Executive Order 14017 (issued Feb 24, 2021) aims to address the urgent need for a full review of the supply chains of critical and essential goods in the United States. It has triggered actions by many agencies of the U.S. government. Via congressional funding and regulatory rulemaking, U.S. government is attempting to bridge those gaps.
CITATION: United States Supply Chain Strategy and EO14017, Government Analytica, 2023
Executive Order 14017, issued on February 24, 2021 aims to address the urgent need for a comprehensive review of the supply chains of critical and essential goods in the United States. The order seeks to identify vulnerabilities and potential weaknesses in key industries like healthcare, technology, and more, with the goal of bolstering domestic production, reducing dependency on foreign sources, and enhancing national resilience. Through collaboration with various government agencies, this order underscores the importance of safeguarding supply chains to ensure the nation's security, economic stability, and ability to respond effectively to unforeseen challenges. Other countries have activated similar efforts.
A summary of key documents published triggered by EO14017. Government Analytica will keep this page evergreen with continuous updates.
The Executive Order: LINK
The 100-day review can be found here: LINK
The Bipartisan Infrastructure Law established a new Office of Multimodal Freight Infrastructure and Policy at the Department of Transportation to coordinate national freight investment activities and provide support to cities and states. In addition to overseeing many of DOT’s competitive grant programs, this new Freight Office (allocation of $7.3 million in the 2024 fiscal year budget) will carrying out:
DOT in June provided an update on the status of the office to key Congressional committees, according to committee staffers though an Assistant Secretary for Multimodal Freight, a Senate-confirmed position charged with heading up the office, is yet to be appointed. LINK
The International Trade Administration secured an initial $10.8 million appropriation to launch a first-of-its-kind dedicated supply chain resiliency team that is piloting proactive, strategic analyses of critical supply chains. However, there is still need for a more permanent Commerce program, which is why the agency continues to prioritize its supply chain resilience proposal in the appropriations process.
In June 2023, the Manufacturing Extension Partnership (MEP) (strategic plan, latest annual report), a program of Commerce’s National Institute of Standards and Technology (NIST), established a national Supply Chain Optimization and Intelligence Network (SCOIN) to help small and medium sized manufacturers across the country fill domestic supply chain gaps.
The Department of Health and Human Services announced a new dedicated public health industrial base expansion and supply chain management office. HHS’ Supply Chain Control Tower is providing visibility on inventory levels, manufacturer capacity, distribution flows, and point-of-care consumption to inform decision-making in preparedness and response (portfolio). HHS’ Program Office for Innovation and Industrial Base Expansion and forthcoming DPA Title III Program Office will further strengthen the public health supply chain through support of American innovation and production. HHS also developed and began implementing the National Strategy for a Resilient Public Health Supply Chain. This report focuses on developing the nation’s long-term capacity to manufacture supplies for future pandemics and biological threats.
US Department of Energy established a new Manufacturing and Energy Supply Chains Office.
Funding for Executive Order 14017 is a crucial aspect of its implementation and success. National funding plays a vital role in providing the necessary resources to implement the initiatives and programs outlined in Executive Order 14017, enabling the government to enhance supply chain resilience and safeguard critical sectors of the economy. Through strategic allocation of funds, the government aims to bolster infrastructure, enhance research and development efforts, and foster collaboration across industries to mitigate vulnerabilities and ensure a more resilient and secure supply chain system.
The 2023 report shows a summary of investments: LINK
NIST reported that the Hollings Manufacturing Extension Partnership (MEP), has awarded roughly $400,000 to each of its MEP National Network™ Centers in every state and Puerto Rico. The more than $20 million of total funding will be used to develop programs to make domestic supply chains more resilient and efficient. The funding was included in the CHIPS and Science Act of 2022. It authorized a pilot program of awards that would allow MEP centers to provide:
The new awards will support the creation of a database called the national Supply Chain Optimization and Intelligence Network (SCOIN). It will focus on:
“For the first time, the U.S. government is creating a comprehensive end-to-end mapping of the supply chain, which is crucial for the domestic manufacturing industry and resiliency,” said Pravina Raghavan, NIST MEP director. “Supply chain shortages are due to a lack of supply chain capacity. To address this issue, we’re creating an information system that lays out all the suppliers across various industries. This way, we can connect small suppliers to more opportunities in the supply chain.”
This funding opportunity requires each center to dedicate at least one staff member or contractor per year to support these efforts and report on the results to small and medium-sized manufacturers and the MEP National Network. The projects will run for an initial two years and, if successful, may be extended.
Current US trade strategy towards other countries and trading blocks are multifaceted and revolve around several major themes listed below, one of which is supply chain resilience. An annual report to Congress is required in this area.
Latest Annual Report to Congress & Strategy published by the Office of the US Trade Representative (USTR) can be found here: LINK (search for country or trading block to see US strategy)
The European Union (EU) has developed a comprehensive national supply chain strategy to enhance resilience and ensure the smooth functioning of critical sectors within its member states. With a focus on promoting collaboration and mitigating vulnerabilities, the EU's strategy aims to strengthen infrastructure, foster innovation, and bolster research and development efforts. By allocating strategic funds, the EU is working towards creating a more secure and resilient supply chain system. This strategy is part of the EU's broader approach to trade and economic partnerships, emphasizing the importance of global supply chains and resilience in a rapidly evolving world. Through bilateral and multilateral agreements, the EU seeks to promote free trade, enforce fair trading practices, and address emerging economies' challenges. Furthermore, the EU places emphasis on environmental and labor standards, ensuring sustainability and social responsibility within global supply chains. The EU's supply chain strategy aligns with its commitment to promoting trade and economic growth while safeguarding the interests of its member states and ensuring the resilience of its supply chain network.
EU Supply Chain Strategy information can be found here: LINK LINK LINK LINK LINK
The United Kingdom (UK) has also developed a national supply chain strategy to enhance resilience and ensure the smooth functioning of critical sectors within its borders. Similar to the European Union (EU), the UK's strategy focuses on promoting collaboration and mitigating vulnerabilities. By strengthening infrastructure, fostering innovation, and investing in research and development, the UK aims to create a more secure and resilient supply chain system. The strategy aligns with the UK's commitment to trade and economic growth while safeguarding the interests of its nation and ensuring the resilience of its supply chain network. Through bilateral and multilateral agreements, the UK seeks to promote free trade, enforce fair trading practices, and address challenges posed by emerging economies. Additionally, the UK places emphasis on environmental and labor standards to ensure sustainability and social responsibility within global supply chains. This comprehensive strategy reflects the UK's dedication to maintaining a robust and resilient supply chain network in an ever-evolving world.
UK Supply Chain Strategy information can be found here: LINK LINK LINK LINK