Groschopp: Made in the USA

Groschopp: Made in the USA Over the last several years there has been a lot in the news about the American manufacturing renaissance and buying ‘Made in the USA’ products.

Whether you produce goods for supply chains or consumers, more and more companies and consumers are looking for American manufacturers. The fractional horsepower motor industry is no different. Despite the trend for more American made products, many are on the fence when it comes to choosing a domestic or foreign motor supplier; while others have the misconception that American made fractional hp motors are just too expensive. Let’s clear up these misconceptions and explain why you should buy ‘Made in the USA’ products.

Quality

American manufacturers are held to higher quality standards than many of their overseas counterparts. Some of these standards are driven by the market, while others are prescribed by government regulation. Most overseas manufacturers attempt to meet the quality standards required by those they are supplying, however, manufacturers in countries known for low cost manufacturing often fall short. American motor manufacturers offer higher quality products because:

There is no Quality Fade (“Quality Fade, the process of quality degradation over time, is the single biggest issue in low cost manufacturing countries. It happens frequently [overseas] where manufacturing processes are immature and competitive pricing drives the profits to extremely low levels.”^{^[1]} )
Meet certification requirements
Meet product safety standards
Traceability
Value engineering
Cleaner manufacturing
Experienced workforce (Relative labor productivity–which has been rising sharply in the U.S. over the past decade while remaining flat in [some overseas countries]–as well as how flexible a workforce is. . . .[2])
More accessible & responsive customer service

In fact, the quality issues that arise from products produced in low cost manufacturing countries leads to the rest of the world preferring goods with the “Made in the USA” label on them, “. . . 60 percent of Chinese consumers also are willing to pay more for products labeled Made in the USA—as much as 80 percent more, in some cases, according to the BCG survey.”^{^[3]}

Innovation

From Henry Ford to today American manufacturers are known for their innovation. “[US] manufacturing firms tend to spend more on research and development than other businesses, and recent research has focused on the fact that the act of building things can lead to key innovations.” ^{^[4]} This adds to the increased quality of products and efficiency in manufacturing, not found in the low cost manufacturing countries.

Many in the manufacturing world know that many overseas manufacturers reverse engineer American products and designs or steal the intellectual property of their American customers; creating a mountain of legal difficulties for the American companies, as there is little legal recourse and what is available is time consuming and expensive. Also, with US patent laws not enforceable overseas, American companies run the risk of copycat products.^{^[5]}

Logistics

Buying American made products are more economic within the supply chain and the delivery is more reliable. American manufacturers offer a supply chain:

Shorter lead times
Quicker shipping with lower costs
Lower packaging costs
Less chance for damaged goods or loss
No or nominal minimum buys
Lower inventory costs; and
Makes is easier to react to market changes.

Choosing a domestic supplier for your fractional horsepower motor or gearmotor ensures you a higher quality product, safe guards your intellectual property, and allows you greater flexibility in your motor inventory.

[1] Coates, Rosemary “Quality Fade” Logistics Management, March 1, 2012, http://www.logisticsmgmt.com/view/quality_fade/Global_Trade, 03/06/2014.

[2] Foroohar, Rana, and Bill Saportlo. “Made in the U.S.A.”, Time, April 22, 2013. http://business.time.com/made-in-the-u-s-a/ , 03/06/2014.

[3] Sirkin, Harold. “”Made in the USA’ Still Matters,” BloombergBusinessweek. February 25, 2013. http://www.businessweek.com/articles/2013-02-25/made-in-the-usa-still-matters , 03/06/2014.

[4]Plumer, Brad. “Is U.S. manufacturing making a comeback-or it is just hype?” The Washington Post, May 1, 2013; http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/01/is-u-s-manufacturing-set-for-a-comeback-or-is-it-all-hype/, 03/06/2014.

[5] Modor Plastics, http://www.modorplastics.com/us-vs-china 03/06/2014.