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WAL-MART WAL-MART STORES, INC. CORPORATE OFFICES BENTONVILLE, ARKANSAS 72716 Sam M. Walton Chairman and Chief Executive Officer (501)273-4210 March 14, 1985 EDITOR’S NOTE: Wal-Mart Stores have been very supportive of our Made in USA activities. We encourage each of you to read this letter. “The Clothmaker” is confident Sam Walton would appreciate receiving comments from Clothmaker readers about his firm commitment to supporting American-made industry. Dear Suppliers: Our country's international balance of trade deficit is a serious problem. I strongly believe the future of Wal-Mart, U.S. manufacturing and our nation depends upon our ability to jointly correct this problem. Look at the facts. Between 1981 and 1984: —An estimated 1,610,000 American jobs were lost to imports. In just one year (1983-1984): —Non-oil related imports grew $70 billion, an increase of 33 percent. —The trade deficit reached $123.3 billion, an increase of 78 percent. Something can and must be done to reverse this very serious threat to our free enterprise system and our great country. Our Wal-Mart Company is firmly committed to the philosophy of buying everything possible from suppliers who manufacture their products in the United States. We are convinced that with proper planning and cooperation between our nation's retail firms, such as Wal-Mart, and our manufacturers, many products can be supplied to us that are comparable, or better, in value and quality to those we have been buying offshore. Wal-Mart is ready to offer our suppliers and manufacturers in the United States the same advantages we are providing overseas vendors. For example, we can provide our domestic suppliers with longer lead times for placing orders and offer them the same level of coopera tion and planning we give overseas vendors. In turn, our American suppliers must commit to improving their facilities and machinery, remain financially conservative and work to fill our requirements, and most importantly, strive to improve employee productivity. Wal-Mart believes our American workers can make the differece, if Management provides the leader ship. In my opinion, products “Crafted With Pride in the USA" can be competitive with products anywhere in the world. Renewed commitments on our part, and on the part of our suppliers, will return production to the USA. We can restore our manufacturing capacity, improve our national economy and renew our pride in American craftsmanship. Many federal, state and local government agencies are ready and willing to assist us and even provide financial aid. Wal-Mart has experienced recent success in working with American manufacturers on bringing production back to our shores. For example, three years ago, we imported all of our dress shirts from Taiwan and Korea; this year, 40 percent will be produced in our 20-state trade territory. Next year, our percentage produced domestically will be much greater. We have made a commitment to a furniture manufacturer in Ft. Smith, Arkansas, which will likely save, not only the plant, but some 50 jobs in this very important trade center for Wal-Mart. Surprisingly, we have also learned we can produce men's flannel shirts on a competitive basis in the United States. We must help American manufacturers continue to be the entrepreneurs that fuel our economy. We cannot survive as a high tech, service-based economy only. Our entire management and merchandising staff is committed to this “Buy American" program. If you are interested in working with us or supplying competitive American-made merchandise, we would appreciate your contacting Mr. Al Johnson, Executive Vice President, Merchandise and Operations, or one of our three General Merchandise Managers.- Colon Washburn, Dean Sanders or Bill Fields. I am asking you for your reactions, suggestions and assistance in the “Buy American" plan. We realize certain lines of merchandise will continue to be bought overseas, and necessarily so. But our goal is to buy quality merchandise at a competitive price from our United States manufacturers. With your cooperation and long range planning, and with patience and determination on both our parts, we can carry out this program successfully. Working together we can make a difference. Please let us hear from you. Sincerely, Sam M. Walton Page 9 Robert M. Vance Clinton Mills Cholrman Vance Writes Suppliers Clinton Mills Chairman Robert M. Vance has written 637 of the Company's major suppliers asking their support in the textile industry's “Crafted With Pride in the USA" campaign. Vance’s letter stated: “As an 89-year-old textile manufacturing company, we appreciate having the oppor tunity to do business with you and your com pany. As you are probably aware, our indus try has a campaign under way using the theme ‘Crafted With Pride in the USA.' The idea behind this program is to make the public aware of the seriousness of the import problem that exists in our country. “The flood of textile imports has been increasing at an alarming rate year by year. We need your support in helping bring about a reducation in the growth of imports. Each sales dollar Clinton Mills loses to a foreign competitor means your company, as one of our suppliers, loses part of that dollar also. “Clinton Mills would like for you to join us by writing your congressmen and senators to become a co-sponsor of House Bill 1562 and Senate Bill 680 which is known as the Textile and Apparel Trade Enforcement Act of 1985. These bills are vital to the survival of our industry. We will appreciate your shar ing with us a copy of your correspondence and your legislator’s responses. “We also encourage you to make your sup pliers and employees more aware of the im portance of buying American-made textile products. “We will be pleased to answer any ques tions you have about our efforts to curb the growth rate of imports. Sincerely, Robert M. Vance Clinton Mills has taken many means to convey to its employees and customers the importance of buying quality, American-made textiles and apparel. Clinton Mills’ Plant No. 1 recently erected a banner promoting American-made pro ducts under its plant identification sign. Employees from each department are shown examining bales of Clinton Mills’ superior quality fabrics symbolizing the Company’s continuing efforts to curb imports. Left to right are Cloth Grader Linda Davis, Weaver Sylvia Saunders, Loom Technician Homer Lawson, Spooler Technician Charles Bright, and Card Technican Theodore Rice.