"Made in USA" challenges and opportunities
Mini motorcycle and go-kart maker Monster Moto made a big bet on US manufacturing by moving assembly to this Louisiana town in 2016 from China.
But it will be a long ride before it can stamp its products "Made in USA." ( Complying with the Made in USA Standard)
The loss of nearly one out four US factories in the past two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.
Monster Moto's experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. US automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if Trump's proposed "border tax" on imported goods were to become law.
When companies reshore assembly to US soil — in Monster Moto's case that took two years to find a location and negotiate support from local and state officials — they are betting their demand will create a local supply chain that currently does not exist.
For now, finding US-based suppliers "remains one of the top challenges across our supplier base," said Cindi Marsiglio, Walmart Stores Inc.'s vice president for US manufacturing and sourcing.In January 2013, Walmart committed to American renewal by announcing it intends to help boost job creation and U.S. manufacturing through buying an additional $250 billion in products that support American jobs over 10 years. Based on data from Boston Consulting Group, it’s estimated that 1 million new U.S. jobs will be created through this initiative.
“Made in the USA” is usually a source of pride for many Americans. But it doesn’t carry as much cachet in several other countries.
America came in at just 10th place, tying with Japan and France on the index of trustworthiness around the world, according to a new “Made-In-Country” index released Tuesday from online statistics and market research website Statista. And No. 1? The label “Made in Germany” topped the list, followed by Switzerland at No. 2 and the European Union at No. 3. The “Made in the United Kingdom” label came in fourth place.