This country was the only country born, not of chance and tribal warfare, but as a rational product of man’s mind. This country was built on the supremacy of reason—and, for one magnificent century, it redeemed the world.”

Whether or not you agree with her philosophies and politics, this statement Ayn Rand makes in Atlas Shrugged is a dignified and profound remark about the historical achievements of United States businesses, inventors and entrepreneurs. True to its roots that are so aptly stated in Rand’s quote above, American businesses are reasoning their way through the challenges the new global economy is creating. For many, the path to this century’s redemption has many businesses turning to domestic sources for goods to support this generation’s revolution toward more responsible products and more conscientious ways of conducting business.

State of the Union

“The general public is beginning to be more conscious about trying to buy products made in the US,” asserts

The path to patriotic redemption has many businesses supporting domestic sources for goods to support this generation’s revolution toward more responsible products and more conscientious ways of conducting business. (Image courtesy King Louie America.)

John McMillan of made-in-the-US apparel company King Louie America. One of the driving factors in this shift may well be due to the recent presidential election, an event that traditionally spikes American-made apparel’s sales, as well as the emphasis the new Administration is putting on domestic sourcing.

In President Obama’s candidacy, his focus on labor standards and sweatshops raised the collective conscious of American companies. So says Unionwear’s Mitch Cahn, who also credits the banking and auto industry crises for raised awareness. “These highlighted what happens to an economy when it stops manufacturing, creating value,” he says.

As the current Administration tries to resolve the economic slump, there is a continued emphasis on keeping US dollars in the cash registers of US businesses, and especially in the case of unionized businesses and institutions. “The stimulus package had a ‘Buy American’ amendment attached to it that extended the military’s requirement for domestic-made uniforms into Homeland Security uniforms for the first time, and also added a domestic preference for the safety gear used in stimulus infrastructure projects,” Cahn reports. Further, Obama’s push to increase union membership country-wide will create a huge windfall for apparel decorators... or at least the decorators that source union-made apparel and accessories. Keep an eye on the Employee Free Choice Act to stay on top of this potential niche market.

Even as it currently stands without mandate, McMillan makes the point that unions are still amazingly loyal when it comes to buying American-made goods and supporting their fellow union members. “Government entities are also a very viable customer when it comes to purchasing USA made goods but,” he adds, “like the rest of the country, are easily compromised when it comes to price.”

Patriotism, ethical treatment of workers and product quality are among the many reasons US-made apparel continues to compete favorably with imports. (Image courtesy American Apparel.)

Challenges exist in serving the government niche—stipulations that require government entities to hire companies with minority ownership or small business designation. Plus, Cahn reports that bidders generally need to be licensed and incur many fees without any guarantee of business.

Especially in a challenged economy, price-buyers do seem to dominate the market. But, the natural market for domestic goods—which Cahn cites as government, military and unions—are actually growing and spending more. “All of this has worked in favor of flexible domestic manufacturers that can change products and markets in response to changes in supply and demand,” he says.

Ethical apparel

Beyond the political pressures to keep it local, the undeniable force of the green movement also has its implications in the domestic market. On one hand, the standards for certifying organic cotton are somewhat limited when it comes to overseas crops. On the helping hand, US manufacturers provide a huge advantage in speaking to the responsible business practices that are associated with the demand for ecologically-friendlier goods.

“The ‘Sweatfree’ grassroots movement to end government purchase of sweatshop-made apparel figures to be the biggest boon to domestic manufacturing this year,” Cahn states. He cites the progressive law Pennsylvania passed that prohibits purchases from factories that engage in labor practices which violate basic human rights like child labor, abuse, and lethal conditions. In this and the 10 other states that are lobbying to follow suit, Cahn cites that only domestic manufacturers will qualify to make police and fire uniforms, and even state university logo gear may fall under the law.

As the US continues to investigate the ethical practices, as much as the quality and safety standards of goods manufactured overseas—an issue the screen-printing industry is acutely familiar with thanks to the impending Consumer Products Safety Improvement Act—consumers are aware now more than ever about the content, impact and origins of apparel. As such, the time is ripe to highlight domestic-made goods to clients.

Supply and demand

A driving factorin the shift toward sourcing domestically may be the recent presidential election––an event that traditionally spikes American-made apparel’s sales––as well as the new Administration’s emphasis on domestic sourcing. (Image courtesy King Louie America.)

It may be true that in many cases, interest does not always equate to sales, an apparent trend when looking at the success of conglomerate businesses. “Many people are not happy with the business practices of Wal-Mart, but have you ever seen an empty one?” McMillan points out this sad and ironic observation that encompasses the precise challenge decorators face when selling US-made apparel. And while price continues to be a driving motivator for many apparel decorators’ clients, there’s a bigger picture that is the burden of decorators to expose to their audience.

In addition to the feel-good campaign of “Buy USA,” there are numerous attributes that domestic-made apparel has to offer. McMillan asserts the quality factor, and points out that the lead-time to get backordered styles in stock may be much less with US manufacturers than with some distributors that market and sell imported products. “Many suppliers will continue to keep smaller and smaller inventory levels to react to the decrease in the spending of the marketplace. Reacting to a backorder situation with the product coming from overseas is a much slower and difficult juggle,” he argues.

Another unique selling point, Cahn tells us that domestic goods can be embroidered and screened on cut panels before they are sewn. “Embroidering on panels is much less expensive than embroidering on finished goods. It offers a larger print area, and much better registration quality,” he says.

Of course, we must circle back around to the age-old price factor, one that US-made goods have historically lost ground on. But the winds are changing. “The premium being paid for domestic goods has been shrinking for the last several years, due to the steadily declining dollar, inflation in China, and the slow acceptance of human rights in Chinese workplaces driving up wages,” Cahn explains. “The global slowdown has shuttered many factories in China, enabling the remaining factories to raise prices and dictate more stringent terms.” All of this, coupled with the recent resurgence of piracy, the slowdown in global trade in general, and a universal fear of another spike in oil prices, leads Cahn to believe that many domestic companies are rethinking relying on overseas shipping for all merchandise.

There is no denying that importing goods is a necessary, natural and healthy piece of American commerce. But likewise, sourcing domestic apparel must be a viable option in order to sustain any business in this redemption of our economy.