Finding an American Manufacturer Getting Harder for Small Businesses

American manufacturing is on the rise. Billion-dollar companies plan to make more of their products in the U.S. in the next five years, reports Boston Consulting Group. But small and medium-sized enterprises, even when they want to commit to American manufacturing, often can’t afford, or even find, domestic production. “The No. 1 reaction people have when looking into the U.S. is surprise and dissatisfaction about how few options there are,” says an executive of an online directory for manufacturers.

Entrepreneurs aren’t a priority for contract manufacturers, which don’t want to invest time and effort in projects for shaky startups, says Harry Moser, president of the Reshoring Initiative, a nonprofit that encourages domestic manufacturing.

We don’t have many companies here that you can say, ‘Here’s a design for a bicycle or a refrigerator. Go make it,’” Moser says. “Skilled labor is also a problem. Chinese people are still hungry enough to do these jobs.”

Three tips for manufacturing in the U.S. are: make it easy to make; the more local the better; and use a matchmaker. A cottage industry of resources to help small enterprises has emerged in recent years.

View Full Article On: fortune.com