The CHIPS Act could be the answer to the supply chain’s problems


Good morning! Happy Wednesday. We’re ready for fall - especially since Starbucks Pumpkin Spice Latte came back into circulation yesterday.

Don’t be shy - even big, burly truck drivers love a pumpkin spice latte. ☕️

But let’s talk chips. Not potato chips - we’re talking semiconductor chips. The little machinery wonders are a part of almost every technological device in our world. It just so happens that there has been a massive shortage of these devices, which have primarily been produced overseas. To combat this, the United States Congress recently passed the CHIPS Act - legislation that will pour money and resources into domestic production of the tech that our supply chain so desperately needs to operate efficiently in today’s day and age.

Check out today’s featured article from Supply Chain Brain to read about the CHIPS Act and the acceleration of domestic semiconductor manufacturing. Could this be the push we needed for more microchips and better supply chain practices? Or is the regulatory output too much for the system to bear any fruits of the legislation for years to come?


Featured Article:

Will Passage of the CHIPS Act Resolve Supply Chain Issues? | SupplyChainBrain

“Congress has been under intense pressure to release $52 billion in subsidies to U.S. semiconductor manufacturers, to strengthen the nation’s competitive stance and self-reliance in an industry that’s essential to our economic and national security.”

READ THE ENTIRE SUPPLYCHAINBRAIN ARTICLE HERE

Covid-19 & Shortages 😷

N95 respirator shortage is over, according to the FDA

The Food and Drug Administration announced early into the pandemic that N95 respirators were in short supply. Years later now, the FDA announced that the shortage is over after domestic manufacturing of medical devices has significantly increased, and the supply can meet the demand.

Last month, the FDA also removed medical gowns and surgical masks from the shortage list. The removal of this personal protective equipment is a stark difference from the early concern for increased supply in early 2020.

Read more from Supply Chain Dive ▶


US Economy 🇺🇸

Federal Reserve disappointed as job vacancies grew in July

Signs of a weakening economy and still-growing inflation are worrying Federal Reserve officials, especially after July reports show growing job vacancies. The United States has held on by a thread, and the Federal Reserve has been aiming to narrow the gap between supply and demand in terms of labor. But it hasn’t seemed to have worked.

Job openings grew last month in warehousing and shipping, professional services, and retail.

Read more from AP News ▶


International Supply Chain News 🌐

Two people in the supply chain sector working together, surrounded by international flags.

🇨🇳 China’s economy is experiencing massive disruption, but the country has plans. Beijing has announced that President Xi Jinping has approved a $44 billion stimulus package to inject confidence into its economic well-being. The stimulus plan does confirm the significant economic hit the country took after its zero-covid policies crippled China earlier this year. (Supply Chain Digital)


More to consider…

  • The oil and gas market is being slammed by the push to manufacture more electric vehicles. This EV “boom” reduced the consumption of gasoline by the droves, but also hampered the production of oil. The transportation sector, one of the largest consumers of diesel and gasoline, accounts for almost 60% of the global demand for the product and with regulatory changes coming down the line… that’s going to be changing in short order. (Logistics Viewpoints)

  • For the safety of all! Kentucky was the lucky recipient of a federal grant amounting to $5 million to fund a pilot program for the safety of those operating vehicles on the interstate. Wrong-way driving is a serious problem in Kentucky and this new technology system is expected to alert drivers and emergency responders when someone is jeopardizing the safety of the roadway by driving in the incorrect lane. (The Trucker)

  • Nine weeks of relief have been put to an end. Diesel prices are surging - again - rising 20.6 cents in a week and putting the national average over $5. This average, reported by the Energy Information Administration, is also late due to what is being classified as “technical difficulties.” (Transport Topics)


E-Commerce 💻

Are Labor Shortages Straining Your E-Commerce Business? Strengthen Operations with an Automated Returns Management System | Inbound Logistics

Inbound Logistics shares an article encouraging automated returns in order to improve e-commerce focused businesses struggling with obtaining talent and labor amid a national shortage.


Shortages 🛒

Equipment Shortages Snarling U.S. Supply Chains | Supply Chain Brain

Supply Chain Brain dives into the equipment shortage plunging the American supply chains, desperate for more sea containers and steel trailers.


Ports 🚢

The container ship backlog outside Los Angeles ports is almost cleared | AJOT

AJOT contributor, Brendan Murray, writes about the recent decongestion of the Port of Los Angeles container ship queue which made headlines last year with almost 109 ships in line.


Diversity 🤜🤛

Female fleet execs, drivers appointed to federal Women of Trucking Advisory Board | CCJ Digital

CCJ Digital Staff shares about the U.S. Department of Transportation’s Women of Trucking Advisory Board's recent appointees.


Industry Forecast 📊

HDT Fact Book 2022: High Fuel Prices, Market Shifting Mark Industry Trends | Trucking Info

Trucking Info contributor, Deborah Lockridge, writes about the industry trends of growing gasoline and diesel prices and what it could mean as the market shifts into peak season.


Regulations ⚖️

The age of AB5 begins! | Back The Truck Up

Back The Truck Up contributor, Rooster, reminds the readers that August 30th - yesterday - was the first day AB5 was officially in law without the injunction blocking the trucking industry from compliance.


Owner-Operators 🚛

Drivers leasing trucks through Pathway again ruled independent contractors | Freight Waves

Freight Waves contributor, John Kingston, writes about the appeals court's decision to uphold the ruling that 15 drivers leasing trucks through Pathway could not be classified as XPO employees and were instead independent contractors.

Artificial Intelligence 🤖

Geodis to add 1,000 autonomous bots at warehouses | Supply Chain Dive

Supply Chain Dive Associate Editor, Megan Ruggles, writes about the recent Geodis expansion with robotics supplier, Locus Robotics. The agreement will launch more than 1,000 robots in warehouses across the world.


Business Strategy 💡

Report: Companies shorten supply chains, boost tech investments | DC Velocity

DC Velocity Staff shares a report regarding technological solutions being implemented internationally in the supply chain.

Top 10: Strategies to increase supplier diversity | Supply Chain Digital

Supply Chain Digital contributors, Roger D. Blumberg and Ashlee Nelson, write about the necessity of supplier diversity and what companies can do to enhance these business strategies.

In My Opinion: Coping with ever-increasing logistics costs | Resource Recycling

Resource Recycling contributor, Graham Rihn, writes about their opinion regarding the growing cost for transport goods.

Fake it ‘til you make it | CCJ Digital

CCJ Digital contributor, Rick Mihelic, writes about companies “faking it” to investors and what kind of turmoil this can bring to the table when looking for profit. He attributes this behavior to Silcon Valley start-ups.


Inflation 💸

Supply Chain Woes Plus Inflation Cause US Manufacturers to Hike Prices | Material Handling & Logistics

MH&L Staff writes about the results from a recent Managing Business Risks in 2022 Pulse survey, showing growing prices listed by manufacturers due to the still crippling inflation


Electric Vehicles 🔋

Industry reacts to proposed national charging station network | Fleet Owner

Fleet Owner contributor, Scott Keith, writes about the trucking industry’s serious concerns about the National Electric Vehicle Infrastructure program’s lack of stations available.

West Michigan International Adds State's First Public Fast Charger | Transport Topics

Transport Topics writes about the new Kalamazoo, Michigan electric vehicle charging station unveiled by West Michigan International.


Marketing Approach 🤳

Musk cites whistleblower as new reason to exit Twitter deal | AP News

CNBC contributors, Kelvin Chan and Tom Krisher, write about Elon Musk’s latest reason cited for axing the purchase acquisition of Twitter - a whistleblower.



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