Equipment manufacturers took note recently when President Biden signed his Executive Order on America’s Supply Chains (EO). At its core, the new EO directs two reviews to be conducted – a 100-day supply chain risk review of semiconductor manufacturing and advanced packaging, electric vehicle batteries, critical minerals, and pharmaceuticals, and a far more complex one-year supply chain review including sectors overlapping with equipment manufacturing.

Over the course of the one-year review, agency heads will submit reports on supply chains for related sectors, including the defense industrial base and dependencies on competitor nations; public health and biological preparedness; information and communications technology including software, data and associated services; energy sector industrial base; transportation industrial base, and agricultural commodities and food products.

The review will not only study goods and materials within the supply chains of these sectors, but also the manufacturing capabilities (including emerging technology) that is required to produce the materials and the risks that might compromise those supply chains. AEM expects future public consultations to occur with industry stakeholders and, when appropriate, the Association will work on behalf of its members to advise the administration on how supply chains are critical to U.S. equipment manufacturers.

The Assistant to the President for National Security Affairs (APNSA) and the Assistant to the President for Economic Policy (APEP) are tasked with utilizing the information in those reports and future public consultations to develop recommendations to strengthen America’s supply chains. Proposed changes could include new regulations, statutes, trade rules, and trade agreements.

Congress will also examine how supply chains impact national security and the U.S. economy. Future congressional hearings and the introduction of legislation is anticipated. AEM recognizes many policy areas included within the scope of these reviews have significant impact on U.S. equipment manufacturing.

AEM will continue to engage government stakeholders, submit public comments, and survey our membership on how proposed changes to supply chains would impact the U.S. equipment manufacturing industry. In addition, AEM will continue to monitor the result of the initial reviews established in the Executive Order over the next 100 days, and into the next year, as well as provide industry analysis.

To provide AEM comment on how your company is negatively impacted by current U.S. supply chain challenges, or to learn more, please contact AEM’s Alex Russ at aruss@aem.org.

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