A New Council is Working to Strengthen the US Supply Chain
As if 2024 had not provided enough surprises to global shipping, the CrowdStrike software bug that crashed Microsoft operating systems was yet another shock to the system. Air freight systems bore the brunt of the most significant IT outage in history, while disruptions at ports were felt worldwide. A silver lining is disturbances typically provoke action, and labor unions, maritime firms, and ancillary supply chain businesses are coalescing to form a new trade group that will advance the investment of additional US domestic infrastructure to protect the supply chain.
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The Supply Chain Council was spearheaded by Josh Wood, a real-estate development and public affairs executive, with the objective of “developing and advancing the best practices and public policies at the federal, state, and local level.” The Council’s Board is chaired by a representative of the logistics real estate company, Prologis, and includes members from the Laborers’ International Union of North America, representing 70,000 public employees across the energy and construction industries, the Pacific Merchant Shipping Association, who advocates for marine terminal operators and stakeholders doing business at West Coast ports, as well as a host of private law, and real estate companies and labor-management associations.
While many firms have independently restructured and rethought operations in the wake of the post-Covid supply chain disruptions, the Council notes that progress from a policy perspective has been slow. The group argues that current policies are too narrowly focused, addressing only specific areas such as ports or trucking, rather than taking an all-encompassing perspective that acknowledges the interconnectedness of the wider supply chain.
The council’s short-term priorities are to advocate for cost-effective, technologically feasible, and implementable environmental regulations and the responsible growth of commercial facilities essential to the supply chain. Over the longer term, increased government investment in public transportation infrastructure, working to eliminate preventable slowdowns and disruptions, and better preparing the larger industry for responses to future natural disasters will occupy their agenda.
The US faces a real challenge with crumbling infrastructure, and bipartisan legislation is likely required to advance rebuilding efforts coupled with new infrastructure. The council rightly notes that labor and business share the same goal – a robust economy. A more resilient supply chain coupled with the required investments will benefit all stakeholders, up and down the chain.
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