Business
Is ‘Made In
America’ Primed
For A Comeback?
More Companies Could Manufacture
In The U.S. By Investing In
Automation, Says InterVac
Design Founder
T
he decline in American
manufacturing and the rise
of products made in China
have frustrated America
workers and been fodder for
political commentators for years.
But more recently, signs have
emerged that a reversal of fortunes
is in the making.
Rising labor costs in China have
prompted many manufacturers to
look elsewhere to produce their
goods. Some upped their production
in other Asian countries, such as
Vietnam, but the stage also was
set for many businesses producing
overseas to return to the U.S.
Of course, some never left these
shores to begin with.
“In many cases, companies can
manufacture in the United States
if they are willing to invest in
automation,” says Susan Schlapkohl
of InterVac Design, which makes
built-in vacuum cleaner systems
for boats, RVs and small homes.
“A lot of businesses were drawn
overseas because they felt the
cost-savings associated with foreign
production made sense. Now that
studies show the cost gap between
the United States and China is
shrinking, they are starting to see the
advantages of coming back home.”
Schlapkohl understood those
advantages all along. She and her
husband, Peter, an engineer who
emigrated from Germany in 1964,
were determined to keep InterVac’s
production in the United States
when they founded their company
in 1998.
“We were certain that with our
automation and design background,
we would be able to make our
vacuum cleaners in America using
American workers,” Schlapkohl
says. “We were right.”
Schlapkohl isn’t the only one who
is high on America’s odds of
rebounding on the manufacturing
front.
The Boston Consulting Group,
a global management consulting
firm, said in 2011 that China’s
manufacturing-cost advantage
over the U.S. was shrinking rapidly.
The firm predicted then that within
five years rising Chinese wages,
higher U.S. productivity and other
factors would “virtually close the
cost gap between the U.S. and China
for many goods consumed in
North America.”
“We are starting to see that
happening,” Schlapkohl says.
She says in her view, “Made in
America” is more than just a slogan.
It makes good business sense. She
offers a few reasons why.
Quality control
It’s much easier to maintain quality
when you are overseeing the process
yourself, rather than farming out the
job to someone in a foreign country,
Schlapkohl says. “In our case, we
wanted to make sure we were
shipping vacuum cleaners that
meet our standards as well as
the standards of Underwriters
Laboratories,” she says. “So we
invested in automation, because that
is the only way to deliver a consistent
product at a competitive price.”
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