Aug 19, 2024

The Supply Side: Walmart continues efforts to boost U.S. manufacturing jobs A report from Reshoring Initiative indicates the effort to return manufacturing jobs to the U.S. created 819 reported cases of reshoring in 2023, and foreign direct investment led to 287,000 job announcements, the second highest year since data began being tracked in 2010. Harry Moser, president and founder of Reshoring Initiative, said the first half of 2023 was another record year that was forecast but did not materialize with an economic slowdown in the third and fourth quarters. He said the cumulative rate of jobs and foreign direct investment was down 16% from the record 2022 but still 191% higher than 2019. Moser said the cumulative number of jobs brought back since 2010 is about 2 million, about 40% of what was lost to offshoring in two decades before. He told the Northwest Arkansas Business Journal that Walmart is a leader with its investments and efforts to create more U.S. manufacturing jobs. He said even if Walmart invests in more American-produced goods instead of imports, that’s a win for U.S. manufacturing. Reshoring Initiative reports 150,206 manufacturing jobs were announced in 2023, and 137,093 were added from foreign direct investments. More than a third of the new jobs added in 2023 involved the onshoring of electrical equipment like EV batteries and appliances, computer chips and electronics added 27% of the jobs. Other areas with double-digit growth were the transportation equipment and chemicals/pharmaceuticals industries, thanks in part to federal investments and demand for medications. GIANT T-SHIRTS Walmart has said it remains committed to supporting U.S. jobs, and it continues to look for new partnerships in that endeavor. American Giant, the largest American-made clothing brand, recently partnered with Walmart to sell U.S.-made T-shirts in 1,700 U.S. stores. American Giant took advantage of Walmart’s commitment to buy more U.S.-made goods in sectors that include plastics, textiles, small electrical appliances, food processing, pharmacy and medical supplies, and goods and services. The collaboration began before Independence Day with American Giant selling holiday shirts for $12.98. American Giant founder and CEO Bayard Winthrop said the partnership with Walmart is proving high-quality American goods can be made at competitive prices and support U.S. jobs. Winthrop said Walmart reached out to collaborate in hopes of improving its U.S. textile initiatives that support jobs. “We explored various collaboration ideas, such as white-labeling clothing or introducing a branded line of American-made products in Walmart stores. The latter idea, which involves creating a line of high-quality, American-made products specifically for Walmart customers, generated the most excitement,” Winthrop said. Walmart sourcing chief Andrea Albright said partnering with a brand like American Giant is a great way to introduce the products to millions of consumers at incredible prices. She said American Giant is a trailblazer in the industry and a premium brand with a loyal fan base. “We look forward to fostering a collaborative partnership where we can learn from each other’s expertise as we continue to invest in American manufacturing,” Albright said. This is not the first apparel collaboration for Walmart. In 2022, Jordan-based Classic Fashion opened a cut-and-sew factory in Santa Ana, Calif., garnering a five-year contract to cut and sew apparel exclusively for Walmart. The initiative created 123 jobs by the end of 2023. Sanal Kumar, chairman of Classic Fashion, said he began working on the U.S. sewing line in 2015. Classic has been a major apparel supplier for Walmart since 2005, with the majority of production done in Jordan and India. Walmart continues to partner with other companies in its quest to support U.S. jobs. Walmart CEO Doug McMillon noted on the company website, “If we can create local jobs, we’re going to have better stores and better stronger communities … We want everybody who has anything to do with Walmart — whether they’re a customer or associate or supplier of ours — to benefit.” COOLERS AND PHO On Walmart’s American jobs portal, the retailer highlighted FreshPets, a supplier it began working with in 2007. Walmart said the New Jersey-based fresh pet food maker created more than 900 jobs in communities like Ennis, Texas, and Bethlehem, Pa. Anh and Joseph Trousdale transformed made-from-scratch pho into a product that was easy and quick to prepare in any kitchen. The couple pitched PhoLicious, the instant pho product, during an Open Call event in 2022. They garnered an introductory order from Sam’s Club, which was the biggest order the company had sold at one time up to that point. Now, PhoLicious is in 133 clubs, allowing the Houston-based company to invest in more people as it grows its brand. Igloo coolers made in Katy, Texas, are also part of Walmart’s growing U.S. supplier base. Diego Quinonez, manufacturing manager at Igloo, said Walmart’s continued order support has allowed the company to grow its workforce and invest in the local community. In 2021, Proud Source Water of Mackay, Idaho, became a Walmart supplier. The company sells naturally alkaline water sourced in the Rocky Mountains of Idaho and the Apalachicola National Forest of Florida. The company pledges to never take out more than 5% of the spring’s daily output. Since garnering its first order with Walmart in 2022, the company has grown distribution to nearly 1,000 Walmart stores and increased employment by 50%. Proud Source is the largest employer in Mackay, a town of 472 people. Editor’s note:  The Supply Side section  of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics and sponsored by  Firebend.