Globalization and rapidly rising production costs have forever changed the American manufacturing landscape. Some of the country’s most iconic American brands will either stop making their products stateside or close their operations in the United States by 2025. This shift is part of the recent phenomenon of companies choosing to be more efficient and reduce costs rather than ensure a domestic workforce remains in the U.S.
All these changes come in the wake of staggering economic realities. CNN Business reported the United States lost around 5 million manufacturing jobs since 2000. Experts cite globalized supply chains, steep production costs, and shifting consumer demand as major drivers of these trends. Read on for 15 iconic brands leaving U.S. soil.
Craftsman Tools
Craftsman Tools, once a symbol of “American-made” durability, is moving its production to Asia. The main reason given by parent company Stanley Black & Decker for such a move is the steep costs of domestic manufacturing.
The idea has prompted fallout from loyal customers, but Craftsman plans to reinvest savings into new technologies and a wider global reach. It marks the passing of a brand for which American workshops were once proud.
Gibson Guitars
Gibson, the iconic guitar maker, is set to move all its manufacturing to Indonesia. For one, the company has had financial problems in the past few years, but high production costs and availability of skilled labour in Southeast Asia is the primary reason for this move.
This shift has raised concerns among musicians and purists who associate Gibson guitars with their American craftsmanship and legacy. Nonetheless, outsourcing offers Gibson broader opportunities for competitive pricing globally.
New Balance
For years, New Balance was one of the few athletic brands dedicated to ‘Made in the USA’ products. The company, however, recently announced plans to move to entirely global production, saying that costs at home were skyrocketing.
In spite of strong sales, this decision reflects a difficult trading environment. However, moving forward, New Balance will consolidate its manufacturing operations in countries such as China and Vietnam at much lower costs.
KitchenAid
KitchenAid, celebrated for its sleek and durable kitchen appliances, will consolidate production in Mexico under its parent company, Whirlpool. Rising wages and raw material costs in the U.S. have made domestic production challenging for the beloved brand.
While the transition aims to keep pricing competitive for customers, American workers face job displacement. However, KitchenAid assures consumers of its continued commitment to premium appliance quality, regardless of its manufacturing location.
Crayola
The vibrant crayons central to countless childhood memories will no longer be produced in the USA. Crayola has announced plans to shift production to China, citing increased competition from global brands and the higher cost of operating within the U.S.
While the move may result in lower production costs, it also marks an end to Crayola’s rich legacy of American manufacturing, igniting nostalgia among long-time customers.
Hershey’s
Hershey’s is relocating chocolate production to Mexico, a decision driven by proximity to key supply chains and reduced ingredient costs. The move follows years of gradual outsourcing by the brand to enhance profitability in highly competitive markets.
Although Hershey’s Chocolates will maintain its American branding, production abroad raises questions about the potential loss of “local flavor” associated with an iconic U.S. product.
Wilson Sporting Goods
Known for supplying official gear to professional sports leagues, Wilson Sporting Goods will now focus all manufacturing operations in Asia. Competitive pressures and minimal production costs in regions like China and Taiwan have led to this decision.
The shift represents another blow to manufacturing jobs in the U.S., though Wilson argues this change enhances their ability to innovate and serve customers globally.
Ray-Ban
Luxottica, the Italian parent company of Ray-Ban, has steered this iconic brand’s manufacturing towards Italy and China. Although Ray-Ban markets itself as a product of American cultural heritage, U.S. production has become minimal over the years.
This globalized structure enables Luxottica to produce the same premium eyewear with reduced costs while catering to an expanding international customer base.
Wrangler
Wrangler, an enduring symbol of Western American fashion, is ceasing all domestic production. The jeans brand will move its operations to low-cost regions like Bangladesh and India to remain competitive against rivals in fast fashion.
Although Wrangler’s craftsmanship remains revered globally, its shift overseas signals a loss of connection to its typically American identity.
Nike
Nike, a pioneer of athletic wear innovation, manufactures the vast majority of its products in Asia. While Nike remains iconic worldwide, high domestic labor costs preclude large-scale U.S. production.
The company’s reliance on offshore manufacturing has enabled it to offer groundbreaking designs at vast production scales while sustaining high-profit margins.
American Girl Dolls
Originally crafted in Germany before transitioning stateside, American Girl Dolls will now consolidate production entirely in China. Labor costs and expanding international markets drive this decision.
For many Americans, this relocation symbolizes a detachment from the personal storytelling that their dolls once embodied, sparking nostalgic reflection.
Converse
Famous for its Chuck Taylor sneakers, Converse chose to produce mainly in Asia, in countries such as Vietnam, Indonesia, and China, as reported by Meeno Group. Rising domestic overheads have rendered continued manufacturing within the country unsustainable.
Converse products will now be produced in countries like Vietnam and Indonesia, leveraging established supply chains in these regions. This announcement comes as a bittersweet chapter in the brand’s enduring global popularity.
Levi Strauss
Levi Strauss, a brand that’s been synonymous with American denim heritage for over 150 years, is closing its last U.S.-based factories. The company cites the cost-efficiency of overseas automation and lower labor expenses as the key reasons for this shift.
With rising material and manufacturing costs in the U.S., Levi Strauss plans to move production primarily to Mexico and Southeast Asia. Unfortunately, this marks the end of the “Made in the USA” tag for a brand that was once an integral part of the American labor movement.
Harley-Davidson
Harley-Davidson, synonymous with American freedom and road travel culture, is shifting production to Asia and Europe. The motorcycle manufacturer has faced years of declining domestic sales due to an aging consumer base and a slowdown in Millennial demand.
Additionally, trade wars and retaliatory tariffs on motorcycles have made it more cost-effective to produce bikes closer to growing markets like India and Europe. Reportedly, Harley-Davidson’s decision will impact at least 800 U.S. manufacturing jobs, according to Retail Dive.
While the iconic brand emphasizes that their spirit remains American, production realities demonstrate a growing dependence on offshore factories to sustain profitability.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
7 Money Rules The Rich Don’t Want You To Know
7 Money Rules The Rich Don’t Want You To Know
15 Creative Coffee Bar Ideas to Start Your Morning Off Right
15 Creative Coffee Bar Ideas to Start Your Morning Off Right
11 Must-Have Finds For Enhancing Your Family Movie Nights
Affordable Home Entertainment: 11 Must-Have Finds For Enhancing Your Family Movie
