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Supply chain failures threaten US security and prosperity
August 02, 2021 | Chart
For decades, global supply chains have become integral to the US economy. But recent supply chain woes and severe bottlenecks reveal deep vulnerabilities in the international trade system, exemplified by the lack of personal protective equipment at the onset of the COVID-19 pandemic, and the current shortages of lumber, food packaging supplies, auto chips, and other essential goods. These disruptions will continue, unless policy makers and business leaders take action to minimize the economic and national security risks.
Throughout the course of the COVID-19 pandemic, trade – which is critical to GDP growth – has weakened. In 2020, imports made up 13.2% of GPD, whereas exports dropped to 10.2%. To ensure the US remains an innovative, competitive global leader, CED recommends a series of steps to strengthen US supply chains against potential outside disruptions. These steps include cultivating additional sources of materials, building stockpiles of goods, and maintaining standby production facilities for instances of extreme risk.
For more detail, please refer to the following report: Global Supply Chains: Compete, Don’t Retreat
