Ex-Walmart Exec On Supporting American Manufacturing: 'Production Needs To Be Closest To The Point Of Consumption'

Former Walmart Inc (NYSE: WMT) U.S. CEO Bill Simon and former South Carolina Gov. Nikki Haley wrote in a Fortune op-ed American companies need to consider shifting production back to the U.S. or at least source materials from U.S.-friendly companies.

What Happened: Despite what many people believe, two-thirds of all items Walmart sells domestically are either made or grown in the U.S., Simon said Monday on CNBC. This represents a "starting point" as the math suggests Walmart still sells $100 billion worth of imported goods that could be made at home.

Walmart committed eight years ago to help American manufacturers and Simon worked closely during his tenure with governors and mayors to help build new factories. Among the "very best" in their willingness to help American workers was Haley, he said.

Why It's Important: The biggest obstacle to promoting American production was a reliable source of workers, Simon said. Haley earned a reputation for helping entrepreneurs set up in her state by working with community colleges or other educational institutions to better guarantee a competent workforce.

What's Next: The COVID-19 pandemic emphasized the notion that "production needs to be closest to the point of consumption." During the pandemic, the American workforce rallied to rapidly develop ventilators and personal protection equipment. But this can be expanded across nearly all product lines moving forward.

"This should be a top priority," they wrote for Fortune. "It's a matter of ensuring that our country can rise to any occasion, overcome any challenge, and persevere through every crisis. Made in America is more than a slogan—it's a statement of American strength."

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