Page 23 - ATR 4 2014 web

made (and shipped) in the usa

Trucking is key to success of “reshoring” trend

by Jennifer barnett reed

Contributing Writer

It’s long been conventional wis-
dom that manufacturing in the United
States is on an irreversible decline, done
in by cheap overseas production costs
that offset what companies have to pay
to ship finished goods back across the
ocean to U.S. buyers.
The last couple of years, however,
have seen what some are calling an
American manufacturing renaissance
— boosted significantly by Walmart’s
announcement in January 2013 that it
would spend an additional $50 billion
in 10 years on products made in the
United States. And while it would take a
crystal ball to foretell exactly what that
means for the trucking industry, as one
University of Arkansas expert put it, it’s
hard to imagine the news being any- In its January 2013 pledge, calls for U.S. companies that want to
thing but good. Walmart announced that it intended pitch their domestically made products
If the so-called “reshoring” push to spur U.S. manufacturing in two to the company’s buyers.
takes off, “there’s a good chance truck- ways — by increasing the amount of Several factors are driving compa-
ing will take off with it,” said Jim products it buys that are currently made nies to consider reshoring, Neeley said.
Crowell, director of the Supply Chain in the United States, and by helping to Labor costs in China are going up by
Management Research Center at the bring back manufacturing production about 15–20 percent per year, and rising
university’s Walton College of Business. in “high potential areas” including energy prices have made it much more
The idea of a comeback for domestic textiles, furniture and higher-end appli- expensive to transport goods from over-
manufacturing began to form about four ances. The additional $50 billion brings seas plants.
years ago, said Chris Neeley, executive Walmart’s total spending on domestic “That costs a lot of money,” Neeley
vice president of Made in USA Works!, products to $250 billion. The increase said. “Companies could take out that
a Bentonville-based consulting firm has accelerated the reshoring trend, cost and invest it in manufacturing
that works to help Walmart suppliers Neeley said. here, and they can get products to mar-
reshore and manufacture domestically “Not many companies can come ket much faster if they’re made in the
under the “Made in USA” label. That’s out and invest $250 billion in anything, United States.”
when experts at The Boston Consulting let alone in consumer products,” said The availability of energy is also an
Group published a book called “The U.S. Neeley, who worked for Walmart until issue for some companies, Neeley said.
Manufacturing Renaissance,” which pre- he joined Made in USA Works! a few Some areas of China ration energy — a
dicted that U.S. companies would start months ago. “That’s gotten the atten- problem domestic manufacturing plants
moving production back from Asia to tion of everybody.”
the United States. Walmart has now held two open 

ArkAnsAs truckinG rePort | issue 4 2014 23