Pentagon officials recently raised serious concerns over disrupted supply chains located in Mexico due to the COVID-19 pandemic. The IAM has been warning about offshoring components and parts for years.
“Bringing supply chains home from Mexico and China will take more than tweets, press releases and op-eds by the Administration,” writes IAM Chief of Staff and Director of Trade and Globalization Owen Herrnstadt in an article posted by the Economic Policy Institute (EPI).
“Returning jobs to America requires a robust, comprehensive strategy that coordinates policies in trade, currency valuation, investment, financing, energy, technology, tax, education, training, government procurement, and labor,” said Herrnstadt.
In the EPI article, Herrnstadt elaborated on six key elements to implementing an effective strategy. Among them are creating a U.S. Manufacturing Investment Bank that directly supports jobs here at home and strengthening Buy American laws. It also addresses currency misalignment and eliminating tax incentives that encourage corporations to outsource production.
“With over 38 million people out of work and an unemployment rate which has reached Depression-era levels, Americans are in desperate need of a well-coordinated, comprehensive policy to stop the erosion of our nation’s industrial base,” said Herrnstadt.