Made in America: Waving the Flag
Expanding America’s manufacturing base as it pertains to everyday consumer packaged goods is a concept that has been much discussed, but the cost savings offered by making goods in China and other Asian countries has been the big hurdle to any major reshoring effort.
Today, global political issues, most notably rising tensions with China, and the continual review by retailers and suppliers alike of the challenges the pandemic presented with obtaining goods from overseas, has sparked a renewed effort to expand the manufacturing base in the United States.
Additionally, another significant factor in the conversation is the price of importing products today. From high transportation costs to labor issues and the challenges of expediting products through major U.S. ports, retailers are reviewing their total costs and finding that manufacturing outside the U.S. may not be as cost effective as it was in past years.
“Our goal is always to provide the best quality (products) that we can to our members at the lowest cost of goods,” said Emily Detwiler, executive director of Associated Wholesale Grocers’ AWG Brands. “Many times that comes simply by working through the logistics of having products come from the closest possible places. When you think about it from that perspective, proximity is a huge component for us in being able to provide quality products at great prices for our member-owners.”