When Patriotism Meets Price Tags: The Economics of Domestic Manufacturing

Preface

My father worked in clothing factories his entire life, learning tailoring, at the age of 13, on the elbow of his uncle Savy, who had mastered the trade in his native Italy. Dad began his career as a sewing machine operator and tailor, steadily working his way up to plant manager. I followed in his footsteps, though my journey took a different route — as an engineer, I sought to understand not only how clothing is manufactured but the entire supply chain that supports the industry. This perspective shapes how I see the challenges and opportunities in reshoring American manufacturing.

Introduction

As an advocate of reshoring, I believe in the promise of revitalizing American industry, creating jobs, securing supply chains, and reducing foreign dependency. But belief alone does not build a functioning economy. What follows is not a rejection of reshoring, but a realist's audit of the economic terrain we're navigating. If we're serious about rebuilding U.S. manufacturing, we must be just as serious about the costs, the trade-offs, and the consequences.

Reshoring vs. Imports: A Jeans-Level Breakdown

Consider a basic pair of five-pocket, 12oz denim jeans. Before new tariffs, the landed cost of jeans made in Africa was around $8.00—thanks to AGOA trade benefits and low labor rates. After a 25% tariff? That cost would rise to about $9.63. Now compare that to jeans manufactured in North Carolina. Factoring in $7.25 minimum wage, 45 minutes of labor per pair, 65% overhead, materials, and local logistics, the domestic landed cost totals approximately $16.58. Even with tariffs, imported jeans remain roughly 42% cheaper.

Where’s the Incentive to Reshore?

From a purely market-based standpoint, there isn’t one—at least not yet. The U.S. lacks serious reshoring incentives. Tariffs help close the gap but not enough. Regulations, wage differentials, fragmented infrastructure, and slow automation adoption all stand in the way. While political talking points make reshoring sound inevitable, the reality is far more complicated.

Would Consumers Even Buy American-Made?

When given two identical pairs of jeans—same fit, fabric, and style—most U.S. shoppers will pick the cheaper one. Studies show that without meaningful product differences, origin matters little. Even consumers who say they support ‘Made in USA’ typically won’t pay a 30%+ premium unless they deeply understand the story, value, or ethics behind the higher cost.

Inflation, Wages, and Automation

Reshoring raises unit costs. That’s inevitable. If it scales across multiple industries, this creates cost-push inflation—but only in limited sectors like apparel, furniture, or electronics. Automation can reduce the labor time per unit but doesn’t eliminate the need for skilled operators, technicians, or managers. It may also limit how many new jobs reshoring actually creates.

What If We Reshored Everything?

Imagine replacing all imports with domestic production. Inflation spikes. Product prices climb 30–300% depending on category. Labor shortages emerge instantly. We lack the workers, training systems, and infrastructure to handle such a shift. Trade partners retaliate, shrinking export opportunities. Interest rates rise to cool inflation. Stock markets dip. The dollar strengthens briefly—but GDP volatility and foreign policy blowback follow. Millions of new jobs could be created, but automation and labor scarcity temper those gains. The U.S. economy would face a massive reset.

So Why Reshore At All?

Because there are long-term strategic advantages:- National security- Supply chain resilience- Blue-collar wage growth- IP protection- Control over environmental compliance. But those gains require investments: in training, automation, industrial policy, and time. We can’t just throw tariffs at the problem and hope patriotism fills in the rest. Without clear financial and logistical pathways, reshoring remains a noble concept—sidelined by brutal math.

Appendix: Plain-Speak Guide to Key Reshoring Concepts

• - Cost-Push Inflation

Prices rise when it costs more to make products, often due to higher wages or materials.

• - Landed Cost

The total cost to get a product from the factory to the warehouse, including freight, duties, and handling.

• - AGOA

African Growth and Opportunity Act — a trade law giving duty-free access to U.S. markets for some African goods.

• - Overhead (OH)

All the indirect costs of running a business: electricity, HR, insurance, rent, compliance, etc.

• - Automation

Using machines or tech to replace human labor, which can reduce production time and cost.

• - FTA

Free Trade Agreement — a deal between countries to reduce tariffs and trade barriers.

• - Cost-Shifting

When a company passes added costs (like tariffs or wages) on to the customer via higher prices.

• - Onshoring vs. Reshoring

Onshoring is moving production to any domestic location; reshoring is bringing it back from overseas.

• - Global Interdependence

Modern economies rely on each other for parts, goods, and services. Cutting one link affects the whole chain.

• - Wage Arbitrage

When companies produce in countries with lower wages to save money.

• - Consumer Elasticity

How willing customers are to pay more before they stop buying.

• - Reshoring Incentives

Government tools like subsidies, tax credits, or federal contracts that help domestic factories compete.

• - Supply Chain Resilience

The ability to keep products moving and businesses running even when the global system breaks down.

• - Unit Economics

The cost, revenue, and margin involved in producing a single item — the basis of business strategy.

• - Tariff Equalization

Using tariffs to make foreign-made goods cost about the same as U.S.-made goods.

• - Deglobalization Risk

Cutting trade ties can hurt our exports and spark retaliation, reducing our global economic power.

A Final Lens: Wage Comparison Between North Carolina and Africa

Position	North Carolina (USA)	Africa (Lesotho/Ethiopia)
Sewing Machine Operator	$7.25 – $10.00	$0.35 – $0.75
Line Supervisor	$13.00 – $20.00	$1.25 – $2.50
Production Manager	$25.00 – $40.00	$3.00 – $6.00
Plant Manager	$45.00 – $65.00	$6.00 – $10.00
Executive Leadership	$75.00 – $125.00+	$10.00 – $25.00

What This Tells Us:- The U.S. minimum wage alone is 10 to 20 times higher than wages in key African manufacturing hubs.- Supervisory and managerial wages in the U.S. climb sharply due to added responsibilities, compliance costs, and benefit obligations.- In Africa, wages are low—but so are employer obligations: no health insurance, retirement plans, or regulatory overhead.- Even if automation reduces labor time in the U.S., it doesn't erase this structural difference—it only softens it.This is not about blaming workers in either country. It's about understanding the economic environment in which each pair of jeans is sewn. If reshoring is the destination, these are the roads we must be willing to travel.