Written By: Trevor Crotts
As the United States continues to deal with the fallout of the coronavirus pandemic, many companies are rethinking their reliance on Chinese manufacturing. The current relations between the USA and China are troublesome, to say the least. Some might even say we are dangerously headed for military clash. With never-ending supply chain issues, tariffs, and ever-fluxuating shipping, doing business overseas is getting more expensive. That is exactly why American companies need to revisit domestic manufacturing. What can US companies do to start getting products made here and why would they want to?
American companies can start sourcing and developing products here in the United States for many reasons. It helps mitigate supply chain issues, helps the overall economy, and builds up infrastructure. However, it's not always easy or cheap. There are a few things to keep in mind when making the decision to switch to American-made products.
It's important to know where your product is coming from- especially if you're selling food or medicine. With the current political climate, there's an increased need for transparency and safety when it comes to imports. Chinese manufacturing has been under scrutiny for years, and recent events have only made things worse.
It is also very important to know your customer. Will they respond to the made-in-the-USA tag? Would they pay more for a premium product? Often times consumers say they want a product made in the USA, but consumer spending data usually doesn't validate that. However, there are some serious shifts in the trend over the last 2-3 years. A made-in-the-USA tag is more powerful than ever.
Another thing to consider is the price. It's no secret that domestic manufacturing is often more expensive than overseas manufacturing. But with the current situation, it might not be as big of a price gap as you think. With tariffs and shipping costs, American-made products are becoming more competitive then ever and even cheaper in certain sectors.
Lastly, you should consider supply chain redudancy. What choice do you have when that container is delayed? Have you a secondary option? What happens to your overseas supply chain in case of a war? Will your company be able to survive? Some of these questions may once have seemed far fetched. If you pay attention to the escalations in Tawian and you see how Hong Kong has faired under the two systems one China rule….. you will realize this is a potential threat to your business. A serious one.
There are many reasons why American companies should start sourcing and developing products domestically. It's good for the economy, good for transparency and safety, and good for consumers. With a little bit of research, you can find the right solution for your company.
The cost of shipping and tariffs are always changing, and it can be hard to keep up with the fluctuations. Sourcing products from within the US can help eliminate some of this uncertainty.
There's also the issue of supply chains. Many companies rely on Chinese manufacturers for parts or materials, but what happens if those suppliers suddenly go out of business or raise their prices? American companies that source domestically can avoid these disruptions.
Sourcing domestically also is good for the economy and helps to create jobs here at home. Companies that are hyper-focused on profits without considering the social impact at home are forgetting that we are all sitting in this same boat together. In fact, some would argue that that behavior got us here. With so much political turmoil surrounding trade with China, it's more important than ever for US companies to start looking into other options.
Overall, there are many reasons why US companies should think about sourcing products domestically. It's not always easy or cheap, but it's worth considering for the sake of safety, security, and stability.
Our company American Pet Works helps companies do just that in the pet industry. We create line extensions, and develop and manufacturer solution-based pet prodcuts from scratch.
Although many US companies might think the cost is too great to even consider developing and manufacturing product here, with the rising costs, and economic uncertainty, it is time to revisit that mindset.
Written By: Trevor Crotts
I am an opportunistic entrepreneur with a passion for innovation, dedicated to creating value and driving growth in the pet industry and beyond. With an extensive background in sales and marketing, I have a proven track record of implementing my strategic vision in innovative ways.
Currently, I serve as the head of American Pet Works, a US-based manufacturer and distributor in the pet industry, where I have developed several well-established pet brands.
When people ask me "What do you do?" I like to reply with "Whatever it takes". Whether it's developing new products, optimizing supply chains, or delivering innovative marketing campaigns, I am committed to doing whatever it takes to help my clients succeed.
If you are looking for an experienced partner who can help you navigate the complexities of product development, manufacturing or marketing, I would be ready to connect with you. Let's explore how we can work together to drive growth and create value in your industry.