Page 24 - ATR 4 2014 web

don’t have to deal with. loCaTIon, loCaTIon, loCaTIon
And there’s also the simple idea Arkansas has a natural edge, Neeley
that American-made products are better said, just by being home to Walmart’s
made and safer. “if the produCts corporate headquarters.
“That’s what a lot of customers are beiNg made “It’s the same reason Walmart
want,” Neeley said. “What Walmart here, there are suppliers want to set up offices in
found, especially, is that mothers prefer Arkansas,” he said. “If you’re produc-
made-in-USA products over products opportuNities for ing that product here, you can take a
made in China for their kids. They trust ameriCaN truCkiNg Walmart buyer over to your production
them more, and they know they’re safer CompaNies to be facility, and they can see how that prod-
and more durable.” uct is produced and play a part in mak-
So what does that mean for the part of gettiNg ing the product better, more durable,
trucking industry? Nobody’s sure, but produCts to market safer and more consumer friendly. If a
everybody’s hopeful. muCh quiCker. Walmart merchant is buying something
“Transportation is a key figure in made in China, they’ve got to travel all
our investment, and as energy prices time to market the way over there,” Neeley continued.
continue to increase we believe sourcing is eVerythiNg. Two companies — Redman and
closer to the consumer is not only good it’s goiNg to get Associates, which makes children’s
for business but good for our custom- truCkiNg CompaNies ride-on toys, and Hanna’s Candles —
ers,” said Brooke Buchanan, a Walmart have already announced expansions
spokeswoman. “It’s early on in our iN that iNdustry at their Arkansas production facilities.
U.S. Manufacturing commitment and more busiNess, aNd Redman owner Mel Redman retired
the impact it will have on the trucking it’s goiNg to giVe from Walmart and set up his own busi-
industry, but it is something we are very ness, Neeley said. He was the first after
interested in.” the opportuNity to Walmart’s announcement to reshore.
Walmart has held two U.S. manu- Create more jobs…” “That’s right here in our state
facturing summits — the most recent — he’s an Arkansan,” Neeley said.
one in Denver in mid-August — bring- —Chris Neeley, “Arkansas is already planting the flag
ing together hundreds of suppliers and exeC. ViCe presideNt, on this thing.” Several more announce-
government officials from 34 states. made iN usa works! ments are coming, he said.
According to its website, Walmart’s Second: To what extent reshoring
reshoring initiative includes not just manufacturers will use trucks to trans-
buying American-made products but port goods, rather than other forms
collaborating with manufacturers, giv- of transportation — and, related, how
ing long-range demand forecasts, mak- much existing business trucking com-
ing longer-term product commitments The time-to-market issue is increas- panies might lose if less cargo needs to
on basic goods, and helping connect ingly important, Neeley said. be transported from ports to domestic
manufacturers with resources that will “In the internet world, retail is destinations.
help them make informed decisions all about speed,” Neeley said. “If the “In some situations, the product
about capital investments. products are being made here, there are hits the port, they put the container
These reshoring efforts are taking opportunities for American trucking on a stack train, and it gets delivered,”
place across the country, but Arkansas, companies to be part of getting prod- Crowell said. “How much of that
especially, stands to benefit for two ucts to market much quicker. Time to doesn’t happen anymore?”
major reasons, Neeley said: Being home market is everything. It’s going to get Third: Whether companies will
to Walmart, and being located in the trucking companies in that industry need to move raw materials and parts
middle of the country with access to more business, and it’s going to give the from one domestic location to another
major interstate routes. opportunity to create more jobs, and before the product is fully assembled
“It’s one of the best logistical loca- it’s going to give them the opportunity and taken to market.
tions in the country,” Neeley said. quite frankly to reduce some of their Increasing domestic manufactur-
“Instead of transporting from Long costs because of volume.” ing isn’t an easy or quick process, and
Beach all across the country, plants can Just how much more business the supply chain infrastructure in the
be centrally located here. It’s more effi- Arkansas trucking companies see as a United States has been neglected for a
cient than shipping from one end of the result of Walmart’s initiative depends
country to the other.” on a number of factors.  34

24 ArkAnsAs truckinG rePort | issue 4 2014