President Joe Biden has issued a 100-day executive order for supply chain review of multiple industries like semiconductor manufacturing and high-capacity batteries, rare earth minerals, and medical supplies. Several federal agencies will also analyze the vulnerabilities in sectors like defense, public health, telecommunications, energy, and transportation. Want to know more? In this article at Detroit News, Riley Beggin and Kalea Hall provide a comprehensive report.
Ordering a Supply Chain Review
Per the executive draft order, “Pandemics, cyberattacks, climate shocks and extreme weather events, terrorist attacks, economic competition, and other events can all potentially threaten the availability of critical and essential goods and materials.”
Implementing this order would enable the country “to protect national security and meet America’s needs during emergencies and in the face of global geopolitical competition.”
To be issued by the end of the month, the supply chain review order is yet to be finalized.
- Agencies are set to review actions taken by the federal government and accordingly provide solutions.
- Policymakers are concerned about the U.S. being ‘too reliant’ on countries like China for essential goods.
- The White House is in talks with Taiwan officials to address the acute semiconductor chip scarcity faced by in-house automakers and suppliers like General Motors Co., Ford Motor Co., and Stellantis NV.
- Ann Wilson, senior VP of government affairs for the Motor & Equipment Manufacturers, remarked that the supply chain review order is “critical to U.S. manufacturing and U.S. jobs.”
- According to IHS Markit, chip scarcity will cost the industry ‘1 million units of production in the first quarter’.
- Chief Financial Officer John Lawler revealed that Ford is to lose pre-tax earnings between $1 billion and $2.5 billion in 2021. Additionally, General Motors will lose $1.5 to $2 billion.
- Phil Amsrud, principal senior analyst at IHS Markit, assures it will get better after hitting rock bottom. Furthermore, he stated that the industry “needs to make supply assurance as high a priority as cost savings to incentivize the supply chain to be more diverse.”
To view the original article, visit the following link: https://www.detroitnews.com/story/business/autos/2021/02/18/biden-order-review-supply-chains-batteries-semiconductor-chips/4493057001/