washington business
“A lean supply chain by definition works
great when things are perfect. When things
break down, they’re really challenged. The
idea that we can build more robust supply
chains is super interesting. That has to come
at some kind of premium cost.”
- Dan Nordstrom, CEO emeritus at Outdoor Research
The company has been making tactical gloves (a type of PPE)
for the military for decades. In early March, its engineering teams
saw a need for masks and within weeks had ordered equipment
and set up supply chains.
“It’s been super-inspiring for everyone in the company, just
seeing our teams diving into solving this problem,” Nordstrom
said during the governor’s press conference. “We’ve spent a lot
of money and made substantial commitments without knowing
details about who we’ll sell it to or what the quantities will be...
It’s the right thing to do, regardless.”
Speaking to Washington Business four months later, Nordstrom
said that while predicting anything in this uncertain time
is a challenge, he sees an enduring market for masks among
government and institutional clients — especially masks produced
in America.
“We’re not building a 10-year plan, but even if it’s a two-year
cycle, it’ll be worth the effort,” he said.”
The supply-chain problems during the pandemic helped
highlight that there is value in having a domestic manufacturing
base. The question, he said, is whether and how the market will
reflect that value.
“A lean supply chain by definition works great when things
are perfect. When things break down they’re really challenged,”
Nordstrom said. “The idea that we can build more robust supply
chains is super interesting. That has to come at some kind of
premium cost.”
what’s next
AWB Government Affairs Director Tommy Gantz stepped up to
help lead AWB’s coordination of the manufacturing response.
She spoke directly with dozens of manufacturers and worked
with the state Department of Commerce, including a loaned
executive from Microsoft who helped coordinate the state’s
acquisition of key PPE.
Gantz said the manufacturing response had been positive
and helpful, but that even more was needed from our state’s
manufacturers. Products like face shields were taken care of, but
supply wasn’t keeping up with demand for products like medical
gloves and even bleach wipes.
“We have a long way to go to get our manufacturing sector
there,” Gantz said. “A lot of manufacturers have pivoted, but there
are still products needed that people can’t get.”
She said AWB, as the state’s manufacturing association, will make a
new legislative push to help manufacturers in Washington. That will
include looking at tax incentives for producers of pharmaceuticals
and PPE to offset the higher costs of production in Washington,
which has a higher regulatory compliance burden and labor cost
than other countries where these products can be produced.
“Manufacturers have really stepped up and done the hard
work that needs to happen, and they need to be commended for
that,” Gantz said. “We need to encourage manufacturers to keep
pivoting and keep producing.”
“The supply chain is very fractured and it’s very clear to see
when you’re in the store,” Gantz said. “Right now, we need more
items to be produced here in the United States. The supply chain
appears to be fractured and unable to fulfill all the needs that are
out there in these critical supplies.”
There is still much that is unknown about COVID-19 and
what’s to come for our nation as we respond, but one thing is for
sure: manufacturing will continue to be a key part of America’s
response to the coronavirus and any other challenge ahead.
summer 2020
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