Biden to launch task force on bottlenecks in supply chains – Honolulu, Hawaii

Honolulu, Hawaii 2021-06-08 23:11:00 –

Washington >> After completing a supply chain review, the Biden administration today announced that it will form a task force to address bottlenecks in the semiconductor, construction, transportation and agriculture sectors.

Government officials said the review goals detailed in the 250-page report were to increase domestic manufacturing, limit shortages of critical commodities, and reduce reliance on geopolitical competitors such as China. The administration is preparing for a crisis this year, such as a shortage of computer chips that has hit automakers, officials said.

“Our approach to supply chain resilience needs to look at new threats, from cybersecurity to climate issues,” Samera Fajri, deputy director of the White House National Economic Council, said at a press conference Tuesday. “And we are looking to the future.”

A 100-day review emphasizes that supply chains are important for national security, economic stability, and global leadership, and how the coronavirus pandemic and subsequent economic turmoil expose US supply chain vulnerabilities. Pointed out if they were exposed to ..

Raw material shortages make it difficult for the US economy to recover from the recession caused by the pandemic.The supply bottleneck provided Republicans and some economists with a basis for criticizing Biden’s $ 1.9 trillion coronavirus bailout package, but a blow of inflation that the administration believes is temporary. Helps to fuel

The new task force, led by the Secretaries of Commerce, Agriculture and Transport, will focus on parts of the economy where there is a supply-demand mismatch.

Fadzli said the shortage is “a kind of good problem” because it means that demand from consumers and businesses is returning. She said the new task force addresses bottlenecks. Gathering stakeholders to understand how to do this, he added that many of the resulting actions could be taken by private companies rather than the government.

“Many people were surprised at the success of the vaccination campaign and weren’t ready to recover demand,” said the inflation problem, which is temporary and expected to be resolved in the “next few months.” Mr. Fadziri said.

In addition to the task force, the government will take some other steps to strengthen its supply chain and extend its efforts throughout the government.

The Department of Health and Human Services uses the Defense Production Act to create a public-private partnership to manufacture essential medicines. We also plan to invest $ 60 million to increase production of pharmaceutical raw materials.

The Ministry of Energy will release a blueprint for developing a supply of lithium batteries and will also provide approximately $ 17 billion in advanced batteries to help shift the country to electric vehicles.

The Home Office will create a working group to determine where important minerals can be produced and processed in the United States. The Department of Commerce plans to increase cooperation and investment within the semiconductor industry, and the Ministry of Labor will announce a $ 100 million grant for state-led apprenticeship programs.

The Office of the United States Trade Representative will lead an attack force to target foreign competitors with unfair practices that have eroded the supply chain. The Department of Agriculture will spend more than $ 4 billion to strengthen its food supply chain.

Biden to launch task force on bottlenecks in supply chains Source link Biden to launch task force on bottlenecks in supply chains

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