Photo: Walmart
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.
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