Whether or not you shop at Walmart (WMT), you're likely aware that it's the kind of store that proudly boasts its commitment to carry products made in the USA.
The company has long been public about its desire to stock its shelves with as much American-made merchandise as possible with its America at Work program. In March 2021, it 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. In order to use the label, manufacturers must apply for a certification via the Jobs in U.S. Manufacturing Portal (JUMP) on Walmart's corporate website.
Meanwhile, Walmart's announced a new facility that will help it to move its apparel department closer to being completely made in America.
Walmart Bets on Classic Fashion
Walmart held a ribbon-cutting ceremony in Santa Ana, Calif. on October 7 to celebrate the opening of Classic Fashion's first U.S.-based production facility, which will exclusively produce apparel for Walmart for the next five years.
Called The Cut & Sew Co., Walmart promises the facility will create 125 new jobs by 2023 and an additional 225 by 2027.
“Classic Fashion is proud to be a supplier to Walmart as we build our manufacturing presence in the United States,” said Sanal Kumar, Chairman and Managing Director of Classic Fashion. “I'm proud to highlight our incredible U.S.-based manufacturing staff and the local community here in Santa Ana as we continue to build on Classic Fashion's 20-year history of success.”
Classic Fashion was established in 2003 and is the largest garment manufacturer in the Middle East and Africa. It makes apparel for many major clients, including Target TGT, Hanes, Adidas, and Reebok, but this is the first time it will manufacture any of its products in the United States.
Accusations Against Walmart's 'Made in the USA' Labeling
While Walmart has continually pushed the image of being wholly dedicated to American manufacturing, there has been some outcry around its practices in relation to the topic.
In 2021, nonprofit organization Truth In Advertising (TINA) published an investigation into what it alleges are ways Walmart bends the rules around what qualifies as made in the USA -- an issue it's been looking into for some time. TINA originally filed a complaint with the FTC in 2015 in hopes of bringing attention to its findings.
TINA says that 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, more than 97% of the apparel sold in the United States is currently manufactured overseas. A change in trade policy in the 1990s led the apparel industry to seek lower cost manufacturing from other countries, leading to an 80% drop in jobs on the U.S. apparel industry between 1979 and 2019, the U.S. Bureau of Labor Statistics reports.
