Good news for anyone who thinks that nothing is made in America anymore: It's not true!
The total value of goods manufactured in the United States exceeds that of Japan, South Korea, Canada and Mexico combined (despite the fact that American manufacturing workers' average hourly wage is 77% greater than workers in those countries, according to statistics compiled by The Conference Board).
Meanwhile, the number of American manufacturing jobs has increased each year since 2010, according to the U.S. Bureau of Labor Statistics. So, why is it difficult to find American-made products these days?
There are three factors that make it seem like the U.S. doesn't make anything anymore:
1. The Rise of Cheap Chinese Imports
Amazon.com is the largest online retailer in the U.S. and many of the products that it sells are made in China. This was not the result of happenstance. "We help factories directly open accounts on Amazon and sell to U.S. consumers directly," said Amazon sales director Alicia Liu, during a 2017 presentation.
Today, more than half of Amazon's sales are made by third-parties and nearly half of those third-party sellers reside in China, according to Marketplace Pulse. There have been consequences.
U.S. manufacturers must compete with counterfeit goods, low-quality items (produced by underpaid workers) and products that lack the basic safety certifications that Americans take for granted. On top of that, a scourge of fake reviews by scammers makes these bad products look great.
As long as Americans continue to buy inferior goods, retailers will stock their shelves with ever-cheaper products and manufacturers will respond by cutting costs and outsourcing labor.
2. Made in USA Labeling Requirements
In order to be marketed as "Made in USA," products are only allowed to contain a negligible amount foreign content, according to the Federal Trade Commission.
This sounds good in principle, but in practice, labeling laws can do more harm than good.
Maglite flashlights are designed and assembled in California predominantly using American-made parts. Nevertheless, state law forbids using a "Made in USA" label on a product that contains a single foreign-made part. "There are some items that simply are not available, or are otherwise impractical to secure, from any domestic source," according to Anthony Maglica, president of Mag Instrument Inc.
As a result, some of the best American-made products are easily mistaken as imports.
3. Distributed Manufacturing
Several domestic companies rely upon international factories and vice versa.
Hillerich & Bradsby makes wooden baseball bats in Kentucky; the company's metal bats are made in China. KitchenAid manufactures classic stand mixers in Ohio; other appliances are made overseas. The most American auto manufacturer, in terms of both parts and labor, is Honda: a Japanese company.
Unfortunately, politicians and journalists often treat economic realities as a betrayal, and as a result, some consumers will boycott an entire company, regardless of how many products that company continues to make domestically. This is like throwing the baby out with the bathwater.
One of the best ways to support American workers is to buy products that are made in America.