Professor Simon Croom Addresses the Need for Competitive Manufacturing Incentives in the U.S.

Thursday, October 22, 2020

USD School of Business Professor for Supply Chain Management Simon Croom
begin quoteNeither plan addresses how new American manufacturers will be competitive on a global scale without the lower costs of operating elsewhere. What are the incentives?

In recent news, both presidential candidates, former Vice President Joe Biden and President Donald Trump, discuss the future of implementing domestic supply chains. However, their visions are unclear on how to create more supply chain opportunities in the U.S. Dr. Simon Croom, professor of supply chain management at the University of San Diego School of Business, shares why domestic firms rely on global supply chains to be competitive.   

Excerpt as it appears in SupplyChainDive:

Biden and Trump Envision Similar Supply Chains – But Different Paths to Get There

The supply chain plan Biden released in July names only the pharmaceutical industry as the recipient of tax-based reshoring incentives. But Biden released another plan in September pledging similar incentives across categories — with an emphasis on revitalizing closed factories.

He also intends to use federal procurement dollars to encourage domestic manufacturing across categories by buying from American manufacturers.

Trump has also pledged that the federal government will "Buy American," especially when it comes to pharmaceuticals, but industry stakeholders warned in March that to do so during a pandemic could be risky.

"I've seen executive orders saying we need to make sure that medical supplies are made in the U.S. now. The big gap is really how do you develop domestic suppliers? What are the incentives?" Croom said.

Companies need financing to recruit new expertise, buy equipment and enter a new line of business. Neither plan addresses how new American manufacturers will be competitive on a global scale without the lower costs of operating elsewhere, according to Croom.

Contact:

Renata Ramirez
renataramirez@sandiego.edu
(619) 260-4658