Stevens Calls for Interagency Task Force to Address Economic Fallout from Coronavirus

WASHINGTON – Today, Congresswoman Haley Stevens (MI-11) sent a letter to United States Secretary of Commerce Wilbur Ross, calling for the creation of an interagency task force to address the economic ramifications of the coronavirus epidemic. In the letter, Congresswoman Stevens raised concerns about supply chain disruption related to the coronavirus and the negative impact on small and mid-sized manufacturers in the United States. According to the Wall Street Journal, economists are warning that an extended Chinese shutdown could cripple global manufacturing and cost the world up to $1 trillion in lost output.

“We must begin to prepare a response and develop a plan in coordination with the relevant federal agencies to minimize the economic impacts on small and mid-sized manufacturers in the United States,” wrote Congresswoman Stevens. “I encourage [Secretary Ross] to implement an interagency task force to bring together the leading experts to address this emergency from a multi-faceted approach, including border patrol and public health officials, among others, in consultation with manufacturing stakeholders, such as the Manufacturing Extension Partnership (MEP). This should also include consultation with the Treasury Department to develop initiatives that prevent credit from drying up for our small and mid-sized manufacturers. Lastly, I urge you to work with the Department of Homeland Security to ensure that our domestic production facilities are equipped with the inspection and safety framework necessary to inoculate the spread of COVID-19.”

The full text of the letter can be found below.

“As you are aware, there are overwhelming and detrimental health concerns posed by the coronavirus, COVID-19. It is incumbent on your role to consider preparing for the economic considerations posed by this epidemic. 

Before COVID-19 made its ways to U.S. shores, it shuttered Chinese operations, disrupting supply chain activities for U.S manufacturers and consumers. To date, our public health agencies have displayed commendable leadership in responding to the outbreak of the novel coronavirus. But we must begin to prepare a response and develop a plan in coordination with the relevant federal agencies to minimize the economic impacts on small and mid-sized manufacturers in the United States. 

I encourage you to implement an interagency task force to bring together the leading experts to address this emergency from a multi-faceted approach, including border patrol and public health officials, among others, in consultation with manufacturing stakeholders, such as the Manufacturing Extension Partnership (MEP). This should also include consultation with the Treasury Department to develop initiatives that prevent credit from drying up for our small and mid-sized manufacturers. Lastly, I urge you to work with the Department of Homeland Security to ensure that our domestic production facilities are equipped with the inspection and safety framework necessary to inoculate the spread of COVID-19. 

The disruptions of operations in China have limited the ability of Chinese manufacturers to maintain the production capacity needed to keep pace with global demand. As production in China slows due to this deadly outbreak, international manufacturers that rely on imported parts, materials, or products from China are being negatively affected. According to a recent Wall Street Journal report, an extended Chinese shutdown could cripple global manufacturing and cost the world up to $1 trillion in lost output. 

This disruption comes at a difficult time for the already struggling manufacturing sector in the U.S. While the ISM index rebounded in January after five consecutive months of contraction, our manufacturing economy remains volatile due to ongoing trade wars and other factors. 

Automakers could lose production of 1.2 million vehicles for the first quarter of the year and see a 50 to 80 percent decrease in sales in February, according to analyst forecasts. 

An integrated supply chain is the backbone of our manufacturing economy, and we must take steps now to prevent future effects that the spread of COVID-19 will have on American manufacturers. It was a pleasure meeting you recently at the State of the Union address and I welcome the opportunity to meet with you more formally to discuss, among other priorities, actions to protect our economy from supply chain consequences associated with the coronavirus.” 

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