According to a report by the Reshoring Initiative, efforts to bring manufacturing jobs back to the U.S. resulted in 819 reported reshoring cases in 2023, while foreign direct investment led to 287,000 job postings, the second highest year since data began being collected in 2010.
Harry Moser, president and founder of the Reshoring Initiative, said the first half of 2023 was another record year, which had been forecast but did not materialize due to the economic slowdown in the third and fourth quarters. He said the cumulative employment rate and foreign direct investment numbers were down 16% from the record year of 2022, but still 191% higher than 2019.
Moser said the cumulative number of jobs brought back since 2010 is about 2 million, about 40 percent of the number lost to offshoring in the previous two decades. He told the Northwest Arkansas Business Journal that Walmart is leading the way with its investments and efforts to create more jobs in U.S. manufacturing. He said even if Walmart invests more in American products instead of imports, that’s a win for U.S. manufacturing.
According to the Reshoring Initiative, 150,206 manufacturing jobs were advertised in 2023 and 137,093 were created through foreign direct investment. More than a third of the jobs created in 2023 were related to the domestic relocation of electrical equipment such as batteries and electric vehicle equipment, with 27% of jobs created by computer chips and electronics. Other areas with double-digit growth included the transportation equipment and chemical/pharmaceutical industries, partly due to government investment and demand for medicines.
GIANT T-SHIRTS
Walmart has stated that it remains committed to supporting jobs in the United States and continues to seek new partnerships in that regard. American Giant, the largest American-made clothing brand, recently partnered with Walmart to sell American-made T-shirts in 1,700 U.S. stores.
American Giant took advantage of Walmart’s commitment to buy more American-made goods in plastics, textiles, small electrical appliances, food processing, pharmaceutical and medical supplies, and goods and services. The collaboration began before Independence Day, when American Giant sold holiday T-shirts for $12.98.
Bayard Winthrop, founder and CEO of American Giant, said the partnership with Walmart shows that high-quality American goods can be made at competitive prices while protecting U.S. jobs. Winthrop said Walmart has sought collaboration to enhance its job-creating initiatives in the U.S. textile industry.
“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 procurement 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 pioneer in the industry and a premium brand with a loyal fan base.
“We look forward to building a collaborative partnership where we can learn from each other’s expertise while continuing to invest in American manufacturing,” Albright said.
This is not the first apparel collaboration for Walmart. In 2022, Jordan-based Classic Fashion opened a cutting and sewing factory in Santa Ana, California, and won a five-year contract to cut and sew clothes exclusively for Walmart. The initiative will create 123 jobs by the end of 2023. Classic Fashion chairman Sanal Kumar said he started working on the U.S. sewing line in 2015. Classic has been a major apparel supplier to Walmart since 2005, with the majority of production taking place in Jordan and India.
Walmart continues to partner with other companies in its effort to create jobs in the U.S. Walmart CEO Doug McMillon wrote on the company’s website, “If we can create jobs locally, we will have better stores and stronger communities… We want everyone who interacts with Walmart – whether a customer, partner or supplier – to benefit.”
COOLER AND PHO
On Walmart’s American jobs portal, the retailer highlighted FreshPets, a supplier it has worked with since 2007. Walmart said the New Jersey-based fresh pet food maker has created more than 900 jobs in communities such as Ennis, Texas, and Bethlehem, Pennsylvania.
Anh and Joseph Trousdale transformed homemade pho into a product that was easy and quick to make in any kitchen. The couple introduced PhoLicious, the instant pho product, during an open call event in 2022. They received an introductory order from Sam’s Club, the largest order the company had sold at one time 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 from Katy, Texas, are also part of Walmart’s growing U.S. supplier base. Diego Quinonez, Igloo’s manufacturing manager, 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 from the Rocky Mountains of Idaho and the Apalachicola National Forest in Florida. The company is committed to never taking more than 5% of daily production from the source.
Since its first Walmart order in 2022, the company has expanded its distribution to nearly 1,000 Walmart stores and increased its workforce by 50%. Proud Source is the largest employer in Mackay, a town of 472 residents.
Editor’s note: The “Offer Page” section by Talk Business & Politics focuses on companies, organizations, issues and individuals involved in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics and sponsored by Fire bending.
