Assessing current capacity interventions

Sam Mulopulos ()

Chapter 7 in Achieving Supply Chain Resilience, 2025, pp 145-170 from Edward Elgar Publishing

Abstract: This chapter discusses the various capacity interventions deployed since the COVID-19 pandemic to reshore production for resilience. It defines two types of capacity interventions. Industry-based interventions focus on specific vulnerable sectors; goal-based interventions are broader, focusing on goals like reducing dependence on a non-market adversary rather than on supporting a certain sector. Within each category, subsidies and grants are being used to reshape supply chains for resilience. Governments are also strengthening procurement policies to reward domestic producers with government contracts as a reshoring tactic. This chapter concludes with an assessment of these various policies, arguing that policymakers should be careful to ensure capacity interventions successfully build resilience, are well designed, and minimally distortive.

Keywords: Economic security; Industrial policy; Public procurement; CHIPS and Science Act; Make PPE in America Act; Sovereign Manufacturing Capability Plan (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035349500
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