When you see a product advertised as “Made in America,” what does that mean to you? For most people, it conjures up images of factories manned by well-paid workers producing high-quality goods. Unfortunately, the truth is not quite so rosy. In fact, the vast majority of products advertised as “Made in America” are actually only partially made here.
The percentage of American-made content in products labeled “Made in America” varies widely depending on the product. For example, a shirt that is 100% made in America would have all of its fabric milled, cut, sewn, and finished in this country. A shirt that is 50% made in America would have its fabric milled and cut here but then shipped overseas to be sewn and finished. And a shirt or product that is assembled in America from imported parts would typically only have a small percentage of its value-add here in the States.
In order to be considered “Made in the USA,” a product must be 51% made here. That means the other 49% of a product’s value can be manufactured somewhere else. The FTC (Federal Trade Commission) has strict guidelines on what can and cannot be included in a product’s labeling, but unfortunately, there are many companies who choose to flout the rules or find ways around them legally. For instance, manufacturers often import all components of a product and even partially assembled components and then can do “final assembly” within the States, and given the labor component is typically much higher here than in other places, manufacturers will have a very small portion of the final assembly done which will qualify for the 51% value-add and legally qualify their product as being “Made in the USA.”
The next time you see a product advertised as “Made in America,” take a closer look at the fine print. You might be surprised to discover that the vast majority of these products are only partially made here in the United States. And when it comes to products that are truly 100% American-made, you might find that they come with a price tag that causes a bit of sticker shock. However, an ever-increasing factor is a quality, value, and local support. What do you value?