"America First" policies and how to thrive - Part 1

For years, the Trump administration has promoted its "America First" policy. These protectionist policies aim to rejuvenate the flagging U.S. manufacturing sector by incentivizing companies to invest in America and reducing demand for goods and services from other countries. As President Biden has maintained these policies with the recent passage of Build America Buy America [1], non-U.S. manufacturers and brands must find more effective ways to complement them in the new market landscape.

All positive signs indicate that manufacturing in the U.S. is making a comeback. Deloitte reports that last year it projected a shortage of 2.1 million skilled jobs by 2030. To attract and retain talent, U.S. manufacturers are combining strategies such as retraining with reshaping their employment brand. To meet hiring needs in 2022, companies are closing the gap in public perception of the industry by making manufacturing jobs more attractive as entry-level opportunities. Increasingly, collaboration with a broader ecosystem of public and private sector partners is recommended to reach diverse, skilled talent pools and offset the recent wave of retirements and voluntary departures. [2]

Heeding the call of this new era of "America First" and "Build America Buy America," the chaebols, the most influential Korean companies, including Samsung and Hyundai, have announced major initiatives to expand their factories in the United States. Hyundai announced plans to build the first Hyundai electric vehicle plant and a battery factory in the U.S. in Georgia. Samsung Electronics raised the prospect of investing nearly $200 billion over the next two decades to build 11 more chip factories in the U.S. to meet increased U.S. expectations, invest in the manufacturing sector, and reap the long-term benefits of the "Made in America" brand. [3][4]

But what about other companies that have factories outside the U.S. but still want to benefit from the U.S. recovery? At first glance, one might think these companies can reduce their dependence on the U.S. market to diversify their customer base. However, since the U.S. is the largest market for most companies and their products, a more proactive approach is needed to counter the new narrowing of the U.S. market and gain a larger market share.

Innovate your products and services

For a non-U.S. manufacturer to remain competitive, innovation is essential. As part of this process, more appropriate products and services should be developed to meet the needs of the target market better. For example, manufacturers of product components that specify their unit sizes, units of measure, and product documentation should also be localized as needed. For example, the United States is the only country in the world, along with Myanmar and Liberia, that uses imperial rather than metric units of measurement.

This is especially important for foreign manufacturers who are less familiar with the specifics of the U.S. market. This is because they must first determine the needs of their target market and then find ways to meet those needs better than their competitors. These companies must constantly develop new products for new markets. The U.S. market is much larger and has more regions, distribution networks, and dealer networks than other markets. Therefore, you should keep up with the latest industry trends so that you can offer the latest products and services to your customers in the U.S., where the opportunities are much greater. Investing in market and product research and development is one of the most effective ways to achieve these goals. This way, you can stay ahead of your competitors and find new growth opportunities for your business. Any manufacturer who wants to remain competitive must invest in innovation.

If you decide to slowly build a manufacturing operation in the U.S., test the waters and familiarize yourself with the country's manufacturing infrastructure, as many resources are available to help you innovate products and processes. The U.S. Department of Commerce's Manufacturing Extension Partnership (MEP) offers a variety of resources and services. MEP offers programs and initiatives to support manufacturing innovation, including NIST MEP and the Hollings MEP. You can also reach out to private sector organizations that support manufacturing innovation, such as the Manufactures Alliance, which provides a network for leaders to share knowledge, expertise, and benchmark studies. [5]

Remember, you are not alone. You can improve your competitiveness and find new opportunities for growth by leveraging these resources.

Develop a strong brand strategy

Developing a solid brand strategy is critical for any business, but it is essential for manufacturers. A well-defined brand can help a company stand out from the crowd in the highly competitive U.S. market. When developing a brand strategy for a manufacturing company, businesses must consider several key factors. To stand out from the competition, you must first define what makes your company unique. The second step is to identify your target audience and develop a message that resonates with them. Your website, marketing materials, and interactions with American customers should all be consistent. Follow these steps to develop a successful brand strategy for your business.

Interestingly, my research revealed that many iconic American brands are not "Made in the USA" at all, including Ray-Ban, Hush Puppies, Arrow Shirts, Woolrich, Gillette, Barbie, Huffy, Fisher-Price, Converse, Nike, and others. Many companies have manufacturing is done in China, Vietnam, Indonesia, Mexico, Brazil, and other countries [6]. These companies are moving production overseas for good reasons: lower wages, less stringent regulations, lower environmental standards, a shorter supply chain, and greater production efficiency. Looking at the flip side of the coin and examining these brands, it becomes clear how important a strong brand strategy is and how we can rethink the importance of developing a solid brand strategy for the right reasons.

For any company, manufacturer or not, one of the enduring goals must be to preserve the value of the brands they have built over the years, which have enjoyed decades, if not centuries, of customer loyalty. If that brand story resonates in one of the world's largest markets, all the better.

Create a nimble supply chain

It is even more important to build a seamless supply chain network that includes production, distribution where appropriate, and sales of a product or service in the U.S. to maximize U.S. opportunities. Today's consumers are more demanding than ever. If you plan to manufacture in the U.S., your supply chain goals should be to produce and deliver products to customers at the right time, in the right quantity, and at the right price, taking into account the interests of all suppliers, manufacturers, distributors, retailers, and customers. To achieve this goal, you as a manufacturer must have a flexible supply chain that can quickly adapt to changes in demand.

Barcoding, RFID, GPS, and mobile computing also enable companies to automate their processes end-to-end. These technologies also allow them to track inventory, monitor shipments, and manage orders. They're especially useful for companies that operate large warehouses and distribute their products nationwide. Digitizing your supply chain gives you a real-time view of your entire operation. This visibility enables you to make data-driven decisions that reduce costs, increase efficiency and improve customer satisfaction. The following technology solutions can help you build a flexible supply chain to respond more efficiently to changes in customer demand.

1. Automate your warehouse operations with robotics

2. Use software to manage your inventory in real-time

3. Connect your supply chain partners with an integration platform

4. Use sensors and RFID tags to track your products throughout the supply chain

5. Analyze your data to identify patterns and trends

Expanding your market share in the U.S. is undoubtedly a challenge under current market conditions, but there are opportunities for companies willing to embrace change. Technology can be a key driver of change, and digitizing your operations can give you a competitive advantage. To succeed in the U.S. market, you must develop a strong brand strategy that resonates with American consumers and a flexible supply chain that can quickly adapt to changing customer demand. With these steps, you can position your company for success in the highly competitive U.S. market.

Promote your company as a global citizen?

The U.S. is not the only country where consumers are interested in buying products that are "Made in the USA." Many countries have "Buy Local" initiatives to support businesses within their borders. As a global citizen, your company can benefit from these initiatives by marketing your products as a global brand that speaks to a common theme across borders.

Marketing your business as a global citizen has several benefits. First, it helps you build trust with consumers in general. Second, it can increase your sales because consumers are more likely to buy products they perceive as high quality and from a socially responsible company. Finally, it can help you attract and retain the best talent, as employees are increasingly interested in working for companies that care about the world. When promoting your company as a global citizen, there are a few things to remember. First, use credible sources to back up your claims. Second, do not make false or misleading claims about your products. Finally, be authentic in your communications and avoid greenwashing tactics.

Presenting your company as a global citizen can help you gain consumer trust, increase sales, and attract and retain the best talent. These are all critical factors for success in today's highly competitive marketplace, and as we all know, the U.S. is probably the most competitive market for products and services anywhere.

Preliminary Conclusion:

The "America First" and "Build America Buy America" policies remain in effect, at least for the foreseeable future. Non-U.S. companies that want to continue to do business in America will have to adjust their strategies accordingly. Shifting their focus to domestic markets might be a short-term solution. Still, in the longer term, as companies need to expand and scale their businesses, build flexible supply chains, innovate their products and services, and promote their companies as global citizens in the United States, some of the answers might be how to survive and thrive despite the challenges of these protectionist policies.

As I write this article, much of the advice I have laid out here also applies to our company @TPC and our efforts to grow and expand our business to a broader audience and customers worldwide, including the US. I strongly believe that while the "America First" policy may present some short-term challenges for non-U.S. companies doing business in America, it also presents many opportunities.

In Part 2 of this article, I will provide further thoughts and attempt to help position those who can adapt their strategies and take advantage of these opportunities for long-term success.

Any potential partners around the world reading this who are interested in working with us to help manufacturers become more innovative, lean, and smart in the ever-changing landscape of factory automation, please contact me directly or visit www.tpcpage.co.kr to explore joint opportunities for the future.