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I'm the CEO of an American-made dog toy company. If profit's your only goal, don't manufacture in the US.

  • West Paw, which makes dog toys and treats in the US, has not been significantly affected by tariffs.
  • CEO Spencer Williams said manufacturing in the US was hard, but that it was about more than profits.
  • He also said items being made in the US are not enough on their own to attract American consumers.

This as-told-to essay is based on a conversation with Spencer Williams, the CEO and owner of West Paw, a dog toy and treat company based in Bozeman, Montana. This story has been edited for length and clarity.

I was on a chairlift in 1996 when a well-known businessman in the Bozeman area turned to me and said, "If you don't outsource your manufacturing, you're going to lose your business." I thought to myself, "Why? Why couldn't I figure out a way to manufacture a better product in the United States?"

I grew up in rural Montana, so the roots of the business started with making an impact in my home state and with my passion for entrepreneurship and manufacturing. I love the idea that at the end of the day, we could say we helped make something — we created a thing.

I thought it would be great if I could make a product that brings joy and connection to people and their dogs in Montana. It would have an impact on our community by creating jobs, and we'd be able to make our products in a more sustainable fashion.

We started with sewn dog toys that included imported textiles from places like India, South Korea, and China. But in the early 2000s, we created an injection molding material called Zogoflex, which now represents 85% of our sales. Those products are made in a fully US-based supply chain, from the raw material to our production right here in Bozeman.

Manufacturing in the US is hard

It's tremendously hard to produce domestically, especially for consumer packaged goods

We have to design the product, develop the raw material, procure the mold, and import the machinery, which comes from Austria or Japan. Then we have to train our employees because there are not a lot of injection molders in our area.

Molds to make injection-molded toys are very expensive in the US. You'd hardly even notice the mold cost if you produced in China.

It is infinitely harder to do what we do, and the only way anybody would really want to do it is if money wasn't their sole objective. If money's your sole objective, just outsource it. It's so much easier.

But because West Paw has always been purpose-driven, we make money, but we also focus on making a positive impact as a social and environmentally focused company.

I don't have anything against making products in a foreign country, and we sell our products globally. But we are pursuing our own vision.

Americans don't buy products just because they are 'made in the USA'

I've found over my 29-year career that people don't tend to stay true to a "buy USA" value. There are ups and downs around patriotic purchasing of domestically made products.

While we make it clear our products are made in the US, what's really important is that we also make a better product.

For example, one of our best-selling toys, Toppl, changed the way toys could be used as enrichment tools or for mental and physical wellness for dogs as they play. It's also a slow feeder. That innovation isn't about being made in the US. It's about great design.

We always tell the "made in the USA" story — we're proud of that — but it has to come after we solve for the health and wellness needs of the pet parent.

We also try to be really clear about the value of durability. When you buy a more durable product, your dollar goes further. You don't have to replace it again and again. For our dog treats, we also focus on making a healthier product.

We wouldn't expect the customer to buy our product because it's better for the planet. It's about the product and the company truly understanding what the consumer needs and solving for that first and foremost.

Tariffs show the plus side of a US-based supply chain

The tumultuous environment of these tariffs has left businesses and retailers reeling, and that creates an unfavorable economic environment.

We just sent out an email and social media post last week that basically said: "Tariff update: We have none." What we have are stable prices, a stable supply chain, and no tariffs.

That's our message to retailers: We're not relying on the government to solve our problems. We're a better long-term partner.

I think West Paw is going to grow because of the current environment of tariffs. We're already seeing that growth. It goes back to a strategy I started 29 years ago that is going to pay dividends this year: We're going to make our own product, we're going to make it better than anybody else, and we're going to make it in Montana.

We chose a harder path, and I'm grateful for that.

Read the original article on Business Insider
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