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

Fake Chinese parts in US-made arms leave India at risk

New York: India, a big buyer of American arms, is understandably concerned by a key US senate committee report that finds vast numbers of counterfeit Chinese electronic parts are being used in US military equipment. Where does it leave India if suspect parts have crept into US-built aircrafts and missiles it has bought or put on its shopping list? The failure of a single electronic component could put an Indian airman or soldier at risk.

Over a 14-month investigation, the Senate committee’s investigative staff amassed a database with 1,800 cases of counterfeiting involving about 1 million parts. It found that 70 percent of the suspect parts were traced to fly-by-night, unscrupulous Chinese companies who supplied electronics and other computer chips to large US defence manufacturers.

Picture courtesy Boeing
India will acquire ten C-17 Globemaster-III aircrafts from Boeing for $4.1 billion, which will be delivered in 2013.

Defence Minister AK Antony told the Rajya Sabha in a written reply on Wednesday that India was verifying if “faulty spare parts made in China” were used in defence equipment being sold by the US to India.

“There have been media reports in this regard, which are being verified,” Antony said this week.

According to Bloomberg, the US Air Force had in January this year suspended a company called Hong Dark Electronic Trade Co., in Shenzhen (in southern China), from supplying parts to US contractors after it supplied about 84,000 fake components to a middleman, who then sold the suspect electronic parts to Boeing, Lockheed Martin, Raytheon, L-3 Communications, among others.

Bloomberg quoted Air Force Deputy General Counsel Steven Shaw’s memo saying; œMany of the 84,000 electronic parts from Hong Dark have been installed on aircraft such the C-17 transport and helicopters such as the AH-64 Apache and CH-46.”

Given Shaw’s memo, India should double-check what it is paying for when it receives new aircraft. The first of the 10 Boeing C-17 Globemaster III aircraft ordered last year will be delivered to the Indian Air Force in June next year. India is forking over $4.1 billion (Rs 22,960 crore) to buy the US Air Force’s workhorse used extensively in Iraq and Afghanistan, making it the largest defence contract to have been signed by the two governments.

Antony listed some of the other US military equipment India had bought in the last five years. Last year, India purchased an amphibious transport vessel, the USS Trenton (re-christened INS Jalashwa), for nearly $50 million with six-UH-3H helicopters to operate alongside, costing another $49 million.

It also bought Harpoon anti-submarine missiles under a package worth $200 million, and long-range acoustic devices, modern hull penetrating periscopes, side scan sonar, C-130J transport aircraft, sensor-fused weapons, P-8I long range maritime reconnaissance aircraft and quick reaction team boats from the US.

One reason India is beefing up its arsenal is China, which has been expanding its military and modernising its equipment at a tear. This has triggered a simultaneous build-up of advanced weaponry in the Asia-Pacific region on a scale and at a speed not seen since the Cold War arms race between America and the Soviet Union.

India has purchased some $12.7 billion in arms, 80 percent of them from Russia, during 2007-2011, according to the Stockholm International Peace Research Institute (SIPRI). India and the US want to eventually move beyond a seller-buyer relationship to substantial co-production and eventually, high-technology joint research and development of weapons.

by 

Original Post: http://www.firstpost.com/world/fake-chinese-parts-in-made-in-usa-arms-leave-india-at-risk-414524.html

All American Clothing Co. Continues to ‘Grow and Sew’

Expanding in New Village of Arcanum, Ohio Location

All American Clothing Co. Continues to ‘Grow and Sew.’ The All American Clothing Co. is pleased to announce the creation of new jobs in Arcanum, OH.

The Village of Arcanum welcomes the All American Clothing Co. to its industrial location with the announcement of a new headquarters for the USA Made clothing company. The new 45,000 square foot location will feature a substantial amount of warehousing space, a showroom, a retail store, and main offices for its employees. The All American Clothing Co. also plans on installing a manufacturing facility within the next year.

With its latest expansion, the All American Clothing Co. is pleased to announce the creation of new jobs in Arcanum, OH. Offering a USA Made product can create up to $15.7 billion if every American (313,793,643 citizens) spent $50 a year on one USA Made clothing item. That number alone can create thousands of jobs for American citizens. “We care about our country and the people in it; if we were only in it for money we would move our production overseas. We will not trade American jobs for foreign profits,” said BJ Nickol, Co-Founder of All American Clothing Co.

The All American Clothing Co. was founded by Co-Owner Lawson Nickol in 2002. Prior to this, Lawson worked for another USA Made jeans manufacturer and was on his way to a promising retirement. While shopping one evening, Lawson made a damaging discovery. He discovered his employer`s jeans in a store with a tag that said ‘Made in Mexico.’ The company he worked for had begun to outsource. He immediately sent in his resignation and started a family owned clothing company along with his son BJ and wife Mary Ann. Together, they instilled the same American Made core values that he believed in and established the All American Clothing Co.

Today the Nickol family continues to operate the company that supplies Americans with products that they can be proud to wear. The family and the employees believe the USA label will always stay on their jeans because of the importance of USA Made. When consumers buy a pair of All American Jeans, the Made in USA label also means thank you from the company, its employees, and the people in America who still have good jobs due to folks like you. Thank you from all of us.

To schedule an interview with Lawson Nickol, BJ Nickol, and/or All American Clothing Co. employees in Arcanum, OH please contact Logan Beam by phone at (888) 937-8009 or by email at logan(at)allamericanclothing(dot)com

 

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.

Read more of this post

american MADE CHIC summer bus tour

Summer Bus Tour

american MADE CHIC

“What we are doing isn’t political but it’s consciousness raising at a time when many people are either feeling pretty down about our nations stature — and dare I say soul”.

This summer five incredibly talented, smart, chic American women, will travel across the country in a decked out Red, White and Blue travel bus creating high impact events and awareness for jobs, manufacturing and products Made in America.

“American Made Chic” will set out to change the views of Americans and shed light on all things American. Each event will be packed with fashion, food and drink while providing a platform for sharing knowledge and information about jobs, manufacturing and American made products throughout the country. We will provide a fresh, hip, modern twist on what it means to support our country while creating loyal fans and followers.

Our tour will kick off at the Kentucky Derby on May 4th, 2012. It is important that this summer tour begin this year, as it is an election year. Our travels will include the Country Music Festival in Nashville Tennessee for the three day action packed event, Daytona NASCAR event and the grand finale in Detroit, Michigan (Motor City). We will visit manufacturing plants, tour some of our sponsor’s facilities and discover all things American.

I have attached the bios of each team member for your review. Collectively we have over 25,000 Facebook fans and the experience and knowledge to create an explosive American campaign. If you would like us to attend your event, please contact Michelle Thelen at ichooseamerican@gmail.com.

“American Made Chic” offers several ways that you can be involved.

Read more of this post

FDA Says Brazil’s Orange Juice Is Safe, But Still Illegal

 

Antonio Scorza/AFP/Getty Images Oranges for sale at a market in Rio de Janeiro.

Antonio Scorza/AFP/Getty Images Oranges for sale at a market in Rio de Janeiro.

NPR      by DAN CHARLES  February 22, 2012

If you happen to notice sometime later this year that you’re suddenly paying a lot more for orange juice, you can blame America’s food safety authorities. The U.S. Food and Drug Administration, after several weeks of deliberation, has blocked imports of frozen, concentrated orange juice from Brazil, probably for the next 18 months or so, even though the agency says the juice is perfectly safe.

The FDA’s explanation is that its hands are legally tied. Its tests show that practically all concentrated juice from Brazil currently contains traces of the fungicide carbendazim, first detected in December by Coca-Cola, maker of Minute Maid juices. The amounts are small — so small that the U.S. Environmental Protection Agency says no consumers should be concerned.

The problem is, carbendazim has not been used on oranges in the U.S. in recent years, and the legal permission to use it on that crop has lapsed. As a result, there’s not a legal “tolerance” for residues of this pesticide in orange products. Read more of this post

How to Save U.S. Manufacturing Jobs

By Howard Wial @CNNMoney February 23, 2012: 5:34 AM ET

Howard Wial is a fellow for the Brookings Institution Metropolitan Policy Program.

At first glance, manufacturing jobs would appear to be a dying breed.

The United States lost 6 million manufacturing jobs between early 2001 and late 2009. And despite small gains during the last two years, the trend in manufacturing employment for the last 30 years has been downward.

That has led some to argue that long-term job loss in the industry is inevitable. But our research shows otherwise.

There are two common versions of the “inevitability” argument. One holds that U.S. manufacturing wages are too high to be internationally competitive. The other maintains that manufacturing job losses are the result of productivity growth. Both arguments are wrong. Read more of this post

How To Invest For Jobs Coming Back To U.S.

Brian Sozzi, Contributor   2/16/2012

The grand theme I want to put on the table is the concept of onshoring, sometimes called reshoring, which is the bringing back of U.S. jobs from overseas supply chains.

U.S. businesses have started to realize that while workers in far away lands garner miniscule wages compared to their U.S. counterparts, having operations outside of the country can be a strategic disadvantage.  The speed and structure in which information is consumed has caused U.S. consumers to demand top quality products and to want to buy them whenever they please.

Having a manufacturing plant domestically aids in the quicker movement of goods from design table to sales floor.  Furniture maker Ethan Allen is great example of a manufacturer producing most of its products in the U.S. and doing customization for clients, setting itself apart from price-point focused competitors.

Corporate managers are simply getting over their infatuation with cheap international labor and analyzing the total costs of doing business in the U.S. compared to say, China or India.

There is a dollop of icing on the cake here as well.  The topic of focusing on onshoring to boost employment levels seems to be an area of agreement between bickering Republicans and Democrats.  Republican presidential hopeful Rick Santorum, for example, wants to zero out the U.S. corporate tax for manufacturers.

Anytime the major political parties agree on anything, even the slight thing, it’s cause to sit up and take notice from an investment standpoint.  The Donkeys and Elephants may be a little apart on how to precisely shepherd along the corporate onshoring interest, but at least they are talking the same language.  It’s high time they do find common ground if the following is to be reversed:

  • Manufacturing employment has fallen by approximately 37% since 1980.
  • According to a survey done by the Manufacturing Institute and Deloitte, some 600,000 manufacturing jobs are currently unfilled due to a mismatch between job requirements and experience.

I have read a fair number of columns bantering about onshoring.  Is it overhyped?  Do we really need more jobs in the service sector U.S. economy?  The debates are almost endless.  Unfortunately, though, I have failed to stumble upon investment strategies to profit from onshoring, which has already begun to a certain extent, and could likely gain steam in the years ahead.

Buy-and-hold investors, this should be right in your wheelhouse: a highly probable future event to build positions around in companies with durable competitive advantages.

A few names that come to mind:

  • Waste Management: Owns 260 plus landfills and is the largest waste management business in the U.S.  More manufacturing production means more waste to be piled into the company’s green bins.
  • ADP: Benefits in two manners.  First, workers are hired to run new domestic manufacturing plants (hopefully by people that used the downturn to attain new technological skills).  Second, there should be a trickle down effect in the overall employment sector via a ramp in higher paying manufacturing jobs.
  • Dunkin Brands: “America Runs on Dunkin” as the brand’s slogan goes.  The company’s moat is not as wide as an ADP or Waste Management, but more U.S. manufacturers should mean more egg sandwiches (which Starbucks does not do superbly) and coffee.  Store penetration is increasing in areas of the country that are manufacturing oriented.

This Column Was 100% Made in America

A Hyundai ad that ran during Super Bowl coverage showed workers from the company's plant in Montgomery, Ala.

A Hyundai ad that ran during Super Bowl coverage showed workers from the company's plant in Montgomery, Ala.

By   Published: February 15, 2012

BLUE-COLLAR workers in fields like manufacturing — particularly when they make products on American soil — are again becoming a favorite subject for white-collar workers on Madison Avenue.

The trend was born of the economic worries that followed the financial crisis in 2008. Recently, it is gaining steam — appropriate, since the ads often use blasts of steam to signal something is being built — with proposals in Washington to offer incentives to encourage the location or relocation of factories in the United States.

“We continue to see very heavy emotional response to anything that would leverage against the bad economy,” said Robert Passikoff, president at Brand Keys, a brand and customer-loyalty consulting company in New York. Read more of this post

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