Companies are broadly more interested in reshoring and near-shoring now than in years past, said Lisa Anderson, a supply chain expert at LMA Consulting Group. Executives and board members see supply chain disruptions—from the pandemic uncertainty to the drought in the Panama Canal or disruptions in the Suez Canal—as headaches they’d rather avoid.
“It’s definitely getting to be in the back of executives’ minds,” Anderson said.
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Bogus ‘Made in USA’ Claims Flourish. The FTC Is Cracking Down
Old Southern Brass markets itself as a Florida-based glassware company that proudly honors and serves US veterans with specialty memorabilia such as shot glasses embedded with a copper bullet.
“Nothing says ‘Merica like making products right here at home,” the company once crowed on its American flag-adorned website.
Except it wasn’t practicing what it preached: Old Southern Brass’ glassware was made in China, according to the Federal Trade Commission.
The FTC has long been a watchdog against false “Made in USA” claims, but the agency has been ramping up enforcement. Since getting power three years ago to impose new financial penalties, it’s targeted violators as varied as tractor company
The trade commission hit homeware giant Williams Sonomawith a record $3.18 million penalty in April for falsely claiming its Pottery Barn Teen mattress pads were American-made. It was the third such FTC penalty this year, amid a string of at least 51 investigations and enforcements under its enhanced powers, according to agency records.
The heightened focus on the misleading claims coincides with a broader Biden administration push to incentivize companies to expand their US-based manufacturing.
At the same time, American customers are looking to keep money in their communities with their purchases, and they’re willing to pay a premium to do it. Some have pushed back on their own against misleading marketing; shoppers proposed a class-action lawsuit against the maker of Reynolds aluminum foil over its Made in America claims.
In other cases, the FTC has arranged refunds for buyers of mislabeled products. Its ultimate goal is to even the marketing playing field for those whose products legitimately qualify as America-made.
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Supply Chain Moves
Depending on the industry, there are a host of benefits to making products in the US: There’s no geopolitical risk and less forced labor risk, particularly for goods made in China. There are also fewer supply chain disruptions with US-made products, and companies typically have a better handle on inventory and quality control.
For some industries, making goods in America still tends to be more expensive than abroad, but reshoring is “the long game,” said Scott Paul, president of the Alliance for American Manufacturing, a partnership between US manufacturers and the United Steelworkers.
“There are still a lot of obstacles that stand in the way, but it’s more favorable than it has been for a very long time,” he said.
Companies are broadly more interested in reshoring and near-shoring now than in years past, said Lisa Anderson, a supply chain expert at LMA Consulting Group. Executives and board members see supply chain disruptions—from the pandemic uncertainty to the drought in the Panama Canal or disruptions in the Suez Canal—as headaches they’d rather avoid.
“It’s definitely getting to be in the back of executives’ minds,” Anderson said.
Published in Bloomberg Law, 21 May 2024