President Biden today will formally order a 100-day government review of potential vulnerabilities in U.S. supply chains for critical items, including computer chips, medical gear, electric-vehicle batteries and specialized minerals, the Washington Post reported. The directive comes as U.S. automakers are grappling with a severe shortage of semiconductors, essential ingredients in the high-tech entertainment and navigation systems that fill modern passenger vehicles. Biden’s executive order, which he is scheduled to sign this afternoon, also is aimed at avoiding a repeat of the shortages of personal protective gear such as masks and gloves experienced last year during the early months of the coronavirus pandemic. “We’re going to get out of the business of reacting to supply chain crises as they arise,” said one administration official, who spoke on the condition of anonymity to brief reporters. The president’s order, which had been anticipated, represents the partial fulfillment of a campaign pledge. But mandating a government study will be the easy part. Extensively modifying U.S. supply lines and reducing the country’s dependence upon foreign suppliers — after decades of globalization — could prove difficult and costly. Read more.
Explore the many issues that arise when suppliers are unable to make deliveries of promised parts due to financial problems with ABI's Interrupted! Understanding Bankruptcy's Effects on Manufacturing Supply Chains.
