U.S. manufacturing sector got a much-needed shot in its arm with Walmart’s announcement that “over the next ten years, Walmart will spend an additional $350 billion on items made, grown or assembled in the U.S.”
While this is good news for the manufacturers, it is also likely that customers may have to pay slightly more for their purchases. Since customer backing is vital to the success of any business model, TechnoMetrica asked a cross-section of Americans if they would support this move. We found that the retail giant has reason to cheer.
Consumers Prefer Retailers That Support American Manufacturers
When asked, “Would you prefer to shop in retail chains that support American manufacturers over those that don’t, even if it means paying slightly more?” a significant majority answered in the affirmative.
- 69% said yes
- 15% said no
- 17% said not sure
Every age demographic expressed enthusiastic support for retail chains that back the country’s manufacturers. The seniors, the most supportive of all, must recollect the days when America was the manufacturing hub. Around three-quarters of our survey respondents in every age bracket, and almost half of the youngsters supported the initiative.
- 48% of 18-24-year-olds
- 65% of 25-44-year-olds
- 73% of 45-64-year-olds
- 80% of 65 and above.
Higher prices will have an impact on family budgets and influence many purchasing decisions. This is reflected in the higher percentage of affirmations as income brackets rise. Still, lower-income households also seem keen to shop at retail chains that support American manufacturers, regardless of the extra expense.
Data of those will support the initiative according to income brackets reads:
- 60% of under $30K
- 66% of $30K-$50K
- 73% of $50K-$75K
- 82% of $75K and above
American sentiment is promising for the manufacturing sector that has been slowly reversing the downtrend it’s suffered since the 1990s. ‘Make in America’ was a crucial stratagem of President Trump’s efforts to bring back the heydays of manufacturing to the country.
Fortunately, President Biden has made it clear that he intends to build on the headway made by his predecessor. This January, he officially asked government agencies to buy more American-made goods as part of his initiatives to prioritize domestic production.
One reason for the decline of the country’s manufacturing sector is the ready availability of cheaper, foreign-made goods in our stores. Today, Americans seem more aware of the need to support locally produced goods.
Consumers Willing To Pay More For American Products
When asked if they would purchase a product manufactured in the U.S., even when a similar but cheaper foreign-made product was available, more than half of our survey respondents said – yes.
- 53% said they would buy the higher-priced American product
- 23% said they would buy a lower-priced foreign product
- 23% were not sure
Purchasing power did notably sway the responses. Those with higher incomes expressed more willingness to bear the additional cost compared to those with lesser means. The data on those willing to purchase higher-priced American product, based on income shows
- 46% of under 30K
- 49% of 30K-50K
- 62% of 50K-75K
- 62% of 75K and above
Education levels of the survey respondents did seem to have an impact on how they viewed the issue. Higher levels of education showed a direct correlation to the likelihood to buy American products at higher prices
- 49% for high school education
- 52% for some college education
- 60% for a college education
Many are likely unaware that purchasing locally produced goods will have a long-lasting impact on the country’s economy.
Besides energizing the local economy, such initiatives will bring down America’s dependence on foreign manufacturers. This will have a positive impact on the country’s trade deficit. Besides saving on the cost of transportation, increased domestic procurement will also result in lesser CO2 emissions.
Walmart’s decision will have a significant impact on the country’s economy. The initiative is likely to create around 750,000 new jobs, according to the company’s website. In these challenging times, that is a ray of hope to many.
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- At the same time, he added that he wants to maintain friendly ties with China, citing Manila's "debt of gratitude" for Beijing's help with the coronavirus vaccine.
- Duterte is under growing domestic pressure to take a harder line but has been reluctant to confront China over the issue.
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- By burying people at the site, the Islamic Republic is trying to erase evidence of the executions. The site has been bulldozed multiple times in recent decades.
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- Palestinian officials launched a campaign to show their public that they were making every possible effort to force Israel to allow an East Jerusalem vote.
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- The East African country said it planned to repatriate some and give others residency.
- Some officials said jihadi rebels of al-Qaida affiliated Al-Shabab group have used it as a recruiting ground and base for launching terrorist attacks in Kenya. However, authorities have not provided conclusive proof.
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