Coronavirus is a little bit out of control, the current supply chain cannot handle a demand shock of this magnitude. This market failure must be addressed immediately or we will face disastrous consequences.
The good news is that the PPE shortage can be solved, but those resources have to be rapidly reconfigured to meet unprecedented demand.
It is time to leverage our country’s connections with the outside world to secure the necessary supplies securing a backup stream of supplies from international sources is a problem of logistics, and the U.S. has the largest, most sophisticated public and private logistics network on the planet.
But the down payment requirements from manufacturers have increased dramatically amid economic uncertainty; it’s become increasingly difficult to verify the rapidly growing number of potential suppliers.
While the newly signed Coronavirus Aid, Relief, and Economic Security (CARES) Act does provide loans for small- and medium-size businesses and funds for the purchase of PPE, there are no provisions specific to aiding PPE manufacturers.
America’s logistics companies are ready to mobilize and meet this unprecedented threat, but we need to move now.