COVID-19 pandemic highlights need for US policies that increase supply chain resilience
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COVID-19 pandemic highlights need for US policies that increase supply chain resilience
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hortages of masks, personal protective equipment (PPE), and ventilators characterized the early days of the COVID-19 pandemic crisis in the United States. As supply deficiencies strained healthcare systems across the country, national attention focused on the Strategic National Stockpile (SNS), overseen by the US Department of Health & Human Services—specifically, its inability to significantly alleviate rapidly deteriorating conditions in hospitals. While nominally a “stockpile,” the SNS does not possess, operate, or restock a vast system of federally owned warehouses filled with enough medical equipment to weather a crisis. Instead, as summarized in a June 2020 RAND Corporation report and testimony to the US Congress, the program is primarily a logistics service that coordinates the flow of materials between state and
local entities, and its own small stockpile was quickly overwhelmed by the demands of the pandemic. The shortcomings of the SNS are but one symptom of the numerous, systemic problems that plague supply chain resiliency in the United States. In an effort to avoid repeating the breakdowns that accompanied the first stage of the COVID-19 pandemic response, the RAND report further recommended integrating an expanded SNS into a reformed nationwide supply chain system that is adequately funded, properly coordinated, and independent of suppliers from outside the United States. All of this and more will be required to address supply chain shortages and prepare for future emergencies. But, until longterm holistic changes to the national strategy take effect, stockpiles hold promise for immediate relief during future crises.
Yttria-stabilized zirconia ceramic oxide serves a critical role in US aerospace and defense industries, as thermal barrier coatings made from this material deliver superior heat resistance and thermal control in jet engines. The Defense Logistics Agency maintains a strategic stockpile of the rare-earth element yttrium. Credit: Nicholas Burlingame/Defense Logistics Agency.
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The US economic, healthcare, manufacturing, and national security sectors source significant amounts of materials and products from other countries. According to the Congressional Research Service, the United States is 100% importreliant for graphite, manganese, niobium, and tantalum, and over 75% import-reliant for uranium, tin, titanium, and many other minerals. In fact, some materials— like rare-earth elements (REEs)—critical for advanced manufacturing of products including wind turbine magnets and electric vehicle batteries—are unavailable on or prohibitively expensive to extract from US soil. The risks that accompany the United States’ reliance on non-US suppliers received increased attention in 2010, when China—the key supplier of most REEs—curtailed REE shipments to Japan following a maritime dispute. The incident highlighted the precarious position of the United States, as political conflicts and military standoff
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