The Commerce Department has announced a new tool for analyzing supply chain resiliance. Introduced at the inaugural Supply Chain Summit in Washington, the SCALE tool represents an effort to build the U.S. Government’s analytical capacity to understand and address supply chain risk.
Officails also used the event to announce a redoubled effort to direct federal funds to favored industries via the Chips and Science Act and the Bipartisan Infrastructure Law.
"The Commerce Department is aiming to deploy the same amount of capital each month that the traditional Commerce Department did annually," Commerce Secretary Lori Raimondo told attendees.
Launched SCALE Tool: Department of Commerce’s Supply Chain Center unveiled a first-of-its kind diagnostic supply chain risk assessment tool—known as SCALE—which utilizes a comprehensive set of indicators to assess structural supply chain risk across the U.S. economy.
"It's impressive in its scope -- it has all the data on all domestic production, so it's massively comprehensive," said Secretary Raimondo "And it tries to take into account all of the various factors that can affect a supply chain."
Such factors can include geopolitical risk, labor problems, climate issues and where materials are concentrated.
The tool compares risks across industries and provides an in-depth assessment of what is driving those risks. SCALE will inform U.S. government decision-making and can facilitate data-driven conversations with industry on risks, opportunities, and actions that can advance supply chain resilience.
SCALE Tool Findings: During the Summit, Assistant Secretary Grant Harris shared how the Supply Chain Center developed SCALE and highlighted its intended use cases.
Looking ahead, the Center will release key findings from the SCALE tool, coupled with relevant insights from I&A’s industry experts, and engage industry and other key stakeholders on the results.
SCALE Tool Data Competition: I&A plans to launch a competition aimed at developing new data or analysis that can be used to expand the indicators of risk incorporated into the SCALE tool.
Convening on AI Data Centers: This fall, Secretary Raimondo will convene industry to discuss risks associated with the supply chains for AI data centers, focused on the products and industries identified by I&A stakeholder engagement, in-house expertise, and the SCALE tool.
The convening will bring both upstream and downstream suppliers and customers together to assess current and future bottlenecks and risky dependencies, all while helping to inform recommendations on steps both industry and government can take to mitigate identified risks.
Industry Supply Chain Tabletop Exercises: In 2025, I&A will conduct two tabletop exercises with industry to better understand opportunities to address structural supply chain risks faced by the United States. One exercise will focus on supply chain risks in the chemicals industry; the second will focus on an emerging technology where it is critical the United States maintain a strategic advantage.
New Strategic Partnerships: At the Summit, seven new strategic partnerships with key stakeholders across industry and academia were announced. These partnerships will help the Department promote the global competitiveness of U.S. industry, help businesses become more resilient, and make its supply chain work more innovative and impactful. The new partners are:
2025 Supply Chain Summit: I&A will host another Supply Chain Summit in 2025. The Summit will bring together government, industry, and other stakeholders to examine continual progress made in increasing American supply chain resiliency. The date of the Summit will be announced in the months ahead.
For more information about the key outcomes of the 2024 Supply Chain Summit, please review the policy actions outlined in the Supply Chain Resilience Fact Sheet.
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