Dumping China for American Job Shops

More U.S. small businesses are steering their orders to American factories, such as Tennessee-based Bristol Custom Solutions, as costs go up in China.

More U.S. small businesses are steering their orders to American factories, such as Tennessee-based Bristol Custom Solutions, as costs go up in China.

By Parija Kavilanz @CNNMoney  February 13, 2012: 11:51 AM ET

NEW YORK (CNNMoney) — U.S. small businesses that initially rushed to Chinese factories to get their products made are now dumping them for American manufacturers.

And the shift is gaining traction, said industry experts who match U.S. small companies with domestic firms.

Mitch Free, the founder and CEO of Atlanta-based MFG.com, said his company has seen a 15% uptick in inquiries since 2009 from U.S. firms looking for American factories to replace their Chinese suppliers.

MFG.com is one of the largest online directories used by businesses to find domestic manufacturers.

One reason behind the trend is that “Chinese manufacturing has become expensive,” Free explained.

Another is that the U.S. economy is still uncertain. Most small businesses are forced to order large quantities to justify costs when dealing with companies overseas, he said. And that’s a risky move if American consumers are not splurging yet.

Manufacturers closer to home allow small businesses to order smaller batches, which means less of their money is tied up if their inventory is unsold, he said.

Revive Made in USA? Easier said than done

WindStream Technologies opened a new manufacturing facility in North Vernon, Ind., last September to produce small wind turbines for home use.

WindStream Technologies opened a new manufacturing facility in North Vernon, Ind., last September to produce small wind turbines for home use.

WindStream Technologies knows well the value of manufacturing in the United States.

In December 2010, the startup selected a Chinese factory to make 35 prototypes of its wind turbines, because they wanted them “quickly and cheaply,” said David Dingman, Windstream’s lead mechanical engineer.

It was a disaster. “The prototypes that the Chinese manufacturer sent back to us were junk,” said Dingman. “There were parts that were put upside down. Other parts were poor quality. Some even fell off.”

WindStream decided not to have the final products made in China.

The company was able to snag U.S. manufacturers with the help of MFG.com.

And last month, it started mass producing its small wind turbines for home use at its new 45,000-square-foot manufacturing facility in North Vernon, Ind. The company employs 30 workers and is hoping to ramp up to 100, if it lands a deal to sell the turbines at a mass retailer, said Dingman.

WindStream now has its turbine covers made in Chicago, while some metal parts are produced in Ohio.

Some of the turbines parts are still made in China, simply because the raw materials to make them don’t exist in the United States, said Dingham. But “the Midwest proved to be terrific for us,” he said.

Indeed. WindStream produces its turbines at a 10% lower cost per unit compared to what the company would have paid in China, thanks to its American suppliers that provide competitive prices and the elimination of overseas shipping and travel costs.

Del Mar, Calif., entrepreneur and inventor Julie Zizka actually liked the way her tote bags looked after a Chinese manufacturer produced 5,000 of them for her in 2008.

But she still was not a fan of having her manufacturing done overseas. She had concerns about production delays and fretted about how the extensive amount of transportation used was hurting the environment. What’s more, she noticed that her customers were preferring products that were made in the United States.

By 2011, she was looking for a U.S. manufacturer to produce her “Tote Buddy,” a colorful tote for storing reusable plastic bags.

She came across one after searching online and seeing ads for Bristol Custom Solutions, which heavily advertises on MacRAE’s Blue Book.

MacRAE’s has seen a pickup in inquiries — just like Zizka’s — from companies wanting to replace Chinese suppliers with American ones, said Lori Meloche, MacRAE’s vice president of marketing.

The directory — first published in the United States in 1893 as a “blue-colored book” — has since evolved into a website with more than 1.2 million North American industrial manufacturers, which averages 1.5 million users monthly.

What small firms want from Obama’s manufacturing plan

Zizka connected with Bristol, a 26-year-old, Tennessee-based manufacturer, best-known for making secure locking bags used by banks and the federal government to transport cash and other valuables.

“People have been contacting us all the time lately, telling us they don’t want to produce their products in China,” said Brandon Cantrell, Bristol’s general manager.

When Zizka sent Bristol a sample of the tote, the company redesigned it and brought down some of her costs, said Cantrell.

Today, Bristol is making 1,000 new Tote Buddy bags for sale this spring. For Zizka, the unit price for one of her Tote Buddy bags made in Cantrell’s factory is still 170% higher than for one made in the Chinese factory, said Cantrell.

But that doesn’t bother Zizka.

“My customers want my bag made in the U.S.,” she said, “I’m willing to absorb that cost if I can control the quality, get them to my customers faster and help the environment as well.”

Made in USA: 30 Day Journey

"We're willing to DIE for our country, but are we willing to BUY for it?"

"We're willing to DIE for our country, but are we willing to BUY for it?"

Josh Miller of ‘Made in USA: 30 Day Journey‘ is asking us one simple question.

“We’re willing to DIE for our country, but are we willing to BUY for it?”

Josh and his film crew will set out on a journey in which he will live off USA made products for 30 days. During his travels, he will speak and interview business-owners, homeowners, politicians, economists and American consumers to find out, among other things, what ‘Made in America’ means to them.  We will help Josh and his crew verify the made in USA claim with the help and support of Made in USA Certified.

Their goal is to raise $5,000 for the film during this campaign.  A $10 donation will get your name in the rolling credits of the film under “Minutemen”.  How cool will that be!

We believe Josh and his crew are a part of the Made In America Movement.  This film will help gain more exposure for this Movement.  This is why we are asking for your support.

Diane Sawyer & David Muir of World News with Diane Sawyer made everyone across the nation aware of this Movement last year with their ‘Made in America’ segments on ABC News, asking you all if you are “IN”.  Now we are asking you, are you in?

Let’s help Josh Miller on his journey.  Go to the link below. Donate your $10 (or more!) and let them know you are a proud supporter of the Made in America Movement.  Your support and donations really do matter!

Made in USA: 30 day Journey donation page I’M IN!

RAILEAN® Handcrafted American Rum™ 1st to Become Made in USA Certified®

American consumers now have an American choice.

American consumers now have an American choice.

LEAGUE CITY, TEXAS- Railean Distillers, LLC (RAILEAN) announced today that their portfolio of RAILEAN® rum spirits is the first rum to be MADE IN USA CERTIFIED® in accordance with the Federal Trade Commission requirements under federal law.

Qualifying for the MADE IN USA CERTIFIED® Seal signifies that a manufactured product has gone through a rigorous supply chain audit and certification process to confirm compliance with U.S. laws and regulations in regards to the ‘Made in USA’ claim.

RAILEAN® received official notice of their successful completion of Made in USA Certified Inc.’s proprietary independent audit process and received license to use the Made in USA Seal of Certification. The MADE IN USA CERTIFIED® seal guarantees that a company bearing these trust marks has gone through a rigorous supply chain audit to verify compliance withU.S. laws and regulations. Consumers know that when they see this seal, the “The Made in USA” claim has been verified, tested and true.

“Americans are fed up with tax subsidies and bailouts of imported products making it hard for small American businesses to compete, and the rum industry is no exception” said Kelly Railean, President and Founder. “With this elite certification, we are now able to differentiate our rum from every other imported rum on the market. Americans now have a choice between imported mass produced rum and higher quality Handcrafted American Rum™. We are fully committed to providing products Made in theUSA; thus providing jobs, fueling our American economy and aiding in the recovery of our economic system.”

Although additional costs are incurred to meet the stringent Made in USA regulations, a recent Gallup Poll found that 72% of Americans are paying heightened attention to the country of origin of the products they buy and nearly 94% of Americans would pay more for foods grown or produced in the United States of America. American consumers want companies to adhere to strict US labor laws, OSHA safety standards, and the EPA environmental regulations, and they want a guarantee of quality for raw materials, packaging and final product.

Railean Distillers, LLC, founded in 2005 in League City, Texas is a woman-owned business and is the only rum distillery to be certified with the Made in USA Certified seal.

Contacts
Railean Distillers, LLC
Kelly Railean
713-545-2742
info@railean.com

Made in USA Certified
Julie Reiser
561-279-2855
Julie@USA-C.com

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