Wal-Mart's self-interested shot at reviving the American factory

[Recursion]

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/07/17/wal-marts-self-interested-shot-at-reviving-the-american-factory/

I think this piece glosses over how small WalMart's "commitment" to US-made goods is in comparison to all of its purchasing, but it does point out the ever-important fact that "manufacturing" doesn't mean "manufacturing employment" anymore.

This time, though, the retailer might break though where its founder couldn't. Advances in technology and a rising standard of living (and thus wages) in China help. And just as Wal-Mart originally used its gargantuan scale to send supply chains overseas, it can redirect that purchasing power into hauling them back onshore, while sticking to its every-day-low-prices raison d’être.

"This is a way for them to save money. This is at the core of Wal-Mart’s mission," says Darrell Rosen, who heads a Bentonville consultancy for Wal-Mart suppliers. "Sam had the vision long before he had the means or the processes figured out."

Of course, helping America make stuff again is also a way for Walmart to return to the country’s good graces. In that way, it resembles previous efforts to become more energy efficient — might as well use something that helps the bottom line to burnish your credentials as a corporate citizen.

But there's a catch: Manufacturing is different this time around. The same technology that helps factories compete eliminates the need for many workers. So while Wal-Mart could be successful in its bid to bring some production home, it's going to have to buy a whole lot more from the U.S. than it ever did before in order to replace the jobs that have already been lost.

[liberal N proud]

1. After their demand for lower prices closed so many

The company I work for took work to China to satisfy Walmart demands for lower prices. We closed all but 2 US manufacturing facilities. Now that Walmart wants US made goods, we can't meet the demand.

Thanks a lot Walmart.