When you work with a private label manufacturer, like FLPL, you’ll sometimes have the option of being able to choose where your products are manufactured: within the USA or overseas. Both have their pros and cons, but if supporting local businesses is one of your aims, keeping your own manufacturing US-based is a must.
A Boost to the Local Economy
Manufacturing has a significant effect on the economy – much more so than most other sectors. For every $1 spent on manufacturing, $2.69 is created in total economic activity, with the local economy gaining a significant chunk of this. The more that a certain area establishes itself as a manufacturing base, the stronger and more resilient the local economy tends to be.
The extra jobs that manufacturing creates are also very much welcomed by local economies. As of January 2025, there were more than 13 million people in the USA working for a manufacturer. They’re usually well-paid jobs with good benefits, which is why US manufacturing has earned the reputation of helping hardworking Americans support their families. Of course, in addition to creating direct manufacturing jobs, local manufacturing does this indirectly too. Local businesses that specialize in everything from transport to logistics to retail can receive a boost when manufacturing takes place nearby.
Strengthening Local Supply Chains
Manufacturing relies on a huge supply chain. From raw materials to inventory management to warehousing, manufacturers often prefer to keep this chain as local as possible. When manufacturing takes place locally, local businesses are brought into the mix. This keeps the local supply chain strong and thriving.
On the flip side, once an area starts to lose its manufacturing base, that supply chain quickly weakens. The lack of demand means that those local companies go out of business. This can sometimes spell the downfall for that local area as a whole.
With private label manufacturing, this is something that you can have some say over. Request that various aspects of the supply chain for your products be sourced locally. Yes, this may cost more initially, but, as we’ll discuss later on, it’s a risk that usually pays off.
Driving Local Innovation
The American manufacturing industry has always been fueled by innovation and creative thinking. This is how it grows and moves forward. Henry Ford’s assembly line is the perfect example – that revolutionary idea completely transformed the entire industry.
While that may be the case, it’s a two-way street. While innovation drives the manufacturing industry, the manufacturing industry also fosters innovation. When manufacturing occurs locally, the surrounding area benefits from the flourish of innovation.
This, in turn, benefits local businesses. From the transfer of skills to the adoption of new technology, an innovative environment enables local businesses to thrive.
US-Based Private Label Manufacturing Will Benefit Your Business in Other Ways Too
Deciding to keep your private label manufacturing operations within the US won’t just give other local businesses a boost. Your own business will benefit from this too, in a few different ways:
Increased Consumer Confidence
There has been a growing demand lately for locally produced products. Data shows that 68% of consumers now prefer to buy locally-made goods, even if this comes at a higher price. By keeping your private label manufacturing local, you’ll likely find it much easier to build consumer confidence and loyalty. Consumers find it much easier to trust locally-produced products, perceiving them to be higher in quality.
Plus, in the same way that you want to support local businesses, many consumers want to do the same. A “made in the USA” label leaves them proud to be able to do just that.
Higher Standards Mean Higher Quality
There’s a big perception out there that products manufactured in the USA tend to be of higher quality than those manufactured overseas…and this is often the case. Each country will have its own quality assurance standards in relation to manufacturing. The regulations that US manufacturers have to adhere to are usually much stricter.
It’s not just the end product that matters either. Consumers are very aware of the fact that labor standards are shockingly low in many parts of the world. When a product has been manufactured in the USA, there’s more of a guarantee that fair labor practices have been followed, meaning that their purchasing decision hasn’t helped to support the exploitation of low-paid workers.
Increased Supply Chain Control
One of the biggest issues with manufacturing products overseas is that there’s a much greater chance of experiencing a breakdown somewhere in your supply chain. Sure, with a private label manufacturer handling the whole manufacturing process for you, you won’t have to personally deal with the stress of things going wrong. However, every additional obstacle will affect your business in some way, whether it be in terms of delays or anything else.
Sticking with a US-based private label manufacturer makes the manufacturing supply chain for your products much easier to control. Your business will be much less vulnerable to supply chain disruptions. If something happens to go wrong, it’s much easier to put things right since you’ll be dealing with businesses in the same country and who speak the same language as you.
A more efficient supply chain also usually means that lead times end up shorter. You won’t have to wait for your products to be shipped over from the other side of the world – your finished goods will end up in your hands (or in your warehouse) much sooner.
A Reduced Environmental Impact
Sustainability is now such a key part of business. It’s something that every industry is trying to encompass as much as possible. Most businesses are taking particular care to ensure that their manufacturing practices are as sustainable as possible. With private label manufacturing, you’ll only have so much say over this. However, keeping things local will significantly reduce the overall environmental impact of your business.
For starters, the manufacturing process itself will need to follow strict environmental regulations. The factories that your private label manufacturer uses will be limited in terms of how much pollution and waste they can create. They’ll need to keep emissions and environmental harm to a minimum when manufacturing your products. Some US-based manufacturers take things even further, with the nation known for its cutting-edge ideas that allow for sustainable manufacturing. From waste reduction to renewable energy, if the local factories you use have adopted any of these innovative practices, this will reflect well upon your own business.
The carbon footprint of your business will be lower too with US-based manufacturing. Once your products are ready, they won’t need to travel across the world to get to you. Long-distance shipping won’t be needed, which will contribute to lower overall emissions.
A Powerful Marketing Tool
As you can see, there are a number of benefits that come from manufacturing your private label products in the USA. Many of these benefits are important to consumers too. From sustainability to quality, these are all things that consumers are often happy to pay more for.
However, they won’t know about your local manufacturing practices unless you tell them. This is where marketing comes in. If you’re going to be producing your private label goods locally, make sure that this is incorporated in your marketing material. It’s a great selling point for your business, and you’ll be missing out if you don’t fully harness this.
Is it Worth the Higher Production Costs?
It’s true – manufacturing your private label goods in the USA will likely cost you more to start with than if you had chosen manufacturing options in, say, Asia. Those stringent regulations, labor laws, and all of the other perks we discussed come at a price that will trickle down to you and, eventually, your customers.
Is it really worth it? Wouldn’t your business do better by keeping costs low in every possible way, including when choosing a manufacturing location?
Once upon a time, this may have been the case. Today’s consumers, however, are much more savvy. They place a far greater importance on locally manufactured products, and are accepting of the higher price tag that those products are accompanied with. Yes, you may exclude people who are looking for bargain basement prices, but you’ll be excluding a much bigger chunk of the population by having your products manufactured overseas.
Plus, these days, you don’t actually end up saving that much by manufacturing your products overseas. Your initial outlay might be lower, but between logistical costs, tariffs, and more, you could find yourself spending more overall. It’s a bigger risk too, especially in today’s turbulent climate. A war could break out, a hard-hitting tariff could be imposed, a natural disaster could strike…all of these things have happened in many overseas manufacturing locations in recent years. This makes those “what ifs” seem not so far-fetched. Keeping your manufacturing operations local helps to shield your business from being affected by quite so many factors that are out of your control.
Private Label Manufacturing With FLPL
At FLPL, we offer a variety of private label manufacturing services. Our clients are able to choose where their products are manufactured, with our factory networks being based in both the USA and Asia. More and more brands are choosing US-based options, with this signaling a notable shift in manufacturing trends.
Local businesses are already reaping the rewards in many ways. This, in turn, allows manufacturing bases to really flourish, further feeding the US manufacturing industry. It’s a cycle that’s growing stronger by the day, pointing to a bright future for the US manufacturing market, as well as the businesses that support it.
If you’re interested in having your private label products manufactured in the USA, click here to get in touch with FLPL to see how we can help.
