Calling time on ‘just in time’

Mace | 2nd March 2022 | Politics
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Biden’s executive order to reshape the supply chain might foster improved transatlantic trade relations with the European Union

As the US administration seeks to implement its ambitious infrastructure plans, it will need advanced machinery and industrial goods. Some stakeholders in the industry think this is the time to reshape the global supply chain.

In July 2021, President Biden signed an executive order with a view to reducing the US’s reliance on Asia. The order reshapes the supply chain, benefiting the EU-US trade partnership. It presents a significant opportunity for European companies to sell their innovative goods and services. 

As the fallout from the pandemic showed, extended supply chains create critical weaknesses, which buckle under pressure. Production problems and port shutdowns led to containers being stranded at one end of the trade lane. This caused major delays just as the economy was beginning to reopen. The Ever Given blocked the Suez Canal and caused enormous losses. The impact of the interruption was compounded by logistics that are often organised around the principle of “just in time”.

Lucio Miranda, founder and president of the US consultancy firm Export USA has been in the business for over 25 years. He argues that fundamental features of the supply chain require serious attention and rethinking. “We have always analysed the supply chain in the context of importing goods into a country. We tend to overlook another important challenge: How the supply chain affects companies …

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