Walmart got rich importing foreign-made goods. Now it says it wants to boost American business.
It is holding manufacturing summits. The purpose of the meetings is to show American manufacturers how to sell to Walmart.
Walmart is famous for its low prices. To sell low, you have to buy low. Walmart makes purchases in huge volume. Sellers want to satisfy them. Sellers did this by setting up shop overseas with cheaper labor.
In the beginning, China was the main source. Millions of Chinese got out of poverty by working for companies making products for Walmart.
American manufacturing ran out of steam.
Walmart is trying to help. It is in the second year of a ten-year plan to spend $250 billion on American-made goods.
How will they be successful? High tech and rising wages overseas are the answers. Their huge buying will again make the difference. They will still fight for low prices. This time they will insist the products be made here in America.
When you use high tech, it means you will employ fewer workers. New business is the best solution. The devil will be in the details. Companies will have to innovate. They will need creativity to succeed. They are trying to come up with new products.
This is an example. Most holiday decoration items are imported. A company in Tennessee has new ideas on how to make them. They will have to sell them at low prices to get Walmart to buy from them. They will have to find new ways to make holiday decorations for less.
There is a lot of distrust of Walmart. Is Walmart just trying to find favor with the American consumer? Would they be spending $250 billion over the next ten years in any event?
For now, the pressure is on the wannabe sellers. Walmart is giving them a chance.