On June 5, 2025, the Joint Economic Committee convened to address critical barriers to supply chain modernization and enhancements in factor productivity. The meeting featured expert testimonies, notably from Yossi Sheffey, a professor at MIT, who outlined significant challenges facing domestic manufacturing and the workforce.

Sheffey emphasized the urgent need for reshoring manufacturing, highlighting that merely relocating assembly operations to the U.S. is insufficient without investing in domestic resources and materials. He pointed out that many manufacturing plants struggle to hire enough skilled workers, exacerbating the reliance on foreign suppliers. To address this, he advocated for increased investment in automation and advanced technologies, which could reduce dependence on manual labor.

A key point raised was the necessity of improving the U.S. workforce's skill set. Sheffey noted that while new manufacturing plants will be high-tech and require fewer workers, there is a significant gap in the availability of qualified personnel. He criticized the current education system, stating that K-12 education is falling short, and suggested that trade schools could provide a viable alternative for training workers in essential skills that are less likely to be replaced by automation.

The discussion also touched on the importance of regulatory stability. Sheffey argued that fluctuating tariffs create uncertainty that hampers investment and hiring decisions within companies. He called for a more predictable regulatory environment to foster a healthier manufacturing sector.

In addition to Sheffey's insights, another expert addressed the state of U.S. ports and their logistics challenges. The expert pointed out that the U.S. has lost its status as a commercial maritime power, with ports struggling to keep pace with increasing traffic and infrastructure demands. Key barriers identified included the need for significant infrastructure improvements, the challenges posed by the growing size of shipping vessels, and the inefficiencies in port operations compared to global standards.

The expert also highlighted the imbalance in trade, where imports vastly outnumber exports, leading to logistical challenges in container management. Labor issues, particularly the resistance to automation from powerful unions, were cited as additional hurdles to improving port efficiency.

The meeting underscored the interconnectedness of manufacturing and logistics in the U.S. economy, revealing a pressing need for coordinated efforts to enhance productivity and address workforce challenges. As the committee continues its discussions, the implications of these barriers on the broader economy remain a critical concern for policymakers and industry leaders alike.