Wal-Mart Stores Inc, whose focus on low-cost sourcing helped to fuel the offshoring of U.S. manufacturing, has been promoting a patriotic new image in recent months.
The Bentonville, Arkansas-based company says it is “leading an American renewal in manufacturing” and “bringing jobs back to the U.S.” with its pledge made in January to buy an additional $50 billion in U.S.-made goods over the next 10 years.
But an examination of the company’s “Made in America” campaign suggests Wal-Mart’s caught on to a reshoring phenomenon that was already underway.
In many cases, Wal-Mart’s suppliers had already decided to produce in the United States, as rising wages in China and other emerging economies, along with increased labor productivity and flexibility back home, eroded the allure of offshore production.
Though wrapped in the stars and stripes, the world’s largest retailer’s push to bring jobs back to the United States also makes business sense both for suppliers and retailers.
Some manufacturers are finding they can profitably produce certain goods at home that they once made offshore. And retailers like Wal-Mart benefit from being able to buy those goods closer to distribution centers and stores with lower shipping costs, while gaining goodwill by selling more U.S.-made products.
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