Walmart Outlines Policy Roadmap to Renew U.S. Manufacturing
Proposes 10 policy actions to address major barriers to U.S. manufacturing growth, help recapture an estimated $300 billion in production of consumer goods, and create an estimated 1.5 million U.S. jobs
Walmart today convened a broad group of individuals and organizations representing government, business, and non-governmental organizations from across the country to present a Policy Roadmap to Renew U.S. Manufacturing. The meeting included a bipartisan conversation about the current challenges and opportunities in the U.S. manufacturing sector as well as case studies of successful collaboration among key stakeholders.
“As we’ve worked over the last four years alongside our suppliers toward our goal to source an additional $250 billion in products that support American jobs, we’ve learned a great deal about the challenges our suppliers face in domestic manufacturing,” said Cindi Marsiglio, Walmart vice president for U.S. Sourcing and Manufacturing. “The good news is we’ve also learned how to overcome the challenges and, because of our experience, Walmart is uniquely positioned to help facilitate broad engagement in accelerating the expansion of U.S. manufacturing.”
According to analysis conducted by The Boston Consulting Group (BCG), decreasing policy barriers to domestic manufacturing creates an opportunity to recapture approximately $300 billion in consumer goods that are currently imported, including furniture, cookware, and sporting goods, potentially resulting in the creation of an estimated 1.5 million American jobs. The analysis, which laid the foundation for the policy roadmap, leveraged BCG’s expertise in economic policy and manufacturing along with Walmart’s sourcing data and included interviews with merchants, suppliers, and other policy experts.
Walmart’s Policy Roadmap to Renew U.S. Manufacturing offers a comprehensive approach to tackling the major barriers that keep companies from manufacturing more consumer goods in the United States. The roadmap identifies the highest impact policy barriers as (1) workforce, (2) coordination and financing, (3) regulation, and (4) tax and trade and proposes specific policies that have the potential to effectively accelerate and grow U.S. manufacturing.
“Good manufacturing jobs are vital to making California the best place in the country to live, work and do business,” said Tracy Hernandez, CEO, Los Angeles County Business Federation. “Walmart is leading an important collaboration to eliminate the barriers to creating more American manufacturing jobs. We believe it’s critical for our economy to unite across industry sectors, small and large business, and government to take action and renew U.S. manufacturing, one state or community at a time.”
The roadmap details 10 concrete policy actions that can be taken to address these barriers and goes a step further to suggest the appropriate entities, including federal, state, and local governments, manufacturers, and businesses, that must collaborate on those policy actions to affect meaningful change that will unlock greater growth and job creation in domestic manufacturing of consumer goods.
“We applaud Walmart’s commitment to enhanced U.S. Manufacturing and for using its economic muscle to bring about change in an important sector in the U.S. Economy,” said Stuart Waldman, President, Valley Industry & Commerce Association. “We must work together to minimize barriers for local businesses and Walmart’s policy roadmap represents a launching pad for discussion on a very important issue."
Last month, Walmart CEO Doug McMillon signaled the company’s intention to pursue policy proposals that help create a favorable climate for job creation in his remarks to more than 500 small- and medium-sized companies that attended Walmart’s fourth annual Open Call for U.S. products on June 28. “We are also committed to participating as a leader in the country when it comes to policy,” he said. “We believe that we should be one of the voices at the table and we want to help renew U.S. manufacturing and drive the creation of manufacturing jobs across the United States.”
According to data from its suppliers, approximately two-thirds of Walmart U.S. merchandise spending is for items that are made, assembled, sourced, or grown in the U.S. In 2013, Walmart committed to sourcing an additional $250 billion over ten years on products that support American jobs.