Supply chain issues for telecom and other industries caused havoc for manufacturers and consumers during the COVID-19 pandemic. Many countries were unable to produce goods that companies rely on as critical components or materials and bottlenecks at American ports worsened these issues.
The pandemic is not the root cause for all the problems, it brought to light and accelerated previously existing issues, according to Gus Bilirakis (R-FL) who chairs the House Commerce Subcommittee on Innovation, Data and Commerce. That’s why lawmakers are considering a slate of bills to fix these problems. The bills under consideration “are a good opportunity to map, monitor and secure U.S. supply chains,” said Bilirakis during a hearing on the issue yesterday.
“Some supply chains are still not resilient and the United States’ reliance on China for critical supply chains is a significant danger for our economic and national security,” testified Alliance for American Manufacturing President Scott Paul. He noted, “China dominates production in hardware essential to 5G technology, IoT equipment, and commercial drones.”
“We should not question whether China will weaponize its supply chains and our reliance upon them to its advantage,” Paul said. However, he clarified, “The goal is not to build a wall” between the U.S. and other countries, but rather, to build up local businesses who may need policies that allow them to receive loans and grants to bring their manufacturing back to the U.S.
Paul said the U.S. “remains unprepared for future emergencies and supply chain shocks.” He suggested the country “take meaningful action to identify and mitigate supply chain vulnerabilities.” The federal government needs a dedicated office within the Commerce Department “with the necessary clout” to direct supply chain efforts. Other countries are ahead of the U.S. in this effort, Paul noted.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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