Assembly in the USA refers to the various processes involved in assembling or constructing an item. Some of these processes are done locally, but some are done further away.
By location, the assembly can be completed domestically (in the same country where it will be sold) or internationally (in another country). The two major factors that determine whether to complete assembly domestically or internationally are cost and time. For example, for a product that is popular in an international market with relatively low costs of shipping versus the average price of the product, there may be strong reasons to send parts overseas for assembly. This is common in electronic devices such as MP3 players or DVD players.
What Is Assembly In The USA?
The meaning of an “Assembly in the USA” refers to the “Made in the USA” label which is different depending on whom you ask. The FTC, which was established by Congress and charged with preventing unfair business practices in America’s economy, defines this term to mean that all or virtually all components must be made within our borders. But there are other organizations out there arguing for stricter qualification standards when claiming product origins like Unequal Technologies who say only parts used need to meet these criteria.
FTC officials defend how they’ve implemented rules because any country could theoretically produce something labeled ‘American-made.’
The United States Congress is the legislature of the federal government in America. It has two houses, with each one representing different regions or states depending on its population size and how they were elected to office (House Representatives vs Senator).
Types Of Assembly In America
This article will discuss three types of assembly in the United States of America. They are:
1. Domestic assembly
2. International assembly
3. Mega-factory (or “mega-plant”) assembly
1. Domestic Assembly
Domestic assembly is the process of assembling something within one country. This usually means that the product will be sold in that same country as well, but it could also mean that the product may be exported to other countries once it has been assembled and the finished product is ready for sale. There are advantages and disadvantages to completing assembly domestically:
2. International Assembly
The USA has many examples of domestic assembly, both old and new. Some products that have been produced domestically include automobiles (Ford Model T, Chevy Corvette), motorcycles (Harley-Davidson), and firearms (Colt-Browning M1911, Ruger Mini-14).
Example:
Foreign automakers have been assembling vehicles in the US for decades. The first were Volkswagen, BMW, and Mercedes-Benz who built plants in Southern states where labor was cheap but there were also tax incentives by state governments to attract manufacturers. Nowadays, Honda, Toyota, Nissan, and Hyundai all assemble vehicles in the US.
3. Mega-Factory (Or “Mega-Plant”) Assembly
International assembly is the process of assembling a product in one country for sale in another. Usually, the parts will be shipped from the manufacturer to the place where they will be assembled and before finally being exported. This method of production is common with the production of electronic devices, but it is also good for simpler, more standardized products such as toys.
Advantage Of Assembly In The USA
The benefits to this method are that the time between creation and sale is reduced because the parts do not need to be transported within the country they are produced in before being exported. This can help get new products on the market faster than if it were completed domestically. An additional benefit is that there are generally more places to choose manufacturers from, particularly for smaller companies because they may not have the resources to complete assembly domestically.
The major risks with this method are shipping delays and the possibility of problems with quality control in the assembling country. Quality control, while improving throughout the world over time, is still not at the level it is in industrialized Western countries. As a result, products that are poorly made may be sent to the importing country and this reduces the value of those products because it increases return rates and reduces consumer confidence in those brands.
Mega-plant assembly refers to assembly plants that produce multiple products for different companies or organizations. This method of production is more common in the automobile industry than any other. Historically, mega-plants assemble products for many different companies (so-called “captive sales”), but more recently there has been a trend to do self-sourcing, which means that multiple car manufacturers share one assembly plant and compete with each other within it. This is a common practice in the development of new cars.
Mega-plants can assemble an entire car from start to finish or they can just be responsible for specific phases of the assembly process, such as paint and plastics. In some cases, additional work will be contracted out domestically or internationally to either supplement the mega plant’s work or replace it completely.
Mega-plants have the advantage of producing a lot of products in a relatively small space and in a relatively short amount of time. Additionally, they produce high volumes so that economies of scale allow them to reduce costs per unit [or can be used to help sell cars at a profit]. However, because there are so many manufacturers in a mega-plant, quality issues often arise in final product quality. There have been reports of poor paint jobs and poorly made plastics that have to be replaced on customers’ vehicles.
The Disadvantage Of Assembly In The USA
The disadvantages to this method are that it is costly for smaller companies to manage the additional bureaucracy required by multiple production facilities [either in one mega-plant or in two mega-plants (one for each company)]. Additionally, quality issues can hurt the reputation of all companies involved.
Fun Facts About The Assembly In The United States Of America
1. Other foreign companies such as Apple Inc., Dell Inc., General Electric, Microsoft, Toshiba & Fujitsu also source products from the United States for export to other countries [assuming that they do not use a domestic manufacturing partner]. These products can be industrial components like semiconductors or larger products like smartphones.
2. In the US, there is a certain stigma attached to foreign companies for assembling products in the US which can be a risk in a political sense [insofar as voters may not support policies that help the company]. However, this is typically economic in nature and more likely addresses how much workers make or what types of jobs are available.
3. Many states have tried to get jobs from foreign automakers by offering tax incentives and other forms of economic support for the assembly of vehicles in the US [notably Alabama, South Carolina, Tennessee & Mississippi]. This has been a politically charged issue over time where different legislators compete with each other to get things done.
4. In general, the production & assembly of goods is left to local governments and not typically at a federal level. This likely makes it easier for the economy to adjust as demand changes over time.
Conclusion
The assembly of products is usually not a federal issue in the United States. This means that the production and assembly of goods are, for the most part, left to local governments instead of a national government or international company. In this way, the economy can adjust more efficiently when demand changes over time.