Reshoring is supply chain flexibility

Supplier selection and tariffs aside, bringing select manufacturing back home could benefit business and the wider domestic economy.

Reshoring is neither nationalistic nor nostalgic. It’s pragmatic. After decades of chasing the lowest overseas deals, many retailers are discovering the benefits of making goods closer to home.

Walmart

Even Walmart emphasizes manufacturing in the USA.

At its 12th annual Open Call event this month, Walmart invited more than 500 entrepreneurs to showcase products made, grown or assembled in the United States. The initiative supports the company’s $350 billion, 10-year commitment to domestic supply.

The opportunity to sell to Walmart is like winning the lottery for many small and medium-sized manufacturers.

Walmart USA CEO John Furner noted on a CNBC forum last week that “investing in U.S. manufacturing and U.S. operations, sure, it’s great for business, but it’s also great for employment. It’s great for jobs. It’s great for the country and it helps us keep our supply chain flexible and dynamic.”

Furner cited new projects such as a beef processing facility in Olathe, Kansas, which is expected to create about 600 jobs, and a partnership with USAantibiotics to restore local drug manufacturing.

Walmart’s approach combines economic nationalism with supply chain flexibility—reshoring as it builds resilience while continuing to globally source products better made elsewhere.

Tariffs and cost equation

It is impossible to discuss American manufacturing without acknowledging tariffs.

Walmart executives have repeatedly said the tariffs raise costs for both retailers and consumers, even as the company works to offset the tariffs through scale and resource diversification.

E-commerce consultant Jon Elder, who advises brands selling on Amazon and Walmart, describes the effect as “mixed.”

“Tariffs have caused a lot of things to happen in e-commerce. I’ve seen a large number of brands move production from China to places like Vietnam and the US, while others have inventory,” explained Elder.

“The brands that stayed with China … renegotiated with their factories, made historic bulk purchases and raised prices slightly,” Elder said, adding that “competition is fierce on (Amazon and Walmart’s marketplaces), so simply raising prices was not an option.”

Elder’s observation complements Furner’s remarks about adapting tactically rather than ideologically. Tariffs may be government tools, but in practice they are supply chain variables that force traders to rethink where and how they make their goods.

Reshoring

The transfer of production to the USA leads directly to reshoring – the return of production to domestic soil.

Recent wins by U.S. manufacturers — including Nucor (steel), Cleveland-Cliffs Inc. (metals), Whirlpool Corporation (appliances), and Vaughan-Bassett Furniture Company (household goods)—illustrate renewed industrial investment.

Meanwhile, Furner’s framing is consistent with that momentum. Homemade isn’t just patriotic; it’s also a practical investment in speed, quality and demand.

Short delivery time. Proximity can reduce delivery times. Faster turnover reduces capital tied up in inventory and improves cash flow.

Better quality control. Cooperation with domestic manufacturers simplifies quality control and communication. Issues are resolved within days and require no overseas offices or third party inspectors.

Shopper demand. “Made in the USA” remains a meaningful designation for many American shoppers. It signals reliability and responsibility. Homegrown can enhance storytelling, strengthen brand authenticity and justify a modest premium.

Libra, not Retreat

Reshoring is about balance, not retreat from global trade.

The most sustainable strategy is likely to combine domestic production for critical or fast-moving goods with global sourcing for bulk or specialty categories.

Walmart’s combination of American investment and international flexibility illustrates this. E-commerce SMEs could follow suit and turn reshoring from a buzzword into a competitive advantage based on control, quality and customer trust.

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