A coalition of four major manufacturing associations – the Association of Home Appliance Manufacturers (AHAM), the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), the North American Association of Food Equipment Manufacturers (NAFEM) and the National Electrical Manufacturers Association (NEMA) – are urging immediate action by the Biden administration to address supply chain challenges outlined in a newly released white paper.
The paper explains how supply chain disruptions, which are compounded by trade distortions and the Covid-19 pandemic, are hurting the competitiveness of U.S. manufacturers and stalling the U.S. economic recovery. Combined with increased demand for appliances and equipment, supply chain bottlenecks have negative consequences, including increased costs, lost sales, delayed deliveries of critical products to consumers in the face of supply chain backlogs, and even shutting down manufacturing plants.
The paper acknowledges that many supply chain issues will require long-term solutions, but the coalition also requested immediate relief from policymakers through tariff removal and fair allocation of semiconductors to all industries. Quick implementation of these and other policy solutions outlined in the paper may help prevent a continued worsening of the availability of manufactured products in the U.S., while increasing productivity and stemming product cost inflation.
«The ability to produce and deliver home appliances to consumers has been dramatically hindered by the Covid-19 pandemic and other supply-related issues, creating hardships for consumers and for businesses at every step in the supply chain – said president and CEO of AHAM, Joe McGuire -. The result is ongoing shortages of products, materials, components and labor, leading to delays and increased costs. In some cases the supply chain timeline has doubled or tripled. This is at a time when consumers are spending more time in their homes and more dependent than ever on home appliances to keep their families healthy and their homes clean. The home appliance industry joins with other critical parts of the manufacturing sector to urge the Biden administration and congress to act to help alleviate this unprecedented damage to the global product supply chain».