Shoppers seek 'Made in USA' label

Tish Llaneza decided it was going to be a "Made in the USA" Christmas at her Hampton store, and customers responded by emptying the shelves.

There are only a few items left in each product line, Llaneza explains as she walks through Countryside Gardens, pointing out "Made in USA" stickers along the way. But, not to worry, she's on her way to America's Mart, one of the country's largest trade shows for boutique owners, and she plans to pick up a bundle of products made by American workers.

"I have really tried to do my research," she says. "Every product I have marked as 'Made in America' has been both assembled and made of American products. I have some items that are assembled in America, but they weren't made with American parts, and so I don't put the sticker on them."

It's the growing label trend of the middle class, as more shoppers express a desire to find "Made in USA" marked on the bottom of their everyday items.

The trade deficit is most often cited as the economic catalyst for the movement.

According to the federal Bureau of Economic Analysis, the United States imported $43.5 billion more in goods and services than it exported in October. The Economic Policy Institute, an independent think tank, estimates that 2.8 million American jobs were lost between 2001 and 2010 because of the nation's rate of trade with China, in particular.

In Virginia, the policy institute estimates a net loss of more than 57,000 jobs, which represents about 1.5 percent of the state's workforce.

There are few dissenting voices on the matter.

"Buying items made in America is really important to me," says Kathy Slade, of Gloucester. "I am proud to say that most of the items I purchased for Christmas gifts were made in the U.S. including Corelle dishes from the outlet mall, Harry and David food products, and a skillet to make dollar size pancakes. My dad, who is a World War ll veteran was appreciative; he only buys 'Made in USA' items if possible."

Larry Filer, an economist at Old Dominion University, says the underlying premise behind the campaign is valid: Buying American-made products will help the American economy. But, more importantly, he says, buying those products will boost individual regions where the "Made in USA" companies are located.

"In terms of the trade deficit that we run, it will take a lot more than buying American jeans and shirts," Filer says. "It's more than just retail. It's a lot more than that. But it will definitely help."

The politically driven retail movement has gained so much traction that it is getting serious attention from the retail sector.

Nearly 100 vendors will showcase their "Made in America" wares in a newly appointed special section at the America's Mart trade show in Atlanta this month.

"Although it is a new category, the response from vendors and potential buyers has been overwhelmingly positive," a trade show press release read. "AmericasMart expects the number of Made in America vendors to double or triple for AmericasMart's July Market."

Even retail giants such as Target and Amazon.com have introduced ways to search for American made products on their websites.

Still, most shopping begins with simple math, Filer says. Competitive pricing is always the main driver of consumer decision-making. And not all shoppers are convinced that buying products marked as "Made in USA" will make a significant difference.

"The techniques companies try to use to 'make me shop with a conscience' make me giggle because the trucks that deliver the made in American products usually aren't American made and the gas in those trucks is probably not from the U.S. The computers the advertising guys use to come up with these techniques are not made in the U.S.," says Autumn Barnes, of Hampton.

She says she focuses on spending her money at locally owned businesses instead.

Buying with a conscience means more than looking for a certain label, Martha Grondin, of Newport News, adds.

"I don't think I'm really drawn by the 'Made in America' label, but I am very affected by locally made and grown and fair trade products," says Martha Grondin, of Newport News. "I would rather have a fair trade product that was produced with a conscience overseas than something that was made in America but not in my neighborhood."

Paitsel can be reached at 757-247-4737 or npaitsel@dailypress.com.

What does 'Made in USA' mean?

The Federal Trade Commission has set guidelines for "Made in USA" marketing campaigns.

The commission does not approve advertising campaigns or labels, but if a company makes a "Made in USA" or similar claim, it must comply with the FTC's standards.

In general, a product's final assembly must take place in the United States, and most of its manufacturing costs must be associated with parts made in the U.S.

An example from the commission: A company produces propane barbecue grills at a plant in Nevada. The product's major components include the gas valve, burner and aluminum housing, each of which is made in the U.S. The grill's knobs and tubing are imported from Mexico. A "Made in USA" claim is not likely to be deceptive because the knobs and tubing make up a negligible portion of the product's total manufacturing costs and are insignificant parts of the final product.

To read more about the commission's standard, visit business.ftc.gov/documents/bus03-complying-made-usa-standard.

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