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News > Articles > Walmart uses $250 billion to promote sustainable development of U.S. manufacturing in the textile industry

Walmart uses $250 billion to promote sustainable development of U.S. manufacturing in the textile industry

2017-10-12

Walmart's $250 Billion Investment in Sustainable American Manufacturing for the Textile Industry: In 2014, Walmart, the leading U.S. retailer, established the "Walmart U.S. Manufacturing Innovation Fund" in conjunction with the Walmart Foundation and the National Conference of Mayors. The fund aims to develop advanced manufacturing for consumer goods in the United States, making American-made consumer products more competitive. This fund is also part of Walmart's previous commitment to invest $250 billion in U.S. manufacturing by 2023. According to estimates by the Boston Consulting Group, Walmart's American manufacturing initiative is expected to revitalize 1 billion domestic jobs. The Walmart U.S. Manufacturing Innovation Fund primarily allocates funds to industry research centers and university research institutes that apply for funding. For example, Walmart previously funded Cornell University to develop technologies that recycle post-consumer textiles to create new products, saving energy and water resources in consumer goods manufacturing processes. This year, Walmart's Innovation Fund allocated $3 million to six research and academic institutions. These institutions will focus on developing solutions to overcome two major domestic manufacturing bottlenecks in the home textiles and apparel industries: – Reducing production costs in the U.S. for apparel and home textile manufacturing processes; – Improving general manufacturing processes and expanding their application to other consumer products. With President-elect Trump's inauguration and announcement of the abolition of the TPP and the strengthening of American manufacturing, major domestic textile manufacturers are preparing to set up factories in the U.S. to grab a share of the American domestic market. However, the political upheaval in the U.S. serves as a wake-up call for sustainable business operations for small and medium-sized enterprises (SMEs) lacking sufficient domestic capital to establish factories in the U.S., or those already part of the global supply chain for American brands. It is recommended that domestic SMEs, while continuing production, consider how to integrate circular economy thinking and simultaneously innovate to enhance international competitiveness in order to maintain their irreplaceable position in the global supply chain. Source: Environmental Leader (January 24, 2017) (Compiled by PIDC)

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