Unionwear CEO Mitch Cahn had the opportunity to speak at New Jersey Manufacturing Day and discuss the recent global supply chain disruptions due to the COVID 19 pandemic.

When asked how we can prevent supply chain disruptions, Cahn said the pandemic exposed weaknesses in our global supply chain that we didn’t even know existed. Thus, it is reasonable to assume that future disruptions of unknown origin will likely expose additional weaknesses that we cannot even think about. 

On the plus side, those domestic manufacturers who managed to survive outsourcing and Amazon have proven to be very flexible. In fact, they learned so much during these tumultuous times that many manufacturers, including Unionwear, were making PPE in a matter of days even though they had zero knowledge of manufacturing such items before. For instance, Cahn said he had never heard of a face shield before the pandemic hit. But after getting specs, he was able to quickly assemble prototypes in less than two days. It was only a matter of repurposing items Unionwear already had — including foam from backpacks, plastic from binders, and headbands from hats — and turn them into useable face shields. 

To prevent supply chain disruptions, companies need to invest in domestic manufacturers. It is imperative to do so, as our national security continues to be at risk. To justify its cost, The Reshoring Institute created a formula that calculates the true cost of importing. These costs include:

• Travel
• Prototyping
• Shipping
• Time
• Lines of credit
• Delays
• Pirating
• Transportation problems
• Reputation cost

When taking these into account, importing oftentimes looks more expensive than domestic manufacturing. 

Ultimately, if the US government is serious about preventing future supply chain disruptions, American policymakers and regulators need to incentivize increased domestic manufacturing. Meanwhile, purchasers need to support these manufacturers by actually buying materials from them and not letting them go out of business. Although domestic manufacturers came to the rescue during COVID-19, we lost tens of thousands of lives because we didn’t have domestic-made PPE. This needs to be a major national priority.

Links:

NJMEP – Manufacturing Day 2020

NJMEP