Behind the US bill to Strengthen Manufacturing Supply Chains

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The US Department of Commerce
The US has formed a bipartisan bill to enhance the supply chains of industries vital to manufacturing, such as the mining of critical minerals

The manufacturing sector in the United States is a vital economic driver, contributing US$2.65tn and providing employment for nearly 13 million individuals.

However, vulnerabilities in supply chains continue to pose a threat to production, increase costs, and lead to shortages of essential goods.

In response to these challenges, US Senators Maria Cantwell (D-Wash.), Marsha Blackburn (R-Tenn.), and Lisa Blunt Rochester (D-Del.) have reintroduced the Promoting Resilient Supply Chains Act.

This bipartisan legislation seeks to enhance the resilience of supply chains for critical industries and emerging technologies, collaborating with both government and private sector partners to prevent future disruptions.

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A response to escalating supply chain risks

Geopolitical tensions, natural disasters, and the pandemic have revealed significant vulnerabilities in US supply chains.

Delays and shortages of crucial medical supplies, manufacturing components, and raw materials have resulted in increased costs for both businesses and consumers.

The United States continues to be heavily dependent on individual countries for vital materials, such as critical minerals and active pharmaceutical ingredients, which leaves the system exposed to unforeseen disruptions.

"From our aerospace manufacturers to our growers, Washington state relies on robust supply chains to produce, grow and ship our products to the world," commented Senator Cantwell.

"One supply chain shock can disrupt the entire system, driving shortages and raising costs.

US Senator Maria Cantwell (Credit: Getty)

"Our legislation will get the government, businesses and manufacturers working together to identify gaps and build capacity to prevent supply chain disruptions before they happen. It will strengthen American manufacturing jobs, keep our store shelves stocked and lower costs for American families."

A significant challenge lies in the lack of transparency within supply chains, with estimates indicating that over 90% of US companies lack complete visibility into their operations. This lack of insight makes it challenging to predict or respond to potential issues.

The Promoting Resilient Supply Chains Act aims to tackle this problem by mapping, monitoring, and fortifying critical supply routes to establish long-term stability.

"Strengthening supply chains is essential to ensuring that groceries, fuel, household products, and every other consumer product is accessible and affordable," adds Senator Blackburn.

US Senator Marsha Blackburn (Credit: Getty)

"To achieve a strong, resilient supply chain, we must have a coordinated, national strategy that decreases dependence on our adversaries, like Communist China and leverages American ingenuity.

"By establishing a supply chain resiliency program at the Department of Commerce, the US government can better coordinate with private sector partners, identify risks and increase our competitiveness."

Exploring the provisions of the Promoting Resilient Supply Chains Act

The legislation sets out several measures to enhance supply chain security and economic resilience:

Strengthening oversight: The Department of Commerce’s Assistant Secretary for Industry and Analysis will be tasked with ensuring the stability of critical supply chains.
Mapping & monitoring: A Supply Chain Resilience Working Group will be formed to assess risks, model potential disruptions, and improve visibility across industries.
Identifying weaknesses: The bill requires evaluations of gaps in manufacturing, warehousing, and transportation, along with assessing the impact of supply chain disruptions on market stability.
Boosting domestic manufacturing: The initiative aims to increase production capacity in critical industries and create high-quality American jobs.
Regular reporting: A National Strategy and Review on supply chain resilience will be presented to Congress, outlining key vulnerabilities, emerging technologies, and industry needs.

"Americans are feeling the high costs of inflation and goods – and to help alleviate that burden and lower costs we need to fix the gaps in our supply chains," says Senator Blunt Rochester.

US Senator Lisa Blunt Rochester (Credit: Getty)

"Addressing these shortages and disruptions will not only help the average American, but it has the opportunity to create good-paying jobs, strengthen our economy and enhance our national security. 

"Going forward, I will continue conversations with my colleagues in Congress to ensure that this vital piece of legislation makes it into law."

The bill also emphasises reducing dependence on foreign suppliers by strengthening partnerships with domestic manufacturers and allied nations.

The goal is to ensure that essential goods, including medical equipment and semiconductors, remain accessible even during times of crisis.

Industry leaders support supply chain reforms

The bill has garnered strong support from industry leaders, who view it as a crucial step in securing the US supply chain.

Jason Oxman, President and CEO of ITI, commended the legislation, saying: "The bipartisan Promoting Resilient Supply Chains Act will play an important role in fostering greater collaboration between government and industry to strengthen supply chains and advance US economic prosperity."

Jason Oxman, President and CEO of ITI

"Resilient global supply chains are the cornerstone of American innovation leadership and the global tech industry appreciates the dedicated work of US Senators Cantwell, Blackburn and Blunt Rochester to bolster US competitiveness."

Wes Smith, President and CEO of the National Association of Electrical Distributors, adds: "NAED members provide vital goods and services that electrify the nation and we are a vital part of the critical infrastructure supply chain.

Wes Smith, President and CEO of the National Association of Electrical Distributors

"While our industry has made great progress to improve our resiliency since the pandemic, the Promoting Resilient Supply Chains Act will task the Department of Commerce to map, monitor and model supply chain vulnerability to help avoid costly disruptions by providing an additional layer of oversight for the larger economy." 

Other organisations, including the National Association of Wholesaler-Distributors (NAW) and the Consumer Brands Association, have also expressed their support.

As supply chain challenges continue to affect businesses and consumers, the Promoting Resilient Supply Chains Act aims to provide a long-term strategy for stability, economic growth, and job creation.

The bill’s supporters are optimistic that this collaborative effort between government and industry will contribute to building a more secure and resilient future.



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