The Domestic Production Comeback
As potential business trends are identified for 2013, one of the ones that stands out is the return of domestic production. Will we start seeing “Made in USA” stamped on our goods again? Let’s take a look.
In September 2012, PricewaterhouseCoopers report alluded to a “renaissance” in U.S. manufacturing stemming from factors like more affordable labor, higher shipping costs and a better financial climate–and the fact that “re-shoring” (returning production stateside) could mitigate $2.2 billion in losses from supply-chain disruptions in 2011.
Another factor is innovation of the startup kind. One of the biggest examples, Tesla Motors, focuses on how things have gotten more efficient in the light of economic downturns. What was originally filed as a lower priority has turned into companies trimming the fat on production and distribution.
As some retailers and startups are either heavily represented or exclusively active online, keeping production in the US can give them a home court advantage. What might have taken an extra day or two to travel from an overseas supplier can now be sent straight out the door.
Perhaps the biggest indicator that domestic production is making a comeback is the growth and sustaining power of local businesses. People have been making a living off Etsy stores and “local” businesses have a strong appeal because they are local.
While all these things factor in bringing more production stateside, will it bring more jobs? Maybe not as many as you would hope. Robots tend to keep the prices down and so far haven’t formed any unions.
What do you think? Is there a future for “Made in USA?” If so, is it coming this year or will we have to wait to see much of a difference?
Let us know below!
Posted on January 9, 2013, in Global Biz, Market Trends, Politics & The Economy, Small Business and tagged domestic, domestic production, etsy, local, local business, made in usa, production, small business. Bookmark the permalink. 1 Comment.