Photo: Walmart
Walmart’s Open Call Continues To Support Products Made in the USA
Walmart has officially kicked off the application period for the 10th anniversary of Walmart and Sam’s Club’s largest sourcing event, Open Call 2023. This year’s Open Call aims to continue the retail giant’s dedication to promoting U.S. manufacturing and supporting local communities.
Open Call is a brainchild of “Walmart’s 10-year, $350 billion commitment to strengthening U.S. manufacturing by sourcing products that are made, grown or assembled in the U.S., and it was instrumental to Walmart achieving its previous $250 billion commitment.”
The initiative invites entrepreneurs from all over the country to present their homegrown products to Walmart’s team of buyers. If successful, these products can land on the shelves of Walmart stores nationwide or even secure a spot on Walmart.com. This opportunity can be transformative for businesses, granting them brand exposure while providing them with a chance to scale rapidly and gain numerous customers.
In comparison, Walmart is invested in China, and “Walmart China ‘firmly believes’ in local sourcing with over 95 percent of their merchandise coming from local sources. In America, estimates say that Chinese suppliers make up 70-80 percent of Walmart’s merchandise, leaving less than 20 percent for American-made products,” according to the Alliance for American Manufacturing.
As a result, America has changed from being home to skilled labor workers to a place where a majority of its products are imported. U.S. supply chains have suffered due to a lack of parts and supplies when relying on imports.
In an NPR interview, Betty Jane Parrot, a member of the family-owned business Milwaukee Metal Products, shared how her business has been in existence for more than a century and is faced with increasing challenges. “I try to keep enough parts on the shelf. But if I have two on the shelf and I sell two, I can’t sell another one till I get a new one back. And with four or five months’ lead time, I can’t anticipate that far in advance what I’m going to need,” she said about supply shortages. She also noted, “We’ve been looking for qualified welders for probably a year. The skilled people, the trained people are very, very hard to find.”
Even with Walmart’s efforts, there’s still plenty of work to be done if factory jobs are to become a regular career option for American workers. According to NPR, “U.S. factories still employ only about two-thirds as many people as they did at their peak, in 1979. Back then, factories accounted for nearly 22% of all the jobs in the country. Today, fewer than 9% of U.S. jobs are in manufacturing.”
All of this reignited “Made in the USA” focus comes at a time that can help bolster the U.S. economy as it transitions into a more manufacturing job-oriented landscape for the future. NPR adds that “as other industries struggle under the weight of rising interest rates, factories keep churning out products to meet consumers’ insatiable demand for cars, computers, and candy bars. Now manufacturers are working to expand their capabilities.”
Furthermore, more women are entering this previously male-dominated industry than ever before, according to the National Association of Manufacturers (NAM). Based on their calculations this year, a total of 3.77 million workers are female, which is approximately 29% of the total manufacturing workforce.
But there are challenges to deal with. Eric Esoda, CEO of a not-for-profit providing consulting and training services to manufacturers in Northeast Pennsylvania, told CNN that the public generally thinks manufacturing is all about sparks flying from welding, “and perhaps it’s a little bit dingy, dark. But by and large our manufacturing jobs today are high tech.”
Additionally, more efficient and automated production has become a mainstay in U.S. factories, and rapidly evolving AI technology is here. These developments are also requiring more highly skilled factory workers who can handle and operate more advanced equipment.
But none of this has deterred Walmart’s initiative, since the benefits can be worth it, especially as it helps contribute to a reciprocal economy of earning and spending by the American people. Furthermore, “The Labor Department reports the average weekly wage for manufacturing jobs is $1,250, or $65,000 annually — 11% more than private sector jobs overall, and 81% more than retail jobs,” according to CNN.
Discussion Questions
DISCUSSION QUESTIONS: How significant is Walmart’s Open Call? Does it hold the same meaning if the majority of Walmart’s products are still being imported?
Poll
Loading …BrainTrust
Walmart’s Open Call will not change the trajectory of manufacturing in the US, but it sheds important light on US manufacturing and creating opportunities for smaller US businesses. Walmart must carry the products their customers want, and so Walmart continuing to import the majority of their products is secondary – this initiative is still very meaningful for smaller, US companies that can gain access to Walmart customers.
I remember back in the late’70s or early ’80s (correct me if I am wrong), Walmart had a big Buy American theme and promotion. It really was very exciting and emotionally I gave a big “bravo” to Walmart. During this time I had an appointment at Walmart. Sitting in the waiting room I noticed a map of the world covering one of the walls. On the map were stars of all the places Walmart sources from. Of course, Asia led the way.
It was a good message then and made us think positively of Walmart. Equally, today’s Open Call is an excellent promotion that will lead Walmart to some discoveries. But as today’s discussion says, the reality is 70% to 80% of the merchandise Walmart sell is foreign manufactured.
Today’s most sophisticated products are not manufactured in one country. If you are building an iPhone or a Boeing Dreamliner, components are made in over a dozen countries.
My initial thought was that it was more superficial, window-dressing than a substantive, needle-moving initiative. However, I believe that there is an opportunity for competitive, US based manufacturing at some level and I further believe that the innovation required for competitive, US based manufacturing will come from an entrepreneur with incredible vision. I think Walmart’s Open Call provides the necessary incentive and is a worthwhile investment even though it imports the bulk of its products from China (which is what everyone does to maintain prices at levels that keep our consumer based economy churning).
Walmart’s Open Call invigorates U.S. production by shortening the supply chain and mitigating global logistics risks.
It’s all about momentum. American innovation keeps growing, making the market more self-sufficient and less reliant on imports. ‘Made in the USA’ boosts U.S. retail power.
There is nothing terribly surprising on this graphic except the GenZ adults. Who would have guessed?
https://www.visualcapitalist.com/made-in-america-vs-made-in-china/
This is a good effort by Walmart, but sourcing from small, start-up, or artisinal manufacturers in the US will not have any real impact on changing the 70% to 80% of products “Made in China” needle.
Until major Walmart suppliers make a massive shift to re-shoring to the USA not much will change. It’s been incredibly difficult for major manufacturers to even move from China to Vietnam or India, never mind the major new infrastructure, training and costs of doing in in America.
The US would be wise to follow the German model and produce NEW high-tech, high-value goods. Nobody in America wants their kids to grow up to work in a sneaker or toy factory.
The race for future manufacturing is totally on high-tech, high value goods. The U.S. Rust Belt is now a misnomer and should become the Silicon Belt.
Haven’t we been down this road before?? (Hint: it’s a rhetorical question) Everyone’s always in favor of “Made in America”, until all the realities set in and then price emerges triumphant (it’s “zero” showing in the poll notwithstanding). With the Pandemic, and international tensions, there are cries of “it’s different this time”…well, I’ll believe it when the numbers actually come in different. I would also point out “NOT made in China” doesn’t necessarily lead to “Made in the U.S.A.”
First of all…check your facts on the “majority of Walmart’s products” being imported.
Second, providing an opportunity for small entrepreneurs to get a start with Walmart is “how” we as a nation begin to reinvigorate US manufacturing in a practical and sustainable way.
Finally, as a former buyer, this Open Call event provides merchants with access to a treasure trove of new products, new ideas, and new sources of supply that might not come to your attention without an event of this type.
I think this is AWESOME, and more retailers are beginning to copy this approach. After 10 years, the number of “case studies” of brands that got their start with Walmart and grew their business, as a result, is proof that this approach works for all parties.