Made in the USA, Is it Still Profitable?
There is an ongoing joke in this country that many of us tend to laugh about, but deep down inside depresses our senses and embarrasses our American pride. More materials that are purchased by customers in the United States are being made overseas. Even “American” products, or products touted as “homemade” are created in another country. Recently, there has been backlash about our American Olympic teams wearing clothes not made in the U.S., as well as most Fourth of July accessories and paraphernalia, including those little American flags people wave, also not made here in America. Simply stated, the unfortunate truth is businesses are having products made over seas because it is cheaper to produce, ultimately making their business more profitable. What happened to the old adage: “Made in the USA?” Well, the quick retort from business owners would be that they created a business to generate revenue and to realize a profit. Do not get angry as you slosh this sentiment through your brain. We are a capitalist nation, and every human being in this country has the right persevere for the fruits of their labor. The question begs to be asked: is it still profitable to be made in the USA?
The best way to answer this question in the affirmative is to think long term. For the last several years, the answer was a resounding no. Taxes levied on American businesses, along with the gradual increase of labor costs and many other overhead costs made it near impossible for businesses to accumulate the revenue needed to sustain successful operations and to grow as a business. However, lately, there has been a slow transition in many areas involving business potential that could draw companies back to the United States. The following are reasons that might bring businesses back to operating in America:
- Recent increase in foreign labor costs, which will reduce outsourcing.
- Transportation costs due to the influx in demand for energy.
- Energy costs due to the increase in oil and natural gas production in the United States.
- Depreciation of American currency, along with rise of Chinese currency value.
- Talent – though contrary to popular opinion, the U.S. has seen a growth in talent, which will halt American businesses looking for talent to perform jobs in other nations.
The examples referenced above, along with other reasons are beginning to bring companies back. However, what about those businesses that bucked the trend and stayed in America, found and sustained success, and prospered? Jessup Manufacturing has achieved business success for over fifty years through a strong commitment to excellence and an ability to recognize methods to provide products to their clients in an American economic climate. There industrial products are always one of the best rated in their industry.
Jessup has been the exception to anyone who ever doubted that companies could not remain profitable in the economic climate of the United States. When you ask about being made in the USA, Jessup responds with ‘always and right from the beginning.’ Contact Jessup, and learn more about their industrial product benefits that were designed and created right here in the United States of America.