The new global demand for Made in USA

salt lake tribune

By Francisco J. Sanchez

There’s no doubt about it: Doing business in America is changing. And businesses with even the most loyal customers are finding that their customers are changing, too. In an increasingly global marketplace, business owners across the United States are realizing that their next major customer may no longer come from across town, but beyond our borders.

While news of American exports may not capture the headlines as government shutdowns and political impasses do, the proof is in the thousands of regional businesses that are witnessing its value firsthand.

Not only did U.S. exports outpace the growth of imports in 2012 for the first time since 2007, exports have helped support creation of more than 6 million private sector jobs during the past 35 months. So how does this relate to the business climate here in Salt Lake City? Simple: Our nation’s success with exports has in part been driven by business owners in the Beehive State.

Take, for example, Albion Minerals of Clearfield. One year ago, the company participated in a trade mission to Vietnam that was organized by a collaboration of public and private sector groups, including the state government, the U.S. Commercial Service of Utah, and our strategic partner Zions Bank. The company has since opened a distribution center in Vietnam in a $100,000 deal and expects to see profits grow.

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What it Really Means to be Made in the USA

DWM logo

You often hear companies touting their products as Made in America. Recently, DWM magazine looked at the Federal Trade Commission’s “Made in USA” Act which was designed to give the agency “the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin.” But other programs are in place as well to help consumers make informed decisions and this includes, Made in USA Certified®.

Made in USA Certified® is the only registered “Made in USA Certified” Word Mark with the U.S. Patent and Trademark Office, according to the organization.

“When we say it’s ‘Made in USA,’ you can count on it,” says Julie Reiser, president and co-founder.

Any company bearing one of the USA-C™ seals has gone through a rigorous supply chain audit to ensure that the product and processes originate in the United States of America.

The designation is an independent certification system that applies proprietary audit criteria consistently across companies, and criteria are checked through the company’s supply chain. “The seal says the company has committed to American jobs and to the American economy,” says Reiser. “Displaying the seal gives consumers the option to visibly support products and services of the USA.”

The Earthwise Group LLC, a national network of locally owned, independent manufacturers of doors and windows, announced that the organization has recently been recognized as “Made in USA Certified.” The organization is the first and only door and window manufacturer to be Made in USA Certified, according to Earthwise.

Why did they do it? “Number one it’s the right thing to do,” says Mark Davis, executive director, the Earthwise Group. “We have to invest in the American economy, American worker and American jobs. If our economy is going to turn around we have to be more sensitive in investing, and that means ingesting in American products.”

He also says the consumer is more willing today to buy American.

“Due to the economic slowdown we feel that the American consumer is more motivated than ever to buy American products,” he adds. “They are beginning again to take pride in American made products and realize the benefits of that …. They have seen the result of ignoring investing in America.”

So why should other companies look at this program?

“The biggest thing I try to do is educate people that the claim of ‘Made in the USA’ is unregulated. There are so many companies just making that claim,” says Reiser. “The only way the consumer really knows is if the company does a supply chain audit .”

It’s completely different to say it than to prove it, she adds.

“It says a lot about a company’s willingness to remain transparent. For companies it’s a powerful branding tool to distinguish among those who may be making false claims,” says Reiser.

She also adds that purchasing dollars are going to support a U.S. manufacturer and create U.S. jobs “which is at the crux of our problems now.”

“One of the things this does for companies is it distinguishes them against those in their industry who may be making a false claim to gain market share,” she says. “If the company has legitimately gone through the process and awarded the seal that puts them head and shoulders above the competition.”

Source: 
http://www.dwmmag.com/index.php/what-it-really-means-to-be-made-in-the-usa/

Obama Push on Advanced Manufacturing Stirs Economic Debate

In a White House switch, pro-manufacturing advisers have the ear of the president.

Jobs plan: President Obama addressing manufacturing workers in 2012.

Before a packed arena at the national convention of the Democratic Party in September, Barack Obama outlined a vision for America’s economic recovery with manufacturing as its engine.

“After a decade of decline, this country created over half a million manufacturing jobs in the last two-and-a-half years,” Obama told the cheering crowd in Charlotte, North Carolina. “If we choose this path, we can create a million new manufacturing jobs in the next four years.”

To fulfill those promises, the White House is turning to an economic tool not seen in Washington for years: industrial policy.

Emboldened by a new cadre of advisors, the Obama administration has proposed policies to boost domestic manufacturing involving tax breaks, new R&D spending, and vocational training of two million workers including around advanced technologies like batteries, computing, aerospace, and robotics.

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Consumer Reports Made in America?

How to know which flag-waving products are true red, white, and blue

Puzzling labelsLaws allow for patriotic symbols, as long as makers identify where a product was made.

Given a choice between a product made in the U.S. and an identical one made abroad, 78 percent of Americans would rather buy the American product, according to a new nationally representative survey by the Consumer Reports National Research Center.

More than 80 percent of those people cited retaining manufacturing jobs and keeping American manufacturing strong in the global economy as very important reasons for buying American. About 60 percent cited concern about the use of child workers or other cheap labor overseas, or stated that American-made goods were of higher quality.

And people would pay extra to buy American. More than 60 percent of all respondents indicated they’d buy American-made clothes and appliances even if those cost 10 percent more than imported versions; more than 25 percent said they’d pay at least an extra 20 percent. (Perhaps more surprising: According to a new survey of consumers in the U.S. and abroad by the Boston Consulting Group, more than 60 percent of Chinese respondents said they’d buy the American-made version over the Chinese even if it were to cost more.)

Clearly, most Americans want to know where products are made and want to buy those that will help create or keep jobs in the U.S.—an attempt applauded by economists like Jeff Faux, a distinguished fellow of the nonprofit, nonpartisan Economic Policy Institute, in Washington, D.C. “Consumers need to understand that all jobs and wages are interconnected,” Faux told us. “When you buy foreign goods—and sometimes there’s no choice—it means that fewer U.S. workers will have the money to buy the goods and services you sell.”

But what does “made in the USA” even mean? And how can you identify what’s made where?

In this special report, we’ll decipher labeling laws and explain why a product that pictures an American flag might be made abroad, identify companies that still make products in the U.S., hear from economists about manufacturing trends, and provide our experts’ assessment of the quality of some American-made apparel.

A guessing game

Photo by: Tooga

Few products except cars, textiles, furs, and woolens are required by law to reveal their American heritage. But when any manufacturer chooses to boast of an American connection, it must comply with federal rules designed to keep consumers from being misled.

Our evidence shows that if not misled, consumers are at least confused. Readers flood Consumer Reports with letters and e-mail seeking explanations as to why, for example, frozen blueberries from Oregon are identified as a product of Chile; why a company named Florida’s Natural sells apple juice with concentrate from Brazil; why pants made in Vietnam are labeled “authentic, active, outdoor, American”; or why a T-shirt with the words “Made in the” above the U.S. flag comes from Mexico.

Though perplexing, such words and pictures don’t usually violate regulations that are issued by the Federal Trade Commission, the agency responsible for protecting consumers from false or deceptive product claims. The key factors in determining whether a “Made in the USA” claim is deceptive, says FTC senior attorney Laura Koss, are the claim’s context and whether it’s likely to mislead a reasonable consumer. Ultimately, the line between legal and illegal is determined by the overall impression planted in consumers’ minds.

But the line is blurry. Every case is different and subject to interpretation, Koss says. Most of the complaints the FTC receives are initiated by companies that are pointing a finger at competitors they claim are seeking an unfair advantage.

When a company definitely crosses the line, the FTC’s priority is stopping the behavior, not punishment. If a company refuses, it faces civil penalties—in theory. In practice, the FTC has brought only one civil penalty case since the late 1990s, slapping toolmaker Stanley with a $205,000 fine in 2006 to settle charges involving the pedigree of its Zero Degree ratchets. (Stanley claimed that the ratchets were made in America, but the FTC noted that much of their content was foreign.)

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Promoting Made in U.S.A., but Very Carefully

BRANDS reviving the “Made in the U.S.A.” slogan to attract buyers for American-produced goods are relying less on patriotism and more on data that shows consumers are willing to pay a premium for better quality, quicker availability and product safety.

This ad for Whirlpool, which makes some products abroad, also said most of its appliances “sold in the U.S. come from our U.S. factories.”

 But many companies are stepping gingerly, avoiding sweeping claims and spelling out what “Made in the U.S.A.” means for their products. Consumers are more shrewd about how few consumer goods actually are made in the United States, leaving companies less wiggle room about the origin of products.

The Whirlpool Corporation, for example, specified in full-page print advertisements this year that 80 percent of its appliances “sold in the U.S. come from our U.S. factories.” Despite its deep American roots, the 101-year-old company — which makes Maytag, Amana, KitchenAid and Jenn-Air products — has, like other corporate giants, moved some manufacturing abroad.

As a result of its centennial celebrations last year, some consumers have urged the company to talk more about its American origins, said William Beck, a senior marketing director at Whirlpool, which spent $57.4 million in 2011 on advertising, according to Kantar Media, a WPP unit.

In recent months, the appliance giant has been underlining its American factories, and noting in its overall brand advertising that it employs about 22,000 workers (15,000 of them at its manufacturing plants), and spends $7.4 billion annually on operating and maintaining its factories in Iowa, Ohio, Oklahoma and Tennessee.

But Whirlpool, whose ad drew a full-page rebuttal from the International Association of Machinists and Aerospace Workers accusing it of shutting factories in the United States, said nostalgia and similar sentiments do not drive its sales. “Whirlpool’s key differentiating points are quality and innovation,” said Mr. Beck, and “the icing is that, hey, we’re made in the United States.”

Whirlpool does not share its market research, but other market studies show that customers increasingly take note of where a product is made. Perception Research Services International, in a September study, found that four out of five shoppers notice a “Made in the U.S.A.” label on packaging, and 76 percent of them said they would be more likely to buy a product because of the label.

While shoppers, especially those over 35, say they want to help the economy by buying United States-made goods, “the motivating factors actually may be quality and safety,” said Jonathan Asher, executive vice president of Perception Research Services. The company, which is based in Teaneck, N.J., surveyed 1,400 consumers last summer. “People are paying attention in categories that are ingested like food, medicine and personal care products, but less so in electronics, office supplies and appliances,” he said.

In a separate study, the Boston Consulting Group found that 80 percent of consumers surveyed said they would be willing to pay more for “Made in the U.S.A.” products than for those carrying a “Made in China” label.

They would pay the biggest differential for items like baby food and wooden toys, and a smaller percentage for electronics, apparel and appliances, said Kate Manfred, director of the group’s Center for Consumer and Customer Insight in the Americas, which released the study in mid-November.

“Safety and quality, and keeping jobs in America, are the important factors,” she said.

Bixbi, a Boulder, Colo., pet treat provider, has relied on safety to increase sales. The company, which started in 2008 amid revelations of tainted dog food ingredients imported from overseas, sells dog treats made from locally raised chickens and other animals.

“Our sales have grown 600 percent each year,” said James Crouch, who founded the small company with his brother, Michael. “Locally sourced is a key advantage.”

But for all the talk about American-made goods, Bixbi is one of the few clients that have adopted “Made in the U.S.A.” marketing, said Dave Schiff, co-founder of Made Movement, a Boulder advertising firm that handles the Bixbi account.

Is Apple Prepping a ‘Made in USA’ Boom?

It could hinge on whether it picks Intel to make more chips for it

Dec 4, 2012, 9:42 am EST  |  By Brad Moon, InvestorPlace Contributor

Two potentially huge Apple (NASDAQ:APPL) items hit the radar in quick succession over the past few days.

First came rumors that the company was in talks with Intel (NASDAQ:INTC) to replace Samsung as the processor supplier for its mobile devices. Then, as the first shipments of Apple’s new iMac PCs arrived, reports rolled out that at least some of them bore an “Assembled in USA” sticker. CEO Tim Cook rose to prominence at Apple for moving production to China, but could the company be on the verge of a shift back to “Made in America?”

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If Intel manages to score the coup of becoming the chip supplier for Apple’s mobile devices, that would be a big story for both Intel and U.S. manufacturing. It was only weeks ago that Apple was supposedly in talks with Taiwanese chipmaker TSMC(NYSE:TSM) about the possibility of replacing Intel CPUs in its PCs with TSMC chips based on ARM (NASDAQ:ARMH) architecture.

Intel CEO Paul Otellini (the guy who brought Apple into the Intel fold but failed to break into the mobile market) retires, and all of a sudden Apple and Intel appear to be making up for lost time. With most of Intel’s chip fabrication plants in the U.S. (including factories in Oregon, New Mexico and Arizona), domestic manufacturing would benefit tremendously. Apple sold 43 million iOS devices last quarter alone — that’s a lot of chips.

Then there’s the story of the “Assembled in USA” iMacs that’s burning up the tech sites right now. Some (but not all) of Apple’s latest iMacs have been arriving on doorsteps adorned with the usual “Designed by Apple in California” message. But instead of “Assembled in China,” they’re marked “Assembled in USA.”

The FTC has very specific rules about how to qualify for that label. To comply, Apple has to be doing much more than just screwing bases onto cases. A factory somewhere in the U.S. has to be building these things.

How could you justify assembling a computer in the U.S. if you can pay ridiculously low wages in China? First of all, those low wages aren’t as low as they used to be. According to The Atlantic,they’re five times what they were in 2000 and expected to continue rising at the rate of 18% per year. At the same time, U.S. labor productivity has risen, while U.S. manufacturing wages over the past five years are now back at the level they were in 2000, adjusted for inflation.

Earlier this year, The New York Times did the math and calculated that if Foxconn workers were paid equivalent U.S wages, it would add $65 to the cost of an iPhone. On a $649 device (the price of a base iPhone 4S at the time) with an estimated materials cost of $203, this would require Apple to either hike prices or bite the difference, cutting into its margins significantly.

However, an iMac is much more expensive. The cheapest is $1,299, so a potential uptick in labor costs may be less noticeable. And then there’s its size.

To get a sense of what it must cost Apple to ship one of these all the way from China, I tried an experiment using FedEx‘s (NYSE:FDXshipping calculator to compare the cost of shipping a 1.4-pound box (iPhone) and a 42-pound box (27-inch iMac) from Foxconn in Shenzhen to the FedEx hub in Memphis. The result: $448.732 vs. $2,620.72.

Obviously, Apple isn’t paying anything near the rate Joe Public would, and it also uses other shipping companies. But the point is clear.

Shipping an iMac costs six times what it costs to ship an iPhone. If a worker at Foxconn in China ismaking $2.50 an hour compared to an average U.S. manufacturing wage of $19.15 (a difference of $16.65), so long as an iMac took 3.5 hours or so of labor to assemble, Apple would be breaking even by shifting manufacturing back to the U.S. based on the savings in shipping costs.

That’s all hypothetical. But it shows how plausible it is that under current conditions, Apple might shift production of bigger products from China back home. Plus, Apple was facing limited supply of the new iMacs based on problems at Foxconn, so maybe it’s decided to take matters into its own hands. Perhaps a hit on margins is worth the insurance against a hit on revenue if Foxconn can’t keep up.

It doesn’t hurt that the iMac is a relatively low-volume product (compared to iPads and iPhones) and that Apple already has an assembly facility in Elk Grove, Calif., where it built iMacs until 2004 and once employed 1,500 workers. Apple continues to refurbish iMacs for resale at this site, so it retains some technical and distribution capability. As TechCrunch notes, employment at that facility has jumped 50% this year, suggesting something is up.

While it’s possible that Apple merely messed up on its iMac labeling or that Intel Inside iOS devices is wishful thinking on Intel’s part, it’s also possible that between the company’s flagship PC and its determination to free itself from all vestiges of bitter rival Samsung, Apple is shifting toward “Made in America.” If so, here are a few things to watch for:

  • Without a doubt, Intel shares would surge. The company has been largely shut out of mobile, and gaining Apple’s business — even if it does so under license from ARM — would immediately vault Intel into a market leader. If it inked a mobile deal with Apple, those rumors about Apple seeking to shift its iMacs and MacBooks away from Intel would likely go away as well.
  • Apple’s margins could well take a hit, and even a small decrease could spook investors. Still, computers make up less than a quarter of Apple’s total revenue (and iMacs are a small subset of that), so the actual bottom-line impact of assembling PCs in the U.S. would likely be minimal and may well be offset by “Made in America” goodwill among domestic consumers.
  • Shipping companies could actually take a hit from any loss of Apple business. During the iPad 3 launch, for example, it was reported that Apple’s massive shipments form China (at premium rates) boosted the price DHL charged customers for international shipments by 20%. A steady stream of Apple shipments come from China to the U.S., and the vast majority (if not all) is by air.

At the time of writing, Apple hadn’t officially commented on either the “Assembled in USA” iMacs or the Intel talks. Expect all eyes to be on Cupertino for Cook’s response to both. In the meantime, the search is already on for a way to identify the U.S.-assembled iMacs while still in the box, so that consumers can choose them — and send Apple the message that they prefer to buy American.

As of this writing, Brad Moon from http://www.investorplace.com didn’t own any securities mentioned here.

Made in USA Certified:  www.USA-C.com

‘Made in U.S.A.’ bill proposed

WASHINGTON, D.C.— U.S. Sen. Jon Tester, D-Mont., wants all National Park Service memorabilia to be “Made in the U.S.A” and is backing legislation to ensure that only American manufacturers provide goods and souvenirs sold in the parks.

Tester’s American Parks, American Products Act requires that all items sold by the National Park Service in gift shops and visitor centers are made in the United States.  Many park goods currently are made abroad, including in China.

Sales of memorabilia and other goods total more than $1 billion each year, according to a news release from Tester’s office.

The current U.S. trade deficit with China is $273 billion, roughly half of the country’s total trade deficit.

“America’s national parks, like Glacier and Yellowstone, highlight our nation’s history, heritage and natural beauty, and it just makes sense to see that these treasured places showcase America’s craftsmanship too,” Tester said in the news release. “We need to do more to encourage more manufacturing and small business growth here in America – not in China – and this bill is a good step.”

More than 5.6 million people visited Glacier and Yellowstone National Parks in 2010, adding $444 million to local economies, the news release continued.

The National Park Service’s 393 parks, monuments and historical sites attract nearly one million visitors every day.

Tester is the chairman of the Congressional Sportsmen’s Caucus.

Olympics committee commits to manufacturing future uniforms in USA

 

The United States Olympic Committee (USOC) on Monday announced they have voluntarily adopted rules proposed by Congress to ensure that future clothing for Team USA is made in America.

“After listening to feedback from members of Congress, we have committed, along with our partners at Ralph Lauren, to make future parade uniforms in the United States,” USOC CEO Scott Blackmun said in a statement.

Many members of Congress protested following reports that the Ralph Lauren-designed clothing that Team USA will wear in the opening and closing ceremonies of the Olympics were made in China. Sen. Robert Menendez (D-N.J), along with 12 other Senators representing both sides of the aisle, earlier this month announced legislation called the Made in America Act to require that future uniforms worn by Olympians and Paralympians to be made in America.

“I’m incredibly pleased that the USOC has formally adopted the requirements outlined in the Team USA Made in America Act,” Menendez said in a statement. “My goal was to ensure that while our Olympians and Paralympians are representing the best of American athleticism and sportsmanship, they also proudly represent the best of American manufacturing and workmanship. This new policy – which will not be altered without informing the Congress –  is a clear win for both America’s athletes and America’s workers.“

According to Menendez’s office, the senator met with the Olympic Committee last week to discuss the agreement. The USOC has committed to manufacturing all future uniforms in the United States unless essential materials are not available or obtaining them would cause “undue delay.”

Team USA will still wear the China-manufactured uniforms in this year’s Olympics. The opening ceremonies are set for Friday in London.

‘Insourcing’ bill fails to advance in the Senate

 

(Karen Bleier – AFP/Getty Images)

The Senate failed to advance a bill Thursday that would end tax breaks for large companies that relocate jobs overseas and provide tax credits to firms that bring jobs back to the United States.

Senators voted 56 to 42 to proceed to final consideration of the Bring Jobs Home Act, falling short of the 60 votes necessary in order to proceed. The White House expressed strong support for the measure, which is packed with proposals from Senate Democrats facing reelection and eager to demonstrate efforts to shore up the nation’s struggling manufacturing sector.

The bill would eliminate tax deductions that companies may take when moving workers and equipment overseas, but establish a new 20 percent tax deduction for companies that do the reverse.

Republicans objected to the bill in part because Senate Majority Leader Harry M. Reid (D-Nev.) blocked GOP amendments to the bill, including a proposal to repeal the 2010 health-care reform act. Senate Republicans this month also attempted to amend a small business tax cut bill with language repealing the health law. Some GOP senators also complained that Democrats bypassed the normal committee process and quickly introduced the bill for election-year political purposes.

Democrats note that roughly 2.4 million American jobs have been transferred overseas in the last decade as global firms outsource more positions to cheaper markets.

Source: Washington Post

See how your Senator voted on the Bring Home Jobs Act:  Senate Roll Call

 

Made in USA Certified® Launches US Jobs Project™ Initiative

BOCA RATON, Fla.–(BUSINESS WIRE)–Made in USA Certified® has partnered with US manufacturers to rally for US jobs and US manufacturing with a tour across America in a red, white & blue, star spangled bus. The US Jobs Project™ launches in patriotic fashion this July 3rd – July 7th, Independence Day week.

The main goals of the US Jobs Project™ are: 1) Promote US manufacturing and the critical role domestic manufacturing plays in the creation of sustainable US jobs 2) The important role consumers play in the creation of jobs by supporting products Made in USA.

“This project is fueled by the idea that Americans helping Americans can truly create sustainable jobs and jumpstart our economy. We believe that together, we create jobs in the USA,” Julie Reiser, President and Co-Founder of Made in USA Certified® said.

The US Job Project™ tour will officially kick off on July 3rd & 4th in Delray Beach, Florida for the Independence Day Extravaganza. There will be product giveaways, fan photo fun and supporters can register for the “Great American Giveaway” contest, where participants can enter to win a custom designed Gibson guitar.

After the July 4th fireworks celebration the bus will head to Daytona, Florida for the NASCAR, Subway Jalapeno 250, Coke Zero 400 races and a concert by double Platinum recording band, TRAIN at the Daytona International Speedway on July 6th & 7th.

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