User:Farley.ty/sandbox

Draft

This is being added to the Made in USA page. I am using the existing Marketing operations portion and adding an Operational significance section. I will put both of these under a "Significance" section and make sure they are uniform.

Significance

The “Made in the USA” tag is associated with marketing and operational benefits. Companies that use domestic factories see positive externalities that relate directly to cost as well as those that are non-cost.  When a consumer sees a product is made in the USA they may perceive this as higher quality, compared to a Chinese made counterpart. The decision of where to produce is based off of many factors, not simply the direct product costs. Marketing and operations are both affected greatly by producing domestically.

Marketing Significance

Companies make it clear when a product is made in the USA. The branding and campaigns associated always highlight this aspect. One benefit to US production is the marketing potential associated with it. These are often non-cost, but relate to the success of products. Country of origin is a typical heuristic used when purchasing. This plays a significant role in the consumer’s perspective and evaluation process. Consumers believe domestic products offer the highest value and show the least risk. When comparing similar products, the consumer is more drawn to that which is made domestically. This may be effected by price as well.

Automotive

For years we have seen American car brands use this as a differentiating point. Supporting companies such as Ford was thought of as patriotic. Twenty eight percent of Americans have said they would only buy American vehicles.

Apparel

Some may be concerned with the exploitation of non-American workers in sweatshops. Therefore, a product bearing a Made in the USA label can appeal to an American who seeks high quality products produced domestically under American labor and environmental laws. American Apparel, which has been producing in Los Angeles since 1989, is the largest clothing manufacturer in North America. They are committed to social responsibility, and offer their factory workers careers with benefits and pay significantly higher than that of their overseas counterparts.

Food

After worker protests and bribery investigations, Walmart, the largest grocery store in the world, has pledged to source $50 billion in products from the US over the next ten years. Companies such as Tropicana sold their orange juice as being 100% native to Florida. They later started to mix oranges from Brazil, and Florida’s Natural saw this as an opportunity to place "Made in the USA" on their cartons. Now that Tropicana has returned to only sourcing Florida oranges, Florida’s Natural has updated their ads saying "All Florida. Never imported. Who can say that?"

Operational Significance

Companies that make products in the USA also see benefits in their supply chain. Not all benefits are directly seen in cash flows immediately. Aspects like communication are simply improved, which may have effects that are not seen in the short run. The trend towards overseas factories has resulted in complications for companies of all sizes, ranging from quality to timeline issues.

Financial

Some direct costs are decreased as a result of using domestic factories. Shipping is simpler and faster when there is no need to deal with customs. US factories offer more flexible production runs, which can be appealing to new companies or new products. These offer prices and quantities closer to what companies require. Research shows that reduced tariff rates are reflected immediately in lower clothing prices. This suggests that the price of an imported good directly includes the tariff paid to import it. By producing in the USA, this price increase is avoided.

Non-financial

Companies also benefit in non-direct cost ways from making in the USA. The USA has the most productive workforce. Costs are higher for these factories but the workers are more effective than their abroad counterparts. China historically was a cheap place to manufacture. This led to the thriving apparel factories. As currency appreciates, and wages rise people are moving to low cost areas in south east Asia, and also coming back to the USA. China’s prices are rising and time to market is becoming increasingly important. Communication is difficult as well for companies that produce in areas where another language is spoken. General manager of a Haier plant in Camden, South Carolina Bernie Tymkiw has been quoted saying, “We just don't have the brainstorming ability because of language.” The cultural disconnect can prove to be a significant barrier with global companies.

Supply chains are more agile using local suppliers. There is a greater control over orders. High end designers like being very close to their factories, as they have full control of the product quality that is leaving the assembly line. This is necessary to keep their high standards. One can visit their factory as often as necessary. This plays an important role in auditing the production process. An online article about the luxury apparel maker company Everlane led to over 2,000 shirts sales in a single day. A shirt restock from China may have taken three months, whereas they were able to do it in under one month. Being closer to the factory can aid in shipping costs and time.

Beginning Outline

Added to Made in USA section

Significance Section

Marketing Significance (already there, but I’ll add)

1. Existing portions
   1. Disdain in overseas manufacturing
   2. High quality
2. Where is it visible in digital marketing?
3. This supports more US jobs. Patriotism leads to sales.
4. Examples of companies using this marketing
   1. I.e. …

Operational significance

1. Financial benefits
   1. Shipping costs will go down.
   2. No tariffs on importing the goods because they’re not imported.
   3. Production runs can be smaller.
2. Not cost benefits
   1. Communication is increased due to factories being in the same time zone and using the same language.
   2. Faster shipping and more agile supply chain. Things can be changed faster. There is less of a lag.
3. Examples of companies benefitting from any of the above operational topics.
   1. I.e. …

Farley.ty (talk) 17:01, 14 October 2016 (UTC)

The addition to the marketing significance section does make sense, the only thing I am worried about is that that section may be significantly larger than the other sections in the article (dependent upon how much you add/remove). I also think that it is a great idea to add the operational significance, so long as you remain impartial. I think the Examples section that already exists should be changed completely. There is no need to give the example of a hypothetical situation where one product is considering American-made and another is not. My last suggestion is to consider making a new page about Made in USA companies. This will give you the liberty to make the sections equal length.