Job Creation vs Branding When Made in U.S.A.

Starbucks has recently decided to start purchasing mugs manufactured here in the United States. But is the end goal really to bring jobs back to the country?

What better way to appeal to more consumers when over 60 percent of Americans agree that outsourcing is hurting our economy? Credit: Flickr user SoulRider.222

This is your first of three free stories this month. Become a free or sustaining member to read unlimited articles, webinars and ebooks.

Become A Member

Is “Made in the U.S.A.” good marketing or sound business?

Starbucks, the ubiquitous coffee chain, has recently decided to start purchasing mugs manufactured here in the United States — specifically in East Liverpool, Ohio — as reported by the New York Times. In fact, since President Obama’s State of the Union Address this past January, which highlighted an agenda to increase domestic manufacturing output, several companies such as General Electric and Whirlpool have added hundreds of domestic manufacturing jobs. Just last month, a Brookings Institution report showed that manufacturing jobs in the U.S. had grown by just over 3 percent.

But is the end goal really to bring jobs back to the country? There’s a lot to say for the fact that Starbucks’ small-scale insourcing may be more about branding and marketing. According to the Times, only eight jobs were added to American Mugs, the firm now hired by Starbucks. The mugs themselves are part of a new line of products from Starbucks entitled “Indivisible.” Profits from the sales of these items will go towards Create Jobs for USA, a program founded by the coffee company.

After all, what better way to appeal to more consumers when over 60 percent of Americans agree that outsourcing is hurting our economy? Howard Schultz, chief executive of Starbucks, makes an argument for the need to find a balance between responsibility and profitability. But businesses, especially publicly traded ones, also have a strong responsibility to shareholders who expect a profit.

Then again, could there be a more fundamental business approach to the switch? Some argue that with an increasingly stronger Chinese currency and higher transportation costs, manufacturing in the United States might actually make some sense for businesses. The numbers, however, are at the moment still quite weak. In an interview with the Times, Gary P. Pisano, a professor at Harvard Business School, remains skeptical: “I’m not sure we’re seeing a sea of change.”

But even if this is just marketing, who’s to say that that’s a bad thing?

Like what you’re reading? Get a browser notification whenever we post a new story. You’re signed-up for browser notifications of new stories. No longer want to be notified? Unsubscribe.

Tags: jobseconomic developmentbarack obamamanufacturingrestaurants

×
Next City App Never Miss A StoryDownload our app ×
×

You've reached your monthly limit of three free stories.

This is not a paywall. Become a free or sustaining member to continue reading.

  • Read unlimited stories each month
  • Our email newsletter
  • Webinars and ebooks in one click
  • Our Solutions of the Year magazine
  • Support solutions journalism and preserve access to all readers who work to liberate cities

Join 1096 other sustainers such as:

  • Anonymous in Grand Rapids, MI at $10/Month
  • Mike in Roseville, CA at $10.00/Month
  • Davis at $10/Month

Already a member? Log in here. U.S. donations are tax-deductible minus the value of thank-you gifts. Questions? Learn more about our membership options.

or pay by credit card:

All members are automatically signed-up to our email newsletter. You can unsubscribe with one-click at any time.

  • Donate $20 or $5/Month

    20th Anniversary Solutions of the Year magazine

has donated ! Thank you 🎉
Donate
×