Positioning Your American Made Product

Business owners are bombarded with one key theme surrounding the U.S. economy: struggle. However, if we look beyond the news reports and pessimism, we can find bright spots and areas of growth. American manufacturing is making a comeback—a comeback large enough to reshore jobs and garner massive public support.

As domestic manufacturers, we can utilize this trend to properly position our products, increase profit margins, and widen consumer bases. We can tap into the conscious consumer movement. Likewise, service businesses can gain customers by marketing their usage of American goods and highlighting their support for American manufacturing. Simply put, the majority of Americans believe that buying domestic is important, and they do not necessarily expect the entire product to be made in the USA.

Corporations have taken notice. Apple, a company notorious for outsourcing production to China, recently released a marketing campaign that touted its products as “designed in California.” Walmart recently announced a 10-year, $50 billion initiative to increase American products, even though this increase only accounts for 1.5 percent of their inventory.

The shifts in the marketing plans of multibillion-dollar international corporations highlight the magnitude of consumer interest. Whether your business produces 100 percent “Made in the USA” certified products or simply uses items assembled in America, you can utilize preexisting market research to tap into the “buy American” trend, understand your consumer base, and increase profits.

Americans, regardless of gender, age, income, or political affiliation, overwhelmingly support buying American made products. A survey conducted by American Certified of over 1,050 people found that 80 percent of Americans believe that purchasing domestic products is important to them. In a similar survey focusing on the Made in America movement, the Consumer Reports National Research Center found that 78 percent of Americans would rather buy a domestic product than an identical import, and 92 percent of respondents were more likely to buy a product from a company that supported the local community.

If you are a business owner manufacturing an American made product, it is important that you market your product as such because your domestic consumer base cares. However, prior to marketing, you must understand the federal guidelines. Marketing Made in America has specific parameters that are vague and often confusing.

The Federal Trade Commission (FTC) regulates the “Made in the USA” standard. This is the most common and recognized standard. “Made in the USA” means that all or virtually all of the product was produced in the USA. The FTC does not preapprove this claim, so no prior certification is required. However, there are also private certifiers that register products as American made.

The Apple and Walmart campaigns provide substantial evidence regarding the halo effect of Made in America. Apple’s willingness to spend millions of dollars on a marketing plan that solely focuses on American design highlights the magnitude of this consumer trend. Consumers not only value 100 percent domestic production but also value companies that purchase American products or partially produce their products domestically. For the many products that are partially made in America, as a manufacturer, you have the ability to insert qualified claims onto your products. For example, a product can state “assembled in USA” or “60 percent produced in USA.” Even if only one-third of your products are American made, own it.

We understand that many consumers prefer American manufacturing, but we can delve further. By utilizing demographics, business owners can pinpoint motivations, increase customer loyalty, and further profit from the conscious consumer movement. A business must know the demographics of its current and potential customer bases. Demographics are simply the customers and their external characteristics. Demographic information includes (but is not limited to) age, annual income, race, number of children, political affiliation, and occupation.

While Americans support domestic manufacturing across demographic lines, certain niches are more likely to put strong emphasis on this issue. Most significant is the statistical difference between age groups. A Harris Interactive poll found that 75 percent of Americans over 55 years old are more likely to buy a product that emphasizes Made in America compared to 44 percent of 18–34 year olds. A recent Gallup poll provided similar sentiment, stating that 61 percent of Americans over 65 years of age went out of their way to buy American compared to 20 percent of 18–29 year olds.

The gap only widens with the inclusion of political beliefs. According to an American Certified study, conservatives over 60 years old are the most likely to agree that buying American is important to them (93 percent), while liberals between the ages of 18 and 29 are the least likely (63 percent).

The reasons for buying American differ as well: 68 percent of the polled conservatives over 60 years old stated that they bought American to support domestic jobs, while only 40 percent of the young liberals polled bought American to support jobs. However, young liberals are much more likely to purchase American to support the ethical treatment of workers and for environmental concerns compared to their older, conservative counterparts.

But what does this data mean for your business? It simply means that you must understand your demographics to market effectively. If your customer base has a strong percentage of conservatives or Baby Boomers, you may want to emphasize the role domestic manufacturing plays in job creation. Your business creates American jobs. Your business supports the American economy. Likewise, if your consumer base is largely liberal or young, emphasize the ethical treatment of your employees or market on behalf of your sustainable practices and environmentally friendly business.

A huge portion of the American population is reinvigorated to purchase American, but the reasoning behind the purchases varies significantly. A business must always cater its marketing to the consumer base. Marketing American manufacturing is no different. Conservatives and Baby Boomers purchase American to support American jobs and the domestic economy. Generation Y purchases American goods for labor rights, environmental concerns or branding. Market accordingly.

Where applicable and whenever possible, your business should take pride in American quality and connect with the growing number of consumers who believe in the importance of domestic manufacturing. The American conscious consumer is ready for your product. Understand your demographics, market ferociously, and utilize your company’s unique qualities and traits. Buying American is in; it’s time to capitalize.