Walmart makes a patriotic gesture
Whether or not you buy from Walmart (WMT) you probably know this is the kind of store that proudly claims its commitment to making products made in the USA.
The company has long since publicly announced its desire to stock its shelves with as much American-made merchandise as possible with its America at Work program. In March 2021, he backed that up by announcing a commitment to invest $350 billion in products “made, grown, or assembled” in the United States over the next 10 years.
Walmart also launched its “Made in the USA” labeling system in 2019, which is a label you’ll see on products from its in-house brands Mainstays, Equate, Great Value, George and Parent’s Choice. To use the label, manufacturers must apply for certification through the Jobs in US Manufacturing Portal (JUMP) on Walmart’s website.
Meanwhile, Walmart announced a new facility that will help bring its apparel department closer to all-American manufacturing.
Walmart bets on classic fashion
Walmart held a ribbon-cutting ceremony in Santa Ana, California on Oct. 7 to celebrate the opening of Classic Fashion’s first U.S. production facility, which will produce apparel exclusively for Walmart for the next five years. .
Called The Cut & Sew Co., Walmart promises the facility will create 125 new jobs by 2023 and another 225 by 2027.
“Classic Fashion is proud to be a Walmart supplier as we strengthen our manufacturing presence in the United States,” said Sanal Kumar, President and CEO of Classic Fashion. “I’m proud to acknowledge our incredible US-based manufacturing staff and the local community here in Santa Ana as we continue to build on Classic Fashion’s 20 years of success.”
Classic Fashion was established in 2003 and is the largest clothing manufacturer in the Middle East and Africa. It makes apparel for many major customers, including Target TGT, Hanes, Adidas and Reebok, but this is the first time it will manufacture any of its products in the United States.
Charges against Walmart’s “Made in USA” labeling
While Walmart has continually pushed the image of being all-American made, there has been an outcry over its practices on the subject.
In 2021, the non-profit organization Truth In Advertising (TINA) published an investigation into what it claims are ways Walmart is circumventing the rules regarding what qualifies as made in the USA – an issue on which he’s been bending over for a while. TINA originally filed a complaint with the FTC in 2015 hoping to draw attention to her findings.
TINA says Walmart responded to the complaint by removing a link on its website that previously directed customers to American-made products on Walmart.com.
According to the American Apparel & Footwear Association, over 97% of apparel sold in the United States is currently made overseas. A change in trade policy in the 1990s led the apparel industry to seek lower-cost manufacturing in other countries, resulting in an 80% decline in apparel industry jobs in the United States between 1979 and 2019, reports the US Bureau of Labor Statistics.