Iconic Brands Moving Production Abroad
Correction Notice (12/03/2024): A previous version of this article included Crayola, Gibson Guitars, Whirlpool, and KitchenAid. These companies have reached out to our editorial team and advised us they have no plans to leave the United States. Thus, they have been removed from the list.
The forces of globalization and rising operational costs are delivering a harsh blow to many iconic American brands that have established themselves as staples for generations.
By 2025, several popular names will be making the difficult decision to either shut down their U.S. factories entirely or shift production abroad in search of lower expenses.
These changes reflect a need to remain competitive in a global economy. While these moves will help reduce costs, they also mean a shift away from “Made in the USA” products that many people cherish.
Craftsman Tools
Craftsman Tools, a hallmark of American durability, is shifting production to Asia. Rising costs in the U.S. led parent company Stanley Black & Decker to make this change. While Craftsman plans to use the savings to expand globally, many loyal customers feel disappointed.
The move marks a big change for a brand that used to proudly showcase its “Made in the USA” label in workshops across the country.
New Balance
New Balance is ending its “Made in the USA” promise and moving production to countries like China and Vietnam. Rising labor and material costs in the U.S. make domestic manufacturing harder. The company aims to stay competitive in a tough market.
While New Balance is known for its quality, this move will likely change how customers view the brand’s connection to its American roots.
Hershey’s
Hershey’s is relocating chocolate production to Mexico to save on costs. The move brings the company closer to suppliers and reduces ingredient expenses.
Hershey’s has slowly outsourced production over the years to stay profitable in competitive markets. While the chocolates will keep their familiar branding, some worry the shift might affect the “local flavor” and pride many associate with this iconic American brand.
Wilson Sporting Goods
Wilson Sporting Goods, famous for professional sports gear, is moving production to Asia. Lower costs in countries like China and Taiwan are driving the decision.
Wilson says this move will allow the brand to focus on innovation and serve global markets better. However, the loss of manufacturing jobs in the U.S. highlights the challenges American companies face in balancing costs with maintaining local production.
Levi Strauss
Levi Strauss, known for its iconic denim, is closing its last U.S. factories. Production will move to Mexico and Southeast Asia, where labor costs are lower.
Automation overseas also helps reduce expenses. Many customers see this as the end of an era for the brand. For over 150 years, Levi’s jeans symbolized American workers, but the company says the move is necessary to remain competitive.
Harley-Davidson
Harley-Davidson is shifting production to Asia and Europe. The company faces falling sales in the U.S., partly because Millennials are buying fewer motorcycles.
Retaliatory tariffs have also raised costs, making overseas production more affordable. About 800 U.S. jobs will be lost. While Harley-Davidson insists its spirit remains American, producing motorcycles closer to growing markets like India and Europe makes more financial sense.
Converse
Converse’s iconic Chuck Taylor sneakers have been an American classic for over a century. The simple canvas kicks with the signature star-and-bar logo was born and bred in the USA, and worn by generations of basketball players, artists, musicians, and free spirits.
However, times are changing for this beloved shoe brand. Rising labor and manufacturing costs in the United States have made it increasingly difficult for Converse to keep production stateside.
The company has decided to shift more of its manufacturing to lower-cost countries in Asia like Vietnam and Indonesia.
Ray-Ban
Ray-Ban sunglasses have been an American icon for generations, instantly recognizable on the faces of celebrities, athletes, and everyday citizens. The brand’s distinctive style has been deeply woven into American culture and pop culture for decades.
However, in a move that has saddened many loyal customers, Ray-Ban has decided to shift all its manufacturing outside of the United States. The famous sunglasses that were once proudly “Made in America” are now being produced in Italy and China by the brand’s parent company, Luxottica.
Broader Implications
While offshoring helps reduce expenses, it also means thousands of American job losses and severs the brand’s identity as “Made in the USA” products, which many consumers cherish.
However, the companies view this shift as necessary to focus on innovation, serve growing global markets, and keep prices affordable amidst intense competition.
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