Economic Nationalism: Made in America making a comeback

By Carissa Gingras

A quick scan of media over the past year suggests that shoppers are increasingly interested in purchasing goods made in the U.S.A. And what’s more, studies show they are willing to pay a premium for a product made in America. This information offers the manufacturing industry an opportunity to leverage this renewed Economic Nationalism.

The numbers may vary from survey to survey, but the trend is clear. Made in America is fast becoming a top selling point across a wide range of consumer goods, including outdoor power equipment. Let’s take a look at some recent overall numbers. According to a national survey published in Consumer Reports in February 2013, 78 percent of Americans would rather buy an American product given a choice between the domestic good and an identical one made abroad. This fact is not exactly earth shattering, but the results get more interesting as you dig deeper.

In the same survey, more than 60 percent of respondents said they’d buy American even if it cost 10 percent more than an import. And more than a quarter of respondents said they’d be willing to pay an extra 20 percent.

Given the uncertainty of the U.S. economy, getting consumers to say they’d actually spend more is a pretty big deal. But why would they spend more? The reasons vary. More than 80 percent said they’d do so to help retain U.S.-based manufacturing jobs. About 60 percent said it’s because they believe American-made goods are of better quality. 

And as we think about our future customers, made in the U.S.A. becomes even more important. Millennials (those born between 1977 and 1995) will make up one-third of all homeowners by 2030; by 2017, they will outspend their Baby Boomer parents. Made in America, and the jobs that come along with American manufacturing, are important to this group — a group that was hit especially hard during the recession. According to 2012 research done by Albing International Marketing, “made or assembled in the U.S.A.” was more important to Millennials than “getting the best price.”

Interestingly, this desire for American-made goods is not unique to America. Globally, consumers are seeking goods from the U.S. In a frequently cited study from the Boston Consulting Group (BCG), 60 percent of Chinese consumers would be willing to pay more for a product labeled “Made in the U.S.A.” Almost 50 percent of Chinese consumers in the BCG survey reported that they preferred a U.S.-made product to a Chinese-made product of the same quality and price.

This buy American movement applies to everything from the jeans and sneakers we wear to the food we eat and the appliances and outdoor power equipment that power our lives. In a March 2013 survey that Briggs & Stratton commissioned though Harris Interactive, consumers said that having a lawnmower engine made in America was more important than having a laptop computer or cell phone made here. This sentiment extends to the lawn mower itself. In an annual survey of more than 2,000 power-equipment owners, 67 percent of those who bought walk mowers said they prefer to buy products made in the U.S.A. For ride mower buyers, it was even higher; 77 percent of them prefer to buy products made in America.

In Outdoor Power Equipment magazine’s “Industry Forecasts” from January 2013, more than one industry executive highlighted made in the U.S.A. and the increased demand for made-in-the-U.S.A. goods as key trends for 2013. One of those executives was John Hedges, director of sales and marketing at Central Power Distributors, Inc. (CPD) of Anoka, Minn., who predicted that “‘Made in America’ will gain strength in 2013. OPE manufacturers may not be able to bring some manufacturing back, but they will concentrate on products that are built here.” 

In the same article, Briggs & Stratton’s Rick Zeckmeister, vice president of engine marketing and planning, said, “Manufacturers like us, who are committed to American manufacturing, will likely see an increase in demand for their products as Economic Nationalism continues to grow.”

When Zeckmeister made that comment, Briggs & Stratton had recently announced that its plant in Murray, Ky., had just produced its 70-millionth gasoline-powered engine. More than 3,000 U.S.-based employees continue to produce millions of Briggs & Stratton engines each year at three other engine plants in the U.S. Eighty-five percent of the engines manufactured by Briggs & Stratton are made in the U.S.A. of U.S. and global components.

If we, as an industry, want to benefit from this resurgence in Economic Nationalism, we have to help educate shoppers on a number of levels. First, we need to better communicate to consumers via our advertising, our point-of-sale displays, and our packaging. Earlier this year, point-of-sale displays and packaging for Snapper mowers at Walmart featured an icon identifying the fact that the mowers are powered by Briggs & Stratton engines that are made in the U.S.A. of U.S. and global parts. This communication is part of the retail giant’s Made in America initiative that includes its commitment to source $50-billion worth of U.S.-made products over the next decade.

We also have to tell consumers why American manufacturing is important and how that benefits them, their families, their communities and their country. Manufacturing represents 30 percent of the country’s productivity growth; and for every $1 of manufacturing activity, $1.48 is returned to the economy.

As an industry, we also need to take advantage of the consumer sentiment to keep the dialogue going with policy makers and regulators at the local, state and national levels to implement smart policy initiatives that support our efforts and commitment to American manufacturing. We can do this individually or collectively through our industry associations. Either way, it is critical that we are heard.

Some are saying that we’re in a renaissance of manufacturing here in America, and there is a lot of talk about “reshoring.” For those companies that have maintained a consistent manufacturing presence on American soil, now is the time to reap the benefits of the groundswell of support for Economic Nationalism.

 Carissa Gingras is marketing director of consumer engine and service with Briggs & Stratton Corporation. In her current role, she focuses on developing communications for dealers and consumers in the outdoor power equipment industry. She has more than 20 years of marketing experience working with both national and global companies, including General Electric, Honeywell, Ashley Furniture Homestores, Bridgestone/Firestone and Bon-Ton Department Stores.

Helping your customers be good neighbors

Buying American-made outdoor power equipment is one way American consumers show that they are good neighbors. But using that equipment to maintain a good-looking yard is another important way to be a good neighbor.

In a March 2013 survey conducted for Briggs & Stratton by Harris Interactive, 93 percent of homeowners agree that maintaining a good-looking yard is common courtesy to their neighbors. And, 85 percent of homeowners think that neighbors who don’t maintain a good-looking yard can bring down property values for those around them. Think of it this way: When homeowners buy their house, they are essentially signing a social contract with their neighbors. They will upkeep the exterior of their home and maintain a certain standard when it comes to care so as not to be out of sync with the neighborhood. When dealers work with customers who are new homeowners or have limited outdoor power equipment experience, they can make the purchasing process more comfortable by providing extra resources and tips that will help fulfill the social contract.

The survey respondents also said they expect their lawn mowers to last an average of 9.8 years, but the reality is they can last much longer. With proper and routine care, many lawnmower owners have found that their engines are still going strong after 30 years or more. Dealers can remind their customers that they can prolong their outdoor power equipment investment by bringing their equipment in for a regular tune-up and oil change. When it comes to major repairs involving engine trouble, the highest percentage of homeowners (35 percent) fix the problem themselves, but 27 percent have their repairs made at a small-engine shops and dealerships. This kind of service ensures a long-standing customer relationship.

— Carissa Gingras