Sharpie manufacturing is getting cheaper in the U.S., as Newell Brands retools its 37‑year‑old Maryville, Tennessee plant to produce most Sharpie pens domestically. The site now makes all 93 colors, importing only felt tips from Japan, after a $2 billion overhaul begun in 2018 lifted line speeds 3–4x and increased average wages about 50% [1].

Key Takeaways

– Shows a $2 billion overhaul begun in 2018 boosted Sharpie production speeds 3–4x and raised average wages roughly 50% in Maryville [1]. – Reveals Newell aims to cut finished‑goods import share in COGS from about 15% to under 10% by year‑end 2025 [2]. – Demonstrates consolidation of writing lines in Tennessee while relocating appliances to Vietnam, Thailand and Indonesia to mitigate tariff and China exposure [3]. – Indicates Maryville can assume production from Mexico quickly if tariffs rise, leveraging existing Sharpie, Paper Mate and Expo capacity [4]. – Suggests domestic reshoring pairs with community investment, including a $1 million pledge and ongoing training programs to strengthen the local workforce [5].

How Sharpie manufacturing returned to Tennessee

Newell Brands’ bet on Sharpie manufacturing centers on Maryville, a 37‑year‑old plant retooled to bring most pen production back to the U.S. The Wall Street Journal reports the strategy has enabled Newell to make Sharpies more cheaply at home while controlling key processes [1].

By consolidating work in Tennessee, the company now makes all 93 colors in‑house and imports only the felt tips from Japan. Concentrating color runs and assembly stateside shortens lead times and reduces supply‑chain complexity for a high‑volume SKU portfolio [1].

The $2 billion operations overhaul launched in 2018 vaulted line speeds three to four times and increased average wages by about 50%, pairing automation with skills training. The throughput jump more than offset higher labor costs, underpinning the economics of domestic production for Sharpie’s broad assortment [1].

Sharpie manufacturing economics: automation, wages, and costs

The Journal reports Newell found a way to make Sharpies more cheaply in the U.S., largely by redesigning lines and automating tasks to raise throughput 3–4x, even as wages rose roughly 50% since 2018. Faster cycles dilute fixed overhead and labor per unit, driving down cost per pen [1].

Beyond Sharpie, Newell has emphasized automation and higher‑skilled roles across its network as it rebalances where products are made. Management framed these initiatives as productivity plays designed to withstand tariff uncertainty and to support long‑term margin improvement [3].

Company‑wide, the target is a drop in finished‑goods imports from roughly 15% of cost of goods sold to under 10% by year‑end 2025, curbing freight, duty, and handling costs embedded in COGS [2]. That at least 5‑point reduction in import share reduces exposure to external shocks and strengthens gross margin resilience [2]. Combined with 3–4x faster Sharpie lines, those dynamics point to lower unit costs despite higher pay scales in Maryville [1].

Tariffs, China exposure, and the shifting supply map

Tariff waves since 2018 pushed Newell to reduce reliance on China, accelerating a reconfiguration of its footprint. In August 2024, the company detailed moves to relocate appliance lines to Vietnam, Thailand and Indonesia, while consolidating writing manufacturing in Tennessee to improve productivity and reduce Chinese exposure [3].

On Feb. 7, 2025, Newell reiterated a goal to cut finished‑goods imports as a share of COGS from roughly 15% to under 10% by year‑end. It also forecast a first‑quarter loss and an annual net‑sales decline, signaling that footprint changes may precede a full demand recovery [2].

The blend of domestic Sharpie production and Southeast Asia appliance sourcing diversifies tariff risk, lowers landed costs, and supports steadier lead times. Management frames these changes as a durable shift toward higher control and productivity in core categories, including writing instruments [3].

Capacity, flexibility, and the Mexico contingency

Flexibility is now a strategic feature of Newell’s writing network. In early 2025, the company said it can move production out of Mexico to Tennessee quickly if tariffs require, relying on Maryville’s capacity and existing workforce to absorb incremental loads without lengthy ramp‑ups [4].

Maryville already runs Sharpie, Paper Mate and Expo products, which allows the company to reallocate capacity among brands as conditions change. That footprint design reduces the need for new plants and shortens qualification cycles, preserving service levels during policy or cost shocks [4].

The ability to pivot from Mexico to Tennessee compresses response times when trade rules shift and helps maintain utilization. This option value, built on automation and standardized processes, is part of Newell’s emphasis on adaptable supply chains in its writing segment [4].

Community investments and workforce pipeline

Newell has paired operational changes with community investments in Tennessee. In August 2024, the company announced a $1 million pledge to Boys & Girls Clubs of America while underscoring its manufacturing roots in the state and ongoing facility and training investments [5].

Those training programs support higher‑skill roles created by automation, aligning workforce development with line modernization. This approach builds a pipeline of technicians and operators capable of sustaining high‑speed runs and quality targets [5].

At the plant level, higher pay accompanies higher productivity: Maryville’s average wages have climbed about 50% since 2018 as line speeds increased three to four times, reflecting the premium on advanced skills in modernized lines [1].

What to watch next: margins, lead times, and risks

Investors should track the COGS import‑share metric—moving from about 15% to under 10% by 2025—to quantify the logistics and tariff savings management expects to capture [2].

Service levels are another lead indicator. With all 93 Sharpie colors running domestically and only felt tips sourced from Japan, shorter lead times and steadier in‑stocks should follow as production buffers move closer to U.S. customers [1].

Policy risk remains a swing factor. Should tariffs change for Mexico, Newell has said it can pivot production to Tennessee, reducing exposure to cross‑border duties while maintaining output across Sharpie, Paper Mate and Expo [4].

Near term, macro headwinds may blur operating gains; management has already flagged a first‑quarter loss and a full‑year net‑sales decline in 2025 guidance, even as supply‑chain fixes proceed [2].

Structurally, a shift away from China toward automated U.S. and Southeast Asian facilities supports a multi‑year de‑risking plan. Writing’s consolidation in Tennessee complements appliance moves to Vietnam, Thailand and Indonesia, balancing cost, control, and policy exposure over time [3].

Sources:

[1] The Wall Street Journal – Sharpie Found a Way to Make Pens More Cheaply—By Manufacturing Them in the U.S.: www.wsj.com/business/sharpie-us-production-cost-cutting-d9ba2abd” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.wsj.com/business/sharpie-us-production-cost-cutting-d9ba2abd

[2] Reuters – Sharpie maker Newell Brands working to reduce China dependency amid tariff pressure: www.reuters.com/business/retail-consumer/sharpie-maker-newell-brands-working-reduce-china-dependency-amid-tariff-pressure-2025-02-07/” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.reuters.com/business/retail-consumer/sharpie-maker-newell-brands-working-reduce-china-dependency-amid-tariff-pressure-2025-02-07/ [3] Reuters – Sharpie-maker Newell moves more operations from China as tariffs loom: www.reuters.com/business/retail-consumer/sharpie-maker-newell-moves-more-operations-china-tariffs-loom-2024-08-06/” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.reuters.com/business/retail-consumer/sharpie-maker-newell-moves-more-operations-china-tariffs-loom-2024-08-06/

[4] Bloomberg – Newell (NWL) Says It Can Move Production Out of Mexico to Tennessee Facility: www.bloomberg.com/news/articles/2025-02-03/newell-nwl-says-it-can-move-production-out-of-mexico-to-tennessee” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.bloomberg.com/news/articles/2025-02-03/newell-nwl-says-it-can-move-production-out-of-mexico-to-tennessee [5] Newell Brands (corporate) – Newell Brands’ Sharpie and Paper Mate Pledge $1 Million to Boys & Girls Clubs of America: www.newellbrands.com/our-stories/sharpie-and-paper-mate-pledge-1-million-to-boys-and-girls-clubs-of-america” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.newellbrands.com/our-stories/sharpie-and-paper-mate-pledge-1-million-to-boys-and-girls-clubs-of-america

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