Understanding the Value of "MADE IN USA CERTIFICATION"
The "MADE IN USA" label has been a mark of quality on a diverse array of products, from clothing to cars. Despite its ubiquity, you might question what real benefits this label carries. If you're considering whether to certify your business and its products as "MADE IN USA," recent data supports this move: A 2020 survey found that 70% of consumers prefer to purchase U.S.-made products, with 83% willing to pay a premium of up to 20% for goods manufactured domestically.
Origin of the "MADE IN USA" Label The "MADE IN USA" tag has been in use for decades, gaining popularity in the 1970s when the American market was inundated with imported goods. By 1974, unions were advocating for domestic businesses to use this label as a distinction from foreign products. However, misuse of the label led to calls for stricter regulations, culminating in the Federal Trade Commission (FTC) establishing a new rule in 2021 that allows for significant penalties against fraudulent labeling.
What "MADE IN USA" Really Means Under the FTC's strict guidelines, a product must be "all or virtually all" made in the United States to qualify for the label. Every claim under the "MADE IN USA CERTIFICATION" is validated and certified, with the product required to be qualified with a percentage from 75% ± 5%. This includes assessing manufacturing costs, labor, and materials, ensuring that significant portions of production occur domestically.
The Impact of the "Buy American" Rule Initiated by President Joe Biden, the "Buy American" Rule enhances the original Buy American Act by increasing the required percentage of domestic content from 55% to 75%. This change not only promotes domestic production but also aims to strengthen U.S. economic and national security by encouraging federal entities to purchase more American-made products.
Benefits of "MADE IN USA CERTIFICATION" for Your Business
- Enhanced Brand Trust: American consumers have a strong preference for domestic products. By labeling your goods as "MADE IN USA," you tap into this sentiment, potentially allowing for higher pricing to offset increased manufacturing costs.
- Increased Sales Volume: Certification can boost your appeal not just to existing customers but also attract new ones, enhancing your overall market presence.
- Eligibility for Government Contracts: With stricter federal purchasing guidelines, having "MADE IN USA CERTIFICATION" expands your business opportunities within government procurement.
- Competitive Differentiation: In crowded markets, the "MADE IN USA" label can distinguish your products from competitors, adding a layer of prestige and preference.
How to Certify Your Company as "MADE IN USA" There is one primary path to certification:
- Verified MADE IN USA CERTIFICATION: This requires meeting stringent accreditation standards and adhering to both state and federal regulations.
This option requires compliance with FTC regulations and a commitment to maintaining the standards set forth in the Certification Mark Agreement. By achieving this certification, your company can proudly display the "MADE IN USA" label, attracting consumers who are passionate about supporting American industry.