Manufacturing is a cornerstone of a strong U.S. economy. In July 2008, total shipments by U.S. manufacturers exceeded $460 billion. At the lowest point of the recession, this had fallen more than $100 billion to just over $350 billion. That has recovered to $418 billion for September, one of the brighter spots in the economy.
Continued growth in our manufacturing is essential to a strong and healthy recovery. The weaker dollar due to the ultra-low interest rates by the Federal Reserve helps on the export front, but more needs to be done about domestic consumption. Consumers drive two-thirds of the economy, and we have the power to drive the recovery all by ourselves. It is time for us to take charge.
Retailers carry the products that maximize their profits. This is generally driven by buying the lowest-cost products, given a certain retail price that maximizes their margins. Maximizing profits is OK, but it is time for us to change the rules. Retailers believe that having the lowest prices for a given level of quality is all we care about, particularly in a period of high unemployment. They are wrong, and we can show them the error of their ways. Let me tell you how we can do it.
Every time we go shopping, we need to ask for assistance from the staff in the store. Simply tell them what you are looking for, and ask them to show you the one that is manufactured in America. If they have them and the products are reasonably competitive, buy them! At some retailers or with some products, they will tell you that they do not have one or any made in America. When they tell you this, let them know you are disappointed and ask to speak to a manager. They may not be excited about this, but if you are persistent, they will do it. Talk to the manager, and tell them that you like their store but that you are disappointed that they do not carry the product you are looking for, “Made in America.” If they did, then you would buy it there; since they don’t, you are not going to buy. If they tell you that no one makes that product in America, as is the case with televisions, let them know that is no excuse. You will be back when they are carrying one that is American-made. Until then, you are simply going to do without. Then, professionally and politely leave the store without spending anything.
Not every place where you shop will be as frustrating an experience as what I have described above. There are a number of businesses that carry a reasonable selection of products, a number of which I have listed in earlier columns or can be found at . Some retailers are essentially import outlets. Do not even bother to darken their doors. Find the ones that give you reasonable choices, and frequent them as often as you can. Some national chains such as Sears with Craftsman tools have a good selection, but frequently I find that the locally owned retailers do a better job of being responsive. When I go to Ace Hardware, they know who I am and show me only American. I love birds, and Wild Bird Landing, a local store, gives me the opportunity to buy American-made. When I needed two feeders and they had only one, they ordered the other for me.
Locally owned stores not only tend to be more responsive and flexible as to the products they carry, their profits stay in the local community too. I have met people who care only about products that are the lowest price and not at all about the impact on the country and the community. For those where lowest price is the only focus, buying used is the best solution. Anything used is already in this country and does not add to the trade deficit.
It does not help build our manufacturing base, but it does not drain U.S. dollars offshore either. I know that many of you are not as naturally bold as I am, but you care deeply. It is time for us to be bold and take charge of our future. It is in our control. The economic recovery is in our hands. We have more collective power than you would ever think possible. If you are as tired as I am of counting on the government to do the right thing on our behalf and want to make a difference all on your own, now is the time and place. Take charge!
Asa Beck, a certified public accountant, is president of Cogent Strategies and a member of the policy committee for the Coalition for a Prosperous America. He can be reached at ajbeck@cogentstrategies.com.
