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Blog

MANUFACTURING IN AMERICA

By: Mike Lauber - May 15th, 2017

This space often highlights the state of American retailing. Today, let’s look at American manufacturing’s advantages. At TuscoMFG as well as Tusco Display, we face global competition every day.


We see growing evidence of greater success among manufacturers in the post-Great Recession era and several reasons for that success:

  1. Costs. Low-wage countries like China have seen significant wage inflation. Dramatically lower energy costs in the US have made a big difference, too. In many instances, US manufacturers compete quite well on costs.

  2. Productivity. It’s well-documented that US workers produce more goods per hour than most other countries due in greater investments in automation, IT, transportation infrastructure networks and education.

  3. Inventory. Global supply chains often require greater inventories. That inventory in turn leaves companies at risk of seeing the products become obsolete, esp in the technology and fashion sectors. Carrying costs for space, labor and energy add up, too.

  4. Proximity. The US market is the largest consumer market in the world. Being close to your customers gives you a speed advantage but also greater flexibility in communicating changes, updates, etc.

Though we buy products abroad when necessary and advantageous, we prefer our Made in America advantages and our clients do, too.