Part 4/8:
Another factor that inflates costs for American manufacturers is the complexity of supply chains. A common example is evident in the procurement of simple components that often involve multiple intermediaries, thereby significantly increasing final consumer prices. A $0.20 seal bought in bulk can end up costing consumers $10 after passing through various channels—all requiring a markup to remain viable.
Reducing these costs can be achieved by negotiating direct supplier relationships and minimizing lead times. By eliminating unnecessary intermediaries, manufacturers can effectively lower their overhead and compete more favorably against imports.