Bloomberg Businessweek
|July 25 - July 31, 2016
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Walmart Stores has been good to America’s great horned owl. Not the real bird—the plastic one.
As part of a much hyped effort to bring factory jobs back to the U.S., Walmart persuaded Dalen Products of Knoxville, Tenn., to shift production of the garden guardian back to the U.S. from China. The only catch: Not many jobs followed.
That’s often been the story of Walmart’s campaign. As the world’s biggest buyer of factory items, from hunting rifles to bicycles, it’s in as good a position as any company to influence U.S. manufacturing for better or worse. The retailer is widely blamed for sending hundreds of thousands of jobs overseas since the 1990s.
So when Walmart announced in 2013 that it would spend an extra $250 billion over 10 years on domestically produced goods, it also estimated that the shift would create 250,000 U.S. manufacturing jobs. The positions that have been created so far are a fraction of that. It’s a cautionary tale for Donald Trump, the GOP presidential candidate, who’s made even bigger pledges to bring factory employment back to the U.S.
“If you bring back a plant, you aren’t going to bring back 100 or 200 people. You’ll want to automate it, so it costs less,” says Gregory Daco, head of U.S. macroeconomics at Oxford Economics. “If you do that, there’s really no direct benefit for potential employees.”
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