Major Port Strike Shines Light on Domestic Manufacturing Capabilities
November 27, 2024

Making PPE and Medical Supplies Made in the USA is the Key to Avoiding Supply Chain Disruptions

With labor strikes looming at ports along the East and Gulf Coasts, the fragility of our supply chains is under even more focus. The current labor dispute, which would affect nearly two-thirds of US import trade ($92 billion), underscores the urgent need for the U.S. healthcare system to shift buying preferences to domestically produced PPE and medical supplies.

From port delays and global supply chain disruptions to unexpected infrastructure failures like the Baltimore bridge accident, the vulnerabilities of relying heavily on foreign suppliers have become increasingly apparent.  Buying from domestic manufacturing sources is no longer a choice but a necessity for maintaining resilience.

Amidst a global supply chain that is more fragile than ever, a diverse group of domestic PPE and medical supply manufacturers is stepping up. AMMA members are working tirelessly to ensure that quality products can be obtained locally and within a short period, regardless of global disruptions. Our commitment is a reassuring sign of supply chain stability.

While China remains a dominant player in PPE and medical supplies manufacturing, significant tariffs of up to 100% have begun for needles, syringes, respirators, and masks and will begin for other products, such as gloves, in 2025. China’s slowing economy and manufacturing sector decline have resulted in delays and rising costs for U.S. companies relying on Chinese imports. Within this framework, the moment to eliminate the risks of dependence on a single country for critical medical equipment is now.

But even beyond international supply chain issues, domestic factors compound these risks. The recent Baltimore bridge collapse caused bottlenecks at major East Coast ports, highlighting supply lines’ susceptibility to unexpected infrastructure problems. Now, labor strife threatens further delays. The dockworkers poised to strike at major U.S. ports will create a ripple effect that could paralyze the flow of medical supplies into the country.

These labor disputes reveal another critical vulnerability in our supply chain: reliance on smooth port operations. A prolonged strike could lead to shortages of essential protective gear, pharmaceuticals, and medical equipment. While labor peace is vital for keeping supply chains moving in the short term, producing these critical goods at home is the real solution. Domestically manufactured PPE and medical supplies can be delivered to hospitals, factories, and public safety workers within days or hours instead of continued reliance on foreign imports that have left these workers waiting for supplies they need urgently.

The work of the Biden Administration over the past three years has yielded both opportunities and challenges facing our supply chains.

On a positive note, a centralized task force was created early in the Biden administration to address supply chain vulnerabilities. This effort successfully helped to “re-normalize the flow of goods” after the COVID-19 pandemic by streamlining coordination and addressing critical shortages.

On the more challenging side, the administration’s shift from centralization to a fragmented, agency-specific approach needs to be clarified. The lack of a straightforward point person or unified strategy means that industries now struggle to navigate the numerous government agencies responsible for supply chain issues. This underscores the importance of a unified approach to avoid exacerbating delays, particularly in the face of new challenges like the pending port labor strike.

By investing in domestic manufacturing, the U.S. can build a robust, reliable supply chain for PPE and medical supplies less vulnerable to external shocks. Strengthening this sector also supports national security by reducing dependency on foreign nations and creating jobs at home, bolstering the economy.

Policies that promote domestic production—such as strategic tariffs and incentives for U.S.-based manufacturers, are essential. Congress and the administration have taken important, bipartisan steps to prioritize local production. Ensuring that America has a resilient and responsive supply chain for medical supplies is not just a matter of economic competitiveness but a fundamental safeguard for public health.