Are American industrial buyers avoiding foreign goods?

Modern Machine Shop, March, 1994

Despite NAFTA and GATT, some industrial buyers still object to buying foreign-made goods, a recent survey showed. The survey was conducted last January by marketing consultants Henry Lavin Associates Inc., who sensed from their clients' comments that there was growing antipathy by industrial buyers against goods made overseas. They surveyed 95 independent industrial representatives in the United States who represent 451 manufacturers.

Thirty of these representatives carry both foreign product lines and U.S. product lines (on average, two or three foreign lines each). Fifty-three percent of the representatives with foreign lines reported receiving objections to buying foreign products by their industrial customers during 1993. They received an average of five or more complaints each. One respondent estimates receiving over 20 complaints.

Seven reported that some of their customers prefer to buy American-made products ONLY. Five reported receiving no objections to European or Canadian sources. The same number reported complaints about "second-tier" products--products manufactured in the United States but by overseas companies. Four reported increasing resistance among their customers toward products from Asian manufacturers.

Comments elicited by the survey included several suggesting that resistance to products from Asia was greater than that to products from Europe. Several reported a general preference among their customers to buy American; at least one respondent said that some customers were willing to pay more if the products were made in America.

Although the survey was too small to draw strong conclusions it does reveal that existing attitudes are likely to persist regardless of changes in national trade policies. For a copy of the survey results, send a $3.00 check to the firm at 12 Promotory Dr., Cheshire, CT 06410-1497.