President Donald Trump has made reshoring American manufacturing a top priority, and one notable success story in this initiative is Newell Brands, the company responsible for the popular Sharpie markers. Newell has significantly transformed its operations in the U.S. through a comprehensive onshoring strategy, which has not only improved the efficiency of marker production but has also avoided any job losses or price increases, as reported by The Wall Street Journal.
Chris Peterson, the CEO of Newell Brands, highlighted the dramatic improvements in U.S. manufacturing since his arrival at the company. He emphasized that there is now little reason to produce Sharpie markers outside the United States. The Maryville, Tennessee facility is a key player in this transformation, producing over 500 million Sharpie markers each year with nearly all components sourced domestically. The only exception is the felt tip, which is imported from Japan.
This significant shift marks a departure from the company’s previous outsourcing practices in 2018. Newell Brands made a substantial investment, approximately $2 billion, to centralize its supply chain, modernize production lines, and retrain its workforce to adapt to new automation technologies. Consequently, production rates have surged to three to four times faster than before, while maintaining higher quality standards. The average wages for the facility’s approximately 550 employees have also seen a substantial increase of around 50% over the last five years.
Notably, Newell Brands achieved these advancements without resorting to layoffs. Instead, the company focused on retraining workers for roles in automation and engineering, supported by enhanced training and educational programs. Automation has alleviated many repetitive tasks, allowing robots to handle assembly and product inspections.
As a result of these strategic moves, Newell has managed to combat inflation efficiently, keeping the retail price of a Sharpie at around $1. Additionally, the company has improved its order fulfillment speed and reduced shipping expenses. Last year, Newell successfully moved the production of its retractable Sharpie line back from China, having addressed prior quality concerns with innovative engineering solutions.
Currently, the Maryville plant operates around the clock, producing 1.8 million markers daily. Furthermore, Newell Brands plans to expand its domestic production capabilities even further, including relocating its Clearview highlighter line back from China, ensuring a robust future for American manufacturing in the process.
