Made In America Movement Making Waves



Made In America Movement Making Waves


I am a top-ranked global retail analyst writing about retail and tech.

Contributors are their own.

NEW YORK, NY – OCTOBER 04: An American Flag flies outside of a building in Industrial City, a historic shipping, warehousing, and manufacturing complex on the waterfront in the Sunset Park neighborhood of Brooklyn on October 4, 2016 in New York City. (Photo by Spencer Platt/Getty Images)
Last month, Budweiser’s Made in America festival, held on Labor Day weekend in Philadelphia, brought together American music and culture. The festival was estimated to have drawn 130,000 people and generated $10 million for the city last year, according to former Philadelphia Mayor Michael Nutter’s administration. Now in its fifth year, the festival aims to bring together American music and culture. Ron Howard, who directed a 2013 documentary based on the festival, called it “a reflection of the fabric of what it means to be ‘Made in America’.”
Made in America is more than just a music festival though. A movement to manufacture in the United States emerged in response to a decrease in domestic manufacturing in favor of cheap overseas labor. Today, there remains a perception that manufacturing is still in decline in the US; however, it is actually growing. According to the Department of Commerce, between 2009 and 2014, manufacturing in the US grew 45%, adding around 646,000 manufacturing jobs. However, the push to make products in America has continued. According to the Alliance for American Manufacturing, if every American committed to spending $64 on American made products, it would create 200,000 jobs, and if contractors increased the use of American-made materials by 5%, it would create an additional 200,000 jobs. Furthermore, a Consumer Reports survey found that 80% of Americans would prefer to buy an American-made product, and over 60% say they would even pay 10% more for it. An attractive market exists for Made in America products.
While the movement has become a branding tactic, it runs much deeper for many who commit to manufacturing in the US. We were able to speak to several companies that are part of the Made in America movement—such as Imogene + Willie, Rubin Singer and GiGi New York—to get insights into why they chose to manufacture domestically and what it means to their brand.
A look inside Rubin Singer’s New York City atelier. Source: Rubin Singer.
For designer Rubin Singer—who got his big break dressing Beyoncé for the 2013 Super Bowl halftime show—the inspiration to manufacture his line in New York came from his childhood as a third-generation couturier, growing up playing in his father’s Madison Avenue store. When we spoke to Atul Midha, CEO of Rubin Singer, he explained that for them, Made in America is part of the DNA of the brand. “We’re sort of lucky if that gives us a competitive advantage,” he said. “But if it did not, it does not mean we could switch tomorrow. I think the true brands pitch it because it is logical to the brand, not to exploit the commercial aspect of it.
Tom Glazer, President of New York-based handbag company GiGi New York, highlighted the value of the versatility provided by manufacturing on Long Island. “At every stage, having this factory here has allowed me to take baby steps where I needed to, but it has also helped me take advantage of November and December business when other companies have sold out and cannot fulfill orders, but I am able to because I can still make it [here],” said Glazer


Handbags in production and spools of thread at GiGi New York’s Long Island Factory. Source: Fung Global Retail & Technology. Photo credit: Victoria Babchak.
However, even those committed to Made in America admit that there are exceptions in which they would produce overseas. At Imogene + Willie, while Matt and Carrie are completely committed to manufacturing and producing their jeans in the US, they said they would be open to producing other garments overseas, given the right circumstances. “If we were ever to make sweaters—which we don’t and I don’t know if we will—if there were an Irish community that makes the best sweaters in the world, we would certainly entertain that,” explained Carrie. The brand’s commitment to quality leaves them open to possibilities.
GiGi New York, on the other hand, already manufactures some of its product in Asia. Despite the value its Long Island factory provides, for large orders of handbags it knows will sell, sourcing overseas is most practical for the company. “It shocks me that our model is not copied elsewhere. You get the best of both worlds. The overhead [of the Long Island factory] is real, but the versatility that it gains us is nothing that I could do if I bought [completely] overseas,” explained Glazer.
We believe the Made in America movement will continue to grow as consumers continue to seek out authentic brands and companies seek to control more of their manufacturing, as production timelines continue to shrink. However, while the movement provides brands with a powerful marketing tool, we think most companies will take on GiGi New York’s model to maximize the benefits of both domestic and overseas manufacturing.



Comments

Popular Posts