In a private meeting today with local elected officials, David Happe, the president of KinderGard, reiterated the company’s commitment to bring manufacturing of the legacy baby safety brand back from China with domestic manufacturing starting in 2024.
The company today released the top 10 reasons why it makes sense for American companies to repatriate manufacturing.
1. Reduced Shipping Costs and Lead Times: Manufacturing in the U.S. can significantly reduce shipping costs and lead times for companies that primarily sell their products domestically. This can lead to faster delivery times, better customer service, and more efficient supply chain management. KinderGard plans to resume shipping to national retailers in the United States by Q4 2024.
Quality Control and Intellectual Property Protection: The U.S. has stringent quality control standards and intellectual property protection laws, which can help safeguard a company’s brand reputation and prevent counterfeit production or intellectual property theft.
Skilled Workforce: The U.S. has a skilled and educated adult workforce, which can be crucial for industries requiring specialized knowledge, advanced technology, and innovation. KinderGard is excited about bringing jobs to America.
Proximity to Market and Customers: Manufacturing in the U.S. allows companies to be closer to their customer base, enabling faster response times to changing market demands and preferences. Retailers like Walmart will be able to work with KinderGard on domestic logistics, improving turns and maximizing in-stock with just-in-time inventory replenishment from multiple planned United States distribution points.
Government Incentives and Support: The U.S. government often offers various incentives, grants, and tax benefits to encourage domestic manufacturing, which can help offset initial setup costs and ongoing expenses.
Ease of Communication and Collaboration: Being in the same country can simplify communication and collaboration between manufacturers and other stakeholders, such as R&D teams, product designers, and marketing departments. We’re in the formative stages of reworking retail packaging using domestic creative agencies, domestic printing companies, and domestic paper suppliers.
Reduced Risks in Geopolitical Environment: Manufacturing in the U.S. can reduce potential risks associated with international trade disputes, tariffs, political instability, and changes in import/export regulations. Part of this dramatic change for KinderGard happened during Covid when Asian manufacturing closed and crippled international supply chains, the net results of which we still have not fully recovered from. Controlling variables eliminates supply chain risk.
Sustainability and Environmental Concerns: Some companies and consumers prioritize sustainability and reduced carbon footprint. Manufacturing locally can contribute to a smaller environmental impact through reduced transportation distances and adherence to stricter environmental regulations. Not only does KinderGard embrace sustainability and EPA standards, but abandoning countries that don’t has a global impact. We’re not tree huggers, just responsible adults.
Supply Chain Resilience: The COVID-19 pandemic highlighted the importance of supply chain resilience. Manufacturing domestically can make a company less vulnerable to disruptions caused by global events or transportation issues.
Reputation and “Made in USA” Label: Consumers have a preference for products labeled as “Made in USA” due to perceptions of higher quality, supporting local economies, and promoting job creation within the country. In a category where the other industry “leaders” use overseas sourcing to presumably cut corners, KinderGard will be proud to repatriate manufacturing and keep skilled jobs in America.
We’re an American company, and we’re going to bring manufacturing of KinderGard products back to America for our 50th anniversary in 2024.