Hardening the U.S. Supply Chain for Critical Goods
The 2020 pandemic highlighted vulnerabilities in the United States’ supply chain. When cut-off from large parts of the world—whether because of health emergencies, geopolitical conflict, or frosty diplomatic relations—complex trade networks break down. And that can lead to shortages of products that American families rely upon. Medicine is a prime example.
66%
More than two-thirds of businesses experienced a supply chain incident that caused significant disruptions between 2022 and 2023.
80%
80 percent of active pharmaceutical ingredients are produced overseas, mostly in China and India.
6x
Since 2016, pharmaceutical imports to the United States from China have increased six-fold, with a sharp incline following 2020.
Bolstering manufacturing in Puerto Rico—referred to as nearshoring—can help better safeguard the U.S. market from global supply chain disruptions. The Island is already a hub for the manufacture of medicine, as well as other critical goods, that are exported to the mainland United States. Continuing to build on that foundation will reduce reliance on China, among other countries.