The MITRE Corporation recently published a report, “Toward Resiliency in U.S. Critical Supply Chains,” which explores recommendations for enhancing the resilience of U.S. supply chains by embracing a new role for government, prioritizing strong partnerships, and increasing visibility of supply chain operations and participants. Utilities can help mitigate the risk of supply chain shocks by understanding their supplier dependencies and planning for disruptions.
As WaterISAC has previously reported, supply chain disruptions can emanate from a variety of contingencies. During COVID-19, supply chain disruptions threatened the supply of chemicals necessary to treat drinking water and wastewater. In 2022, the Russia-Ukraine war impacted access to energy by increasing prices, notably in Europe. According to the report, “supply chains now face increasingly strategic and macro-level risks that a single company’s actions alone cannot mitigate. Disruptions in the availability of critical products and services due to geopolitical and environmental threats pose a significant risk to continued supply chain access.” Moreover, it warns that “nation-state criminal and nationalistic threat actors are manipulating goods, including software-based products. Consolidation in critical markets has limited the diversity of suppliers, with critical resources being controlled by monopolistic powers.”
Accordingly, based on its findings, the report recommends several actions:
- Recognize the complex, global, interdependent system-of-systems nature of supply chains.
- Develop a national strategy for supply chain resilience and continuity of the economy.
- Invest in collaborative efforts with industry, allies, and academia.
- Encourage new and novel ways to share classified and proprietary information among partners.
- Foster global partnerships balanced with a regional or bilateral focus to promote resiliency.
- Develop publicly available data sets to inform supply chain resiliency policy decisions.
- Embrace rapidly evolving tools to analyze data and model supply chains.
Additionally, another MITRE report from earlier this year analyzes the pros and cons of de-risking U.S. supply chains with China. The report’s findings highlight the need for policies promoting domestic production, supply chain diversification, and stronger trade alliances to reduce dependence on China. Access the report here.
Preparedness and Resilience Information:
To help utilities enhance the resilience of their chemical supply chain, EPA has created multiple free resources which WaterISAC encourages members to access:
- Chemical Suppliers and Manufacturers Locator Tool
- Water and Wastewater Supply Chain Case Studies
- Water Treatment Chemical Supply Chain Profiles
- Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions
To help prepare for potential future supply chain disruptions in general, WaterISAC recommends utilities review EPA's “Supply Chain Resilience Guide for Water and Wastewater Utilities.” EPA can also assist utilities with a supply chain resilience assessment. To request additional information about the assessment process, or to indicate interest in participating with an assessment, please email EPA at: [email protected].
Additionally, WaterISAC encourages utilities to share any supply chain impacts they experience. In addition to the state primacy agency (and any other entity required by regulations), utilities can report a supply chain disruption to EPA at [email protected]. WaterISAC also encourages its members to report supply chain disruptions by emailing [email protected] or calling (866)H2O-ISAC.
