Economic Impact Of Made In USA

Made In the USA

In today’s global economy, consumers have more options than ever before. The COVID-19 pandemic, however, upended almost every aspect of American life, including the national economy and manufacturing industries. Not only did the pandemic cause a loss of 578,000 manufacturing jobs in 2020, but it also exposed weaknesses in the domestic and international supply chains.

Concerns over overreliance on international supply chains led many United States citizens to turn to products made in the USA. Many Americans love the idea of buying products and technology made domestically over imported goods but admit to not knowing the financial feasibility of such a shift in demand.

Luckily, recent trends can help show the economic impact that buying ‘Made in the USA’ creates. Now, American citizens can not only feel good about buying locally; they can see the true impact their choices have.

The History Of Buying Made In The USA

Though it may not seem like it, buying products made domestically has long driven American policy. The nation’s first president, George Washington, was said to have worn clothing made domestically and local manufacturing became central to the program advocated by both his treasury secretary, Alexander Hamilton, and himself.

Many centuries later, the US continued to have a similar industrial policy following the Great Depression. The Buy American Act was signed into law on March 3, 1933, during President Herbert Hoover’s last day in office. This came, in part, as a response to the “Buy British” marketing campaign in 1931 and the frustration felt by all Americans at seeing the amount of “Made In England” products bought for US government properties.

The act was also meant to protect American jobs, especially for the upcoming construction project, the Hoover Dam. This trend of protecting and supporting American jobs and the domestic economy continued, especially after the US became the world’s manufacturing powerhouse during World War II. Now, upsets in the medical and technological supply chains are reminding Americans why it is so important to continue to support domestic manufacturing and labor.

USA Economic Boost

Boosting The Domestic Economy

Over the years, researchers have found that buying products made in the United States has double the impact on the domestic economy when compared to buying imported goods. For example, steel sourced from American suppliers requires freight, logistics, sales, accounting, and many more functions associated with running the business so that steel can be delivered every week. For every manufacturing employee, there can be another four “support” employees hired elsewhere. For every dollar spent in manufacturing, another $1.81 might be added to the economy. In fact, for every 1 fulltime job in manufacturing, there are approximately 3.4 equivalent jobs in non-manufacturing sectors.

The Manufacturing Comeback

In recent decades, the US seemed in danger of losing its spot as one of the world’s leading manufacturing economies. Though output had grown during the 21st century, US shares of global manufacturing GDP and sales fell. The sector slowed, noticeable first in the 1990s, but especially in the decades following that. This led to many design and software manufacturing jobs outsourcing their work internationally.

Now, with the renewed interest in buying American, US manufacturing has reached a turning point. In the decade leading up to the COVID-19 pandemic, the sector was already recovering from previous declines, with millions of manufacturing jobs added between 2010 and 2019. This helped stabilize the country’s share of global manufacturing GDP, its output, and exports.

The McKinsey Global Institute, which studies the economy and how certain trends affect it, has suggested that restoring growth and competitiveness in key manufacturing industries may boost the national GDP by more than 15% over the current decade. Locally, manufacturers are a primary employer in approximately 500 US counties and employ a broader range of the overall population. Many jobs do not require four-year degrees, and most employers invest in training their current workers by offering expanded learning opportunities.

This leads to lower unemployment rates overall, and it encourages employees to strengthen the economy through their own purchases. Manufacturing jobs also create other jobs for the US economy, improving industries outside of this sphere.

Buy Products Made In The USA

Manufacturing is just one of many examples of the positive impact of buying domestic goods over imported ones. Though it is only one industry, there is a ripple effect that influences other employment sectors, promoting more jobs and an increase in American dollars staying the United States.

Finding products, though, can be difficult for the average consumer. That is why Prod Origin features a variety of local businesses and companies that pride themselves on making everything right here in the United States. Not only do we highlight these great brands, but we help consumers find just what they are looking for. When it comes to buying Made in USA products, you can find what you need here!