This blog was updated on July 16, 2024.

You might have heard from politicians, journalists and even investors that American manufacturing is on the decline. There have been claims that globalization has weakened domestic manufacturing (1) and that businesses will continue outsourcing to low-cost countries. Some people even go so far as to say that manufacturing jobs won't be an option within a generation or two. But you know what? They’re wrong.

Those who currently work in the American manufacturing industry understand that this outlook—that manufacturing is on the decline—is far from the truth. In reality, an increasing number of American manufacturers are coming back to the U.S. from lower cost countries. They recognize the cost advantages diminish as other risks associated with low-cost countries increase.

Manufacturing in the U.S. reduces risks significantly and is an attractive option for keeping operations domestic, with numbers to back it. The United States currently has a thriving manufacturing sector, with an annual output of more than $4 trillion (2). Manufacturing in the United States is thriving and will be for a long time to come. 

Below are five key reasons why American manufacturing of cast products can’t be replaced.

1. American Products Have Higher Quality and Consistency

It's not just a stereotype: American manufacturers really do work to higher standards than many of their foreign counterparts. 

When vetting suppliers, the quality of the cast products should be any customer's top concern. In the United States, education, experience, specialization, production standards and regulation all come together to raise the quality of products across the board. This contrasts with low-cost countries, where communication challenges, lower training standards, loss of product control and supply chain interruptions often negatively impact quality. This decline in quality—whether due to working with an inexperienced manufacturer or operating in a poorly regulated atmosphere—can lead to recalls and delays, and ultimately result in very expensive problems down the line.

Shopping for American vendors offers buyers a large selection of high-quality suppliers to choose from, where there is more transparency in product quality and consistency.

2. Domestic Production Means Shorter Lead Times

You don't have to be a geography whiz to know that the distances between states is negligible when compared to the distances to China or Brazil. Not only that, but we have one of the world’s most efficient freight systems in the United States (3). Our interstates and rail networks do a great job of moving freight quickly, safely and efficiently between all corners of the United States.

Keeping production at home is an easy way to reduce lead times while maintaining the integrity of your process and quality. Lean manufacturing requires fast and constant delivery of supply, and sourcing domestically is a big step in the right direction.

3. Easier Shipping Means Lower Shipping Costs

Given the aforementioned geographical disparities, manufacturing of any goods overseas generates more shipping costs. Castings, in particular, can make for heavy–and expensive–shipments. 

When you keep production domestic, you reduce the shipping distance and simplify logistics. Both of these factors together can lead to much lower overall costs. In turn, lower shipping costs allow for smaller orders which can lower inventory costs.

4. American Companies Are Great at Customer Service

When planning a part order, don't make the mistake of overlooking the value of solid communication and helpful customer service. By keeping things domestic, you minimize the risk of miscommunications and maximize the amount of assistance your supplier can offer. 

While not particularly unique to foreign manufacturing, automation of the business process is becoming increasingly popular with large companies. That means it's more difficult to get personal help if a problem or question arises. By sourcing with smaller domestic companies, you can deal with actual people and save yourself a lot of time, money and irritation.

5. "Made in USA" Matters

A Consumer Reports study revealed that over 80% of American consumers prefer to buy “Made in USA” products over imported ones. (4) More than 60% are willing to pay ten percent more for these products, citing the preservation of manufacturing jobs and maintaining the strength of U.S. manufacturing in the global economy as very important reasons for their preference.

According to Dianna Huff, industrial marketing manager and Made in the USA advocate, “Made in USA” is an important selling point for manufacturers marketing to manufacturers, because it drives inquiries from companies that value relationships, lead times, material and customization requirements, shipping costs and price. (5) In other words, customers who buy American are in it for the long haul.

In a country as large and diverse as the United States, choosing to source domestically is a no-brainer. While many buyers are lured abroad by lower initial quotes, these savings are often negated by challenges such as unstable supply chains, poor quality products that don’t conform to required standards, and shipping delays (6). And when the bottom line is quality, it doesn't get better than American-made. No matter what some people are saying, American manufacturing of cast parts is here to stay. 

If you're interested in learning more about best practices for purchasing American-made cast products, check out our free buyer's guide below.

References:

(1)    Houseman, S. Is American Manufacturing in Decline? Upjohn Institute.
https://www.upjohn.org/research-highlights/american-manufacturing-decline

(2)    Knowledge at Wharton Staff. How the U.S. Can Regain Its Manufacturing Edge. Knowledge at Wharton.
https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/future-of-us-manufacturing/

(3)    Back on track: The quiet success of America’s freight railways. The Economist.
https://www.economist.com/business/2013/04/13/back-on-track

(4)    Moser, H. Made in USA: Turning preference into purchases (part 1). Assembly Magazine.
https://www.assemblymag.com/articles/94752-made-in-usa-turning-preference-into-purchases-part-1 

(5)    Huff, D. Three ways B2B manufacturers can capitalize on ‘Made in the USA’ searches. Search Engine Land.
https://searchengineland.com/three-ways-manufacturers-can-capitalize-made-usa-276029 

(6)    Crawford, M. 7 Reasons Manufacturers Are Returning to the US. ASME.
https://www.asme.org/topics-resources/content/7-reasons-manufacturers-are-returning-to-the-us