BENTONVILLE -- Gov. Asa Hutchinson had a message for manufacturers looking to return their operations to the United States: Consider relocating to Arkansas.
Hutchinson made his pitch during Wal-Mart's U.S. Manufacturing Summit at Bentonville High School on Wednesday, participating in a question-and-answer session with Dan Bartlett, Wal-Mart's executive vice president for corporate affairs.
The gathering was a first for Arkansas, having been held previously in Orlando, Fla., and Denver. It gave Hutchinson a chance to invite visitors to put down roots in the state, in light of it being home to Wal-Mart's corporate offices.
"Put Arkansas in the mix," Hutchinson said. "No one knows Wal-Mart better than the state of Arkansas. We have that love and affection for Wal-Mart."
The summit was the second day of Wal-Mart's "Made in the USA" event, which brought together manufacturers, state economic officials and other government representatives from across the country. Wal-Mart hosted the U.S. Manufacturing Summit -- as well as Tuesday's open call for suppliers pitching new products -- as part of its commitment to purchase $250 billion in American-made products by 2023.
Arkansas was one of 30 states with representatives on hand Wednesday. The big turnout created a competitive atmosphere, said Michelle Gloeckler, Wal-Mart's executive vice president of U.S manufacturing for Wal-Mart U.S. Hutchinson said he welcomed the challenge, believing Arkansas is the "right location" for manufacturers or other companies willing to make a move.
"We are working hard to bring manufacturing here to this state," Hutchinson said. "We've got incredible manufacturing talent here. We've got a good work ethic here. And you've got a governor that, on his first day, starts making calls about bringing manufacturing back and increasing economic growth in this state."
Ten representatives from the Arkansas Economic Development Commission, including Executive Director Mike Preston, joined Hutchinson at the gathering.
Commission members had meetings scheduled with 40 companies, according to Preston. He said in a statement that those companies ranged from "some of the largest manufacturers in the U.S to smaller, recently-launched manufacturers."
"The fact this year's summit is being held in Arkansas presents a great opportunity for us to showcase the many reasons a company should consider doing business here," Preston said.
Gloeckler said it was Wal-Mart's role to help facilitate those discussions, which is why the company provided a place "to shop incentives and learn more about each state." She estimated the two-day "Made in the USA" event resulted in more than 1,000 meetings, saving companies the expense of traveling from state to state.
Gloeckler used one out-of-state supplier as an example Wednesday. The supplier's three-person group had five meetings with five different states scheduled. Gloeckler estimated that the group saved about 70 percent in costs by traveling to Bentonville for the event instead of taking trips to each state.
"We want to accelerate progress of bringing jobs back to America," Gloeckler said. "I'm confident that we are capable and will do great things."
Wal-Mart estimates that two-thirds of the products on its shelves are currently made, sourced or grown in the U.S. Other Wal-Mart executives emphasized benefits of the effort throughout the opening session of the event and pointed to other ways in which the company will promote U.S. manufacturing and products that are made in America.
Michael Bender, Wal-Mart's executive vice president of global e-commerce, said a more prominent logo will identify American-made products on the company's website. And Cindi Marsiglio, vice president for U.S manufacturing for Wal-Mart U.S., said the company has opened another round of grants as part of its Innovation Fund.
Marsiglio said seven grants totaling $4.2 million were awarded last year.
"We are on plan," Marsiglio said of Wal-Mart's goal to buy an additional $250 billion in American-made products by 2023. "We are proud of our progress. But there is still more work to do."
U.S. Secretary of Commerce Penny Pritzker also participated in Wednesday's U.S. Manufacturing Summit and credited Wal-Mart for leading the way on policy changes that benefit the American worker.
She said American manufacturers are the "backbone of our economy" and that the country's prosperity is closely linked to their success. Pritzker said the Commerce Department is committed to being a partner with manufacturers, and she praised Wal-Mart's 2013 decision to buy an additional $250 billion in made in America goods, calling it a "smart business decision that is strengthening our communities."
"Wal-Mart also understands the importance of the manufacturing sector to the health of our nation's economy," Pritzker said.
Hutchinson emphasized the sector's role, making it clear the state would continue to work closely with manufacturers interested in moving to Arkansas. He said the state's economic development team was available to assist with everything from planning a location to looking at incentives.
Hutchinson also was asked about tax rates in Arkansas and responded by saying he was a conservative Republican who understood that "for businesses to grow and prosper, they need to have a tax climate that is reasonable, is fair and is competitive with other states."
Hutchinson said the state could use Wal-Mart's help, too, when a manufacturer is considering a move to the U.S. He wants the retailer to encourage manufacturers to give the governor's office a call.
"I know you're a global enterprise," Hutchinson said of Wal-Mart. "You look at all 50 states fairly. All of your children are equal. But we're the oldest child. We want our share of attention."
Business on 07/09/2015