Buying American: Is there strength in Numbers? Click to keep reading…

03 Mar Buying American: Is there strength in Numbers? Click to keep reading…

Bloomberg Businessweek published an editorial related to the knee-jerk reaction to buy American, after the recent (and sometimes life-threatening) shortages in household goods and medical supplies. There is a political movement swelling that suggests compelling companies to move production to U.S. soil is the answer. While the problem illuminated by the pandemic is real, the supposition that producing everything in the U.S. will solve the supply chain issues should be viewed with skepticism. In fact, trade isolation will in fact be very costly. 

The U.S. supply chain has depended on just in time deliveries from far off locales and the pandemic revealed the vulnerability of that dependence. Foreign factory shutdowns have caused shortages in everything from bicycles, furniture and kitchen appliances. While President Biden has pledged to establish “Buy American” policies, suppressing trade raises costs and stifles competitiveness, hurting the global economy. 

Governments should focus on both resiliency and global responsibilities. The World Trade Organization should be revived; allowing nations to keep their borders open in times of crisis. Surge capacity should be established domestically, including long-term contracts that equip the Strategic National Stockpile. The U.S. should also focus on making itself a more attractive place for production. Investment in infrastructure, R&D and advanced manufacturing would be a strategic place to begin.