Made in the USA Still Makes Sense

Tom Wolf published this article on July 21, 2011 in Build your Business. Total Comments: 5 | Comment

I like Toby Keith’s song, “Made in America.” It’s full of the kind of down-home, feel-good, patriotic feelings that remind us of simpler times. In it, he pays graceful tribute to his parents, our country and the products good people have always made in the USA. But the song centers on his father who was, as Keith tells us, also “made in America.”

Keith’s point, of course, is that we should emulate his dad. We should be gritty, resourceful, and we should buy American wherever – and whenever – we can. For Toby Keith, buying American is not just an abstract idea. It’s something decent, hardworking Americans should actually do.

Of course I like the idea. Buying American made goods makes sense. It saves jobs; it recycles dollars back into our economy and it gives us products we can count on. But buried in the refrain of Keith’s hit, is that old canard that in order to buy American, you have to pay more. As Keith says, his father “spends a little more at the store for a tag in the back that says U.S.A.” The idea is that this tag can be costly.

In fact, Toby is wrong. You don’t have to pay more for the American flag on the product you buy. At least that has been my experience. Since our company – Wolf – has been sourcing products, we have found that products made by American workers in factories located in the United States can compete quite nicely – in terms of both price and quality – with anything anybody can make anywhere else.

For example, our Wolf Classic Cabinets are made in Indiana by American workers using American components. Our PVC Trim boards are made in Texas and Alabama; our decking is made in Florida; our porch flooring is made in New Jersey; and our cultured marble tops are made in Pennsylvania. They are great products and they are priced right and our customers seem to like them.

So while Toby Keith is right to remind us that buying American is the patriotic thing to do, I’d like to point out – a lot less poetically of course – that it’s also the smart thing to do.

About Tom Wolf

Tom is a sixth generation owner and pioneer. With degrees from Dartmouth, MIT and the University of London, plus more than 30 years in the building materials business, you’ll find Tom’s insightful, eclectic viewpoints to be both stimulating and entertaining.

Comments:

1. Jeff Schumacher Posted at 10:22 AM on 8/22/2011

Dear Tom,
I agree with you in principle, but you are also applying a broad brush to what is effectively a niche industry. Construction materials and any other product that has a low value to density ratio will almost always be cheaper and easier to source from local suppliers. The goods tend to be capital intensive, which means there is no benefit in offshoring/outsourcing the work to a low-labor country, as the transportation costs would eat up any of the cost savings. The idea that buying American would cost more as mentioned by Mr. Keith would absolutely apply to most technology goods, and others with a high value to density ratio. I think what many people fail to understand is that the cost savings for offshoring tends to be quite marginal, in the 5-10% range.

2. Tom Wolf Posted at 12:26 PM on 8/22/2011

Thanks for the post, Justin. You’re right to suggest that my argument might paint too broad a brush. It is probably wrong to say that it is never the case that buying American costs more. Neither is it the case, however, that buying American always costs more. Some of the products we source in the USA, for example, are actually high value to density products like kitchen cabinets which don’t cost more than their imported counterparts. Thanks again for the post.

3. George Schneider Posted at 12:31 PM on 10/01/2011

Dear Sir: I want to buy only American Made Products, not always easy to fine. I am currently in the process of building an New Porch on my home. Originally my home was build in or around 1872, it was the Frist Bank Of Granville New York, later becoming the Village Hall/Court. I purchased the building in 1999 and I have been working on it since. My wife and I moved into the building in 2008 and we are very happy that we saved and restored the building. My final project is erecting a Porch on the side of the building facing Main Street. I am now 64 years old and trying to install Maintenance free products when possible and of course Made In America products. I am seeking information about your PVC Porch Flooring and hope that you can insure I receive the best information about your product. Thank You and God Bless America: George Schneider

4. Kim Downs Posted at 5:43 PM on 10/03/2011

Mr. Schneider:

Congratulations on working so hard to save your historical treasure!

We’re very pleased to offer this ideal substitute for traditional fir porch boards. Not only is it a great looking and low maintenance product, but you’re right, it’s also made right here in the U.S.A.

I’ve contacted our sales consultant who covers Granville, NY. He recommends you contact Neal at Gilmore Home Center, Bomoseen VT—802-468-5676.

In the meantime, I have emailed you more information about our product.

Good Luck with your project and thank you for your interest!

- Kim Downs, Director of Marketing