“Mom tends to do a primary shop, a primary grocery shop and then she does what we call ‘fill-in trips.’ A fill-in trip is where your wife calls to ask you, ‘can you pick up some bacon and eggs and milk and cereal on your way home from work?’ ” he said. “In our research, 85 percent of moms tell us they think it’s very important that we’re selling products that are made in the United States. Mom believes that products made here are higher quality. You may assume that’s the way Americans think, and when we do deep dives, our research and data tells us that’s definitely the truth.”

 

“Made in the USA,” in fact, is moms’ second price-buying factor behind price among dozens of categories measured, Quinn reported.

 

Another factor in the retailer’s decision to rethink U.S. manufacturing, Quinn said, is the fact that price differentiation between buying Asia-made products and American-made goods has shrunk dramatically in recent years.

 

“This all sets us up on a path to grow our business with existing Walmart suppliers and on a path to attract new suppliers, which we are trying very hard to do right now, and it shifts existing items into U.S. production,” he said.

 

Quinn cited a recent example of Walmart’s efforts to bring manufacturing back to the U.S. About a year and a half ago, the retailer brought together South Carolina Gov. Nikki Haley and Kent International, Inc., a global supplier of bicycles and accessories, to discuss the possibility of creating an assembly plant in the state, he said. Kent has not manufactured in the U.S. in years but was open to the idea, he added.

 

After multiple talks and putting together a strategic plan, Kent announced in January that it is building a bicycle manufacturing facility in Clarendon County, S.C., to supply Walmart. The $4.3 million investment is expected to bring 175 jobs to the area, Kent said in the announcement. And the ripple effect could be great, Quinn said.

 

“An interesting thing about bicycle production – and it says a lot about manufacturing in the U.S. – is if you own a bicycle factory, what you really make is the frame,” he said. “And generally you buy the pedals from one company, the handlebars from another and the tires from another. So it’s a classic manufacturing example where you’re making a product but you have a set of sub-suppliers who are really important to you.”

 

Also, last month, Quinn reported that Walmart, the Walmart Foundation and the United States Conference of Mayors (USCM) launched the Walmart U.S. Manufacturing Innovation Fund. Grants of $100,000 or more are available for eligible non-profit organizations, funded by the Walmart Foundation, to help create solutions to challenges many companies face with on-shoring and growing U.S. manufacturing.

 

The first year of the initiative will focus on innovation in textile manufacturing and common manufacturing processes that apply to a broad range of consumer goods, including small motor manufacturing and tooling for injection molding. Anticipated participating organizations include research and academic institutions, think tanks and other non-profit entities focused on innovations in manufacturing.

 

“All of this creates more jobs in communities that care about local jobs and American renewal,” Quinn said. “And I think we would all agree that we’re not going to rebuild the middle class in this country without some unique public and private sector efforts like this. Whether it’s a new type of research or a new way for us to buy patio furniture, we have to try some unique things.”

 

He added that Walmart isn’t naïve to the problems suppliers face as they think about returning manufacturing to the U.S. – problems such as lack of information on where to locate, limited supply chains in many cases, shortages of skilled labor, limited access to financing and regulatory and tax issues.

 

“We’re analyzing all the products across Walmart stores, partnering with suppliers, finding those great locations and working with state, federal and local governments to find those locations, which is critical,” he said. “We’re talking to economic development leaders in states, to governors and to governors’ policy people. Those are the people on the front line who we have to link with people like you to make this work.”

 

Quinn announced the Made in the USA Open Call Summit for all suppliers on July 8 at Walmart’s headquarters in Bentonville, Ark., where the retailer is pulling together hundreds of suppliers who are interested in bringing manufacturing back to the U.S. And in August, he said, Walmart will hold a U.S. Manufacturing Summit that will bring together suppliers and state representatives for discussions.

 

“There have been a lot of articles and books written that say we push suppliers,” Quinn said. “I think we do push suppliers, but I honestly think that as a company never before have suppliers been seen as more important partners than they are at Walmart today. The innovation that is happening starts with suppliers’ great ideas, and very often that’s advanced by a conversation with their Walmart buyer. But innovation starts with you, and then convening the right government organizations to make reshoring easier.”

 

Other presentations

 

Attendees also heard from:

 

• Stephen Foss, founder and chief technical officer at PurThread Technologies, Inc., who spoke about "New Dimensions in Fighting Hospital-Acquired Bacteria;"

 

• Mark Cleveland, CEO and co-founder of Swiftwick, who talked about innovation, domestic sourcing and production;

 

• Vijay Amirtharaj, project engineer at Premiere Fibers, who discussed "Perpetual Innovation;"

 

• Julie Reiser, president and co-founder of Made in USA Certified, who went over "Building Business and Building Trust with a Made in USA Certified Claim;"

 

• Roger Tutterow, Ph.D, professor of economics, Stetson School of Business, Mercer University, who provided and economic update;

 

• Dina Dunn, president of T-ChIP (Textile Chemical Information Profile), who spoke on "Guarding Intellectual Property in the Era of Transparency: New Tools Provide Chemical Level Hazard and Risk Assessments Without Giving Away IP;"

 

• Mike Hubbard, vice president of the National Council of Textile Organizations (NCTO), who covered the status of Trans-Pacific Partnership negotiations and the pending Transatlantic Trade and Investment Partnership (TTIP) agreement;

 

• Alasdair Carmichael, president of PCI Fibres (Americas), who reviewed the world fibers market; and

 

• Nikki Brooks, technical director at Goulston Technologies, who presented Dr. Michael Kutsenko's report on "Advances in Fiber and Fabric Surface Modifications."