AAM President Scott Paul: There’s “a Lot to Like” in the White House’s Supply Chain Report

Tags Supply Chains

Washington, D.C. – The White House on Tuesday unveiled the findings of its 100-day review of America’s supply chains, which includes plans to boost domestic manufacturing and diversify access to critical materials like rare earth minerals.

Alliance for American Manufacturing President Scott Paul said:

“There’s a lot to like in the White House’s new report on building more resilient supply chains.

“Leveraging the power of government procurement and linking research and development incentives to domestic production, which the report proposes, will be impactful in changing the ‘design it here, make it there’ mantra of the MBA set.

“Deploying consumer incentives, such as favoring electric vehicle incentives for Made in USA vehicles only, will also be critical to boosting U.S. production and reshoring supply chains. Utilizing Defense Production Act purchases will help create long-term market stability for domestic manufacturers and grow the market here.

“And establishing a trade strike force to tackle unfair practices could be impactful, if it is utilized early and often. The report repeatedly mentions responsible sourcing and environmental standards, both here and abroad. That rhetoric must translate into reality, because those disparities are responsible for big job losses and factory closures. It’s also important to press China and other countries on unfair trade practices like state-owned enterprises, subsidies, and export-driven growth models.

“Above all, the United States must boost its own domestic production capabilities. The U.S. Innovation and Competitiveness Act, which is being taken up by the Senate this week, could prove to be critical to these efforts. 

“The COVID-19 pandemic unfortunately showed us what happens when we do not have the ability to make the supplies we need in a crisis. But the country has an opportunity to learn from its past mistakes, and the White House report offers a good starting point.”

For a deeper dive into some of the vulnerabilities in the U.S. supply chain, read the Guardian Six report, Remaking American Security.