Business

Should American companies be required to manufacture goods in the US?

WRITTEN BY
09/23/24
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Fact Box

  • The US outsources much of its medical supplies to manufacturers outside its borders, as 90% of US antibiotics and 70% of acetaminophen are produced in China as of 2024.
  • In 2022 the total output from manufacturing that went to the US GDP was $2.3 trillion.
  • Manufacturers in the US make up 8.58% of the workforce. In 2020, there were about 12,000,000 manufacturing employees.
  • The number of manufacturing businesses in the US increased in 2022 by 0.7% creating 623,066 businesses by 2023.
  • A Morning Consult poll found that 70% of voters want the federal government to do more to bring factories back to the United States. 
  • According to the US Chamber of Commerce, half of everything made in American factories is sent to overseas consumers.

Luis (No)

One of the most unfair scenarios an American company can suffer is being told, either by federal or state laws, where it can operate. Instead of allowing businesses the discretion to decide where they wish to operate, some politicians have advocated for requiring companies to return to the US, even though it may be more costly to their bottom line. Just because a company is US-originated doesn't mean it can't manufacture its products or conduct any other business activity in other nations, primarily Asia. This is exactly what most of the best-known US companies have been doing for decades.

Forcing many of these US companies to relocate to the US to manufacture their products could cause supply chain disruptions, eventually resulting in shortages of essential materials and components. In fact, forcing American companies to take this step could even hurt small businesses, considering that they don't have the proper resources to set up local manufacturing operations. This can eventually put them in such a weak scenario that they won't be able to compete.

Moreover, forcing US companies to only manufacture goods in America can increase costs because of the lack of cheap labor. Eventually, this will lead to higher prices for clients, reducing their purchasing power and harming the economy. Finally, taking this step could increase America's carbon footprint and hurt the company's innovative competitiveness on the world stage.

While domestic manufacturing can be positive in certain aspects, requiring American companies to only manufacture goods on US soil represents a blatant abuse of federal or state power against the private sector that would eventually create negative consequences for everyone.


Luke (Yes)

American companies should absolutely be required to manufacture goods within the US for several significant reasons: the economic benefits, national security, environmental advantages, and quality and safety such a move would produce for the US as a whole. 

By bringing manufacturing back to the US, we can create economic benefits through job creation, thus boosting local economies. Increased domestic production would help reduce unemployment rates and provide communities with much-needed opportunities. Additionally, localizing manufacturing would help reduce trade deficits, contributing to a healthier national economy. 

Moreover, prioritizing domestic manufacturing is essential for national security. Decreasing foreign dependency on goods and services would enable the US to strengthen its critical infrastructure and enhance innovation. By investing in homegrown technologies and industries, America can ensure self-sufficiency and resilience in times of crisis. 

Concerning the environment, manufacturing within the US offers strict domestic regulations and oversight, promoting eco-friendly practices that would lead to more sustainable production processes. Additionally, reducing the distance between production and consumption locations would lower carbon emissions associated with transportation, thus contributing to the global fight against climate change. 

Manufacturing goods in the US can improve product quality and safety, as American companies are subject to stringent regulations and standards, ensuring higher quality control. This not only benefits consumers but also fosters trust in American-made products, both domestically and internationally. Requiring American companies to manufacture goods within the US can have far-reaching positive impacts. By focusing on domestic production, the US can enjoy economic growth, enhanced national security, environmental benefits, and improved product quality and safety, ultimately benefiting American society wholesale.

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