Dive Brief:
- There is bipartisan support in the House and Senate for legislation to strengthen U.S. supply chains for critical industries, including through the establishment of a government-wide working group to identify potential bottlenecks and opportunities to build domestic manufacturing capacity.
- The House Committee on Energy and Commerce on Tuesday voted 50-1 to advance H.R. 2444, the Promoting Resilient Supply Chains Act. Companion bill S. 257 was passed out of the Senate Commerce, Science and Transportation Committee in February.
- The National Electrical Manufacturers Association is calling for lawmakers to act on the bill quickly. “Collaboration among government, manufacturers, and the electroindustry is critical to ensuring a reliable, resilient supply chain,” NEMA Senior Vice President of Public Affairs Spencer Pederson said in a Wednesday statement.
Dive Insight:
The legislation would authorize the Department of Commerce to bolster domestic supply chains for “critical and emerging technologies” by working with the private sector and government partners to anticipate and prevent potential disruptions.
The proposal would task the Assistant Secretary of Commerce for Industry and Analysis with leading the working group, encouraging the “growth and competitiveness of United States production and manufacturing,” and assessing “the resilience, diversity, and strength of critical supply chains and critical and emerging technologies.”
The assistant secretary would also “assist the Federal Government in preparing for and responding to supply chain shocks to critical supply chains, including by improving flexible manufacturing capacities and capabilities in the United States,” according to the legislation.
If passed, the legislation would require the assistant secretary to deliver a report to Congress within 18 months outlining critical supply chain resiliency and manufacturing capabilities within the U.S. The bill is being debated at a time when demand for electricity is rising, at the same time supplies of critical grid equipment are constrained.
According to NEMA, delivery of a new transformer ordered today can take up to three years — whereas five years ago, procurement times were running four to six weeks.
“We urge Congress to take swift action to advance this legislation and look forward to continuing our work with lawmakers on both sides of the aisle to strengthen our nation’s manufacturing base and supply chains, lower costs for American families, and bolster critical electrical infrastructure,” Pederson said in a statement.
The legislation was originally introduced in 2023. On the Senate side, the bill was reintroduced this year by Sens. Maria Cantwell, D-Wash., Marsha Blackburn, R-Tenn., and Lisa Blunt Rochester, D-Del.
“One supply chain shock can disrupt the entire system, driving shortages and raising costs,” Cantwell said in a February statement. “Our legislation will get the government, businesses and manufacturers working together to identify gaps and build capacity to prevent supply chain disruptions before they happen. It will strengthen American manufacturing jobs, keep our store shelves stocked and lower costs for American families.”
