Sam Walton had a great idea: make his all-American stores in the American Heartland the hero of American workers by purchasing and selling the American goods they made. Now Walmart sells American flags made in China. What happened? The desire to win happened. The need to grow happened. The yen yuan for obscene bank accounts happened. Can $50 billion over 10 years restore Waltons vision? Kim Souza writes in Wal-Mart Exec Says Retailer Still Committed To U.S Manufacturing Push:
There have been many executive changes at Wal-Mart Stores in recent months, including a new management team at the retailer’s mammoth U.S. division. And while some say all has seemed quiet on the retailer’s push to return manufacturing jobs to the U.S. since the departure of former Walmart U.S. CEO Bill Simon, Wal-Mart disagrees. “Our new CEO Greg Foran is equally committed to the U.S. Manufacturing initiative because it is a good business decision. Of course there are business advantages that come with a shorter supply chain particularly in responding to seasonal trends. But it’s also at the core of Everyday Low Price and is a cost-cutting strategy that is a crucial part of our business. It’s smart and we are quite pleased with the progress made in two years’ time,” said Cindi Marsiglio, vice president of U.S Manufacturing at Wal-Mart. Marsiglio told The City Wire that there are more projects in the pipeline today than ever before, from concept to commitment and everything in between. While she would not provide an estimated number of projects today, in October 2014 she said there were 150 projects in various stages. In 2013, Wal-Mart announced it would buy an additional $50 billion in American products over the next decade. Wal-Mart estimates cumulatively over the next decade the investment will total $250 billion. The Boston Consulting Group predicts that this $250 billion investment will create one million jobs, including the jobs in manufacturing and related services. Simon was seen as the champion within Wal-Mart for the manufacturing push. With respect to Wal-Mart’s 10-year commitment to purchase goods made in the U.S., Marsiglio said the spending is on par with the two-year target with the estimated prorated portion. The funds are being allocated based on three areas: new items sourced from current U.S. suppliers; new suppliers bringing new or improved items; and those suppliers looking to bring some of their manufacturing onshore, which is by far the toughest piece of the puzzle and the most time-consuming. “We don’t have a specific target spending among these three areas. We are seeing a lot more production in the U.S. for items added to the our inventory as we are buying more from those we already do business with. Some existing manufacturers are expanding their plants as they take on new customers and more business and others are adding shifts. We are still seeing stable interest among those who want to onshore production and plan to build new facilities which is exciting and most difficult to complete,” Marsiglio said. Two-thirds of products Wal-Mart already sells are made in the United States, but Marsgilio said many of those are food items given the retailer’s huge grocery presence.
This last is critical distinction and one a walflack would be likely to gloss over. So, what is the non-food number? I don't know, but I recall the number 80 percent being bated about at one point. I do still remember how good I felt actually buying a piece of American made plastic (which I still use nearly every day) from Walmart back in 2010. *Cheap plastic crap from China. Jeff Hess: Have Coffee Will Write.

Leave a Reply

To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Anti-spam image