Reuters has a story saying that suppliers trying to bring manufacturing back to the US in order to satisfy Walmart's pledge to buy an extra $250 billion in US-made goods over the coming decade "are running into practical problems as they try to restart long-idled corners of U.S. manufacturing. Companies that make the leap have to grapple with a host of challenges, including a shallow pool of component suppliers, an inexperienced workforce, and other shortcomings that developed during the country's long industrial decline."
The story quotes Cindi Marsiglio, the Walmart vice president overseeing the U.S. sourcing push, as saying that "the retailer and its existing suppliers have 150 active reshoring projects in various stages of development. For all too many, she says, finding U.S.-made component parts has emerged as a vexing problem."
The story goes on to say that the "issue is so widespread that Walmart is making it the focus of a two-day summit it is hosting in August in Denver. At a similar summit held in Orlando last year, Walmart focused on connecting suppliers with economic development officers from states hoping to lure the new factories. The retailer says it is especially interested in having factory owners with excess capacity attend the August event - even those that aren't interested in supplying Walmart directly. The hope is that they can become contract manufacturers to Walmart suppliers looking to produce in the United States."
It isn't just Walmart fueling the US manufacturing revival, the story says. "The forces pulling production back to the United States are powerful and real and include lower domestic energy prices, increasingly competitive wage rates, the benefits of greater automation, and a renewed appreciation for the value of being able to respond quickly to shifting U.S. customer demands."
The story quotes Cindi Marsiglio, the Walmart vice president overseeing the U.S. sourcing push, as saying that "the retailer and its existing suppliers have 150 active reshoring projects in various stages of development. For all too many, she says, finding U.S.-made component parts has emerged as a vexing problem."
The story goes on to say that the "issue is so widespread that Walmart is making it the focus of a two-day summit it is hosting in August in Denver. At a similar summit held in Orlando last year, Walmart focused on connecting suppliers with economic development officers from states hoping to lure the new factories. The retailer says it is especially interested in having factory owners with excess capacity attend the August event - even those that aren't interested in supplying Walmart directly. The hope is that they can become contract manufacturers to Walmart suppliers looking to produce in the United States."
It isn't just Walmart fueling the US manufacturing revival, the story says. "The forces pulling production back to the United States are powerful and real and include lower domestic energy prices, increasingly competitive wage rates, the benefits of greater automation, and a renewed appreciation for the value of being able to respond quickly to shifting U.S. customer demands."
- KC's View:
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Seems to me that Walmart is just the tip of the iceberg when it comes to potential investment in US manufacturing. There's a real opportunity here, and I think you are going to see a lot more companies focusing on this .. finding and certifying US-made products, and selling them aggressively to US consumers.
