growth of China, the “Buy American” equivalent for businesses should be “Stay Competitive”. The complexities of the global economy demand it—made in USA or otherwise.