There used to be a time when terms like supply chain, infrastructure, and others related to the logistics-focused worlds we live in would get little, if any, attention, in a State of the Union (SOTU) address.
Well, it is fair to say, that has clearly changed and was on full display in President Biden’s address to the nation last night.
In a sense, Biden pulled no punches in making it clear how vital our sectors are, in order to execute well economically on both a domestic and global basis.
He used manufacturing as an example.
“Where is it written that America can’t lead the world in manufacturing?” he said to members of Congress. “Now, thanks to what you’ve all done, we’re exporting American products and creating American jobs.”
Taking that a step further, the President brought up domestic semiconductor production, noting how the United States used to manufacture 40% of the world’s chips, only to have subsequently lost its edge, with that figure now down to 10%. But that number is poised to rise, he said, due to the passing of the bipartisan CHIPS and Science Act, which saw him directly address the supply chain in his address.
“We’re going to make sure the supply chain for America begins in America,” he said. “The supply chain begins in America. We’ve already created…800,000 new manufacturing jobs without this law, before the law kicks in. With this new law, we’re going to create hundreds of thousands of new jobs across the country. And I mean all across the country. Throughout not just the coast, but through the middle of the country as well. That’s going to come from companies that have announced more than $300 billion in investment in American manufacturing over the next few years.”
Another logistics-related theme he referenced was infrastructure.
While the U.S., at one point, the global leader in infrastructure development, it is now ranked 13th, but he added that is set to change, due, in large part, to the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. Which he stated represents the largest investment in infrastructure going back to President Eisenhower’s Interstate Highway System.
“We’ve funded over 20,000 projects, including major airports from Boston to Atlanta to Portland,” he said. “Projects that are going to put thousands of people to work rebuilding our highways, our bridges, our railroads, our tunnels, ports, airports, clean water, high-speed internet all across America.”
The President also discussed the nation’s relationship with China, observing how before he came to office, there was a narrative regarding how China was increasing its power, while America was failing globally, a situation that he said is no longer the case.
And he said that he has made it clear in conversations with Chinese President Xi that the U.S. seeks competition and not conflict with China, while making it clear that that the nation is investing to make America stronger.
“Investing in American innovation, in industries that will define the future, that China intends to be dominating,” he said. “Investing in our alliances and working with our allies to protect advanced technologies so they will not be used against us.”
Regardless of one’s political preference or affiliation, it is clear that myriad supply chain- and logistics-related issues and topics are front and center, when it comes to our future success as a nation, both in the short-term and the long-term. That, in itself, is notable, and it speaks to the ongoing emergence of supply chain and logistics getting a seat at the table, so to speak. Things are not perfect, but there certainly is a lot to monitor and keep a close eye on, especially as they relate to America’s standing on the domestic and international stages.