Why ‘Made in the USA’ Matters More Than Ever: Bay Cities and the New Era of Domestic Manufacturing

In a world where uncertainty is the only certainty — from shifting tariffs to supply chain breakdowns — more companies are waking up to the risks of overseas manufacturing. It’s no longer just about price. It’s about control, reliability, and protecting your brand.

The Price Gap Is Shrinking – and So Is the Margin for Error

For years, the lure of offshore production was simple: cheaper unit costs. But that’s changed. Tariffs, freight rates, and global instability have narrowed the cost gap between ourselves and oversees suppliers. 

Bay Cities’ improved efficiencies have helped to shrink the price gap that once existed between U.S. and offshore suppliers. Bay Cities is constantly investing in the newest technologies and looking for savings that we can pass on to our clients. This is especially critical in the packaging and retail display space, where speed-to-market, retail compliance, and flawless execution are essential for success. 

While the difference used to be as high as 30–35%, now, it’s often closer to 10%. And, as Bay Cities CEO Greg Tucker put it, “That 10% might look appealing on a spreadsheet – until the real-world problems start to eat it alive.”

The Price Gap Is Shrinking – and So Is the Margin for Error

Some are pointing out that many manufacturers aren’t equipped to handle the demands of reshoring — lacking automation, updated warehouse systems, and workforce alignment.  

Bay Cities stands apart. We’ve built a model that’s flexible, scalable, and modern. While others are still adapting, we’re already delivering. 

Bay Cities offers a vertically integrated and domestically anchored supply chain, from concept to production, packout, and delivery. As part-owner of Encorr (sheet feeder) and close partners with the New Indy Paper Mill, Bay Cities controls the lifecycle of its corrugated material – from recycled paper to final product. Clients benefit from real-time transparency via the proprietary client portal, BayView, which offers immediate access to order tracking, POs, load maps, and signed BOLs. Additionally, seamless EDI integration ensures data accuracy, efficient ordering, and traceability throughout the process. Our coast-to-coast facilities, 650,000+ sq. ft. of production and packout locations across Los Angeles, Chicago, and Bentonville, and our over 96 loading docks, enable rapid deployment of even the most complex programs. 

“Paying less of a premium for American-made goods,” says Tucker, “means there is a tremendous opportunity for all of us in the U.S. to build packaging and displays here rather than risking damage, freight issues, quality issues and late deliveries from overseas suppliers.”

The Hidden Cost of “Cheap” Overseas Production

What seems like a cost-saving measure often turns into a false economy – that is to say, short-term savings are wiped out by long-term losses, such as: 

• Freight delays that miss your retail window  
• Product damage from poor packaging
• Late-stage rework or overtime to salvage a botched delivery
• Often lack an understanding of the specific compliance requirements of each U.S. retailer
• Losing a key retail partner because of a failed first impression
  
  
  

Oversees Suppliers

• Often lack direct visibility into sub-vendors or subcontractors used for production or fulfillment 
• Communication is typically slowed by time zones and language barriers, reducing real-time responsiveness 
• Are constrained by international freight timelines, customs delays, and geopolitical instability 
• Limited recourse or flexibility mean minimal ability to intercept when timelines shift or problems arise during manufacturing or shipping 
• Often lack an understanding of the specific compliance requirements of each U.S. retailer 
• Retail programs can suffer from costly rework, misaligned specs, or shipping errors due to knowledge gaps 

Why U.S. Manufacturing Wins in the Long Run 

Highlighting the critical importance of reputation in retail, Bay Cities Packout Manager Ramiro Velarde explained, “You might only get one shot with a retailer. And if you blow it because your shipment is late or the product quality is off — there’s no second chance for a first good impression.”  
At Bay Cities, we believe in making that first impression count — every time. Here’s how domestic production gives our clients the edge: 

• Real-time support, speed, and agility: If there’s a hiccup, we jump in. We’re able to reroute, rework, or reinforce fast – because we’re local
• Reliable quality: No unpleasant surprises when you open a container halfway around the world. What you expect is what you get
• Customer Reputation Protection: Delivering consistently and on time protects brand equity and increases chances of business renewal with retailers
• Sustainability: Less shipping means lower emissions, which is a growing priority for retailers and consumers alike

Furthermore, Bay Cities has deep knowledge of packaging and display design, engineering, and retailer compliance requirements, enabling faster approvals, fewer errors, and flawless execution of retail programs. From eye-catching displays to shelf-ready packaging, we bring creative strategy and production under one domestic roof.  “We don’t just have resources,” said Ramiro, “We have solutions. We have the network to move quickly and make things right. When you work with us, you’re not alone. You’re backed by a team that’s ready to go – anywhere in the U.S.” 

So… Why Risk It?

When it comes to using offshore suppliers,  Ramiro pointed out, “Before, when companies had a 35% margin, they could absorb the dysfunction that comes with using offshore suppliers, Now that it’s 10%, the buffer doesn’t exist for issues to arise. And, with offshore suppliers, issues always arise.”  

In today’s environment, a narrow cost saving isn’t worth the risk. When you choose a partner like Bay Cities, you gain: 

• Predictability in an unpredictable world 
• Speed and transparency 
• A team dedicated to your success – not just your shipment 

Take it from Bay Cities client, Jessica Simonson, Vice President of Sales Operations at Ontel Products Corporation who said “We work with both overseas and domestic suppliers, but Bay Cities has completely raised the bar. Their visibility, agility, and speed is unmatched. With Bay Cities, we know exactly where our project stands at any moment and, when last-minute changes arise, their team jumps in quickly, problem-solves efficiently, and delivers without delay.” 

If you're looking for a partner that delivers peace of mind, not just product, we’re here. Because “Made in the USA” doesn’t just mean where it's made. It means how it’s done. Contact us today.