Trump Orders Review of Defence Industry Raw Material Supply Chain
03:55 PM, July 24, 2017
President Donald Trump signed an executive order Friday ordering an assessment of materials, manufacturing and components required for the defense industry, their sourcing and supply chains.
Peter Navarro, director of the National Trade Council, said in a background briefing to reporters that there is a shortage of domestic companies that can manufacture and repair certain key components for defense purposes.
Some items like flat-screen displays and military grade semiconductors are difficult or impossible to source domestically, making the military supply chain vulnerable.
Certain key industries such as being able to process the rare-earth minerals needed for modern electronics no longer exist in the United States, Navarro said. Some key systems are highly dependent on sole-source suppliers.
"There's just one company in the U.S. that can repair propellers for Navy submarines," Navarro offered as an example.
UPI commented that Navarro is an economist who has strongly criticized the offshoring of U.S. manufacturing and the resultant loss of domestic industry and jobs. He has played a key role in forming Trump's economic policy concepts.
The Trump executive order also calls for an outline of current U.S. defense manufacturing capabilities, identify which areas have gaps in domestic production or are particularly vulnerable to supply disruption, UPI reported.
The information is to be used to determine which areas of domestic defense production should be strengthened and to provide redundancy to vulnerable supply chains. The report is to be delivered in 270 days.
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