A worker delivers groceries to a customer’s vehicle outside a Walmart Inc. store. in Amsterdam, New York, on Friday, May 15, 2020.
Angus Mordant | Bloomberg via Getty Images
Walmart said Wednesday it plans to support U.S. manufacturers by spending an additional $ 350 billion over the next decade on items that are manufactured, grown or assembled in the United States.
Nearly two-thirds of Walmart’s current assortment is manufactured, assembled or grown in the United States as of the most recent fiscal year, according to a company spokesman.
By the way, the retailer said American products will become an even bigger part of its supply chain. It will focus its efforts on buying more materials and goods from domestic manufacturers, including plastics, textiles, pharmaceutical and medical supplies, food processing and small appliances.
As the world’s largest revenue retailer, Walmart has faced criticism from labor and other advocates for lowering prices in a way that pushes for more manufacturing and employment abroad. The company responded in 2013 by pledging to buy $ 250 billion in U.S. assets by 2023. Wednesday’s announcement represents a further step toward that commitment.
Over the past few years, Walmart has created new ways for U.S. suppliers to be picked up by their stores and website, including an annual open call event where small businesses can showcase their products. He also created a website where Walmart suppliers can learn about how to recover their operations in the United States.
However, the company has also faced control. In 2015, he dropped the “Made in USA” logo on the products, after an investigation by the U.S. Federal Trade Commission and a watchdog group found that the items were not manufactured in the United States. Now the company details the percentage of a U.S.-made product on its label.
In a post on the company’s website on Wednesday, U.S. CEO Walmart John Furner said the effort benefits the environment and the economy. He said it will reduce the company’s carbon footprint by supplying goods closer to customers, create demand for more jobs in the United States, and create opportunities for more U.S. entrepreneurs to become Walmart suppliers or sellers. .
Furner said rising spending could support more than 750,000 new U.S. jobs, based on a Walmart study with Boston Consulting Group that used data from statistics from the Institute for Economic Policy and of the Labor Office.
And, he added, the decision responds to what customers want. More than 85% of consumers surveyed by Walmart in 2019 said it is important for the retailer to bring products made or assembled in the US
Furner said Walmart will also launch a new program, called American Lighthouses, that will bring together stakeholders from different parts of the country to find ways to overcome barriers to American production. He said participants will include suppliers, government officials and academic experts who can suggest ways to support and expand U.S. manufacturing.