Skip to content
  • (408) 883-8053
  • [email protected]
Facebook-f Twitter Linkedin
  • Blog
  • Careers
  • Demo
  • Login
Menu
  • Blog
  • Careers
  • Demo
  • Login
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
ANNOUNCEMENT: Resilinc Announces Strategic Growth Investment from Vista Equity Partners Read More
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub
ANNOUNCEMENT: Resilinc Announces Strategic Growth Investment from Vista Equity Partners Read More
Facebook-f Twitter Linkedin
  • Blog
  • Careers
  • Demo
  • Login
Menu
  • Blog
  • Careers
  • Demo
  • Login
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub

Home / Blogs / Breaking down the White House supply chain report

Resilinc-Blog-Feature-American-Flag

Breaking down the White House supply chain report

Jun 22, 2021

Resilinc Editorial Team

Geopolitical, Reshoring, Supply Chain Resilience

In its new report on supply chain resiliency, the Biden Administration declares the vulnerability of supply chains to be a threat to national security. Four industries in particular were called out: semiconductors; high-capacity batteries; critical minerals and materials; and pharmaceuticals/APIs.

Co-authored by the departments of commerce, energy, defense and health and human services, the report concludes that the United States lacks the “ecosystem of innovation, skills, and production facilities” that is essential to military preparedness.

Dependence on foreign medical supplies “impairs our ability to counter threats ranging from pandemics to bio-terrorism.” And China’s dominance of critical minerals and materials such as lithium, cobalt and tantalum could put at risk the country’s core “economic security.”

In its 249 pages, the report recommends a 180-degree pivot away from what has been the dominant driver in supply chain design—“efficiency and low costs”—to a new paradigm that emphasizes “security, sustainability and resilience.”

The report authors advocate rebuilding “our small and medium-sized business manufacturing base.” And to staff this rebuilt American manufacturing sector, they advocate reversing what they call “decades of focusing on labor as a cost to be controlled [rather than] an asset to be invested in.”

And if those goals weren’t ambitious enough, the heads of the four influential agencies advocate a fundamental change in corporate strategies. U.S. corporations, they argue, should put less emphasis on boosting “quarterly earnings” by keeping wages and other costs down and shift to “high-road” strategies that include raising wages, investing more in R&D, and paying out less on dividends and stock buybacks.

The report also advocates reshoring of production to the United States as part of a wider strategy. “While expanded domestic production of critical goods must be part of the solution to America’s supply chain vulnerabilities, the United States cannot manufacture all needed products at home,” it states. Resilient supply chains must still be “globalized” but with greater geographic diversification and an emphasis on trading and cooperating “with nations who share our values [of] human dignity, worker rights, environmental protection, and democracy.”

The authors recommend that the U.S. emulate other countries—especially European countries—that have “successfully invested in policies that distributed the gains from globalization more broadly, including to workers and small businesses.”

Also worthy of imitation are the industrial policies of countries like Taiwan, South Korea, and Singapore where national governments have subsidized semiconductor R&D and manufacturing. Even China is given respect in this regard. While many of its “aggressive measures … are well outside globally accepted fair trading practices,” the world’s most populous nation has increased the “resilience and competitiveness of key economic sectors” through funding R&D, incentivizing domestic demand and creating “strategic international partnerships.”

The report goes into extraordinary detail describing the global structures and interdependencies of the four industries examined. And at points, its lengthy series of prescriptions seem more like wish lists from idealistic graduate students or liberal think tank staffers rather than a sober analysis of what’s politically and economically feasible.

For example, the section on high-capacity batteries recommends sharply increasing U.S. capacity to mine and refine lithium, but it pays little attention to the environmental challenges that would entail. In a critical analysis of the report by Eleanor Wragg of Global Trade Review, an IHS Markit analyst questioned whether U.S. communities will be willing to “incur the environmental cost” of refining lithium.

Wragg also questions the administration’s grasp of how much will be required in subsidies and incentives to bring advanced manufacturing back to the United States. “The type of manufacturing facilities being targeted as part of the administration’s policy represent an enormous amount of capital investment, and moving production from one country to another is not a decision corporates take lightly,” she writes.

Still, Wragg and her expert sources give the administration credit for making “a bold statement about the direction of travel for U.S. supply chains and manufacturing.”

“This is a long-term investment process,” Tom Runiewicz, associate director, world industry service at IHS Markit, told Wragg. “It’s going to take a number of years, but this document is looking far ahead and saying, this is where we are going to be heading and it’s going to take a while, but everybody should be aware that the United States is in a diversification process.”

 

Resilinc Annual Report 2022 - Turbulence

White Paper

Cutting-edge Insights from Resilinc's Annual Report 2022

Be Prepared with the Latest Trends and Exclusive EventWatchAI Data to Step Up Your SCRM

Download Now

Recent Posts

Critical Cancer Drugs, Other Life-Saving Medications Face Severe Shortages

Forced Labor in the Automotive Supply Chain: What Car Companies Can Do

4 Crucial Commodities to Watch in 2023

CHIPS Update: New Vision for a National Semiconductor Technology Center

Which Industries Have Been Impacted by UFLPA?

5 Ways to Mitigate ESG Risks in Your Supply Chain

Resilinc’s Q1 2023 Supply Chain Disruption Data

Introducing EventWatchAI 5.0: 100M New Sources, Near Real-Time Reporting

About Resilinc

We’re the world’s leading supply chain monitoring, mapping, and resiliency solution. Over 100k organizations partner with us to take their SCRM programs from reactive to resilient.
Request Demo

Recent Blogs

Loading...
Image of a doctor with purple gloves, filling a syringe. Many of the cancer drug shortages are injectables.
May 30, 2023
4 MIN READ
Resilinc Editorial Team

Critical Cancer Drugs, Other Life-Sav...

Cancer drugs have once again become one of the top five drugs in short supply....
Healthcare, Human Health, Supply Chain Disruptions
May 23, 2023
5 MIN READ
Resilinc Editorial Team

Forced Labor in the Automotive Supply...

Believe it or not, the car you’re driving around likely has parts made with forced...
Automotive, Automotive Industry
A cobalt quarry with dust clearing.
May 16, 2023
5 MIN READ
Resilinc Editorial Team

4 Crucial Commodities to Watch in 2023

Your business likely relies on raw materials experiencing significant price fluctuations or shortages. Many industries...
Commodity management, Rare earth minerals
Read All Blogs

Who's in your supply chain?

Better visibility starts now

Email Now|Call Now|Chat Now

Receive our monthly NewsWatch digest

Subscribe
Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Solutions

Blog

Careers

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • Solutions
  • Blog
  • Careers
  • Solutions
  • Blog
  • Careers

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

© 2023 Resilinc Corporation. All rights reserved.

Data Security

Privacy Policy

Unlock the Secrets of Building a World-Class Supply Chain Resiliency Program

Discover Best Practices and Proven Strategies with Our 2023 Ultimate Guide to SCRM

           Download Guide