Policies to Enhance the Resilience of US Manufacturing

The COVID-19 pandemic has drawn worldwide attention to the fragility of global value chains for manufactured goods. In the United States, it is prompting a policy discussion about resilience—the ability to adjust in real time to supply chain disruptions while minimizing any loss to customers. Manufacturing firms are taking action, but what should the federal government do to enhance resilience? To address this important and timely question, we first define four components of resilience. We then consider more than 100 policy proposals offered over the past several years. Applying specific criteria, we make 15 specific policy recommendations, differentiating those that require congressional action from those that can be accomplished through presidential action. We conclude with some insights for policy makers, including the need for a top-down commitment, the development of a 21st century policy roadmap, and an emphasis on nurturing nascent capabilities in future technologies.