Made in USA – bringing industry back home?

In the article by Karsten Strauss, it is implied that American firms could benefit more by producing domestically. With the increasing transportation costs, outsourcing is becoming less and less desirable. Furthermore, especially in the apparel industry, mistakes in production are often made. With domestic production, those could be easily fixed. Domestic production could also be the solution for new start-ups as their expenditures would decrease by the transportation costs.

The major reason why domestic production has not been practiced is marketing. American factories do not advertise themselves. As Strauss says, “a simple internet search can tell you next to nothing about a factory, let alone if it produces quality work”. This sabotage caused many American brands to extend their supply chains to Asia. Outsourcing became increasing popular, resulting in a decrease of available jobs in the United States.

Furthermore, domestic production is often associated with higher quality products, therefore providing brands with unique selling points (differentiation). Bringing production back to the US would therefore benefit the brand image of many firms and cause a boost for many local economies.

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