Walmart to Invest $350 Billion into American Manufacturing

Walmart craves to be part of the American manufacturing revolution. John Furner, President and CEO, Walmart plans to invest $350 billion in products made, grown and/or assembled in the United States. The initiative occurs over 10 year period, and projected to create approximately 750,000 jobs. That change might boast local manufacturing and in turn prompt other big box retailers to push their supply lines to manufacture nationally. If you are a U.S. based small manufacturer you will want to take note of emerging opportunities to create a stronger position.

What Will be Produced?

Investments hopes to encourage production for things like textiles, plastics, small electrical appliances, food processing, and pharmaceutical and medical supplies. Much of the effort will be focused on products that were traditionally produced in China but will now be pushed to produce in the United States. 

Environmental Advantages?

Fostering closer supply chains while keeping an an eye out for for reducing innovation and pollution. The company could save 100 million metric tons of CO2 emissions. The best time to to turn businesses green are either during a major transition and/or when they are first launched. 

What To Do If Your a Supplier?

They expect to encourage around 9,000 entrepreneurs to be part of the capacity building effort. If you have a "shelf ready" product then you can pitch for consideration to be included in Walmart's line up.  For many small manufacturers having a large big box retailer like Walmart pick up your product is a boon. You will have to read more about it HERE (I wonder if they would be interested Escanaba Polo Mallet Co mallets and/or brand? 🤔).

What is the American Lighthouse?

Without coordinating across local and regional manufacturing stakeholders it will be difficult to overcome capacity building challenges. "The Lighthouses will bring together participants from the supplier community, including manufacturers and NGOs, leaders from academia, government and local economic development groups.(Edelson, 2021, para. 9).

What is the Strategy?

The company expects major changes in the market as a result of increased competition with China. It also sees that investment in these supply chains would be helpful to managing them better. The focus of the investment money will be on market demand products that give Walmart more control over its suppliers. 

Earlier this year President Biden signed a Made in American Executive Order that seeks to preference American companies in the $600 billion Federal spending. $600 billion + $350 billion is a lot of money. Now with with luck 🙏 add in a few other "big box" retailers (i.e. Meijer's and Costco) as well as a few automotive suppliers (i.e. Ford and Chrysler) and a couple of other industries and you might just create a manufacturing stimulus never seen before! (I actually wonder if that would work?❓︖𞥟 A manufacturing push that large could reorient global supply chains as companies move headquarters, invest local, start new businesses and create innovative products that China might have difficulty copying for a long time. A $5trillion stimulus launched by industry? 👀😲🤔🤷). 

(I'm working on a transactional cluster theory that I think could be used as a foundational basis for local  and nation industry (and new unseen industry) development).

Edelson, S. (March 3rd, 2021, para. 9). Walmart Gets Behind U.S. Manufacturing With 10-Year, $350 Billion Investment. Forbes. Retrieved 03-05-21 https://www.forbes.com/sites/sharonedelson/2021/03/03/...