The Joint Economic Committee convened on June 5, 2025, to address critical barriers to supply chain modernization and enhancements in factor productivity. The meeting highlighted the importance of intermodal transportation hubs, particularly focusing on Memphis, Tennessee, which serves as a significant logistics center due to its extensive infrastructure, including railroads, a major airport, and a port on the Mississippi River.

Dr. Sheffey, an expert in logistics, emphasized the success of Memphis as a logistics cluster, noting that co-locating competing companies can foster innovation and efficiency, similar to successful models seen in Silicon Valley and Hollywood. He pointed out that the presence of diverse transportation modes in Memphis has attracted manufacturing, enhancing the region's economic vitality.

The discussion also touched on the broader implications of supply chain vulnerabilities exposed during the COVID-19 pandemic. Dr. Shivakumar acknowledged that the current supply chain structure has become more brittle due to globalization and financial pressures, which have led to reduced inventory levels and increased exposure to external shocks. He stressed the need for government intervention to address these vulnerabilities, particularly in public infrastructure and workforce training.

Senators discussed legislative efforts, such as the Promoting Resilient Supply Chains Act, aimed at fostering the development of intermodal hubs and improving supply chain resilience. The conversation also included concerns about the impact of tariffs on small businesses and high-tech industries, with Dr. Shivakumar warning that rising input costs and regulatory delays could hinder business investment and innovation.

The meeting concluded with a consensus on the urgency of modernizing regulatory frameworks to keep pace with technological advancements and ensure the United States remains competitive in the global market. The committee recognized that without proactive measures, the nation risks falling behind in critical sectors, particularly in technology and manufacturing.