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 on Wednesday that it plans to support American manufacturers by spending an additional $ 350 billion over the next decade on items made, grown or assembled in the United States.
Nearly two-thirds of Walmart’s current assortment is made, assembled or grown in the United States, starting from the most recent fiscal year, according to a company spokesman.
With the change, the retailer said that American products will become an even larger part of its supply chain. He will focus his efforts on purchasing more materials and goods from domestic manufacturers, including plastics, textiles, pharmaceutical and medical products, food processing and small electrical appliances.
As the world’s largest retailer in revenue, Walmart has faced criticism from labor advocates and others for slashing prices in a way that pushes more manufacturing and job enforcement. The company responded in 2013 by promising to buy $ 250 billion worth of US products by 2023. Wednesday’s announcement represents a step ahead of that commitment.
In recent years, Walmart has created new ways for American suppliers to be chosen by its stores and website, including an annual Open Call event where small businesses can present their products. It also created a website where Walmart suppliers can learn about bringing their operations back to the United States.
However, the company was also examined. In 2015, he launched a “Made in USA” logo on products, after an investigation by the U.S. Federal Trade Commission and a watchdog group found that the items were not made in the USA. The company now details the percentage of a product made in the United States on its label.
In a post on the company’s website on Wednesday, Walmart US CEO John Furner said the effort benefits the environment and the economy. He said that this will reduce the company’s carbon footprint when seeking products closer to customers, create demand for more jobs in the U.S. and create opportunities for more American entrepreneurs to become Walmart suppliers or sellers.
Furner said the increase in spending could support more than 750,000 new American jobs, based on a study by Walmart with the Boston Consulting Group that used data from the Economic Policy Institute and Bureau of Labor statistics.
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 transport products made or assembled in the U.S.
Furner said that Walmart will also launch a new program, called American Lighthouses, that will bring together interested parties in different parts of the country to find ways to overcome barriers to American production. He said the participants will include suppliers, government officials and academic experts who can suggest ways to support and expand manufacturing in the United States.