Infrastructure Packages Pledges $450 Million to Relieve US Supply Chains, But Will It Be Enough?
In some positive news for the supply chain amid the global uncertainty surrounding the Ukraine conflict, U.S. supply chains are expecting to get a degree of relief in the form of $450 million in federal investment. This money comes as a result of President Joe Biden’s recent infrastructure package.
According to Transportation Secretary Pete Buttigieg, the first round of competitive grants for ports will more than double the amount seen in the previous year, and will continue annually for the next five years. These grants will be spent modernizing port infrastructure to reduce the bottlenecks that have paralyzed nearly every major industry from manufacturing to consumer goods. U.S. ports must apply for the grants in May and will be awarded by fall, says the administration.
“We’re proud to announce this funding to help ports improve their infrastructure — to get goods moving more efficiently and help keep costs under control for American families,” said Buttigieg in a speech.
While this is a positive step in the longer term, in the shorter term question still remain when the effects will be felt. Indeed, the administration that tangible effects for both companies and consumers may not be apparent until after the midterm elections in November. Additionally, the news also comes with the unfortunate timing of the Ukraine conflict, which both directly and indirectly (based on how China chooses to respond) could bring the global supply chain to a standstill. Russian attacks on Ukraine alone directly impact the global supply of neon gas critical for computer chip etchings, and should China be prompted to take additional measures pushing on Taiwan, the semiconductor shortage will not just linger, but be greatly exacerbated for possibly years to come.
Clearly, now is not the time be to be either complacent or optimistic regarding global or U.S. supply chains. Original equipment manufacturers and affiliates on all levels of their supply chain are still recovering following a generational crisis in the form of the COVID-19 pandemic, and unfortunately, more problems appear to be emerging. Before the supply chain becomes completely paralyzed, manufacturers should be prioritizing last time buys and stockpiling inventory to maintain production schedules for as long as they can foresee — and supply chain partners such as Partstat can help them to do so without any upfront capital costs. For those without the means to store high qualities of sensitive inventory, Parstat can even store it securely here in the U.S. for as long as the production schedule demands.
For more information on how an Inventory Ownership Solution makes sense for your company, contact a Partstat representative today.