New Legislation Aims to Shape a National Manufacturing Strategy

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Creation of National Institute of Manufacturing would also support U.S. security and job growth.

Making everything from ventilators to testing swabs to hospital beds, America’s manufacturers have been working overtime to meet the nation’s needs during the COVID-19 pandemic, though there’s been little guidance from the government as those manufacturers navigate an ever-more uncertain future.

So far, the Defense Production Act (DPA), which empowers President Trump to compel U.S. manufacturers to produce goods critical to national defense, has been implemented just three times during the pandemic. In place of expanded use of the DPA, the Trump administration has largely relegated state and local governments to battle for medical equipment by themselves – desperate fights that have often pit local governments against one another.

Regardless, the Trump administration’s piecemeal efforts have failed to address a larger strategy for the strengthening for America’s industrial base, despite the clear imperative to do so. Meanwhile, China is seizing upon America’s deficits in the COVID-19 pandemic and cementing its factories’ domination of the PPE market now and in preparation for the next global outbreak.   

But lawmakers are mobilizing in defense of U.S. manufacturers.  

Michigan Sen. Gary Peters (D) introduced legislation Wednesday with the aim of coordinating a national manufacturing strategy. If passed, the legislation would establish an independent federal institute, the National Institute of Manufacturing (NIM), led by a Chief Manufacturing Officer (CMO), to function as a hub for federal manufacturing programs.

The CMO would be responsible for the creation and implementation of a National Strategic Plan for Manufacturing.

“For too long, our manufacturers and the millions of hardworking Americans they employ have been let down by a national piecemeal approach to manufacturing,” Peters said. “The need for a new, bold approach to revitalize American manufacturing has never been more evident. We must address vulnerabilities in our supply chain that have been further exposed by the Coronavirus pandemic and reduce our reliance on foreign manufacturers.”

In the short-term, the National Institute of Manufacturing Act would provide guidance for manufacturers as they grapple to meet America’s evolving needs during the global health crisis. But, critically, the legislation would also sponsor the long-term growth of the industry and the valuable jobs it can create.

Alliance for American Manufacturing President Scott Paul said:

“We applaud Senator Gary Peters for introducing the National Institute of Manufacturing Act. The COVID-19 pandemic has made clear that it is time for the United States to shore up its critical manufacturing capabilities, which will not only better prepare us for the next crisis but also create jobs and boost the economy. A national strategic plan for manufacturing, and increased coordination between the many programs designed to support our manufacturers and their workers, are important steps to rebuilding our industrial base. We are grateful to Senator Peters for his efforts to bolster American manufacturing.”