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Reasons to Invest in American Manufacturing


Over the past few decades, global supply chains opened many new options for manufacturing products. While most businesses sought lower-cost options overseas, recent economic events and changes in consumer preferences have led to a revitalization of American manufacturing.

Today, the manufacturing industry is looking to become more sustainable, digital, skilled, and resilient, according to McKinsey & Company. This is leading more businesses to look to the US to handle their manufacturing needs. Here is a deeper look at the reasons to invest in American manufacturing.

1. Manufacturing is a Central Part of the US Economy

While you may not initially associate the US with manufacturing, this important sector plays a central role in the growth of our economy.

According to NIST (the National Institute of Standards and Technology), manufacturing contributed 12% of the US GDP in 2021. That’s about $2.3 trillion and almost 1/8th of GDP, just behind the government, finance, and professional/business services industries, according to Statista.

Recognizing this, our government and private sector do prioritize the growth and position of the US as a world-leading manufacturing economy. This results in a competitive market invested in development and technology, but also one well-supported by our government.

2. Government Incentives to Manufacture Items Domestically

When a government supports an industry, they provide incentives in the form of financial, tax, logistics, and business. This encourages the investment in and growth of a sector, and ultimately, its positive impact on the US economy.

Tax Incentives

Tax incentives are a major contributor to the strength of American manufacturing. The government offers tax rebates and exemptions for companies that manufacture in the states. To take advantage of this incentive though, you either have to be a company that commissions an onshore manufacturer or be an onshore manufacturer acquiring materials.

Tax incentives make it more competitive to manufacture in the US. While offshore manufacturing may be known for lower production, skilled labor, and transportation costs, tax incentives can help offset those savings. It allows a business to benefit from investing in and choosing a manufacturer here in the US.

Logistical Incentives

Logistical incentives for domestic manufacturing can also make a significant impact on a business’s bottom line. The US has an interconnected transport system of train, road, air, and sea travel options that make it easy to ship products anywhere. This includes shipping products around the world since the US is boarded on two sides by oceans, and the coasts are filled with ports that make sea access easier and cost-effective.

For your company, this means lower costs when shipping manufactured products wherever they need to go.

Business Incentives

Within the global supply chain, the US is a world-leading business hub. The US takes measures to create both a legal system and an economy that is favorable to domestic and international businesses.

Here, you can make connections with businesses around the world, making it easy to source materials at better costs, find materials quickly, and build a business model around US-based operations. Your business can also benefit from the competitive nature of the US business markets. There are many businesses that are willing to compete on prices and other factors that can change how your business operates.

3. A Reputation for Innovation and Quality

The main reason why companies choose to invest in American manufacturing is because of our reputation for innovation and quality across many industries. The US is known for designing products to high-quality standards, while offshore manufacturing has a reputation for using cheap and low-quality materials.

Today’s consumers are increasingly aware of the quality and source of their products. According to First Insight’s research, customers are 51% more focused on quality than they are on cost. More companies are taking advantage of consumers who are willing to pay more for high-quality, American-made products.

4. Access to a Skilled Workforce

The quality in US manufacturing comes from investments in technology, development, and a quality workforce. The US has a universal education system that puts it ahead of many other manufacturing centers around the world. A higher educated and tech-savvy workforce makes it easier for manufacturing companies to recruit better talent. More talented workers mean improved manufacturing processes and outcomes.

5. Compliance With Environmental Regulations

Finally, the US is largely committed to environmental protection when it comes to manufacturing. Government regulations for pollution and environmental impact are stricter here in the US than in most places overseas.

The drive for greater sustainability is not only important to the longevity of your business but is also increasingly important to customers. A Forbes study showed that customers want transparency and accountability from the brands and products they buy. They’re developing preferences for companies that prioritize environmental and social positions that align with their own beliefs.

American Manufacturing Can Enhance Your Oil and Gas Business

With the revitalization of American manufacturing, it’s a good time to invest in US-made products. In the oil and gas industry, MSI Pipe Protection is a manufacturer with a reputation for quality and innovation. Our pipe protection products are top-of-the-line and made in the United States. Contact us today to see how we can help you invest in high-quality products and improve safety across the oil and gas industry.

MSI has the perfect pipe protection products for your needs.

Browse our online catalog, call, or email us for more information.

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