On December 20, 2024, the White House released its inaugural Quadrennial Supply Chain Review, which aims to strengthen economic security and enhance the resilience of U.S. supply chains. U.S. Secretary of Commerce Gina Raimondo emphasized the critical need to revitalize semiconductor manufacturing, noting that over 86% of U.S. goods industries are dependent on high-risk inputs. The review reveals that nearly 38% of industries rely on products sourced from a single country, raising concerns about supply chain vulnerabilities [bea59a38].
This review is part of a broader initiative by the Biden-Harris Administration, which has seen significant investments in information and communications technology (ICT) and semiconductors, exceeding $450 billion since taking office. Key initiatives include the CHIPS and Science Act and the Broadband Equity, Access, and Deployment Program, which aim to bolster domestic manufacturing capabilities and ensure reliable supply chains [bea59a38].
The establishment of the Council on Supply Chain Resilience earlier in the year has set the stage for these initiatives, focusing on various sectors such as clean energy, transportation, defense, and agriculture. The council aims to complete its first quadrennial supply chain review by December 2024 and will hold a Supply Chain Data Summit in 2024 [cd7d05ce].
In September 2024, the U.S. Department of Commerce launched the SCALE Tool, which assesses vulnerabilities in the supply chain ecosystem using over 40 indicators from government data sets. This tool is designed to guide decision-making and inform policy development, although it currently lacks access to real-time data [cd7d05ce].
The Biden administration's efforts to enhance supply chain resilience also include investments in domestic manufacturing of essential medicines and critical inputs, alongside a $42 million funding allocation for projects aimed at improving the reliability and flexibility of the domestic power grid. These projects are crucial for achieving President Biden's goal of a net-zero economy by 2050 [9fb8a8c0].
Additionally, the bipartisan 'Promoting Resilient Supply Chains Act' has been introduced in the Senate, aiming to create a comprehensive approach to mapping and strengthening American supply chains. This legislation proposes additional responsibilities for the Secretary of Commerce and the establishment of a critical supply chain resiliency program [5ff49b4f].
The recent outage at CrowdStrike, a cybersecurity firm, has further highlighted the vulnerabilities in the U.S. digital infrastructure, underscoring the importance of strengthening cybersecurity measures as part of the broader supply chain resilience strategy [9fb8a8c0].
Overall, the release of the Quadrennial Supply Chain Review, along with the ongoing initiatives by the Biden administration, reflects a concerted effort to address vulnerabilities in supply chains and ensure the economic security of the United States.