Covid-19 completely decimated the highly efficient and super delicate global supply chain. The “Bull Whip” effect was in full display, in what will be a case study for industrial management engineers for decades to come.
It became glaringly obvious that relying upon global product design, manufacturing and transportation becomes nearly impossible when faced with government lock downs. As a result many multinational corporations are bringing their manufacturing facilities back to America after decades of out sourcing that aspect of the supply chain to emerging markets.
Recently the signing of the Chips Act by the federal government helps provide American Chip manufacturing $30 billion to establish manufacturing facilities here in the states. Intel will be building factories in Ohio costing them around $20 billion. While this is win for American manufacturing there must be some caution raised by creating government dependency for these billion dollar corporations.
Nationalizing companies is a slippery slope.
By creating a dependance on tax payer’s money you create entities that become labelled “to big to fail”. While it is true that struggling American companies need help and this is a matter of national security but there is a proven track record that privately operated companies are essential for a diverse product base. This allows for an open competition of product which is at the heart of American economic dominance.
Manufacturing is headed back to the states and this will hopefully bring jobs and improvements to local infrastructure. It is important that businesses do this smartly and keep their sovereignty while doing so.
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