A worker delivers food to a customer’s vehicle outside a Walmart Inc. store. from Amsterdam, New York, Friday, May 15, 2020.
Angus Mordant | Bloomberg via Getty Images
Walmart said Wednesday it intends to support U.S. manufacturers by spending another $ 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 range is made, assembled or grown in the United States since the most recent fiscal year, according to a company spokesman.
With the move, the retailer said US products will become an even bigger part of its supply chain. The focus will be on purchasing more materials and goods from domestic producers, including plastics, textiles, pharmaceuticals and medical products, food processing and small electrical appliances.
As the world’s largest retailer by revenue, Walmart has faced criticism from labor lawyers and others for lowering prices in a way that pushes more production and jobs abroad. The company responded in 2013 by pledging to buy $ 250 billion in US assets by 2023. Wednesday’s announcement is a further step toward that commitment.
Over the past few years, Walmart has created new ways for U.S. suppliers to take over its stores and website, including an annual Open Call event where small businesses can launch their products. He also created a website where Walmart suppliers can learn how to get their operations back in the US.
However, the company also faced control. In 2015, it launched a “Made in USA” logo on products, after an investigation by the US Federal Trade Commission and a surveillance group found that the items were not manufactured in the US. The company now details the percentage of a US-made product on its label.
In a post on the company’s website on Wednesday, Walmart US CEO John Furner said the effort would benefit the environment and the economy. He said it would reduce the company’s carbon footprint by supplying goods closer to customers, create demand for more jobs in the US and generate opportunities for more American entrepreneurs to become Walmart suppliers or sellers.
Furner said the increase in spending could support more than 750,000 new U.S. jobs, based on a study by Walmart with the Boston Consulting Group, which used data from the Institute for Economic Policy and the Bureau of Labor.
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 ship 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 come up with 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 US production.