The Joint Economic Committee convened on June 5, 2025, to address critical barriers to supply chain modernization and enhancements in factor productivity. The meeting featured testimony from Sujay Shivakumar, Director of Renewing American Innovation at the Center for Strategic and International Studies (CSIS), who emphasized the urgent need to revitalize U.S. manufacturing and innovation.

Shivakumar highlighted that the U.S. has historically prioritized research and development (R&D) over manufacturing, leading to a weakened manufacturing sector and a disconnect between research and production. He argued that rebuilding the capacity to innovate and manufacture advanced technology is essential for both economic competitiveness and national security. Recent federal initiatives, such as the CHIPS Act, aim to address these challenges by incentivizing semiconductor manufacturing, which has become increasingly concentrated in Asia.

The testimony underscored the importance of collaboration among federal, state, and local governments to create an ecosystem where innovation and manufacturing can thrive. Shivakumar pointed out the need for significant investments in workforce development, infrastructure, and regulatory modernization. He noted that outdated regulations can delay manufacturing projects, emphasizing the necessity for streamlined processes that maintain environmental protections while promoting efficiency.

Additionally, Shivakumar cautioned against relying solely on tariffs as a strategy to boost domestic production. He argued that while tariffs may address unfair trade practices, they can also create uncertainty that discourages private investment and may lead to alternative supply chains that bypass the U.S.

The committee members echoed these sentiments, stressing the importance of bipartisan efforts to strengthen U.S. manufacturing and supply chains. They acknowledged recent investments in critical technology manufacturing and the need for regulatory reforms to support these advancements.

In conclusion, the meeting highlighted a shared commitment to modernizing supply chains and enhancing manufacturing capabilities in the U.S. The discussions underscored the necessity of a comprehensive strategy that includes skilled workforce development, infrastructure investment, and regulatory reform to ensure the nation's economic resilience and security in a competitive global landscape.