The New York Times reports that while there have been many calls for a resurgence in American manufacturing, there are certain hard economic facts that come into play, preventing the kind of expansion that many people want.
"As textile and apparel companies begin shifting more production to the United States," the Times writes, "taking advantage of automation and other cost savings, a hard economic truth is emerging: Production of cheaper goods, for which consumers are looking for low prices, is by and large staying overseas, where manufacturers can find less expensive manufacturing. Even when consumers are confronted with the human costs of cheap production, like the factory collapse in Bangladesh that killed more than 1,000 garment workers, garment makers say, they show little inclination to pay more for clothes.
"Essentially, to buy American is to pay a premium — a reality that is acting as a drag on the nascent manufacturing resurgence in textiles and apparel, while also forcing United States companies to focus their American-made efforts on higher-quality goods that fetch higher prices."
The story notes that while shoppers say they will pay more for Made-in-the-USA merchandise, their actions do not always match their words.
"As textile and apparel companies begin shifting more production to the United States," the Times writes, "taking advantage of automation and other cost savings, a hard economic truth is emerging: Production of cheaper goods, for which consumers are looking for low prices, is by and large staying overseas, where manufacturers can find less expensive manufacturing. Even when consumers are confronted with the human costs of cheap production, like the factory collapse in Bangladesh that killed more than 1,000 garment workers, garment makers say, they show little inclination to pay more for clothes.
"Essentially, to buy American is to pay a premium — a reality that is acting as a drag on the nascent manufacturing resurgence in textiles and apparel, while also forcing United States companies to focus their American-made efforts on higher-quality goods that fetch higher prices."
The story notes that while shoppers say they will pay more for Made-in-the-USA merchandise, their actions do not always match their words.
- KC's View:
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If the economy were doing better, then people might have more money to spend on American-made goods. One can only hope that the economy will get better, which will create all sorts of collateral advantages.
I happen to think that if Made-in-America is going to be seen as a label that suggests better quality and an impetus for stronger economic development, that's a good thing. There ought to be a way to market around that…
