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Has ‘Made in the USA’ had its day?

Has made in the usa

What Happened to Made in the USA?

With rising costs and wages for making apparel in the US, more eCommerce stores opt for outsourcing. So, the day of clothing stores full of products “made in the USA” may, in fact, be over. For example, if a t-shirt company made all their products locally in the US, they’d be paying workers 3.5 times more than those in China and 13 times more than they would in Vietnam. When you’re looking for your next favorite jacket, check its origin. 

The eCommerce Boom

When the COVID pandemic began, eCommerce experienced a huge influx of both vendors and customers. In the final three months of 2020, US consumers spent over $206 billion in retail goods from online stores. Further, Americans bought more than 46% of their clothes and accessories online in the same year. At first glance, this is great for consumers: more choice at their fingertips. On the other hand, however, it creates difficulty for US makers – not only in production cost but competition as well.

Automation ≠ Automatic Success

Generally, when I think of automation, I get excited. A manual task that used to take three hours can now be done automatically in a third of the time? Sign me up! Like other manufacturers, Adam Ravat of N95 mask company BNX utilized robotics to automate the process, reducing their operating costs to be competitive with Chinese knockoffs. 

Although manufacturers can find success in automation, it does not always guarantee success. Additionally, it can be quite costly if what you’re automating requires certain certifications like BNX’s masks. 

Combating the Copycats

If you list your products on Amazon, you’re opening the door for imitators. At first, they may seem harmless, but when they start offering cheaper products, you can start losing business. When selling products online through third party vendors, its recommended to inform your customers of the materials its composed of and where it was manufactured.

In Conclusion

All things considered, if you’re looking to start a t-shirt company in your mom’s basement, you might still have a chance at success. Altogether, small businesses likely don’t need to worry about automation, as their customer groups aren’t that large yet. Obviously, if they expand or their order volume increases, they may want to take a second glance. What do you think about eCommerce after the pandemic? Do you buy more or less online? Let us know in the comments below! 

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