Why buy American products? Well, think about what the impact would be if just one or two gifts were a product made in America.
There are various studies that indicate spending just a little bit, buying one or two gifts made in the USA, has a profound effect on the American economy. It could give your neighbour a job. It could give your town a new business.
A 2011 study conducted in Portland, Maine concluded that if residents of the region were to shift 10% of their spending from large chain companies to locally owned businesses, it would generate $127 million in additional local economic activity and 874 new jobs generating $35 million in wages, as well as maintaining the existing employment.
Can you play the numbers game for the entire country’s holiday spending?
In 2019 we spent more than $1 trillion in holiday gifts in the USA. 10% equals $100 billion in direct revenue for your favourite made-in-USA companies. Taking the same ratio as Maine’s study: if every $100 spent generates $58 in the local economy, what would be the impact on our entire economy if we decide to invest 10% of our holiday budget in American made? What would a $58 billion additional national economic activity do? How many new jobs would that represent? As a manufacturer, we know a healthy economy is created by the people! Every single action counts and, when we do it together, we accomplish wonders!
Is Made in America more expensive?
Often, products made in America may be a little higher priced - but not every time and it is worth the effort to compare. The younger generations are leaders in their spending as they opt more frequently for products made by companies who observe sustainable practices, provide a better quality product that will last, and great customer service.
The big chains are not always the real bargain price-wise, and even less so when you take into account the local economic impacts. One thing to remember is that domestic manufacturers may encounter higher prices for raw materials when they source domestically, or when they buy in small quantities from big suppliers. American employees' wages are also higher than in third world countries. Yet, they (domestic manufacturers) often manage to be as competitive as the Asian-made big brands, not to mention the superior quality of their products and the customer service they offer.
When you buy American products, you create a big impact on local, state and national economies. Since the COVID virus has interrupted our lives, putting an emphasis on buying American-made goods will help our communities stay afloat and will result in employers hiring more employees to keep up with the new faster pace of business.
40% of holiday shoppers express a wish to receive a gift card
Another note: there is something invigorating about buying products made in the USA. It gives you a sense of partnership with that specific business, of belonging to a community, of knowing that you are contributing to its local economy and workforce.
What about adding to your gift-wish-list a gift card from a company whose products you would like to try? More than 40% of holiday shoppers express a wish to be given a gift card, but they don’t always receive one.
Third of the private workforce sector have fewer than 20 employees
According to Statistics of the U.S. Businesses (2016), small businesses employ nearly 60 million people, or about 48% of the private workforce. About a third of those businesses have fewer than 20 employees but, nevertheless, employ more than 20 million people with a payroll of nearly $829 billion. Buying made in America from a small business supports a full 48% of the country’s private workforce!
Since there is still time, with Black Friday and Cyber Monday being a little ways off, start your research and see what you can purchase for your loved ones this year with a gift that was made in the USA.
Visit our other blog about the companies in our neighbourhood that we notice and love, and take the same challenge yourself: to find some small businesses in your region that you may not be aware of.