Make It In America, Prevent Supply Chain Disruptions
March 18, 2024

In a world marked by supply chain disruptions, economic uncertainties, and geopolitical tensions, the need for urgent action to strengthen domestic manufacturing has never been more apparent. Recent reports highlight the precarious state of global supply chains, with disruptions rippling through economies, exacerbating losses, and threatening industries worldwide.

In the US market for personal protective equipment, bad actions by foreign actors selling essential products threaten public health and safety. As China seeks to bolster its domestic economyby flooding the world with cheap exports, our nation’s manufacturing base is at even greater risk of unfair competition.

The Biden-Harris administration’s announcement of an additional $5 million initiative to bolster domestic manufacturing is a step in the right direction. This initiative builds on existing commitments to enhancing our manufacturing capabilities to reduce reliance on overseas suppliers and mitigate the impact of supply chain disruptions. It’s a call to action for businesses, policymakers, and stakeholders to prioritize resilience and sustainability in our supply chains. And our elected leaders must work together to make this happen…now.

The recent semiconductor shortage, as The New York Times reports, is a stark reminder of the vulnerabilities inherent in our interconnected global economy. With Malaysia, a key player in semiconductor production, facing challenges due to COVID-19 and geopolitical tensions, the repercussions are felt across industries reliant on these essential components. This shortage disrupts production and threatens to stifle innovation and economic growth. Why not just make more of these critical chips here in the USA?

To navigate these challenges, businesses must adopt forward-thinking strategies and re-shore critical technologies to future-proof their supply chains. Wired highlights that companies like Maersk leverage technology and data analytics to optimize supply chain operations, enhance visibility, and mitigate risks. Investing in US production can enhance innovation. Businesses can and should build agile and resilient supply chains capable of withstanding disruptions and ensuring continuity in turbulent times.

However, more than government support and private sector initiatives are needed. A concerted effort from all stakeholders is required to drive meaningful change. Businesses must invest in domestic manufacturing, foster local talent, and cultivate partnerships to build robust supply chains. Similarly, policymakers must enact policies encouraging reshoring and promoting investment in critical industries.

The time for action is now.We cannot afford to wait for the next crisis to strike before addressing the vulnerabilities in our supply chains.

Our leaders can take three steps to shore up our domestic manufacturing industry. First, the Senate must pass the pending tax legislation that provides research and development tax credits for domestic manufacturing. Second, vigorous enforcement of Made in America rules is essential, including a commitment to buying American-made goods. The third is to close the de minimis loophole. This loophole, often exploited by e-commerce giants like Temu and Shein, allows duty-free entry of packages valued under $800 with minimal scrutiny, facilitating the influx of goods into the American market.

By strengthening domestic manufacturing, investing in innovation, and fostering collaboration, we can build a more resilient and sustainable future for all. Together, let’s seize this opportunity to transform our national manufacturing base and ensure prosperity for generations to come.