The Case for Revitalizing U.S. Manufacturing:

Recent business and political news coverage has highlighted two major news stories. The first is the life-and-death struggle of the recent hurricanes, which disrupted the medical supply chain in the U.S. The second is the challenges iconic American manufacturers like Boeing and Intel face. These stories underscore an urgent need to strengthen domestic manufacturing, which cannot be ignored.

The U.S. must act swiftly to invest in resilient, homegrown production to safeguard national security and economic stability. The aftermath of Hurricanes Helene and Milton exposed significant vulnerabilities in the U.S. medical supply chain. Since its founding, The American Medical Manufacturers Association (AMMA) has been educating policymakers on this risk.

According to a news story in FreightWaves, Baxter International’s North Cove facility, which produces over 60% of the nation’s IV fluids, has suffered flood damage, causing widespread shortages. Healthcare providers nationwide are now scrambling to manage the fallout, with 86% of respondents in a recent survey reporting they’re receiving less than half of their requested orders for IV fluids. There have been interim measures, like airlifting IV fluids from international facilities, but the underlying issues remain.

Relying too heavily on a few centralized facilities or overseas production leaves the US vulnerable. During the pandemic, the U.S. faced severe PPE shortages, as much of the supply chain for products like N95 masks had shifted to countries like China, Malaysia, and Vietnam. Despite interim steps taken by the US Government, the recent hurricanes and ongoing supply chain challenges reveal that the infrastructure is still too fragile due to a lack of continuing government investment in ramping production.

The manufacturing challenges in the healthcare sector mirror broader issues in other key U.S. industries, particularly technology and aerospace. As The Wall Street Journal highlighted, iconic American manufacturers Boeing and Intel now face significant struggles, threatening their competitive edge and global influence.

The USA needs to reverse a broader pattern of underinvestment in domestic production and innovation. Relying on foreign suppliers or a handful of vulnerable production facilities exposes the country to risks like natural disasters, geopolitical conflicts, or market shifts. The potential consequences of not taking action are severe, and the situation calls for a coordinated strategy that incentivizes U.S.-based production, fosters innovation, and critically prepares industries for future disruptions.

As a leading advocate for domestic PPE and medical supply manufacturing, AMMA has been at the forefront of educating policymakers and the public on the importance of this issue. Our work is crucial in revitalizing U.S. manufacturing and ensuring national security and economic stability.

The U.S. must prioritize domestic manufacturing as a long-term economic and national security strategy. The message is clear, from PPE shortages during the COVID-19 pandemic to the waning influence of American manufacturing.

Now is the moment to invest in domestic manufacturing leadership. This means public policy that prioritizes companies that make products like PPE in America, tax incentives, support from the Administration and its agencies, and adherence to government policies to “Buy American.”  We will use this space in the months ahead to continue highlighting how government and industry can work together.