"Made in America" making a comeback?

This study from The Boston Consulting Group (BCG) seems to indicate that the US is ready to take its place, once again, as one of world's the top manufacturers.

“Made in America”: The Comeback

U.S. exports hit a record $173 billion in March, up 15% from a year-ago and 37% from 2009. The good times for "Made in America" are just getting started, according to a new study from The Boston Consulting Group (BCG).

In fact, BCG predicts 2015 will be a tipping point of sorts, when global manufacturers will view the U.S. as equal to if not better-than China, senior partner Harold Sirkin tells me in the accompanying video.

"We're not saying the world's going to suddenly change and U.S. companies are going to manufacture here for shipment to China," Sirkin says. "But the U.S. will be a very important place if you're going to sell into the U.S."

In making this seemingly outrageous forecast, Sirkin cites the following:

Rising wages in China plus the strengthening yuan are eroding China's cost advantage vs. the U.S
.
America's "very productive, motivated and flexible workforce" is attractive to employers and all aspects of U.S. society — including unions and state governments -- are "focused on creating jobs."

Intangibles such as the length of the supply chain and the challenges of communicating over multiple time zones work to the advantage of the U.S. (The same is true of Mexico, which BCG says is "also poised to benefit as a low-cost alternative" to China.)

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He also points out that US manufacturing output has risen 2.5 times since 1972 but, we don't notice it because we don't make many consumer goods anymore so we don't see the "Made in America" label in the stores. During that time, manufacturing employment has declined 25% but with the economic changes, this may finally turn around.

The tough economic times are forcing unions to make concessions which may finally make it affordable to manufacture products in the US once again, that's IF the government doesn't screw this up with added regulations and taxes.

Maybe something good will finally come from this economic mess.

Pretty soon the oversize foam hand you buy at sporting events will be "Made in America" Yeay!

Seems like this is the plan since they are weakening the dollar on purpose. This will make other countries want our crap and the cost of living will go up in the US because of inflation. Maybe China will start outsourcing here and we will change roles. My kid is 13 months old, its nice to know that he'll be able to get a job in a sweat shop in the US soon. lol

reply to post by FortAnthem


I'd love to see an American made product, but same goes for any country really. Problem is all of our Crap is made in China. Most times it's literally poison. So I'm definitely, as of right now, turned off from China. We all gotta get our priorities straight.

But too honest, it kinda seems like the whole system is starting to rupture. A break in the dam and we're soon to feel the flood. Greed got us here and its going to be this worlds undoing, and that's okay! It's may be time for a new era of Humanity.

im all about buying usa made goods!! I mean u get what you pay for. go to the doller store buy a toy for your kid it might last ten minutes pay more and it could last years. im not nocking the doller stores i go thare just got to know what you are buying. are car companys are starting to come back around we need to get back on top of all things manufactured tvs dvd players washers any thing you have or want should be made in usa for at least a comparible price. and tools defintly ive broke so many that were made someware else,

I buy US made whenever possible and actively look for it on potential buys.
However I call BS.
It is a hard thing to do to find a US made product, maybe made in America, but some folks never figure out that America is a 2 continent deal.
Another problem I have is, if we are so productive, where are all of these jobs?
I understand that there are some jobs here and a big portion is made by automated workers.
But still I don't see the growth.

reply to post by FortAnthem


The bit about rising wages in China reminded of something I've noticed over the years.

People are people the world over when it comes to certain things. It really doesn't matter what color their skin is, what language they speak or what god(s) they worship. Let me explain with a story...

MegaCorp CEO Hubris Luvmoney sees that the citizens of the 3rd world country of Mudvainia will happily work like slaves for $1 a day. So he fires all his current workers, builds a factory in Midvainia and starts up business there.

A few years pass and one his employees, Sam Workingstiff has gotten really good at his job, and learned a lot. He wants to buy some of the nice things he sees so he says, "Hey bossman! How about a raise?!"

Hubris is shocked! He says, "But, but, if I do that you won't be as cheap and I won't make as much money!"

So Hubris packs up shop and moves everything to another 3rd world country.

This scenario repeats a few times until the workers in the original country are desperate enough to accept Hubris and his factory back with open arms.

..and then it will repeat again..

Originally posted by FortAnthem
This study from The Boston Consulting Group (BCG) seems to indicate that the US is ready to take its place, once again, as one of world's the top manufacturers.

A big roll eyes for you...

The US never fell out of the #1 spot.

Moving jobs to foreign countries has hit some industries hard, for example textiles, electronics, and anything that falls under cheap junk.

But overall, the main cause of manufacturing job losses in the US is automation.

reply to post by g146541


The article says that America doesn't manufacture consumer goods so we don't see much in stores. I would like to know what it is that we do manufacture so much. Its probably mostly weapons and high tech stuff to spy on anybody and everybody.

Everything I buy is made in the U.S. It is a difficult lifestyle. Somebody mentioned going to the dollar store to buy something made in China. I don't beleive most people understand the severity of the problem. Chinese and other imported products are in every store. In fact almost everything in any store anywhere is imported. Does anyone check the labels of what they buy? I have to do all my shopping online, because stores no longer carry anything made in the U.S. Most of the products are more expensive, but it makes me feel that I'm actually doing some good for our economy and supplying someone here with a job. Go to your closet, look at where all your clothes are made. I bet you won't find anything made in the U.S. Look at your furniture, dishes, bedding, etc. I bet most people don't have 5% of the things they own made in the U.S. Want to make a difference start checking your labels everytime you shop and put Americans back to work.

We need a global economy (New World Order...muahahahaha -evil cackle and whatnot-) let me explain why

actually, no explanation really required beyond just the basics

world economy = minimum wage, be it in wisconson or sticksville africa.

then manufacturing jobs will be in locations best suited for customer base verses decided on where they can get the most slave labor...and then each nation will take care of their own.

Thats it...no, I don't want to destroy unions and make everyone in the US work for chinese sweat shop wages...thats bullsnip...we don't need to kneel down further, we need to help others rise to their feet and let these megacorps then decide which adult they are dealing with verses which class of slave is cheapest.

reply to post by SaturnFX


That is, basically, what I think it will boil down to eventually. As it stands now there are still plenty of places where a sweatshop is a welcome addition to the local economy. So, its still easy to just country hop for the companies.

Originally posted by FortAnthem
The article says that America doesn't manufacture consumer goods so we don't see much in stores. I would like to know what it is that we do manufacture so much. Its probably mostly weapons and high tech stuff to spy on anybody and everybody.

Well it's not classified information or anything. The short answer is...pretty much everything.

The US does make fancy military jets and such obviously, but it's actually Europe's manufacturing sector that is a bit skewed towards producing complex, high tech stuff. They also make 'pretty much everything' but the US is just a bit more well rounded.

One good example of a major US manufacturer is a company called Caterpillar. They make large tractors and stuff like that.

Maybe a better example of how the US is still #1 is a company recently in the news because Warren Buffet's Berkshire Hathaway bought it, called Lubrizol.

What does Lubrizol make? From wiki:

"The Lubrizol Corporation is a provider of specialty chemicals for the transportation, industrial, and consumer markets. These products include additives for engine oils and other transportation-related fluids, additives for industrial lubricants, and additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals, specialty materials, including plastics technology, and coatings in the form of specialty resins and additives."

Tl;dr - you probably haven't heard of Lubrizol because they make chemicals that are obscure to the vast majority of people and yet are very important to a variety of industries.

The US makes a lot of stuff like that.

John Deere is American made but they do not tell you that parts are shipped in from their Mexican plant to the States for final assembly; they too, have plants in China. Technically Mexico is as American as Peru and Chile, just not North American. I have seen timers and switches that were USA made but I doubt the electronic components were. Testors, the model/paint company is made in Rockford IL, their cans have huge, "MADE IN USA" stickers on them. However, I wonder where the steel for the paint can is rolled, the plastic nozzle molded, the paint mix pressurized, the origins of the paper label and the glue that fixes it to the can. Regardless, Testors gets thumbs up from me.

I would prefer sweating in a manufacturing position running a robot over the mental abuse from direct contact with the customer in a service sector job anytime. Customers enjoy kick the dog syndrome far too much for my liking. No thanks to service jobs, bring back the out of sight out of mind manufacturing.

americans need to buy american goods made by americans and know america comes first and fast

There are a lot of countries that are cheaper than China such as Vietnam or Bangladesh. Companies will simply move there.

reply to post by Frogs



Hence, this is exactly why India and Brazil are on Schedule towards being the next "economic powers" inline. Once China bursts and allows it's currency to float and their workers actually get paid a fair wage for their labor Megacorp will pull up stakes and will go looking for cheap labor abroad AGAIN.

Good scenario layout.

No one --OK very few people are going to "buy American" just to be a good guy. Price is the main factor now, especially in this recession. As the economy begins to recover, people will start to consider quality more and that's where American products have an edge. The irony is that better quality means less replacements and that slows the economy. I'm in the American made furniture business and we give a lifetime guarantee on all our furniture. As a manufacturing country, we've got to take another look at "planned obsolescence" versus quality as we head into the future.