Wal-Mart’s $50B Initiative of Made in the USA

Have you heard that Wal-Mart has an initiative to increase its sourcing of USA made goods by $50B over the next 10 years? If fully implemented, this could create 100,000 jobs.

The idea that Wal-mart is changing its direction is great! I spoke with a colleague recently that another major retailer is looking to add a “Made in the USA” shop, now that it’s becoming a “trend”. All of this is great for the US economy, and will give customers easier access to USA made products, which will be a benefit to many.

But, the real truth is that most companies followed Wal-Mart’s lead in outsourcing for the last 30 years. Since Wal-Mart buyers and management consistently focused on lowest cost, without considering the impact on the domestic manufacturing community, or the small to large towns that depended on it, the jobs moved overseas.

Now, Wal-Mart can be a good corporate citizen by adding more Made in the USA?

Then, consider the fact that this commitment to $50B over the course of a decade is a drop in the bucket for Wal-Mart. From someone (me) who bought for major retailers that competed with Wal-Mart, it’s disappointing that Wal-Mart is getting great press without being accountable for what damage has been caused by the decisions of the last 30 years.

Then, consider the fact that currency exchange rates, higher wages in overseas factories, fuel costs, and the overall cost of doing business overseas makes it much less competitive today. All of which makes it seem like this is just a ploy by Wal-Mart to get press.

While I’m excited that Wal-Mart will be offering Made in the USA, I’ll continue to shop local, spend at my local farmer’s markets, and steer clear of Wal-Mart.