Why Buy Made in USA? / Part 5

Why buy Made in USA?  It is not entirely clear whether the desire for profit, contraction in demand, or sheer ambivalence for American-made products has driven this manufacturing exodus. However, what is left of America’s physical infrastructure is now deteriorating rapidly, and much of the technology left behind is outdated (Baily & Bosworth, 2014; Ellis & Casabona, 2011). Fewer people are able to perform factory jobs that were once in demand, and those with higher education are reluctant to enter an industry that they perceive to be unpopular and unstable; for example, a 2015 Bloomberg survey revealed that only 4 percent of 2014 MBA graduates entered the manufacturing sector (Baily & Bosworth, 2014; Ellis & Casabona, 2011; Kitroeff, 2015).

Others point to America’s lack of competitiveness on a global stage to earn manufacturing bids, as other nations have more attractive policies to do business (Baily & Bosworth, 2014; Dunn, 2012). Many economic scholars note that the USA has one of highest combined federal and state corporate tax rates at approximately 39 percent, making it even more cost prohibitive for American businesses to keep production at home, much less attract business from other countries (Baily & Bosworth, 2014; Dunn, 2012; Ezell, 2012). These prohibitive factors pose a significant challenge for companies that currently outsource, as domestic resources have all but dried up, other industries are securing top talent, and American policies are relatively unattractive, making the decision to re-shore difficult (Dunn, 2012; Ellis & Casabona, 2011; Kitroeff, 2015).

However, some research suggests that organizations should monitor the decision to move manufacturing offshore closely, as outsourcing may potentially have a negative impact on several demographics including younger, more educated consumers (Durvasula & Lysonski, 2009). Though many view outsourcing with an open mind, some are beginning to understand the larger economic consequences of globalization, such as crippling job losses, and the growing American trade deficit of nearly $505 billion dollars (Durvasula & Lysonski, 2009; Sparshott, 2015). As future generations stand to inherit this deficit, it is not surprising that some are concerned (Ezell, 2012).