Made in the USA?

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With the recent events surrounding imported products from China, such as cough syrup, stationery, childrens’ toys tainted with lead or coma-inducing drugs, mislabeled fish, fish treated with malachite and other cancer-causing drugs, tainted beef, bad radial tires, leukemia drugs, toxic pet food, breakaway hammocks, electrocuting palm tree decor, Craftsman electric saws with flying blades, and deadly toothpaste, it’s no wonder that people are a little leery of Chinese imports. Over lunch, a coworker and I were discussing why the Made in the USA folks aren’t capitalizing on this chain of events to promote US-made goods, and the reason may be…

… well, nothing’s made here any more, not in significant quantities and not with sourced materials. Even the Made in the USA trade group and NAFTA have rather relaxed guidelines about what Made in the USA must mean:

“Made in the USA” products need a content consisting of 51% or more of domestically produced or manufactured parts, labor and or value-added content or any combination thereof.

Thus, even if a toy was manufactured in the USA, if the leaded paint used on the toy was of Chinese origin, the product would still qualify for a Made in the USA label.

The unfortunate reality is that in the quest for the lowest possible prices at all costs, we’ve effectively outsourced virtually every part of the supply chain, and to countries (not just China) who have varying standards of quality and safety, not to mention labor laws. Unfortunately, buying American is harder than ever.

Don’t even think about American icon Hershey Chocolate for this holiday season. From Forbes.com:

In February, Hershey announced a major restructuring designed to cut costs and excess production capacity in the United States and Canada, while expanding in Mexico, China and India, where labor is cheaper and Hershey hopes to sell more candy.

Since then, Hershey has announced it will close six U.S. and Canadian plants and cut more than 3,000 workers in the two countries, including up to 900 at its hometown plants. It has plans to shift more production to contractors and a new plant it is building in Monterrey, Mexico.

On Thursday, it said production is underway in China through a joint venture with South Korea’s Lotte Confectionery Co. and its joint venture in India with Godrej Industries Ltd. is up and running.

Perhaps we’ll see a resurgence this holiday season of small craftsman goods – things made not only in the USA, but made by your own hands. It’s the only way to be sure of a product’s origins. Just make sure you make the components, too.


Comments

13 responses to “Made in the USA?”

  1. Well said, Chris. I have been wary about cheaply made goods and imported foods for a long time. Whenever possible, I buy local. But as you say, labels can be misleading. “Made in Canada” or “Made in US” vitamins, for example, can contain ingredients from China or elsewhere. I checked with a company whose label I used to respect. No more.

  2. I agree that small companies have a market opportunity for high quality crafted goods. In fact, more companies are taking advantage of this than you may realize. Maybe we see more of it here in the small towns, because we are outside the major distribution systems. Jack Schultz focuses on small towns in the USA, and he has some insight on our increase in manufacturing exports, at http://boomtownusa.blogspot.com/2007/06/manufacturing-exports.html

    On a whole different subject, thanks for trying to increase awareness of current economic issues with your very clear explanations.

  3. Well said, Chris. I have been wary about cheaply made goods and imported foods for a long time. Whenever possible, I buy local. But as you say, labels can be misleading. “Made in Canada” or “Made in US” vitamins, for example, can contain ingredients from China or elsewhere. I checked with a company whose label I used to respect. No more.

  4. I agree that small companies have a market opportunity for high quality crafted goods. In fact, more companies are taking advantage of this than you may realize. Maybe we see more of it here in the small towns, because we are outside the major distribution systems. Jack Schultz focuses on small towns in the USA, and he has some insight on our increase in manufacturing exports, at http://boomtownusa.blogspot.com/2007/06/manufacturing-exports.html

    On a whole different subject, thanks for trying to increase awareness of current economic issues with your very clear explanations.

  5. […] Christopher S. Penn » Blog Archive » Made in the USA? Chris asks a great question here, where is our home-country pride? Have we lost the ability to figure out how to produce things effectively here? It kinda pisses me off to no extent. The problem is unfortunately woven into the fabric of our 21st centur (tags: opinion productivity world-economy) […]

  6. This is why I’m quite proud of the fact that I create a product from scratch (music) and actually EXPORT it to other countries. Granted, some of my gear wasn’t manufactured here, but my product requires no source materials to produce and yet brings in money from other countries.

    Now if only I could get some all-american bookings. 😉

  7. This is why I’m quite proud of the fact that I create a product from scratch (music) and actually EXPORT it to other countries. Granted, some of my gear wasn’t manufactured here, but my product requires no source materials to produce and yet brings in money from other countries.

    Now if only I could get some all-american bookings. 😉

  8. I think the problem lies in accountability, even if most things are made overseas now, someone should check before things go out to the public. Unfortunately, many look the other way to save a few bucks, but the PR disaster is going to cost them millions in lost revenue. Especially with the holiday season approaching, I will think twice about buying fisher price for my son.

  9. I think the problem lies in accountability, even if most things are made overseas now, someone should check before things go out to the public. Unfortunately, many look the other way to save a few bucks, but the PR disaster is going to cost them millions in lost revenue. Especially with the holiday season approaching, I will think twice about buying fisher price for my son.

  10. The China face saving by Mattel makes me sick. I have been trying to limit my purchases to only things not made in China, trying to find things manufactured in the USA is very difficult.

    We are ripe for a manufacturing overhaul in the USA. The accountability is lacking and the timing is good. I am sure I am not the only US consumer that has no desire to buy products from a non-democratic, cut corners country like China. We need to be “Made in China Free”.

    Lainie McKeating
    Laredo, TX

  11. The China face saving by Mattel makes me sick. I have been trying to limit my purchases to only things not made in China, trying to find things manufactured in the USA is very difficult.

    We are ripe for a manufacturing overhaul in the USA. The accountability is lacking and the timing is good. I am sure I am not the only US consumer that has no desire to buy products from a non-democratic, cut corners country like China. We need to be “Made in China Free”.

    Lainie McKeating
    Laredo, TX

  12. my brother and I both have kids and this is what finally pushed us over the edge. We have put together a catalog that contains all kinds of products still made inthe U.S.A.. Our country has been losing jobs by the thousands and if we cannot take a stand right now it will be to late for my kids.Any one who would like a copy of this catalog please e-mail me [email protected] and we will mail you one.

  13. my brother and I both have kids and this is what finally pushed us over the edge. We have put together a catalog that contains all kinds of products still made inthe U.S.A.. Our country has been losing jobs by the thousands and if we cannot take a stand right now it will be to late for my kids.Any one who would like a copy of this catalog please e-mail me [email protected] and we will mail you one.

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