IPC Global Advocacy Report

11/5/2021

Dear IPC Members:

While we, along with everyone else, await for updates on the Biden administration’s “Build Back Better” package and bipartisan infrastructure deal, IPC’s advocacy work is continuing as usual.

This week, IPC, alongside the U.S. Partnership for Assured Electronics (USPAE), urged the U.S. Government to include electronics manufacturers in efforts to shore up supply chain resiliency. The Biden administration announced it will enforce a new vaccine mandate on U.S. companies with over 100 employees. And the U.S. Department of Defense released a new version of its Cybersecurity Maturity Model Certification (CMMC). IPC also released the second iteration of our Global Sentiment Survey, and the industry outlook, unfortunately, remains murky at best.

As we get ready for 2022, we ask you again to help us plan for next year by taking our five-question survey, which will provide us valuable direction for our government relations (GR) efforts in the coming year. With your help, we can start the new year in a strong position to advance our advocacy goals.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

 

TOP NEWS OF THE WEEK

IPC and USPAE Warn USG of Weakened Electronics Ecosystem: IPC and the U.S. Partnership for Assured Electronics (USPAE) encouraged the U.S. Department of Commerce to conduct a holistic analysisof the ICT supply chain, including the electronics manufacturing ecosystem, in joint comments submitted this week. The request was pursuant to U.S. President Joe Biden’s Executive Order (EO) 14017, “America's Supply Chains,” issued earlier this year. The comments also urged the U.S. government to implement Section 841 of the FY 2021 National Defense Authorization Act (NDAA), which would bolster supply chain security for printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs), and to work with the U.S. Congress to establish tax credits to support the industry’s migration to factories of the future. IPC Contact: Ken Schramko.

PIP (3:1) Compliance Deadline Extended to October 2024: After considering input from IPC and other stakeholders, the U.S. Environmental Protection Agency (EPA) announced a proposed rule to further extend compliance deadlines on the final risk-management rule for phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline would be October 31, 2024 – three years and seven months beyond the original deadline of March 8. The EPA will examine new requests for extensions beyond the 2024 date by evaluating documentation to support specific uses of PIP (3:1) in articles. IPC, alongside CTA and ITI, has organized a list of documentation that will be useful to prepare a response to the EPA. Please check out our blog to read more, and let us know if you have any question. IPC Contact: Kelly Scanlon.

How Can Government Help or Hurt You in 2022? We’re Looking for Your Concerns and Stories: As we look towards 2022, we want to know what our members are worried about. What are the key challenges you are facing right now, and what about over the horizon? How can the IPC Government Relations team best advocate for you? Your feedback will be handled in confidence and not used without your permission. Please click here to answer a 5-question survey, including one open-ended question where you can send as little as a few phrases or as much as a 100-word story that we can share with others to illustrate the challenges facing our industry. Thank you for your help! IPC Contact: Ken Schramko.

 

QUOTE OF THE WEEK

"Electronics manufacturers are expecting more problems on the horizon as a result of ongoing shortages, both in terms of the six-month outlook and for expected prices in 2022, as the crisis appears to have no end in sight. Heading into the holiday season, these issues and backlogs could have serious repercussions for consumers in the United States and beyond.”
- IPC chief economist Shawn DuBravac comments on the effects of the global production shortage as outlined in IPC’s latest industry survey.

 

DEFENSE AND SECURITY

DoD’s CMMC 2.0 Released This Week: The U.S. Defense Department's (DoD) Cybersecurity Maturity Model Certification (CMMC) 2.0 was announced this week, and electronics manufacturers will want to take note of the updates. Principally, CMMC pilots were officially suspended and there will be no further CMMC Defense Federal Acquisition Regulation Supplement (DFARS) clauses in contracts until the new rulemaking is completed. Earlier this year, IPC made the case in an industry report and provided input to a congressional hearing that CMMC compliance costs could drive many SMEs out of the defense industrial base. Stay tuned for a further blog on this issue next week. IPC Contact: Chris Mitchell.

Support Grows for Lead-Free R&D in Congress: The U.S. Senate Appropriations Committee recently released their FY 2022 defense appropriations bill, which for the first time included language supporting further research and development (R&D) into the issues surrounding lead-free electronics in mission-critical applications. The U.S. House version of the defense appropriations bill, which was approved by the House Appropriations Committee in August, includes $7.5 million for this purpose. IPC has called for a five-year, $40 million investment in a public-private R&D program to support the transition of various aerospace, defense, and high-performance (ADHP) electronics to lead-free technologies. Read more here. IPC Contact: Chris Mitchell.

 

ENVIRONMENT AND HEALTH

Biden Administration to Implement Vaccine Mandates: On November 4, the Biden administration announced that it will enforce a new mandate on vaccinations for U.S. companies with over 100 employees. The new U.S. Occupational Safety and Health Administration (OSHA) Emergency Temporary Standard (ETS) will require employers to ensure that their workers are either fully vaccinated against COVID-19 by January 5, 2022 or that they test for COVID-19 at least once a week. IPC is concerned about the potential overreach and lack of clarity associated with the mandates on federal contractors. Left unaddressed, they could lead to significant disruption within the defense industrial base. If this issue is important to you, read this IPC blog and please let us know so we can integrate you into our advocacy efforts.

EPA Unveils Plan to Regulate PFAS by 2023: The U.S. Environmental Protection Agency (EPA) recently released a strategic roadmap to regulate per- and polyfluoroalkyl substances (PFAS). The roadmap signaled that companies should be prepared to provide data and information about the usage of PFAS in their products and processes. IPC recently submitted comments to the EPA on a separate proposed rule that would require all manufacturers and importers of PFAS to report information regarding uses of thousands of PFAS. Check out a recent IPC blog for our full comments. IPC Contact: Kelly Scanlon.

China Proposes Adding New Substances to Chemical Inventory: On October 16, China’s Ministry of Ecology and Environment (MEE) announced an additional 23 chemical substances would be added to the Inventory of Existing Chemical Substances in China (IECSC). As a reminder, if the substance is not listed in the IECSC, your business must complete new substance registration before manufacturing or importing said chemicals. Chemicals that are not included in the IECSC are considered new chemicals and are managed under MEE Order 12. IPC Contact: Kelly Scanlon.

Philippines Releases New Control Orders for Chemicals Used in Electronics: On October 26, The Philippines' Department of Environment and Natural Resources (DENR) issued two new Chemical Control Orders (CCOs) for cadmium and chromium VI and its compounds — both of which are used in electronics. As a reminder, CCOs prohibit, limit, or regulate the use, manufacture, import, transport, processing, storage, possession, and sales of said chemicals. The orders will take effect later this month. Let us know if you have any questions. IPC Contact: Kelly Scanlon

Interested in Chemical and Product Regulations in Asia? To help our members, IPC has created nine white papers highlighting the history of chemical regulations, current regulatory systems, recent regulatory updates, and anticipated trends in the Asia-Pacific region. Each white paper has recently undergone an updated deep dive by our environmental and health experts. You can find our refreshed white papers here; let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon

 

TAX, TRADE, AND SUPPLY CHAIN

Electronics Manufacturing Outlook Continues to Be Murky: The six-month outlook for electronics manufacturing grows has grown murkier due to ongoing supply chain crisis, according to new data from IPC’s latest Global Sentiment Survey. Manufacturers continued to report strong sales, but have been weighted down by rising material costs, rising labor costs, and supply chain shortages. Meanwhile, manufacturers also cited ongoing difficulty in finding qualified talent. Read the full report here, and stay tuned for next month’s report. IPC Contact: Ken Schramko.

U.S. House Vote Expected on Biden Budget Deal: As this is written, the U.S. House is expected to vote within hours on President Joe Biden's “Build Back Better” package, which is set to fund a host of social safety net and climate issues. Electronics manufacturers have some reason to be optimistic, as the latest framework for the bill includes included $5 billion for U.S. Commerce Department efforts to bolster critical supply chains. There was also language supporting advanced manufacturing research and financing cybersecurity workforce development and upskilling programs. Biden has proposed increasing taxes on corporations and wealthy individuals to pay for the measure. We will update you as more information is released. IPC Contact: Ken Schramko.

 

HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

“The longer the shortage crisis continues unresolved, the more difficult it will be to overcome these compounding problems and return to normal.” John Mitchell, IPC president and CEO, comments on new data from the IPC global sentiment survey, indicating a darkening outlook for electronics manufacturing.

“Supply chains continue to be under tremendous pressure. Container ship reliability remains stuck near all-time lows across the world. Not only is the U.S. seeing weaker growth, but China and Europe are also feeling the effects.” The latest IPC Economic Outlook is available, and author Shawn DuBravac, IPC chief economist, provides insights.

 

KEEP IN TOUCH WITH US

Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

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