January 06, 2023
2022 was another significant year for minerals mining and set the...
In a recent analysis of the United States’ manufacturing renaissance, supply chain blog “The Strategic Sourceror” highlighted three major factors that are necessary to continue the reshoring trend: technology, available and accessible resources, and a stable supply chain.
Put simply, it is imperative that manufacturers can easily access the minerals necessary to make their products. Referencing a recent IndustryWeek op-ed co-written by NMA’s president and CEO, Hal Quinn, and founder of Reshoring Initiative, Harry Moser, the post details:
“Quinn and Moser maintained that the U.S. has $6.2 trillion worth of mineral and metal reserves, but foreign companies still provide it with more than 50 percent of the materials its manufacturers require. Why are efforts designed to bolster the U.S. mining sector meeting so much resistance? Quinn and Moser acknowledged the importance of revising the nation’s antiquated permitting system, which imposes approval times of seven to 10 years.”
The supply chain is one of the key factors that manufacturers look at when deciding to re-shore their operations to the United States. A strong manufacturing sector bolsters U.S. demand for minerals and metals, requiring increased domestic mining and streamlined access to new sources of minerals.
“91 percent of executives at U.S. manufacturing firms are concerned about how supply disruptions will impact factory production. Geopolitical shifts, global conflicts and lesser obstacles can be predicted, but the accuracy of estimations are only so strong. These considerations are supporting cases for reshoring, as procurement officers would like to benefit from a shorter supply chain that isn’t so asset-heavy. Concerns such as freight cost, excess inventory, risk and lead time would all be mitigated by sourcing from domestic mines.”
American manufacturers’ concerns confirm the need for policies that promote better access to domestic minerals and metals. This need has been recognized by the U.S. House of Representatives, which recently passed legislation to improve minerals mine permitting. We encourage the new Congress and the president to collaborate and take the necessary actions to ensure the success of our domestic manufacturers and keep our economy growing.
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