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The Government Circuit: Looking Ahead to 2021

Happy December!

One of the toughest years of our lives is almost over, and while it certainly has been a difficult one, IPC is ready to finish 2020 on a high note, and we hope you are, too.

Here in Washington, time is quickly running out before the 116^th Congress adjourns for the holidays and then, a few days after that, adjourns forever, yielding to the new 117^th Congress on January 3. Several major legislative priorities, including coronavirus recovery and appropriations bills, remain unresolved as of this writing.

As all this unfolds, we expect to secure some policy victories for the electronics manufacturing industry and keep our policy agenda moving forward. Read on below and watch this space next month—or follow IPC on social media—to learn how it all turns out. 

In Europe, the continent’s policy-making institutions are in full swing, addressing many of the same challenges related to the pandemic, economic relief and recovery, within an overall framework of upholding high standards in global trade, achieving more “open strategic autonomy” in supply chains, and greening the economy. IPC’s recent “IMPACT EUROPE” event shed more light on these issues. Read on below for more details.

As we enter the holiday season, please continue to stay safe and review IPC’s COVID-19 Update page for all the latest information and resources. Unfortunately, we are continuing to see a concerning increase in case numbers, and your health and safety are our top priority.

And, as we look toward the new year, here are some of the top issues we are engaged in, as well as some opportunities for you to get involved and make your voice heard.

How Will Electronics Fare Under a Biden Administration?
If there is one takeaway from 2020, it’s that “business as usual” is in the rearview mirror. In the U.S., supply chain disruptions associated with COVID-19 have illustrated the shortsightedness of longstanding U.S. policy that has prioritized the growth of global trade over the resiliency of U.S. manufacturing.

IPC is encouraged that President-elect Joe Biden has spoken of rebuilding U.S. domestic manufacturing capacity, and we are hopeful it foretells how his administration will operate. For a look at the road ahead, check out my blog on the Biden policy agenda on manufacturing policy, tax and trade, regulation, and workforce issues.

It’s Time to Complete Unfinished Business on Capitol Hill
Meanwhile, on the front burner, Congress has just completed the annual NDAA process, which includes pro-electronics-industry language sought by IPC. Specifically, IPC is encouraged by the inclusion of new restrictions on the sourcing of printed circuit boards and assemblies for defense electronics. We believe this will bring greater resiliency and security to the electronics supply chain and reverse the shrinkage of the U.S. electronics manufacturing base.

The U.S. House of Representatives passed the bill with a veto-proof majority on December 9, with the Senate following suit on December 11. Stay tuned to IPC’s social media accounts to stay informed. 

Come 2021, we expect there to be a growing focus in many nations on the security and resiliency of electronics supply chains, and IPC will be at the forefront of the discussion.

We will continue to advocate for measures in all nations to shore up trusted supply chains for electronics related to essential governmental functions, including national defense.

Military Prowess Requires an Embrace of Lead-Free Electronics
In other defense-related news, IPC is concerned that the U.S. defense community’s continuing reliance on lead-based electronics—and the widening gap between the commercial and defense markets—puts the military’s technological superiority and readiness at risk. “Like the proverbial frog in a pot of boiling water, this problem will sneak up on us until we realize we are cooked,” IPC President and CEO John Mitchell wrote in an op-ed that was published in both Defense News and Military Times. The remedy is straightforward: more funding and innovation. IPC calls on the U.S. Congress to make a greater investment in research and development into lead-free electronics for the defense industry. Give the op-ed a read and let us know what you think.

IPC Members Gear Up for New Competitive Landscape in Europe
Senior executives from across the European electronics manufacturing industry on November 18-19 met virtually with European Commission officials to advocate for pro-industry policies in a dynamic regulatory landscape. IPC’s IMPACT EUROPE 2020, our annual education and advocacy event focused on European issues and policymakers, came at a critical time, with the European Union ramping up consideration of new policies affecting international trade, industrial strategy, environmental policy, and corporate conduct.

On top of an already ambitious 2021 agenda aimed at accelerating the region’s green and digital transitions, the EU’s COVID-recovery plans and new emphasis on “open strategic autonomy” bring new focus to global supply chains, how we manage our interdependencies, and how the region can rebuild back sustainably. To those of you who missed this opportunity but would like to learn more or become involved, please contact Alison James, IPC’s Senior Director, Europe, to read a full recap of the event.

In other European regulatory updates, if your company produces, imports, or supplies products to the EU, it would behoove you read up on Substances of Concern in Products (SCIP) database requirements, which may apply to your company. The obligations require manufacturers across supply chains to disclose significant new information about chemicals used in their products, with a potentially sizable impact for manufacturers in the U.S. and around the world.

If you want to learn more, the European Chemicals Agency (ECHA) hosted a webinar on November 19 covering how to prepare and submit a SCIP notification. The webinar also outlined the tools that can be used to refer to information already submitted to the SCIP database. As a reminder, under the current timeline, the database is set to come into effect on January 5, 2021, just 10 weeks after it was unveiled for the first time. And for even more information on the database and how it can impact your company, check out a newly updated IPC blog on our website. Let us know if you have any questions about the notification process.

Which Government Policy Issues Are You Riled Up About?
As always, our industry wins when you are active and engaged, and the success of our work depends on the active participation of IPC members like you. IPC has been conducting an ongoing member survey about the government policy issues that concern you most. We received a host of new responses amid Election 2020, and here are the updated survey results. When asking our members to identify their top areas of concern, a majority mentioned trade and tariffs (54%). A second tier of top issues are education and workforce skills (33%); incentives for research, development, and investment (33%); environmental regulations (31%); taxes (28%); and intellectual property protection (28%). Which government policy issues matter the most to you? Visit our website to take our five-question, five-minute survey.

With your help, we can begin the new year in a strong position to advance our advocacy goals; there are a plethora of opportunities to do so.

• Stay informed on IPC advocacy issues by managing your e-mail preferences. By going to IPC.org and opting in to receive “Advocacy” updates, you’ll receive beneficial news to keep you informed and engaged in IPC's industry advocacy efforts.
• Browse our IPC Advocacy page to learn more about our work advocating for the electronics manufacturing industry.
• Join our Advocacy Team (The “A Team”) to send a message to your elected officials with just a few clicks.
• Host an elected official at one of your facilities. You can offer a tour, a briefing, and/or a demo, as well as a chance for them to speak to your employees.

IPC APEX EXPO Moved to March, Goes Virtual
Unfortunately, our in-person events will continue to be delayed due to COVID-19. With safety in mind and facing new considerations around conferences and travel, IPC decided to move IPC APEX EXPO 2021 to March 8-12 and will now take place in a safe, all-virtual format. Just as your companies are innovating to overcome the challenges of this pandemic, we are adapting as well.

Registration for IPC APEX EXPO 2021 is expected to open December 17. To view the full schedule and exhibitor list, visit ipcapexexpo.org. IPC APEX EXPO will return to an in-person format in 2022 and will take place January 25–27, 2022 at the San Diego Convention Center.

As 2021 looms, IPC’s commitment to learn, connect, and collaborate with one another is stronger than ever. We look forward to continuing to work with IPC members and policymakers to advance policies that promote a strong, rapid recovery from the COVID-19 pandemic as well as increased innovation, investment, and growth over the coming decades.

See you next year!

IPC–Association Connecting Electronics Industries | Chris Mitchell is IPC’s VP of global government affairs. Contact him at ChrisMitchell@ipc.org.