by Dan Gershenson, VP of Brand Strategy
Last night I was catching the re-run of an episode of Undercover Boss featuring Dennis Slagle, the CEO of Mack Trucks.
As you’ve probably heard, this series follows a different corporate executive around each week in disguise as they discover the goings-on of their companies up close and personal. More often than not, they fall on their faces while trying to do the “everyman” jobs but learn a ton about their employees in the process, often with very emotional results.
During the program, something Mr. Slagle said about the Mack brand struck me. Amid swirling rumors of Mack moving production to Mexico, he shot those rumors down by saying a family-oriented culture and giving back to the community were key elements of the Mack brand.
“Like our employees, I want my grandchildren to grow up in a country that builds things. I think it’s essential to securing the future economic health of our communities and our country. But we’re not entitled to that future. We have to earn the ability to keep manufacturing here by ensuring we’re competitive – and I’m convinced that working together, we can do just that.”
– Dennis Slagle, CEO, Mack Trucks
Now, some skeptics may say this was all PR for the cameras, but I believe him. Mack is a company over 110 years old and part of its legacy as a manufacturing brand is that it is made in America. To have production shipped overseas or across our borders would fundamentally change the very fabric of that brand.
Over the last several years, I read of manufacturing brands doing what is right for the balance sheet rather than the brand. Almost apologetically, I would hear the phrase of “We’d like to build here but we just can’t.” And yet, here was a CEO readily admitting that it would be cheaper to move production to a country like Mexico but that it would not be true to Mack’s roots.
I think when Mr. Slagle looks back on this decision to re-embrace insourcing (besides the decision to go in front of the cameras), he’ll be glad he made it. For one thing, the deepest divide in manufacturing is between available jobs and people with the skills to fill them. It’s not that opportunities are lacking. So if all is relatively equal and we have to train people to further our manufacturing companies, why not hire and train employees here in the U.S. to ensure greater quality control?
Insourcing is also good for the culture of the company. When companies want their mission statements to be living, breathing entities that their own people communicate on a daily basis, why not entice employees here in the U.S. to live that mission in every department, rather than trying to educate different cultures on your own? Certainly it has to be easier for managers in departments such as Marketing and HR.
This is what is truly exciting to me. Not just that we’re learning to bring American jobs back but that we’re strengthening the American brands that go with them. It’s more than putting the phrase “Made in America” on every product, sales piece or website.
What we have before us with insourcing our brands is an opportunity to tell the story about why we’ve stayed here or why we’ve come back. And in doing so, why it’s made us better than ever in our manufacturing production, in our corporate operations and in our external service.
No wonder that makes for good TV. So how are you telling the insourcing story for your company?


