ARLINGTON, Va. – Following Senate passage of the narrowed version of China competitiveness legislation, the Consumer Brands Association called on Congress today to bring forward critical supply chain provisions that were cut from the bill in conference negotiations. Consumer Brands warned that these policy improvements are necessary to create visibility and resiliency in the supply chain and, if not taken up as a separate measure in the fall, the availability and affordability of essential products is threatened.

“While we appreciate the importance of what is included in the bill, we are deeply disappointed by what was left out and feel that Congress missed the moment to apply hard learned lessons from the pandemic,” said Tom Madrecki, vice president of supply chain and logistics at Consumer Brands. “Shoring up America’s supply chains has overwhelming bipartisan support, the backing of more than 130 diverse industry groups and the potential to deliver clear benefits to American consumers who plainly felt the consequences of supply chain failures during COVID-19. Voting on commonsense provisions should not be a difficult choice – it should be the only choice.”

Consumer Brands has long advocated for increasing visibility and resiliency in U.S. supply chains, and many of the association’s ideas were incorporated in earlier versions of the China competitiveness bill, including provisions to establish a Manufacturing Security and Resilience Program within the Department of Commerce, which would lead a government wide effort to address supply chain risks, grow the U.S. manufacturing base and ensure production of critical goods. Earlier versions of the legislation would also have led to comprehensive supply chain mapping and monitoring, equipping the private sector to address supply chain vulnerabilities before they become crises.

The inaction on supply chain legislative improvements comes amid the most challenging inflationary environment in more than 40 years. Seventy-two percent of Americans report that increased grocery prices are having a significant impact on their household budgets, and consumers increasingly blame supply chain costs and constraints for inflation. One of the primary drivers of rising prices is higher costs for commodities, from ingredients to energy, and the anticipated cooling that companies and consumers are waiting for has yet to show up in the data. The June Producer Price Index rose 11.3% over the same time last year, above economists’ expectations and the largest increase since a record 11.6% jump in March.

The supply chain continues to face myriad challenges beyond the pandemic. The ongoing war in Ukraine has led to global disruption of key commodities, including wheat and sunflower oil. Weather events and rising temperatures threaten everything from crop yields to product delivery. Further, as these and other threats emerge and evolve, the lack of visibility across the supply chain will continue to limit the effectiveness of response.

“The worst thing Congress can do is see the lessening impact of COVID and proclaim the crisis over. The next one could be around the corner, and we need to take the steps now to strengthen the supply chain, so we aren’t left wishing we had later,” concluded Madrecki.

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The Consumer Brands Association champions the industry whose products Americans depend on every day, representing nearly 2,000 iconic brands. From household and personal care to food and beverage products, the consumer packaged goods industry plays a vital role in powering the U.S. economy, contributing $2 trillion to U.S. GDP and supporting more than 20 million American jobs.