How Can American Companies Compete with Chinese Manufacturers?

Chinese manufacturers dominate global production in many industry sectors, leaving companies in other countries, such as America, wondering how to compete. International engagement with China as an economic partner in the 1970s took the country from a poor economy to one of the world’s largest.

Existing manufacturers have had their futures threatened by China’s product sector, characterized by cheap labor and less stringent manufacturing safety standards. How do America’s companies compete with this?

Streamlining processes

China’s manufacturers succeed because they minimize inputs while maximizing output and productivity. American companies that implement Six Sigma principles learned from 6Sigma’s training and certification courses have analyzed their processes and found ways to streamline them and improve productivity. This hands-on approach requires statistical analysis rather than guesswork, using data-driven decision-making to render all company processes, including manufacturing, more effective.

Creating operational excellence reduces costs while increasing production, sales, and revenue. This enables manufacturers to keep their prices at levels competitive with those offered by Chinese companies. One primary aspect that attracts consumers to Chinese products is their low prices. Keeping their costs as low as possible without running at a loss allows American companies to remain relevant by offering their products at reasonable prices.

Marketing efforts

Patriotism is at the forefront of many people’s thinking in the wake of an economic slowdown triggered by Covid-19. Despite American society being polarized by politics, its citizens agree on maintaining a strong economy that bounces back from recent challenges.

Companies should take advantage of that spirit by marketing their products as American-made and encouraging consumers to buy domestic goods. It stimulates America’s economy, leads to job growth, and increases government tax revenues. America’s government is conducting a Buy American campaign to stimulate the economy, and companies should take advantage of it by emphasizing its American roots.

Government lobbying

In its quest to maintain cordial relationships with China and balance its military might, many accuse America’s government of being too welcoming of Chinese products. While the solution does not lie in complete embargos, government structures can implement measures that protect American companies.

Generating political willpower to challenge China’s manufacturing dominance could prove challenging. However, it is precisely what American producers should be doing. It requires them to lobby government officials to start a conversation about China and limiting the damage its manufacturing sector does to America’s production economy.

A stand must be taken to avoid a collapse of American manufacturing, which will destroy the jobs market and see many established companies closing their doors for good.

Environmental consciousness

Climate change and the associated havoc it wreaks on the planet are gaining increasing prominence in consumers’ consciousness. It leads them to make more discerning choices about sustainability. China’s poor track record around environmentally friendly manufacturing processes should put it at a disadvantage among these consumers, willing to pay a little extra to know that a producer implements climate-friendly practices.

American manufacturers must investigate their production processes and find ways to implement green policies that will gain consumers’ approval and support. Strategies to consider are corporate and social responsibility programs that support the planet’s future, reducing a company’s carbon footprint, and a commitment to carbon emissions targets.

Manufacturing integrity

China’s unfair labor practices are often brought into the media spotlight, although the response is minimal. The same applies to the country’s repressive regime that does not encourage citizens to express dissent.

Emphasizing sound, fair labor practices, including safe working conditions, and paying a living wage to employees, allows American companies to appeal to consumers’ consciences. American manufacturers have a fighting chance of competing with their Chinese counterparts when they commit to democratic principles in the workplace.