Shortages of essential medical supplies, semiconductors, and other goods and materials during the Covid-19 pandemic have dramatically exposed the vulnerabilities of global supply chains. U.S. government officials have been carrying out President Biden’s executive order to propose remedies to the risks that such networks pose to four specific areas (pharmaceuticals, strategic materials such as rare earth minerals, semiconductors, and large-capacity batteries) and six sectors of the economy (defense, public health, communications technology, energy, transportation, and food production). We think they will find one fundamental cause is the erosion of the U.S. “industrial commons” — the domestic capabilities needed to support the development and production of many goods deemed critical to U.S. interests.
The Challenge of Rebuilding U.S. Domestic Supply Chains
Lessons from one Massachusetts company’s attempts to meet soaring demand for PPE.
May 26, 2021
Summary.
Massachusetts-based Shawmut scrambled to expand production to meet the soaring demand for N95 masks and hospital gowns during the pandemic. Its experiences illustrates a crucial point that policymakers should take to heart: Once a country loses its industrial commons points — the capabilities needed to support the development and production of many goods — restoring it is hard. This analysis of Shawmut’s efforts offers lessons for how to rebuild the U.S. commons for critical sectors of the economy.
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