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Made in America - Analysis Essay Sample

5 pages
1152 words
Carnegie Mellon University
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It is quite daunting to determine what is made in America. From the statistics, the percentage of the dollar value of an industry's output that is considered domestic is insufficient compared to how it was half a decade ago. The Federal Trade Commission (FTC) is responsible for preventing unfairness in the marketplace. For New Age Creation to be certified to use the "Made in America" label they need to follow certain requirements that are set by the commission strictly. The FTC recognizes two types of "Made in the U.S.A" claims from companies. These are the qualified and unqualified claims CITATION Sha12 \l 1033 (Shaheen, Mudge, & Lee, 2012). The unqualified claims that their products are "made in America" (all or virtually all) and if someone raises a doubt about the claim the company should be in a position to prove that all the components of the product are made in America. all or virtually all means that the product must contain no- or negligible- foreign content. An example of a qualified claim is that of Apple products that claim "Designed by Apple in California, Assembled in China." This kind of claim states that American employees made all the design and functionality of the product. The product is American oriented although it is assembled outside the country.

After World War II, America invented home appliances such as microwaves, everything that was needed by American consumers were made locally. Statistically, less than one in ten products bought by Americans was made outside the country. The year 1979 was the peak of American manufacturing prowess after those foreign nations began making American products cheaply; currently, more than half of any merchandise bought by American consumers is made overseas. Local manufacturing has shrunk primarily due to the influx of multinational products that offer broader and cheaper choices to local consumers. New Age Creation, however, has the advantage of concentrating on clients who be pleased about local touch and leaving out those who support international brand. The desire for most American to "Buy American" is a massive advantage for the company. Approximately 60% of local consumers are willing to pay 10% more on a product that is made in America since they want to promote domestic economy and they believe that American made products are better regarding quality.

Since a huge percentage of the raw products by the company are made in-house, the firm can quickly move to the made in America label without much of implications. They need to strictly adhere to the label requirements to avoid lawsuits by consumers who are loyal to made in America. The organization needs a good lawyer to help them define what they can strictly label made in America without taking chances. Corporations such as Wal-Mart, Apple, and Brooks Brothers are trying to make their products more American than before. New Age Creation has a considerable advantage to tap into the renewed interest and make it label as a purely made in American product that the consumers can identify themselves with. The determination of made in America product looks at the cost of manufacturing materials, manufacturing overhead and direct manufacturing labor. Textile, fur, and wool products are the one that has rigorous specifications of labeling rules and requirements that the organization must invest in interpreting them. Made, means a lot more than just than manufactured by production workers, it is more of the designers that are involved, workers who arrange the product, and workers who get the product to the manufacturing plants to the retailing shelves.

Having a more intimate connection with goods Americans consume has significant psychological benefits. There is a certain satisfaction in consuming a product that is American made; life seems more fuller in the producing rather than just using that most American have been associating themselves with. The most common advantage of buying a product that is made in American-by-American consumers is job creation. According to a 2015 report, the U.S lost 5.7 million manufacturing jobs between 1998 and 2013, mostly because of the foreign trade imbalances CITATION Nic14 \l 1033 (Nicholson & Noonan, 2014). Secondly, imported products destroy the environment due to the shipping process across the ocean where they burn fossil fuels mainly from products imported from China and India. These imported products have very few or no set of laws to guard the wellbeing of air and water. They contain a significant amount of chemicals, according to reports the U.S.A has outsourced much of its air pollution from imported products that come from China. Therefore, by sticking to producing products locally will ensure that consumers and workers enjoy a healthy environment since they strictly follow environmental conservation regulations.

Since the shift in importing cheaper imported product, the U.S has shifted to a service industry, killing a considerable percentage of manufacturing products and jobs. Sticking to the made in America label regulations the firm will help to strengthen the countrys economy. Buying American made goods does not only support American workers it also benefits the entire economy. When manufacturing plants prosper they give constructions secure jobs to build their premises, accounting firms to handle their money and energy supply firms to provide them with energy. It is estimated that manufacturing jobs support 1.4 jobs from other sectors CITATION Sim11 \l 1033 (Simmermaker, 2011). On the other hand, the more jobs created by manufacturing companies, the unemployment gap shrank, it is estimated that American spend more when there is plenty and tends to reduce spending cost whenever there is a recession. The more consumers spend the more growth on the countrys economy. This is no different from foreign economies, if the U.S stops importing most of its products, their exports will shrink, jobs will be lost, and the economy will be affected.

Although it is hard to define what product is really made in America to the consumers since some product labeled made in America are least American than products labeled made overseas. However, with strict regulation, it is possible to have everything produced locally. Some products are hard to find than others; the organization needs to make cost and quality of its top priorities and enjoy the emerging market than prefers made in America products. In the long run, if consumers stick to passionately buying American regardless of the extra cost the company will be at a more significant advantage compared to other imported products. The organization needs to look from a long-term perspective rather than quick profit. Besides made in American label is an added advantage since the organization will still maintain its current market share.


BIBLIOGRAPHY \l 1033 Nicholson, J. R., & Noonan, R. (2014). What is Made in America? Economics and Statistics Administration, 2-10.

Shaheen, R., Mudge, A., & Lee, A. (2012). Made in U.S.A: Time for a Change? The Antitrust Source, 3-6.

Simmermaker, R. (2011, September 16). Why Buying American Can Save the U.S. Economy. Retrieved February 1, 2018, from The New York Times:

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