Protecting PPE Manufacturing Infrastructure & Domestic Suppliers

The early days of the COVID-19 pandemic showed consumers the fault in global supply chain dependence, especially for products such as Personal Protective Equipment (PPE). Across critical industries such as emergency services, medical, grocery retail, and essential manufacturing proper PPE became scarce, resulting in a shortage that occurred when supply failed demand. This was due to the “Just in Time” supply practice where raw goods are manufactured abroad and shipped to their point of distribution or sale as demand requires.

The flawed “Just in Time” method of consumer supply lent itself to the shortage when “China moved to obtain most of the N95 masks and other PPE manufactured in that country for use by doctors and other health professionals caring for COVID-19 patients there. Then, as the virus spread globally beyond China, other countries – including PPE producers such as France, Germany, and South Korea – similarly bought up available supply, and also severely restricted export of the precious commodities. In a few short weeks, the global market for PPE ground to a halt.” (Holland & Knight) The few domestic producers of PPE could not keep up with new demand leading to panic and an economic shutdown.

Manufacturing across Long Island answered the Governor’s call to convert their shop floors and begin producing critical PPE. Nonessential and essential manufacturers alike invested heavily in new equipment and retooled their operations with aid from Empire State Development ESD and other government resources which poured millions in financial assistance to help manufacturers carry out the shop floor conversions.

To date, ESD has awarded more than $20 million to 36 New York companies as part of the initiative to produce PPE domestically. These grants have not only enabled New York State manufacturers to create and retain a combined 3,500 jobs, but they have also put the state on track to meet the demand for the production of several critical supplies. 19 In-state manufacturers can currently meet 100 percent of New York hospital’s peak weekly demand for face shields. In 2021, New York State manufacturers are projected to have the capacity to produce up to two million N95 respirators, four million surgical masks, one million gowns, and 600,000 face shields per week. (Cuomo 2021)

Local PPE production is currently meeting demands thanks to ESD government assistance as well as the Defense Protection Act (DPA) which President Trump employed to help meet workforce and First Responder needs. President Biden’s COVID-19 response coordinator, Jeff Zients, said “the administration has identified twelve supply gaps, including masks, gloves, and testing swabs. President Biden’s new DPA order also tasks the administration with “ensuring adequate supplies for future pandemics, including by improving supply chains and expanding the Strategic National Supply.” (Council on Foreign Relations) The DPA serves as a temporary solution to PPE supply challenges, future market conditions will pose new challenges to the production of PPE in both the short term and the long term.

Proposed legislation in the ‘‘Strategic Global Supply Chains Act of 2020’’ (116th Congress) calls for the elimination of import tariffs of PPE products in anticipation of another wave. This legislation poses a short-term probability challenge to those manufacturers that invested in PPE production by encouraging imported products. Cheap international labor rates make the price point of domestic supplied products uncompetitive with foreign products.

Once CDC guidelines no longer call for the wearing of masks in public the PPE consumer market will dissipate, leaving manufacturing firms with barely used PPE production equipment and no market to sell products in. The probability of producing such equipment domestically will cease and the producers will move on to more profitable products thus putting the United States back in a position where we will have to scramble when the next PPE shortage occurs.

Solutions to the short-term challenge are to oppose legislation such as the “Strategic Global Supply Chains Act of 2020” as it supports imported PPE rather than domestic PPE.  In a letter to President Biden ahead of his inauguration, a group of twenty-six Democratic senators “urged him to use the DPA to incentivize domestic production of supplies such as gloves, which they said would be a “boon to patriotic American manufacturers,” and leave the United States better prepared for future pandemics.” (Council on Foreign Relations) We must support the manufacturing infrastructure we have invested so heavily into so that it exists when tapped in the future.

Long term market challenges can be met by legislation such as New York State’s “Medical Supply Act” which seeks to “promote domestic manufacturing of critical medical equipment and to reduce dependency on overseas products by prioritizing the purchase of American-made PPE and medical supplies.” (Cuomo) Similar to what the “Buy American Act” did for American-made structural iron and steel, this new policy ensures domestic manufacturers have a ready market and New York maintains the PPE manufacturing infrastructure it has made since the onset of the global pandemic.

COVID-19 found the United States ill-equipped to protect even our most vulnerable populations as well as the first responders and frontline healthcare workers tasked with their care. The PPE shortage showed the faults in international dependence on foreign suppliers from global markets as countries began to hold back exports, driving prices, delaying shipments, and hoarding for themselves. The Federal government saw the value of local manufacturing and tasked them with the challenge of retooling their shop floors to meet the demand, which they did gladly. Millions of public and private dollars were invested into local supply chains resulting in the creation of the PPE industry. We must learn from the early months of the global pandemic and remember the global PPE shortage; we must protect and promote our investment into this infrastructure in anticipation of future events and market demands.

By Patrick Boyle, Executive Director, IgniteLI

“Legal Insights on the Import of PPE and Other Medical Supplies Vital to Fighting COVID-19: Insights.” Holland & Knight 2020

Siripurapu, Anshu. “Defense Production Act” Council on Foreign Relations, Council on Foreign Relations 2020

Toomey, Patrick. “Toomey and Hassan Working to Make It Easier to Obtain PPE: U.S. Senator Pat Toomey of Pennsylvania.” Press, United States Senate,

Cuomo, Andrew. “State of the State 2021” State of New York 2020