America's Supply Chains

Mar 1, 2021
Mar 1, 2021

Summary

Starts a government-wide effort to find and fix weaknesses in the country's supply chains for important goods to protect our economy and national safety.

What problem does this solve?

Events like pandemics, cyber-attacks, and extreme weather can stop the flow of important goods, creating shortages and security risks. This order requires government agencies to study these supply chains, find the weak spots, and recommend ways to make them stronger and more reliable.

What does this order do?

Orders a 100-day review of critical supply chains
Requires federal agencies to report on the risks in four key areas within 100 days: semiconductor manufacturing, high-capacity batteries, critical minerals, and pharmaceuticals.
Requires one-year assessments of major industrial sectors
Directs agencies to submit in-depth reports within one year on the supply chains for six major sectors: defense, public health, information technology, energy, transportation, and agriculture.
Establishes a policy to strengthen American supply chains
Sets an official government policy to build resilient, diverse, and secure supply chains to ensure economic prosperity and national security.
Identifies specific risks to be evaluated
Requires reports to look at many risks, including reliance on unfriendly nations, single points of failure, workforce gaps, and threats from climate change.
Calls for policy recommendations to fix weaknesses
Asks for specific recommendations to make supply chains stronger, such as bringing production back to the U.S., working with allies, and creating new workforce training programs.
Assigns coordination to White House officials
Puts the Assistant to the President for National Security Affairs and the Assistant to the President for Economic Policy in charge of coordinating the government's actions.

Who does this affect?

  • U.S. manufacturers and businesses
  • Federal government agencies
  • American consumers

What is the real world impact?

Boosts domestic manufacturing and jobs
Encourages bringing manufacturing back to the U.S. and investing in American factories and workers. This aims to create jobs and strengthen the economy by making more essential products at home.
Strengthens national security
Reduces reliance on foreign countries for critical goods like medicine and computer chips. This makes the U.S. less vulnerable to global disruptions or political pressure from other nations.

When does this start?

This order establishes several deadlines for government agencies to complete reviews and submit reports.
100-day supply chain review
By June 4, 2021, agencies must submit reports on risks in four key supply chains: semiconductors, batteries, critical minerals, and pharmaceuticals.
One-year sectoral assessments
By February 24, 2022, various agencies must submit in-depth reports on the supply chains for six major industrial sectors, including defense, public health, and energy.