The America COMPETES Act Could Supercharge Manufacturing
June 15, 2022
At a glance
- Main takeaway: The America COMPETES Act is set to transform the manufacturing industry and advance the United States (US) as an innovative global leader.
- Impact on your business: The comprehensive legislative will invest billions into US manufacturing from reinforcing supply chains so critical goods are produced domestically to boosting scientific research, cutting-edge technological advancements and STEM education.
- Next Steps: Aprio’s Manufacturing and Distribution Services team can help you better understand the provisions in the America COMPETES Act and identify opportunities for your business.
Schedule a consultation with Aprio today.
The full story:
On February 4, 2022, the House of Representatives passed the highly anticipated and bipartisan-supported America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act.
This legislative act would be a historic investment in US manufacturing, but it isn’t the first of its kind.
The America COMPETES Act of 2022 is built off an act of the same name that was signed into law in August 2007, and then reauthorized in 2010. The goal of the act remains the same — to transform manufacturing at home while simultaneously advancing the competitiveness of the US on the global stage. From enhancing research and development to supply chains and educational training in science, technology, engineering and mathematics (STEM).
The new and bold America COMPETES Act
The America COMPETES Act couldn’t come at a better time as the US continues to grapple with supply chain disruptions, multi-decade high inflation and soaring gas prices. The considerably lengthy act will invest billions of dollars into US manufacturing, however, the provisions listed below will have a significant impact on the manufacturing sector:
- Strengthening the nation’s supply chains: The pandemic exposed major vulnerabilities in US supply chains. While still reeling from the aftermath of the pandemic and government shutdowns, supply chains are beginning to see the light even if recovery has been slow. Under the America COMPETES Act, $45 billion will be invested back into supply chains to strengthen the domestic production of critical goods.
- Boosting production of semiconductor chips: The production of semiconductor chips has drastically decreased due to the pandemic and has impacted nearly every industry from automotive to healthcare. With an investment of $56 billion, the America COMPETES Act is set to accelerate fabrication of semiconductor chips at home thus reducing foreign reliance.
- Advancing domestic innovation: Scientific research and technological innovation are critical factors to long-term economic growth. The America COMPETES Act supports a robust infrastructure that will invest in breakthrough discoveries and revitalize STEM educational opportunities by engaging students to develop skills and interests at an early age.
- Preserving America’s place on the global stage: The US has always been viewed as a global leader, yet over the last few years have fallen a bit behind. The America COMPETES Act will not only boost America’s status as a leader, but it will promote the values of the US through the reinvestment in our nation, businesses and people. Additionally, it will support strong labor standards and human rights to increase our competitive edge and secure our alliance relationships.
Where does the bill go from here?
A committee comprised of House and Senate members has been established to hash out the differences between the America COMPETES Act passed by the House and the separate, yet similar version, the US Innovation and Competition Act (USICA), passed by the Senate.
While committee deliberations are underway, they can last months, and President Biden is urging Congress to pass the bill before July 4.
The bottom line
The America COMPETES Act is a historic investment that has the potential to transform the manufacturing industry. While this game-changing legislation will solidify America’s leadership aboard through advancing innovation and restoring supply chains at home, it will also open the door to increased educational opportunities to ensure the future of manufacturing in the US. Aprio’s Manufacturing and Distribution Services team can help you better understand the provisions in this act and how it could benefit your business.
Schedule a consultation with Aprio’s Manufacturing and Distribution Team today!