Made in USA

Many companies highlight the fact a product is made in the U.S. with their branding and marketing campaigns, benefitting from the huge marketing potential, often affecting the success of a product. Country of origin is a typical heuristic used when purchasing,[6] playing a significant role in consumer perception and evaluation since some consumers believe domestic products offer higher value and less risk.[5]

For years American car brands have used this as a differentiating point. Supporting companies such as Ford was thought of as patriotic. Twenty-eight percent of Americans have said they would only buy American vehicles.[7] There was a large push from domestic automakers after foreign competition entered the market in the 1980s. Ford placed ads to all Americans highlighting that they made quality cars.[8] Chrysler also needed to reclaim market share from foreign competitors. They created commercials about American cars that were made by Americans with American parts.[9] In recent years, the trend has changed as Cars.com's 2016 American-Made Index for that year showed that many Hondas and Toyotas are among the top "American-made" automobiles.[10]

Karlie Kloss showcases an Anna Sui dress at New York Fashion Week, Sui's collections have been designed and manufactured in New York's Garment Center since 1981.

Due to concerns about the exploitation of non-American workers in sweatshops, products bearing a Made in the USA label can appeal to American consumers seeking high-quality products produced domestically under American labor and environmental laws. Until it shut down brick and mortar stores in 2017, American Apparel, which had been producing in Los Angeles since 1989, was the largest garment manufacturer in North America. The company's CEO was committed to social responsibility, and offered factory workers careers with benefits and pay significantly higher than that of their overseas counterparts. When they shuttered, 2,400 employees were left unemployed.[11] After being purchased by Gildan Activewear, American Apparel returned as an online-only retailer with most of its apparel sourced from factories in Central America, primarily Honduras and Nicaragua.[12][13] Los Angeles Apparel, the new manufacturer, designer and distributor led by Dov Charney, the former CEO of American Apparel, hired back 350, 200 employees were hired by Broncs Inc., and Zack Hurley, CEO of Indie Source committed to hiring "at least a few dozen."[14][11]

After worker protests and bribery investigations, Walmart, the largest grocery store in the world, has pledged to source $50 billion in products from the US over the next ten years.[15] Companies such as Tropicana sold their orange juice as being 100% native to Florida. In the late 2000s decade, they started to mix oranges from Brazil, and Florida's Natural saw this as an opportunity to place "Made in the USA" on their cartons. After Tropicana returned to only using Florida oranges several years later, Florida's Natural updated their ads saying "All Florida. Never imported. Who can say that?"[16]

Companies that make products in the US also see benefits in their supply chain. Not all benefits are directly seen in cash flows immediately. Aspects like communication are simply improved, which may have effects that are not seen in the short run. The trend towards overseas factories has resulted in complications for companies of all sizes, ranging from quality to timeline issues.

Some direct costs are decreased as a result of using domestic factories. Shipping is simpler and faster when there is no need to deal with customs. US factories offer more flexible production runs, which can be appealing to new companies or new products.[17] These offer prices and quantities closer to what companies require. Research shows that reduced tariff rates are reflected immediately in lower clothing prices.[18] This suggests that the price of an imported good directly includes the tariff paid to import it. By producing in the US, this price increase is avoided.

Companies also benefit from non-direct cost ways of making in the US. The US has the most productive workforce.[19] Costs are higher for these factories but the workers are more effective than their abroad counterparts. China historically was a cheap place to manufacture. This led to the thriving apparel factories. As currency appreciates and wages rise, people are moving to low-cost areas in south-east Asia, and also coming back to the US. China's prices are rising and time to market is becoming increasingly important.[20] Communication is difficult as well for companies that produce in areas where another language is spoken. The general manager of a Haier plant in Camden, South Carolina Bernie Tymkiw has been quoted saying, “We just don't have the brainstorming ability because of language.”[21] The cultural disconnect can prove to be a significant barrier with global companies.

Supply chains are more agile using local suppliers. There is a greater control over orders. High-end designers like being very close to their factories, as they have full control of the product quality that is leaving the assembly line. This is necessary to keep their high standards.[17] One can visit their factory as often as necessary. This plays an important role in auditing the production process. An online article about the luxury apparel maker company Everlane led to over 2,000 shirts sales in a single day.[22] A shirt restock from China may have taken three months, whereas they were able to do it in under one month.[22] Being closer to the factory can aid in shipping costs and time.