A Reshoring Institute survey says Made in USA is popular. But does it drive sales?

| Posted by unionwear

A recent Reshoring Institute survey of  nearly 500 Americans asked if they prefer “Made in USA” products. According to the survey, nearly 70% of respondents prefer American-made products. And, slightly more than 83% said they would pay up to 20% more for products made domestically.

However, in my experience, what people say and what they do are frequently at odds. As I said in a previous post, there has to be another reason to buy in America that goes beyond where it is made.

For instance, if people believe the items are higher quality and will last longer, customers might be more inclined to pay a premium. Frankly, made in America is a secondary consideration.

For the most part, people want quality products at a reasonable price. They would not buy a made in USA product if it was perceived to be inferior quality, no matter where it was manufactured.

One big competitive advantage domestic manufacturers have is in the supply chain. We never worry about delayed shipments due to the pandemic or other unforeseen supply chain disruptions. We also have the advantage of addressing manufacturing challenges immediately, compared to those who have to deal with overseas suppliers.

So while made in USA is sometimes a marketing advantage — especially with political campaigns and government contracts — quality and consistency will be most buyer’s primary motivation to pay a small premium for domestically produced goods.