For more than a decade, Bath & Body Works has been reshoring its production from China, Canada and Mexico. The move to do so has helped the company manufacture, package and deliver products to its stores.

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Bath & Body Works has successfully reshored the majority of its supply chain to the United States, particularly in central Ohio, where it produces a significant portion of its products. The company’s foaming hand soap, for example, is now manufactured and assembled locally, reducing the distance from 13,000 miles to less than 11 miles and cutting production time from over three months to just three to four weeks.

This move involved substantial investment from vendors and government entities and relies heavily on automation, which limits the number of factory jobs but creates roles for chemists and product developers. While the model has proven effective for Bath & Body Works, experts note that replicating it in other retail sectors depends on the type of product and the feasibility of automation.

How one retailer is making 'made in America' work

Well, as companies navigate fast-changing tariff headlines, one retailer has insulated itself. It's been reshoring most of its supply chain to the United States. And it did it more than a decade ago. Courtney Reagan joins us. She has that story for us. Courtney. Hi. Good morning, David. So, right here, this is where all four components of bath and body works, foaming, hand soap, come together. So, the bottle itself is made in a nearby facility in central Ohio. It goes into this machine, where automation then fills the pump or the bottle, rather, with the soap. The pump is then added. It's screwed on, and then a label is added at a rate of 270 bottles a minute. There is an employee at the end of the line that is here for quality control. This facility alone produces about a quarter of a billion units every year for bath and body works. of what the retailer sells is made right here in the United States. And every finished product that is sold here is made here. In central Ohio, it makes up about half of all of that production. The chemists and the bench people in here are working to bring fragrance and formula to life. And then they plug in very tightly in a concerted way with all of the vendors that are within our walking distance of this facility, with transferring from product development into manufacturing. It's all a part of Beauty Park, where around a dozen vendors produce mainly for bath and body works just 10 miles from corporate headquarters. This foaming hand soap used to travel 13,000 miles between China, Canada, and Virginia, and take more than three months from manufacturing to distribution. Now it's less than 11 miles in three to four weeks. The retailer has been making products here in central Ohio for more than a decade, but it took two years from the ideation of Beauty Park to actually begin that manufacturing and hundreds of millions of dollars of investment, largely from its vendor base, as well as local, state, and federal government to pull it off. Back to you guys. Well, it's certainly proving worth it for them now with all these tariffs. Can others do the same? Can the big companies, Estee Lauder, others that are in the similar categories? Absolutely. It is really paying dividends right now, even though tariffs, as you point out, was not the reason for this initially. I asked that very question, can this be replicated by others in retail? And the question was, well, probably, but of course, actually pulling it off is really difficult. It really depends on the category you're operating in. So potentially more likely for consumer packaged goods, less likely for apparel or electronics. Part of that has to do with the raw materials. Part of it has to do with the labor. There's more cut and sew, manual labor involved in apparel, whereas here, this is largely automated. Yes, there is definitely a human touch and that is important, but automation has been a really big part of this and the weight of the product itself. It makes more sense to have it closer to the end consumer because of the cost of freight if you were to do so far away. All of that, of course, adds to the cost of distribution and they figured out a way to make this work. Yeah, I mean, you kind of hit on my an answer to my question, but you mentioned automation, Courtney. I mean, a key goal of the president's reshoring initiatives is to create jobs here. I see a person behind you now, but that's the first person we've seen. I mean, you've indicated obviously there's not that many people who work there. I would assume it's a lot of robotics, a lot of automation, and that would be the case for all the reshoring conceivably, at least in certain industries that takes place. Yeah, that's absolutely true, but we also were in a lab yesterday. I mean, there are chemists that work here that formulate the actual stuff that's in the bottles. Right. So it's not just the factory. I mean, so much of what goes on in what ultimately comes out of that product does start here. There is still some work that is done overseas when it comes to the perfumers, for instance, that some of that does still come from Europe. But there are other jobs besides the ones that would actually be in putting that final product together for it to go to distribution. I know Becky made an I love Lucy joke. It's also a little Laverne and Shirley with that production line behind you. A little bit. I mean, I'm not going to try to eat any of this, but it does smell good. Courtney Banks and great stuff. Courtney Reagan this morning.

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