Tag Archives: Supply Chains

Biden Administration, Economic Development, Economic Policies, Economy, Joe Biden, Manufacturing

FACT SHEET: Biden Takes New Actions to Strengthen America’s Supply Chains, Lower Costs for Families, and Secure Key Sectors

During the inaugural convening of the new White House Council on Supply Chain Resilience, President Biden will unveil more than 30 new actions to strengthen America’s supply chains

As part of his Bidenomics agenda to lower costs for American families, President Biden announced nearly 30 new actions to strengthen supply chains critical to America’s economic and national security. These actions will help Americans get the products they need when they need them, enable reliable deliveries for businesses, strengthen our agriculture and food systems, and support good-paying, union jobs here at home. Among the actions: the USDA is investing $196 million to strengthen our domestic food supply chains and create more opportunity for farmers and entrepreneurs in 37 states and in Puerto Rico. These investments—which build on prior investments in diversified food processing, resilient agricultural markets, and fertilizer production—expand farmer income opportunities, create economic opportunities for people and businesses in rural areas, and lower food costs. © Karen Rubin/news-photos-features.com

You don’t hear anything about it because 1) it’s lots of facts and figures and 2) the nonstop criminality, latest court craziness of Trump and his scheme to become a dictator are dominating news. But the collapse of supply chains during the COVID pandemic was the biggest reason for triggering inflation, and the Biden administration focus to develop Made in America manufacturing and reduce dependency on foreign production is one of the biggest factors in reducing costs for Americans (despite greed-based price hikes). Here’s a Fact sheet from the White House:

As part of his Bidenomics agenda to lower costs for American families, President Biden is announcing nearly 30 new actions to strengthen supply chains critical to America’s economic and national security. These actions will help Americans get the products they need when they need them, enable reliable deliveries for businesses, strengthen our agriculture and food systems, and support good-paying, union jobs here at home.

President Biden announced these actions alongside members of his Cabinet and other senior Administration officials at the inaugural meeting of the new White House Council on Supply Chain Resilience. The Council, which President Biden established, will support the enduring resilience of America’s critical supply chains.

Robust supply chains are fundamental to a strong economy. When supply chains smooth, prices fall for goods, food, and equipment, putting more money in the pockets of American families, workers, farmers, and entrepreneurs. That is why President Biden made supply chain resilience a priority from Day One of his Administration—including by signing an Executive Order on America’s Supply Chains and establishing a Supply Chain Disruptions Task Force that worked with states, Tribes, local governments, businesses, family farms, labor, and allies and partners to address the acute supply chain crises caused by the pandemic. Since then, the Administration has made historic investments to strengthen supply chains and prevent future disruptions by expanding production capacity in key sectors and building infrastructure through the CHIPS and Science Act, the Inflation Reduction Act, and the Bipartisan Infrastructure Law.

These efforts helped unsnarl supply chains, re-normalize the flow of goods, and lower inflation. From October 2021 to October 2023, supply chain pressures as measured by the New York Fed declined from near-record highs to a record low, helping lower inflation, which has fallen by 65% from its peak.

Today, President Biden is building on this progress by announcing bold new actions to further strengthen supply chains, lower costs for families, and help Americans get the goods they need, including:

  • The creation of the Council on Supply Chain Resilience. Today, President Biden will convene the inaugural meeting of the White House Council on Supply Chain Resilience, which will advance his long-term, government-wide strategy to build enduring supply chain resilience. The Council will be co-chaired by the National Security Advisor and National Economic Advisor, and include the Secretaries of Agriculture, Commerce, Defense, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, the Interior, Labor, State, Transportation, the Treasury, and Veterans Affairs; the Attorney General; the Administrators of the Environmental Protection Agency and the Small Business Administration; the Directors of National Intelligence, the Office of Management and Budget, and the Office of Science and Technology Policy; the Chair of the Council of Economic Advisers; the U.S. Trade Representative; and other senior officials from the Executive Office of the President and other agencies.
     
  • Use of the Defense Production Act to make more essential medicines in America and mitigate drug shortages. President Biden will issue a Presidential Determination to broaden the Department of Health and Human Services’ (HHS) authorities under Title III of the Defense Production Act (DPA) to enable investment in domestic manufacturing of essential medicines, medical countermeasures, and critical inputs that have been deemed by the President as essential to the national defense. HHS has identified $35 million for investments in domestic production of key starting materials for sterile injectable medicines. HHS will also designate a new Supply Chain Resilience and Shortage Coordinator for efforts to strengthen the resilience of medical product and critical food supply chains, and to address related shortages. HHS intends to institutionalize this coordination to advance the department’s supply chain resilience and shortage mitigation goals over the long term. The Department of Defense (DOD) will also soon release a new report on pharmaceutical supply chain resilience aimed at reducing reliance on high-risk foreign suppliers. These actions are a subset of the Administration’s broader work to increase access to essential medicines and medical products.
     
  • New cross-governmental supply chain data-sharing capabilities. The Administration has developed several cross-government partnerships to improve supply chain monitoring and strategy, including:
    • The Department of Commerce’s new, first-of-its-kind Supply Chain Center is integrating industry expertise and data analytics to develop innovative supply chain risk assessment tools, and is coordinating deep-dive analyses on select critical supply chains to drive targeted actions to increase resilience. This Center is building broad partnerships across government, industry, and academia, including collaborating with the Department of Energy (DOE) to conduct deep-dive analyses on clean energy supply. Additionally, Commerce is partnering with HHS to assess industry and import data that can help address foreign dependency vulnerabilities and points of failure for critical drugs.
    • The Department of Transportation’s (DOT) Freight Logistics Optimization Works (“FLOW”) program is a public-private partnership that brings together U.S. supply chain stakeholders to create a shared, common picture of supply chain networks and facilitate a more reliable flow of goods. DOT is announcing a new milestone for FLOW, in which participants are beginning to utilize FLOW data to inform their logistics decision making, helping to avoid bottlenecks, shorten lead times for customers, and enable a more resilient and globally competitive freight network through earlier warnings of supply chain disruption. As the effort continues to mature, DOT will work with the Department of Agriculture (USDA) to increase data transparency for containerized shipments of agricultural products in the United States, efforts that can help producers and sellers avoid disruptions that can increase food prices.
    • These new analytical capabilities will enable the Council to coordinate a more complete, whole-of-government critical supply chain monitoring function.

Additional actions to support stronger supply chains and access to affordable, reliable energy and critical technology:

Investing in critical supply chains:

  • DOE today announced $275 million in grant selections for its Advanced Energy Manufacturing and Recycling Grant Program, investments that will revitalize communities affected by coal mine or coal power plant closures through investment in clean energy supply chains, including production of critical materials, components for grid-scale batteries and electric vehicles, onshore wind turbines, and energy conservation technologies. DOE also announced up to $10 million of funding for a “critical material accelerator” and a $5.6-million prize to develop circular clean energy supply chains. These efforts build on action by President Biden to authorize DOE’s use of the DPA to increase domestic production of five key clean energy technologies—including electric heat pumps—as well as DOE’s recently announced $3.5-billion investment through the Bipartisan Infrastructure Law to boost domestic production of advanced batteries and battery materials needed for essential clean energy technologies such as stationary storage and electric vehicles.
  • USDA is making investments worth $196 million to strengthen our domestic food supply chains and create more opportunity for farmers and entrepreneurs in 37 states and in Puerto Rico. These investments—which build on prior investments in diversified food processing, resilient agricultural markets, and fertilizer production—expand farmer income opportunities, create economic opportunities for people and businesses in rural areas, and lower food costs.
  • DOD, building on the $714 million in DPA investments it has made in 2023 to support defense-critical supply chains, will publish the first ever National Defense Industrial Strategy (NDIS). The NDIS will guide engagement, policy development, and investment in the defense industrial base over the next three to five years. It will ensure a coordinated, whole-of-government approach to and focus on the multiple layers of suppliers and sub-suppliers that make up these critical supply chains.

Planning for long-term industrial resilience and future supply chain investments:

  • Launch of the quadrennial supply chain review. The Council will complete the first quadrennial supply chain review by December 31, 2024. As part of the review, the Council will update criteria on industries, sectors, and products defined as critical to national and economic security. In addition, 12 months after the Council promulgates the criteria, and annually thereafter, the Council will apply the criteria to review and update the list of critical sectors, as appropriate.
  • Smart manufacturing plan. DOE’s Office of Energy Efficiency and Renewable Energy (EERE) Advanced Materials and Manufacturing Technologies Office (AMMTO) is sponsoring a study by the National Academies of Science, Engineering, and Medicine to develop a nationwide plan for smart manufacturing. The report will establish key priorities for investment to support new digital and artificial intelligence technologies. These investments will enhance the productivity and security of the manufacturing systems that are critical for maintaining domestic supply chains.

Deploying new capabilities to monitor existing and emerging risks:

  • New Resilience Center and tabletop exercises for supply chain disruptions. The Department of Homeland Security (DHS) is announcing the launch of a new Supply Chain Resilience Center (SCRC), which will be dedicated to ensuring the resilience of supply chains for critical infrastructure needed to deliver essential services to the American people. Near-term priorities will include addressing supply chain risks resulting from threats and vulnerabilities inside U.S. ports. Additionally, in 2024, in collaboration with other federal agencies and foreign governments, DHS will facilitate at least two tabletop exercises designed to test the resilience of critical cross-border supply chains. Further, DHS and the Department of Commerce will collaborate to continue to strengthen the semiconductor supply chain and further the implementation of the CHIPS and Science Act.
  • Launch of DOT Multimodal Freight Office. As part of the Bipartisan Infrastructure Law (“BIL”) implementation, DOT is launching its Office of Multimodal Freight Infrastructure and Policy (“Multimodal Freight Office”). This office is responsible for maintaining and improving the condition and performance of the nation’s multimodal freight network including through the development of the National Multimodal Freight Network, review of State Freight Plans, and the continued advancement of the FLOW initiative in partnership with the Bureau of Transportation Statistics.
  • Monitoring of climate impacts. The White House National Security Council, Office of Science and Technology Policy, and the Council of Economic Advisers will co-lead an interagency effort in partnership with the National Oceanic and Atmospheric Administration to monitor global developments related to El Niño, including this climate phenomenon’s impact on U.S. and global commodity prices, agriculture and fishery output, disruptions to global and trade supply chains, and resulting impacts on food security, human health, and social instabilities.
  • Energy and critical mineral supply chain readiness. To more consistently track risk and opportunity across energy supply chains, DOE is developing an assessment tool that accounts for raw materials, manufacturing, workforce, and logistics considerations. Additionally, to help assess the potential for trade disruptions of select critical minerals and materials, the Department of the Interior’s U.S. Geological Survey (USGS) will map and develop geospatial databases for select global critical product supply chains, with a current focus on semiconductor components; and will seek designation by the Chief Statistician of the United States of a federal statistical unit providing the nation’s official minerals statistics. Additionally, the National Science and Technology Council’s Critical Minerals Subcommittee plans to launch a new criticalminerals.gov website in January 2024 that will highlight cross-governmental supply chain efforts.
  • Defense supply chain mapping and risk management. DOD is increasing supply chain visibility through the creation of a Supply Chain Mapping Tool to analyze supplier data for 110 weapon systems. This capability will be used to develop defense industrial base wargaming scenarios to identify vulnerabilities and develop mitigation strategies.

Engaging public and private stakeholders to expand supply chain risk modeling:

  • Supply Chain Data and Analytics Summit. The Department of Commerce will convene a diverse array of public and private stakeholders at a Supply Chain Data and Analytics Summit in 2024. A key aim of the summit will be to invite expert input into supply chain risk assessment models and tools. The summit will also assess data availability, utility, and limitations and consider actions to improve data flows.
  • AI hackathons to strengthen critical mineral supply chains. USGS, the Defense Advanced Research Projects Agency (DARPA), and the Advanced Research Projects Agency-Energy (ARPA-E), building on their 2022 prize challenges announcement, will host a series of hackathons beginning in February 2024 to develop novel artificial intelligence approaches to assess domestic critical mineral resources.
  • Risk mapping for labor rights abuses. The Department of Labor (DOL) updated its Comply Chain guidance for identifying and addressing labor rights violations in global supply chains. In addition, DOL is providing $8 million for two four-year projects to identify supply chain traceability methods and technologies to address child labor or forced labor risks in diverse supply chains, such as the cobalt and cotton sectors. DOL will also undertake new supply chain research on mining and agriculture products across Asia, Africa, and Latin America.

In addition to the announcements above, the Administration continues to deepen engagement with allies and partners to strengthen global supply chains, including:

Deepening international early warning systems to detect and respond to supply chain disruptions in critical sectors with allies and partners, including:

  • With the European Union. In May 2023, the United States and the EU established an early warning system for semiconductor supply chain disruptions under the U.S.-EU Trade and Technology Council.
  • With Japan and the Republic of Korea. In August, the United States, Japan, and the Republic of Korea committed at Camp David to launch early warning system pilots, starting by identifying priority products and materials such as critical minerals and rechargeable batteries and establishing mechanisms to rapidly share information on disruptions to critical supply chains.
  • With Mexico and Canada. Through the United States-Mexico-Canada Agreement (USMCA), the United States, Canada, and Mexico established a trilateral Sub-Committee on Emergency Response to coordinate North American efforts to maintain regional trade flows during emergency situations.
  • With Australia, Canada, the European Union, Japan, the United Kingdom, and the World Health Organization. The Global Regulatory Working Group on Drug Shortages, currently chaired by the U.S. Food and Drug Administration, meets quarterly to discuss product shortages participating jurisdictions are encountering and ways such shortages are being addressed. The group’s exchange of information helped address product shortages experienced by each partner during the COVID-19 pandemic and subsequent “tripledemic” including COVID-19, influenza, and respiratory syncytial virus.
  • With global partners. Through the President’s Emergency Plan for Adaptation and Resilience (PREPARE), the U.S. government funds activities to improve the weather, water, and climate observing capabilities and data sharing in regions and countries that are needed to produce actionable local, regional, and global climate information and minimize impacts upon infrastructure, water, health, and food security.

Strengthening global supply chains through other innovative multilateral partnerships:

  • Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement. The United States and 13 IPEF partners concluded a first-of-its-kind Supply Chain Agreement that gives partners new tools to build diversified, competitive supply chains for critical sectors, including an IPEF Supply Chain Council to coordinate action. The Department of Commerce is kickstarting this effort through pilot projects to enhance the resilience of key supply chains, including those related to semiconductors, critical minerals, and cold chain services. In addition, the Supply Chains Agreement establishes a Crisis Response Network that will allow IPEF partners to better prepare for and respond to supply chain disruptions through emergency communication channels and joint crisis simulations, as well as a Labor Rights Advisory Board to promote worker rights across supply chains.
  • Americas Partnership for Economic Prosperity (Americas Partnership). The Americas Partnership is focused on, among other things, strengthening and diversifying supply chains. In its first year of work, the Americas Partnership will focus on the development of regional competitiveness plans in three critical sectors: semiconductors, clean energy, and medical supplies.
  • North American Leaders’ Summit (NALS). Through NALS, the United States, Canada, and Mexico are enhancing the resilience of North America’s supply chains for critical minerals, semiconductors, and other essential goods. This trilateral effort includes partnering with regional industry and academia to create quality jobs, promote investment, grow talent, and catalyze innovation.
  • Partnership for Global Infrastructure and Investment (PGI). Through PGI, the United States is mobilizing public and private financing to incentivize investments and develop transformative economic corridors to diversify global supply chains and create new opportunities for American workers and businesses. From the development of the Lobito Corridor, connecting the Democratic Republic of the Congo and Zambia with global markets through Angola, to the launch of the landmark India-Middle East-Europe Economic Corridor—through PGI, the United States is creating novel interconnections across regions to facilitate trade and secure clean energy, digital, food security, and other critical supply chains.
  • Global Labor Directive. On November 16, President Biden signed the Presidential Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally. The President directed several departments to address labor rights abuses in global supply chains and identify innovative approaches to promote internationally recognized labor rights throughout the supply chain, including by collaborating with labor organizations, workers, and other labor stakeholders to consider efforts that support worker-led monitoring of labor rights compliance.
  • The Mineral Security Partnership (MSP). The Department of State, along with partners including Australia, Canada, Finland, France, Germany, India, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom, and the European Union (represented by the European Commission), established the MSP to accelerate the development of diverse and sustainable critical energy minerals supply chains. The MSP works with host governments and industry to facilitate targeted financial and diplomatic support for strategic projects along the value chain with an emphasis on those projects which adhere to and promote the highest labor, environmental and sustainability standards.
  • International Technology Security and Innovation (ITSI) Fund. Created by the CHIPS and Science Act of 2022, the ITSI Fund promotes the diversification of the global semiconductor supply chain. State will partner with countries to develop the most attractive economic environments for private investment. With ITSI Fund support, the Organization of Economic Cooperation and Development has established the Semiconductor Exchange Network allowing policymakers in the semiconductor industry to examine risks and interdependencies on the current state of the semiconductor ecosystem. Additionally, the ITSI Fund is supporting ecosystem reviews in key partner countries that will inform future collaboration on developing this critical sector.
Biden Administration, Climate Action, Economic Development, Infrastructure, Manufacturing, News & Photo Features, President Joe Biden

Biden-Harris Administration ‘Ensuring Future is Made in America’

Tritium Announces EV Charger Manufacturing Facility in Tennessee; To Produce Up To 30,000 Buy America-Compliant Chargers Per Year, Create 500 Jobs
 

As part of its effort to increase manufacturing while attacking climate change and transitioning the country to a clean-energy economy, the Bipartisan Infrastructure Law’s National Electric Vehicle Infrastructure Formula Program provides $5 billion over five years to help states create a network of EV charging stations along designated Alternative Fuel Corridors on the Interstate Highway System. © Karen Rubin/news-photos-features.com

This fact sheet from the White House details progress the Biden-Harris Administration has made to use a “whole of government” approach to revitalize the United States’ manufacturing base, strengthen critical supply chains, drive down prices, and position American workers and businesses to not just compete but lead the world in the 21st century:

Since his first day in office, President Biden relentlessly focused on an industrial strategy to revitalize our manufacturing base, strengthen critical supply chains, drive down prices, and position U.S. workers and businesses to compete and lead globally in the 21st century. This whole-of-government effort is leading to a historic recovery in domestic manufacturing. During President Biden’s first year in office, the economy added 367,000 manufacturing jobs – the most in nearly 30 years. The U.S. economy grew at the fastest pace in nearly 40 years in 2021, and manufacturing as a share of U.S. GDP has returned to pre-pandemic levels. Manufacturing activity has seen a significant expansion every month that President Biden has been in office, consistently above pre-pandemic levels.

The Build America, Buy America Act in the Bipartisan Infrastructure Law expands on the Biden-Harris Administration’s work to ensure that the future is made in America by American workers by strengthening and expanding Buy America rules to all taxpayer-funded infrastructure and public works projects.

President Biden and Jane Hunter, CEO of Tritium, announced that Tritium will break ground on its first U.S. manufacturing facility in Lebanon, Tennessee. This facility will house six production lines that will produce up to 30,000 Buy America-compliant DC Fast Chargers per year at peak production and create 500 local jobs.

This is the latest of announcements in recent weeks by major companies announcing investments in U.S. manufacturing and jobs, including Intel, General Motors, and Boeing, and more than $200 billion in investments in domestic manufacturing of semiconductors, electric vehicles, aircraft, and batteries announced since 2021.

In addition to Tritium, EV charging manufacturers large and small are investing and expanding U.S. operations, driven by the Administration’s economic strategy, Made in America policies, and the Bipartisan Infrastructure Law:

  • Siemens, which is investing and expanding its U.S. manufacturing operations to support electric vehicle infrastructure in America, will produce 1 million EV chargers by 2025. This investment, spurred by the passage of the Bipartisan Infrastructure Law, is the latest in the company’s strategic plan to meet accelerating electric vehicle charging demand, and expand its U.S. manufacturing capabilities.
     
  • ABB, which currently manufactures Buy America-compliant transit bus chargers in the U.S., will expand its US EV charging manufacturing operations, including Level 2 and DC Fast Chargers, over the coming five years, employing hundreds of Americans and producing thousands of EV chargers each year.
     
  • FreeWire Technologies, based in Oakland, California, currently manufactures Buy America-compliant battery-integrated EV charging equipment, and recently announced groundbreaking on a research, manufacturing, and testing facility in Newark, California. FreeWire currently employs and plans to add more than 200 jobs in electrification and clean energy in and around disadvantaged communities this year.
     
  • Dunamis Clean Energy Partners, a Black- and woman-owned EV charger manufacturer based in Detroit, Michigan, will manufacture Level 2 EV chargers and charging connectors in a new production facility in Detroit beginning this summer. Dunamis’ training and workforce development efforts will focus on underrepresented, economically disadvantaged communities most impacted by greenhouse gas emissions.

The future of the auto industry is electric, and America can own that future by building more here at home, creating good-paying jobs in the process. In August, President Biden set an ambitious target and roadmap to get to 50% of electric vehicle (EV) sale shares in the U.S. by 2030. The Bipartisan Infrastructure Law included a down payment on the EV future, with more than $7 billion in funding to secure an American EV supply chain, from materials processing to battery manufacturing and recycling, along with $7.5 billion to build out the first-ever nationwide public EV charging network.

This charging network will provide a convenient, reliable, affordable and equitable charging experience, with a focus on serving national highway corridors, rural areas, and underserved communities. It will also accelerate the adoption of electric vehicles, fight the climate crisis, and support domestic manufacturing jobs.

Later this week, Department of Transportation Secretary Buttigieg and Department of Energy Secretary Granholm will announce the state allocations and guidance for the Bipartisan Infrastructure Law’s National Electric Vehicle Infrastructure Formula Program, which will provide $5 billion over five years to help states create a network of EV charging stations along designated Alternative Fuel Corridors on the Interstate Highway System.

The Biden-Harris Administration has already taken action to prepare for the build-out of the nationwide public EV charging network.

  • In December, Vice President Harris announced the EV Charging Action Plan to outline the steps the Administration is taking to accelerate the EV charging investments in the Bipartisan Infrastructure Law.
     
  • In December, the Department of Energy and the Department of Transportation announced the creation of the Joint Office of Energy and Transportation, which will support and accelerate deployment of the national EV charging network, including by providing technical assistance to states as they develop their comprehensive EV charging plans.
     
  • Last week, the Department of Transportation released an EV Rural Charging Toolkit, a one-stop resource for rural communities to plan and implement EV charging infrastructure projects.
Biden Administration, Coronavirus Pandemic, Economic Development, Economic Policies, Government Regulation, Joe Biden, Manufacturing, National Security, News & Photo Features

Biden Signs Executive Order to Create Resilient, Secure Supply Chains for Critical Goods

From masks, to syringes, to vaccine, from medicine to computer chips, President Biden signed an executive order to create more resilient and secure supply chains for critical and essential goods so that Americans are never again left in the lurch. “This is about making sure the United States can meet every challenge we face in this new era — pandemics, but also in defense, cybersecurity, climate change, and so much more,” he said before signing an executive order. © Karen Rubin/news-photos-features.com 

President Joe Biden signed an Executive Order to help create more resilient and secure supply chains for critical and essential goods. 

In recent years, American households, workers, and companies have increasingly felt the strain of shortages of essential products—from medicine to food to computer chips. Last year’s shortages of personal protective equipment (PPE) for front-line healthcare workers at the beginning of the COVID-19 pandemic were unacceptable. Recent shortages of automotive semiconductor chips have forced slowdowns at car manufacturing plants, highlighting how shortages can hurt U.S. workers. 

While we cannot predict what crisis will hit us, we should have the capacity to respond quickly in the face of challenges. The United States must ensure that production shortages, trade disruptions, natural disasters and potential actions by foreign competitors and adversaries never leave the United States vulnerable again. Today’s action delivers on the President’s campaign commitment to direct his Administration to comprehensively address supply chain risks. The task of making our supply chains more secure can also be a source of well paid jobs for communities across our country, including in communities of color, and steps will be taken to ensure that the benefits of this work flow to all Americans. 

The Executive Order launches a comprehensive review of U.S. supply chains and directs federal Departments and Agencies to identify ways to secure U.S. supply chains against a wide range of risks and vulnerabilities. Building resilient supply chains will protect the United States from facing shortages of critical products.  It will also facilitate needed investments to maintain America’s competitive edge, and strengthen U.S. national security. 

Here are President Biden’s remarks before the signing of the executive order:

The Vice President and I had a very productive meeting with a bipartisan group of senators and House members to address an issue of both concern to our economic security, as well as our national security: the resilience and reliability of our critical supply chains.
 
This is a critical area where Republicans and Democrats agreed it was one of the best meetings — it’s the best meeting I think we’ve had so far, although we’ve only been here about five weeks.  But it was like the old days — people actually are on the same page. 
 
Good, bipartisan work has already been done.  The leaders of this operation in the House and Senate already have done great work, and I want to thank them for their leadership.
 
We’re here to build on that.  And the bottom line is simple: The American people should never face shortages in the
goods and services they rely on, whether that’s their car or their prescription medicines or the food at the local grocery store.
 
And remember, the shortages in PPE during this pandemic –that meant we didn’t have the masks; we didn’t have gowns or gloves to protect our frontline health workers.
 
We heard horror stories of doctors and nurses wearing trash bags over their gown — over their dress in order to — so they wouldn’t be in trouble, because they had no gowns.  And they were rewashing and reusing their masks over and over again in the OR.
 
That should never have never happened.  And this will never happen again in the United States, period.  We shouldn’t have to rely on a foreign country — especially one that doesn’t share our interests or our values — in order to protect and provide our people during a national emergency. 
 
That’s why one of the first executive orders I signed, as some may remember, was to ensure that we’re manufacturing more
protective equipment for healthcare workers here at home.
 
And today, I’m shortly going to be signing another executive order that’ll help address the vulnerabilities in our supply chains across additional critical sectors of our economy so that the American people are prepared to withstand any crisis and rely on ourselves.
 
This is about making sure the United States can meet every challenge we face in this new era — pandemics, but also in defense, cybersecurity, climate change, and so much more.  And the best way to do that is by protecting and sharpening America’s competitive edge by investing here at home.  As I’ve said from the beginning, while I was running: We’re going to invest in America.  We’re going to invest in American workers.  And then we can be in a much better position to even compete beyond what we’re doing now.
 
Resilient, diverse, and secure supply chains are going to help revitalize our domestic manufacturing capacity and create good-paying jobs, not $15 an hour — which is what we need to do someday.  And sooner is better, in my view.  But jobs that are at the prevailing wage. 
 
We’re going to spare new — spur new opportunities for small businesses, communities of color, and economically distressed areas.  And I will drive new investment in research and innovation and our workforce, investing in training and university partnerships that are going to lead to new technologies and new solutions. 
 
And all this won’t just strengthen our domestic capacity, it will help unleash new markets around the world and grow opportunities for American businesses to export their goods that we’re going to be making. 
 
These are the kinds of commonsense solutions that all Americans can get behind — workers and corporate leaders, Republicans and Democrats.  It’s about resilience, identifying possible points of vulnerabilities in our supply chains, and making sure we have the backup alternatives or workarounds in place. 
 
Remember that old proverb: “For want of a nail, the shoe was lost.  For want of a shoe, the horse was lost.”  And it goes on and on until the kingdom was lost, all for the want of a horseshoe nail.  Even small failures at one point in the supply chain can cause outside impacts further up the chain. 
 
Recently, we’ve seen how a shortage of computer chips — computer chips like the one I have here — you can hardly see it I imagine; it’s called a “semiconductor” — has caused delays in production of automobiles that has resulted in reduced hours for American workers.  A 21st century horseshoe nail. 
 
This semiconductor is smaller than a postage stamp, but it has more than 8 billion transistors — 8 billion transistors, 10,000 times thinner than a single human hair in this one chip.  These chips are a wonder of innovation and design that powers so much of our country, enables so much of our modern lives to go on — not just our cars, but our smartphones, televisions, radios, medical diagnostic equipment, and so much more.
 
We need to make sure these supply chains are secure and reliable.  I’m directing senior officials in my administration to work with industrial leaders to identify solutions to this semiconductor shortfall and work very hard with the House and Senate.  They’ve authorized the bill, but they need (inaudible) $37 billion, short term, to make sure we have this capacity.  We’ll push for that as well.  But we all recognize that the particular problem won’t be solved immediately. 
 
In the meantime, we’re reaching out to our allies, semiconductor companies, and others in the supply chain to ramp up production to help us resolve the bottlenecks we face now.  We need help to stop — we need to stop playing catch up after the supply-chain crisis hit.  We need to prevent the supply chain crisis from hitting in the first place. 
 
And in some cases, building resilience will mean increasing our production of certain types of elements here at home.  In others, it’ll mean working more closely with our trusted friends and partners, nations that share our values, so that our supply chains can’t be used against us as leverage. 
 
It will mean identifying and building surge capacity that can quickly be turned into and ramped up production in times of emergency.  And it will mean investing in research and development, like we did in the ’60s, to ensure long-term competi- — competitiveness in our manufacturing base in the decades ahead.
 
The order I’m about to sign does two things.  First, it orders a 100-day review of four vital products: semiconductors — one; key minerals and materials, like rare earths, that are used to make everything from harder steel to airplanes; three, pharmaceuticals and their ingredients; four, advanced batteries, like the ones used in electric vehicles.
 
There’s strong bipartisan support for fast reviews of these four areas because they’re essential to protecting and strengthening American competitiveness.
 
Second, this order initiates a long-term review of the industry basis of six sectors of our overall economy over the next year.  These reviews will identify policy recommendations to fortify our supply chains at every step, and critically, to start implementing those recommendations right away.  We’re not going to wait for a review to be completed before we start closing the existing gaps. 
 
And as we implement this work, my administration will draw on a full range of American talent — including labor and industry leaders, policy experts, scientists, farmers, engineers — to get their input. 
 
I’m grateful for the members of Congress who came to see me — Republican leaders, as well as Democrats.  They’re leading the way.  We’re going to stay in close contact with members of both sides of the aisle and keep advancing our shared goals. 
 
Everyone has a role to play to strengthen our supply chains in our — and our country.  This is the United States of America.  We are better prepared to meet the challenges of the 21st century than any country in the world.  There’s nothing, nothing, nothing we’ve ever failed to achieve if we work together.  And that’s what we decided to do today, and that’s what we’re going to do: work together. 
 
So I thank you all.  I’m very optimistic about the meeting we had today with our congressional colleagues.  And now I’m going to walk over and sign that executive order.
 
(The executive order is signed.)

FACT SHEET:
 Securing America’s Critical Supply Chains
 

First, the order directs an immediate 100-day review across federal agencies to address vulnerabilities in the supply chains of four key products.  

  1. Pharmaceuticals and active pharmaceutical agreements (APIs). APIs are the part of a pharmaceutical product that contains the active drug. In recent decades, more than 70 percent of API production facilitators supplying the U.S. have moved offshore.  This work will complement the ongoing work to secure supply chains needed to combat the COVID-19 pandemic. 
  2. Critical minerals, including rare earths. Critical minerals are an essential part of defense, high-tech, and other products. From rare earths in our electric motors and generators to the carbon fiber used for airplanes—the United States needs to ensure we are not dependent upon foreign sources or single points of failure in times of national emergency.  
  3. Semiconductors and Advanced Packaging. The United States is the birthplace of this technology, and has always been a leader in semiconductor development. However, over the years we have underinvested in production—hurting our innovative edge—while other countries have learned from our example and increased their investments in the industry.  
  4. Large capacity batteries, such as those used in electric vehicles: As we take  action to tackle the climate crisis, we know that will lead to large demand for new energy technologies like electric vehicle batteries. By identifying supply chain risks, we can meet the President’s commitment to accelerate U.S. leadership of clean energy technologies. For example, while the U.S. is a net exporter of electric vehicles, we are not a leader in the supply chain associated with electric battery production. The U.S. could better leverage our sizeable lithium reserves and manufacturing know-how to expand domestic battery production.

The 100-day review will identify near term steps the administration can take, including with Congress, to address vulnerabilities in the supply chains for these critical goods.

Second, the order calls for a more in-depth one-year review of a broader set of U.S. supply chains. The one-year review will include: 

  • A focus on six key sectors: the defense industrial base; the public health and biological preparedness industrial base; the information and communications technology (ICT) industrial base; the energy sector industrial base; the transportation industrial base; and supply chains for agricultural commodities and food production. 
  • A set of risks for agencies to consider in their assessment of supply chain vulnerabilities: Agencies and Departments are directed to review a variety of risks to supply chains and industrial bases.  For example, these reviews must identify critical goods and materials within supply chains, the manufacturing or other capabilities needed to produce those materials, as well as a variety of vulnerabilities created by failure to develop domestic capabilities.  Agencies and Departments are also directed to identify locations of key manufacturing and production assets, the availability of substitutes or alternative sources for critical goods, the state of workforce skills and identified gaps for all sectors, and the role of transportation systems in supporting supply chains and industrial bases.  
  • Recommendations on actions that should be taken to improve resiliency: Agencies are directed to make specific policy recommendations to address risks, as well as proposals for new research and development activities.
  • A sustained commitment to supply chain resiliency: The government will commit to a regular, ongoing process of reviewing supply chain resilience, including a quadrennial review process. 
  • Consultation with external stakeholders: The government cannot secure supply chains on its own. It requires partnership and consultation with the American people. The E.O. directs the Administration to consult widely with outside stakeholders, such as those in industry, academia, non-governmental organizations, communities, labor unions, and State, local, territorial, and Tribal governments.

  The E.O. will build on bipartisan Congressional action and leadership on this issue, and the Administration will remain in close touch with Congress to solicit recommendations during the review.  President Biden has also directed his Administration to work with U.S. partners and allies to ensure that they too have strong and resilient supply chains.

President Biden has directed his Administration to ensure that the task of building resilient supply chains draws on the talent and work ethic of communities across America, including communities of color and cities and towns that have for too long suffered from job losses and industrial decline. As the Administration implements the Executive Order, it will identify opportunities to implement policies to secure supply chains that grow the American economy, increase wages, benefit small businesses and historically disadvantaged communities, strengthen pandemic and biopreparedness, support the fight against global climate change, and maintain America’s technological leadership in key sectors. 

Coronavirus Pandemic, Democrats 2020, Economic Policies, Economy, Election 2020, News & Photo Features

As Nation Faces New Shortages of Critical Medical Equipment, Biden Presents Plan to Rebuild US Supply Chains

Vice President Joe Biden, recognizing the nation faces yet another dire shortage of PPE as the coronavirus pandemic surges, is proposing a plan to rebuild US supply chains so the nation never faces future shortages of critical equipment (c) Karen Rubin/newssphotos-features.com.

In face of criminal lack of leadership by Trump in the midst of the worst public health crisis in a century and the worst economic condition since the Great Depression, Vice President Joe Biden, the presumptive Democratic nominee for president, is showing what a real leader would do. With the nation facing yet another dire shortage of PPE, Biden is offering his plan to rebuild US supply chains so that the nation never faces future shortages of critical equipment. This is from the Biden campaign—Karen Rubin/news-photos-features.com

FACT SHEET:
The Biden Plan to Rebuild U.S. Supply Chains and Ensure the U.S. Does Not Face Future Shortages of Critical Equipment

Joe Biden will work to ensure that the U.S. does not face shortages of the critical products America needs in times of crisis and to protect our national security. To combat the COVID-19 pandemic, Biden will immediately marshal all of the tools of the Federal government to secure sufficient supplies, treatments, and, as soon as possible, a vaccine to combat the pandemic. At the same time, he will implement fundamental reforms that shift production of a range of critical products back to U.S. soil, creating new jobs and protecting U.S. supply chains against national security threats.

While medical supplies and equipment are our most pressing and urgent needs, U.S. supply chain risks are not limited to these items. The U.S. needs to close supply chain vulnerabilities across a range of critical products on which the U.S. is dangerously dependent on foreign suppliers. America needs a stronger, more resilient domestic supply chain in a number of areas, including energy and grid resilience technologies, semiconductors, key electronics and related technologies, telecommunications infrastructure, and key raw materials.
 
The critical supplies America needs today may be different from the critical supplies needed in the future as technologies and markets evolve. That’s why Biden will institute an ongoing, comprehensive government-wide process to monitor supply chain vulnerabilities, designate vitals products where the U.S. needs to address supply chain vulnerabilities, and immediately close identified gaps. He will work collaboratively with the private sector to improve productivity and avoid unnecessary costs and bureaucracy.
 
The goal here is not pure self-sufficiency, but broad-based resilience. Biden’s plan will strive to ensure that America doesn’t face a shortage of vital goods — to deal with any future crisis or fundamental national need — through a combination of increased domestic production, strategic stockpiles sized to meet our needs, cracking down on anti-competitive practices that threaten supply chains, implementing smart plans to surge capacity in a time of crisis, and working closely with allies.
 
He will initiate this process with a 100-day review immediately upon taking office to identify critical national security risks across America’s international supply chains and will ask Congress to enact a mandatory quadrennial Critical Supply Chain Review to institute this process permanently.
 
As President, Joe Biden will:

Use the full power of the federal government to rebuild U.S. domestic manufacturing capacity of our supply chains for critical products.

Implement a comprehensive approach to ensure the U.S. has the critical supplies it needs for future crises and its national security

Work with allies to protect their supply chains and to open new markets to U.S. exports. 

Use the full power of the Federal Government to rebuild domestic manufacturing capacity in our critical supply chains
 
Joe Biden will soon release a comprehensive strategy to create American jobs through modern American manufacturing. Today, he is announcing a set of targeted proposals to ensure the United States has the domestic manufacturing capacity necessary for critical supply chains. He will:
 
Use the Defense Production Act (DPA) to put Americans to work manufacturing critical products, including those immediately needed to respond to the COVID-19 pandemic. The DPA grants the President broad authority to mobilize the domestic industrial base toward emergency preparedness. The Trump administration is still dragging its feet on using the DPA to produce urgently-needed supplies to combat the COVID-19 pandemic, and has fallen far short of the domestic mobilization we need. For example, months into the crisis we still face a shortage of N95 masks. By contrast, Biden will use the DPA to direct U.S. companies to ramp up production of critical products that will be needed over the near-term. He will also use the 100-day review process to determine the best way forward over the mid- and long-term. 
 
As President, Biden will use the DPA to its fullest extent to rebuild domestic manufacturing capacity in critical supply chains, using the lessons learned from the COVID-19 pandemic and applying them to our national needs. Biden understands that improving the resilience of U.S. supply chains requires working closely with the American private sector. As part of this effort, he will pursue competitive public-private partnerships to encourage and invest in innovative manufacturing technology and capacity. 
 
Use federal purchasing power to bolster domestic manufacturing capacity for designated critical products. In addition to using DPA authority to ensure the U.S. prioritizes emergency preparedness, Biden will direct the federal government’s purchasing power to support manufacturing capacity for products designated as critical to U.S. national security. The government has authority in the Procurement Act of 1949, which permits the president to establish “policies and directives” for federal procurement, and Joe Biden will use that authority to build up capabilities throughout the supply chain. Biden’s use of federal purchasing power to build U.S. manufacturing capacity for critical products will focus not only on where the final product sold to the U.S. government comes from, but at the supply chains of companies that receive large federal contracts. Biden will outline a bold and specific procurement agenda in the coming days.
 
Build long-term supply chain resilience for pharmaceuticals: The COVID-19 pandemic has highlighted the particular vulnerabilities the U.S. faces with its pharmaceutical and medical device supply chains. According to the FDA, more than 70% of active pharmaceutical ingredient (API) facilities that supply the U.S. market are located abroad, and U.S. pharmaceutical imports have been rising for years. A substantial amount of this production is happening in places with labor costs comparable to the U.S.
 
Meanwhile, medicines remain far more expensive in the U.S. than in many countries in part because drug makers fail to pass any saving on to consumers. Given the world-class productivity of American manufacturers  combined with a robust set of measures to make medicines more affordable for families, such as allowing Medicare to negotiate lower drug costs, we should be able to increase American production and ensure the security of medical supply chains without raising prices for consumers. Moreover, Biden has offered a comprehensive healthcare plan that will reduce medical costs for millions of Americans while guaranteeing expanded healthcare coverage.
 
As President, Joe Biden will:

Use BARDA to spur medical production: Biden will use the Biomedical Advanced Research and Development Authority (BARDA), which has received billions of dollars to combat COVID-19, to ensure adequate production of vaccines and other medical countermeasures to address COVID-19. Biden will ensure that BARDA engages in science-based purchasing decisions and that it puts Americans to work rebuilding U.S. medical production capabilities by providing incentives for the production of vaccines and other medicines in the U.S. Biden is also prepared to use other federal authorities, including direct compulsory licensing of vaccines where companies are slow in producing them or are charging excessive prices, to rapidly scale up vaccine production as needed.
 

Leverage Federal health care purchases: Biden will work to ensure that the U.S. leverages the fact that it is the largest purchasers of health care–between Medicare, Medicaid, the Department of Veterans Affairs, and other health programs as well as Federal procurement more generally–to encourage pharmaceutical companies to make key drugs, drug inputs, and medical devices in the United States while ensuring fair and transparent pricing. He will require the FDA Commissioner, the Centers for Disease Control, and the Department of Defense to identify critical drugs and medical products and create a market for American manufacturing by directing federal agencies to purchase versions of these drugs that are made in the U.S. and that use U.S.-made source ingredients. Biden will take steps to ensure that these measures do not increase the out-of-pocket drug costs for Americans.
 

Ensure the U.S. tax code encourages on-shoring of pharmaceutical supply chains: Pharmaceutical offshoring has been heavily driven by tax code provisions that have encouraged companies to locate pharmaceutical production in low-tax countries even where those countries have labor and other costs comparable to the U.S. Biden will eliminate Trump Administration tax incentives for offshoring and pursue other tax code changes that will encourage pharmaceutical production in the U.S. 

Implement a comprehensive approach to ensuring that the U.S. has the critical supplies it needs

Much as the Department of Defense periodically studies defense supply chains and pursues systematic policies to close vulnerabilities, Biden will launch a comprehensive review of U.S supply chain vulnerabilities and implement a national strategy to close them. He will sign a comprehensive Executive Order to inventory U.S. supply chain vulnerabilities, directing relevant agencies to identify the specific critical products where the U.S. faces national security supply chain vulnerabilities and to address these weaknesses immediately. And he will work with the Congress to pass a law making this process permanent as part of a quadrennial Critical Supply Chain Review that will include updating the list of critical products that will be the focus of supply chain security planning.
 
Biden will ensure that the U.S. has adequate stockpiles of critical supplies in place for future crises, manufactured by American workers in the United States to the greatest extent possible. Our country should not face shortages in the future like those we are facing today under Trump.

Increase federal stockpiles: Biden will increase U.S. strategic stockpiles of medical supplies and other critical goods while using federal procurement authorities to ensure that stockpiled products are made in the U.S. to the greatest extent possible, thereby creating an incentive for on-shoring production of those goods.
 

Require companies to develop plans to address potential supply chain disruptions for critical products. Biden will work with Congress and direct regulatory agencies to require companies that manufacture, distribute, and use designated critical products in the U.S. to regularly identify potential supply chain vulnerabilities and develop plans for addressing them. Where necessary to protect critical infrastructure and supplies, he will impose targeted restrictions on imports from nations such as China and Russia that pose national security threats.
 

Promote surge manufacturing capacity. Biden will work with Congress and the private sector to develop standing plans to enable surge manufacturing capacity in the United States for key critical products. This will include:

Compensating companies where necessary for maintaining excess production capacity and inventory for designated critical products;

Encouraging companies to create databases of product designs for supplies that might be needed during a national crisis;

Using legal authorities during crises to ensure product designs and patents can be licensed and utilized quickly if needed to ramp up production in the U.S.; and

Pursuing public-private partnerships to improve manufacturing capacity. The National Network for Manufacturing Innovation initiative (NNMI) put in place by the Obama-Biden administration, and now receiving bipartisan support, is one example of such a program.
 

Invest in a new Critical Supply Chains Workforce: Joe Biden knows that to make critical supplies in the U.S. over the long term, we need a skilled workforce that can produce them. Biden will create a new Critical Supply Chains Workforce Development Fund that will invest in the workforce skills needed to help bring back manufacturing of key supply chain products and components. He will partner with state, local, and tribal governments to maintain adequate base production capacity in every region of the country and to put in place executive functions that have clear chains of command. This will ensure that that in future times of crisis the U.S. will be able to quickly ramp up production, rather than the chaotic, belated, and largely failed efforts we have seen under the Trump Administration to secure badly needed medical gear, including personal protective equipment.
 

Create new incentives to spur domestic production of critical products in the United States: Biden will work with Congress, states, tribes, and localities to provide targeted investments and incentives for companies to manufacture designated critical products in the U.S. This will include new targeted financial incentives, including tax credits, investments, matching funds for state and local incentives, R&D support, and other incentives to encourage the production of designated critical materials such as semiconductors in the United States.

Work with allies to protect their supply chains and to open new markets to U.S. exports

Instead of insulting our allies and undermining American global leadership, Biden will engage with our closest partners so that together we can build stronger, more resilient supply chains and economies in the face of 21st century risks. Just like the United States itself, no U.S. ally should be dependent on critical supplies from countries like China and Russia. That means developing new approaches on supply chain security — both individually and collectively — and updating trade rules to ensure we have strong understandings with our allies on how to best ensure supply chain security for all of us. As president, Joe Biden will:
 
Take action against our competitors when they refuse to honor trade agreements: U.S. manufacturers rely on raw materials like cobalt, copper, graphite, and tin to make a range of products, but foreign governments sometimes take illegal steps to keep these materials away from U.S. companies. China, for example, has a history of levying a tax on raw material shipments to U.S. producers, while allowing its companies to receive the material at cost—putting U.S. companies at a steep disadvantage. Biden will hold our competitors accountable when it comes to trading in raw materials, giving our manufacturers the right to purchase critical materials at the same price as foreign companies.
 
Deploy trade policy tools and regulations to create new markets for U.S.-made critical products. Under Biden, the United States will not just have greater supply chain security itself; our new production capacity will also result in greater U.S. export capacity, creating new opportunities for U.S. workers and businesses while also helping more parts of the world reduce their own over-reliance on countries like China. This is a win-win for the U.S. and the world.