Chip shortage affects boating, too
Securing American innovation a bipartisan winner
Many people don’t realize how close the pandemic and related supply chain issues have come to both shutting down the U.S. economy and putting our national security at significant risk. And the risk was largely related to semiconductor chips.
Ninety-two percent of semiconductor chips are made outside the U.S., and these chips are in almost everything. According to the auto industry, there are nearly 250 chips in every car. Semiconductor chips have been the brains of marine engines for years and now they are becoming the brains of the entire boat. As recreational boats and the boating lifestyle continue to incorporate more advanced and connected technologies, it is likely that boats will require upwards of 100 chips in the not-too-distant future.
Without these chips, our economy grinds to a halt. And this is not just a supply chain issue; it is a serious national security issue too.
Fortunately, the Biden administration and Congress have come together to fix the U.S. chip dependency problem by developing the Bipartisan Innovation Act, legislation which seeks to strike a compromise between the House of Representatives’ America COMPETES Act and the Senate’s U.S. Innovation and Competition Act. Specifically, the Bipartisan Innovation Act would provide billions of dollars of public and private funding to bolster domestic production of semiconductor chips.
As indicated by its name, the bill is bipartisan, with supporters such as Democratic Senate leader Chuck Schumer and conservative Indiana Senator Todd Young. Additionally, members of the Florida congressional delegation from both sides of the aisle — including Representatives Darren Soto, Michael Waltz, Ted Deutch, and Vern Buchanan — are part of the conference committee working to reconcile the House and Senate bills.
China had the foresight to invest billions of dollars in chip production and today could strike a serious blow to the U.S. by banning chip exports to our country. For the U.S. economy and national security to be so dependent on China makes no sense, and the Bipartisan Innovation Act would take a big step toward mitigating that risk.
Other smart elements in the Bipartisan Innovation Act include funding for regional innovation hubs and apprenticeship programs. The conference committee is also working to address additional global competitiveness and supply chain challenges in the legislation, including restoring the exclusion process for Section 301 tariffs, renewing the recently expired tax credit for research and development expenses, and cracking down on unfair shipping practices from foreign entities. These are critical issues for a countless number of American industries, and it behooves negotiators to incorporate these provisions in the final bill.
Earlier this month, I was in Washington, D.C., with more than 200 recreational boating industry leaders for our annual advocacy summit, the American Boating Congress. Throughout the event we heard from members of Congress and representatives from the Biden administration regarding the importance and urgency of passing the Bipartisan Innovation Act this summer. After seeing the disruption created by the COIVD-19 pandemic and the war in Ukraine, I couldn’t agree more.
After spending many years in Washington, D.C., working with three administrations and several Congresses, I fully understand how powerful politics can be. However, we need both parties, the business community, and all Americans to join and protect our country from a significant economic and security risk. Passing the Bipartisan Innovation Act would help us mitigate that risk; the sooner we move forward, the better.
We need both parties, the business community, and all Americans to join and protect our country from a significant economic and security risk. Passing the Bipartisan Innovation Act would help us mitigate that risk; the sooner we move forward, the better.