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In a small workshop in Fairfield, California, Mark Latino and his crew work diligently on a century-old machine, transforming vinyl sheets into shimmering silver tinsel for Christmas trees. This scene represents a rare glimpse into domestic holiday decoration manufacturing in America, where Latino’s company, Lee Display, stands as one of the few remaining U.S. producers of artificial Christmas trees.
Founded in 1902 by Latino’s great-grandfather, Lee Display has evolved from crafting handmade velvet and silk flowers for hats to producing approximately 10,000 artificial Christmas trees annually. The company’s persistence in domestic manufacturing has taken on new significance this year as tariffs spotlight America’s heavy reliance on imported holiday decorations.
The American Christmas Tree Association reports that artificial tree prices have jumped 10% to 15% in 2024 due to new import taxes. Retailers responded by reducing orders while absorbing higher costs on the inventory they did import. Despite these challenges, industry leaders maintain that large-scale production is unlikely to return to American soil after decades of manufacturing migration to Asia.
“Putting a ‘Made in the U.S.A.’ sticker on the box won’t do any good if it’s twice as expensive,” explains Chris Butler, CEO of National Tree Co., which sells over one million artificial trees yearly. “If it’s 20% more expensive, it won’t sell.”
The labor-intensive nature of artificial tree production presents significant hurdles for domestic manufacturing. Butler notes that creating a single tree requires one to two hours of work, from molding and cutting the needles to assembling branches and attaching lights. Workers in China, where 90% of fake trees originate, earn approximately $1.50 to $2 per hour—wages difficult to match in the U.S. labor market.
Mac Harman, founder and CEO of Balsam Brands, which sells hundreds of thousands of Balsam Hill trees annually, highlights another challenge: “Where are we going to get 15,000 people in America who want to string lights on Christmas trees?” His company explored U.S. manufacturing during the first Trump administration when tariffs were initially threatened but concluded a tree currently priced at $800 would cost around $3,000 if produced domestically.
American preference for artificial trees remains strong, with about 80% of U.S. households that display a Christmas tree opting for artificial ones—a statistic unchanged for at least 15 years. Consumers appreciate the convenience of pre-lit trees, which account for 80% of artificial tree sales, along with their longevity and hypoallergenic properties.
Lee Display’s small-scale American operation employs just three or four people year-round, adding seasonal workers during holiday rushes. About half their business involves creating custom displays for companies like Macy’s, with the remainder focused on direct consumer sales. Latino values the control and quick turnaround of domestic production but acknowledges that tariffs still affect his business indirectly through imported components like lights.
Some companies are adapting to the tariff environment by diversifying their supply chains. National Tree Co. shifted some manufacturing to Cambodia in 2024 and could potentially source all its products outside China by next year. However, this strategy doesn’t eliminate tariff impacts—the Trump administration initially threatened a 49% tariff on Cambodian products before reducing it to 19%.
The economic consequences have been significant. Butler’s company imported fewer trees this year while raising prices by 10%, using much of the additional revenue to offer customer discounts in response to weak demand. Balsam Brands implemented cost-cutting measures including workforce reductions, travel cancellations, salary freezes, and office expense reductions while also increasing tree prices by 10%.
Harman reports that while Balsam Brands’ U.S. sales have declined 5-10% this year, they’ve increased by 10% or more in international markets including Germany, Australia, Canada, and France—suggesting that tariffs have specifically dampened American demand.
“If a merry Christmas is measured in how many decorations people put up,” Harman concludes, “by that measure it’s going to be a slightly less merry Christmas.”
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7 Comments
This article highlights the delicate balance between domestic manufacturing and global supply chains. While it’s admirable that a few US companies like Lee Display persist, the economic realities make it difficult to compete with low-cost imports. I wonder if there are policy solutions to support American holiday decoration makers.
That’s a good point. Government incentives or targeted tariff policies could potentially help domestic producers, but the logistics and economics of the global market make it an uphill battle. It’ll be fascinating to see if any innovative solutions emerge to revive US-based holiday manufacturing.
It’s impressive that a company like Lee Display has managed to maintain its domestic production for over a century. The article highlights the challenges they face with rising costs and competition from imports. While American consumers seem to prefer artificial trees, the industry’s reliance on foreign-made products is concerning from an economic standpoint.
This article underscores the complex dynamics of global trade and its impact on domestic industries. While American consumers have a preference for artificial Christmas trees, the reality is that most are now manufactured overseas. The tariffs and rising costs pose challenges, but it seems unlikely that large-scale production will return to the US given the economic realities. It’s an interesting case study in the evolving nature of manufacturing.
The shift in artificial Christmas tree production to Asia is an interesting parallel to broader manufacturing trends we’ve seen in recent decades. While domestic producers like Lee Display provide a glimpse into America’s holiday decoration heritage, the market realities make it difficult for them to compete on a large scale. I wonder what policies or innovations could help revive US-based holiday goods manufacturing.
Interesting to see the challenges domestic manufacturers face in the artificial Christmas tree market. While it’s encouraging that some US producers remain, it’s clear the industry has shifted overseas over time. I’m curious to hear more about the economic factors and tariffs impacting this space.
You’re right, the reliance on imported holiday decor is a complex issue. Tariffs and production costs seem to be driving up prices, though it doesn’t seem feasible for large-scale manufacturing to return to the US. It’ll be interesting to see how the industry adapts.