The Economics of "Buy American"
The other side of margin competition, order volume, is another area where the economies of scale can skew in American manufacturing's favor. At high order numbers, say something like 20,000 drawstring backpacks, the value of going overseas is obvious. Even with a marginal price difference per unit, the saving would be substantial. Slide the volume of items in the other direction however, like with an order for three wristwatches for a years-of-service award, and American manufacturing becomes more competitive. Quality and the appeal of the item become the differentiating factors, rather then price. Combined with their generally better customer service, customization options and lower shipping costs, American manufacturers that focus on high-quality, low-volume orders can easily compete with their overseas peers (possibly a reason that manufacturers of awards and prestige jewelry like watches, are easier to find stateside, compared to pens or drinkware).