NAFEM and other manufacturing associations urge Biden administration action on supply chain challenges

NAFEM and a coalition of three other major manufacturing associations released a white paper urging the Biden administration to take urgent action on supply chain challenges. In addition to NAFEM, Coalition members include the Association of Home Appliance Manufacturers (AHAM), the Air-Conditioning, Heating and Refrigeration Institute (AHRI) and the National Electrical Manufacturers Association (NEMA)

The paper follows a series of meetings NAFEM and coalition members had with Capitol Hill and administration staff around issues important to the groups’ member companies, including the Section 301 tariffs on imports from China, Section 232 steel and aluminum tariffs, supply chain concerns, labor shortages, increased costs for shipping containers and increased shipping times, and semiconductor shortages. The paper explains how supply chain disruptions, which are compounded by trade distortions and the COVID-19 pandemic, are hurting the competitiveness of U.S. manufacturers, and stalling economic recovery.

Combined with increased demand for appliances and equipment, supply chain bottlenecks have negative consequences, including increased costs, lost sales, delayed deliveries of critical products to consumers in the face of supply chain backlogs, and even shutting down manufacturing plants. The paper acknowledges that many supply chain issues will require long-term solutions, but the coalition also requested immediate relief from policymakers through tariff removal and fair allocation of semiconductors to all industries. According to a press release issued by the coalition, “Quick implementation of these and other policy solutions outlined in the paper may help prevent a continued worsening of the availability of manufactured products in the U.S., while increasing productivity and stemming product cost inflation.”

NAFEM plans more virtual visits with Washington, D.C.-based elected and appointed officials in the coming weeks to continue advocating for the policy solutions outlined in the white paper. In addition to the white paper, members will share a new infographic NAFEM created to quickly summarize steel supply chain issues during these virtual meetings. Members interested in participating should contact Charlie Souhrada, CFSP, NAFEM vice president of regulatory and technical affairs.