The coronavirus pandemic has led countries across the world to rethink manufacturing and supply chains. What steps can we take today and tomorrow to bolster a crisis ready actual Manufacturing Base and how are our policymakers addressing these issues . Joining me now is senator mark warner who sits on the many minutes committees in the senate and i add a note that senator warner and senator doug jones and senator Bernie Sanders and blumenthal have introduced the paycheck security act which tries to keep hold and to guarantee paychecks for those workers who have been displayed by covid and it is much more direct than anything weve seen before but senator warner, thank you for joining us today. We will bring some other people [inaudible] great to see you. Tell us first about what youve done and why its so important. I think the federal governments response, which has been obviously a record size and peed, 2. 7 trillion directly appropriated, Federal Reserve to another for chilean lending have helped make this crisis at least not worse but still, we now know we have 36 million americans who have lost their job in about 25 million of those have lost their Health Insurance. Study statistics send the Federal Reserves show that the folks who make 40000 or less, 0 of those fellow americans [inaudible] and those who think this will be some de shape recovery are wishful thinking. Obviously the house has had a very ambitious plan and my idea is that we have more progressive to last and similar approaches taken by republican senators that before we simply get rid of the existing buckets lets pause and say lets work around the world and if we look at our european allies, not only brits but the germans, austrians, danes, where their governments have made direct payroll support to workers who have been displaced then we should think about doing that here in this country and this would attach onto pptp and if they run out would take care of those middle market who have been left with no support and a plan basically says lets tap the government for two quarters using the retention tax credit and 100 of furloughed workers salaries up to 90000 in income and then we would have a component for overhead as well and the interesting thing is that would take our unemployment numbers down back dramatically and reconnect workers with their employers and reconnect them with Health Insurance during this time and as we do reopen it would allow us to bring back workers much quicker. We interviewed secretary morning about how much more support would be needed out in the system and say we spent three chilean dollars trillion dollars and we need to wait and see a few weeks how this goes and he was aware that our unlimited is now up to 38 million and what is he getting wrong because he said he did make the point to bob cusack that this is not an economic crisis but its a medical crisis. Whether its a v or a you is dependent upon science and killing the virus which i have sympathy for but on the broadside its helping people and he says we need to see what weve done first. Do you think hes just running to slow . First of all, obviously dont agree with this administration on a lot of things trying to give you an pportunity to make that clear. I think mnuchin has been a square shooter as we try to negotiate a series of items in both cares packages. We have put a lot of money out and i think there are literally illions of americans who are terrified at this moment and are worried about when the expanded unemployment runs out and they are grappling with how they get on medicaid because they lost Health Insurance with their job and from a competent standpoint i think we can make the case for administration that desperately wants to see that unemployment numbers go down and his paycheck security proposal would be a way to reconnect workers and drive down on a plane with they would make sure that our medicaid rolls would not swell and it would provide the kind of assistance for those icro businesses that did not [inaudible] 500,000 employees who really have been left out. I was with secretary middleton last night on a hearing together and he is talking about setting up the socalled main street facility but theyve been a slow to get that out and that is not going to be or that will be debt to the middle market and i think we need more. I think americans need more and as senators go home this week for the memorial day recess you will hear back from our constituents. Im not asking this facetiously but you and i have talked about spending and debt before and that you are in the moderate wing so what is the fiscal conservative do in these times . Well, if we look historically and not just america but european other capitalism driven democracies, in moments of great crisis, usually the government response underdoes and that often leads to a longer recession or into a depression. I am longterm concerned obviously about the total national debt, 28, 29, 30 trillion depending on how this plays out and i do think the fact that we had the new normal with remarkably low Interest Rates have made that debt less problematic than i would have liked. For example, when i tried to advocate for the [inaudible] plan back in last decade i think its a problem long term but i the alternative of doing nothing or doing less we are under shooting when you have depression levels of unemployment and we have to, i think, acknowledge that the number of these businesses are not going to come back and the business had 120 employees and was a restaurant and it may come back, if they come back, it may be with 60 employees so how do we also rethink that incredibly large segment of our workforce that will need to be retrained and retooled and that will take some level of government support. Right. In a moment and will bring them to ceos of companies with large north american operations and before i do that i want to get your own thinking about we had talked about supply chains and about american not having the manufacturing muscle that it needs and there is a fear about a way d nationalism in is rising but people are saying do we need to rethink how we deal with the crisis and get productive capacities set in this country in a more agile way and i have no idea where you are at on this. How do you think about the big production side of responding to the covid crisis . I think after this crisis is in the Rearview Mirror there will be a rash of federal actions not to similar to what happened after 911. I think there will be a recognition that we have done a pretty poor job on things like ppe on testing or on what we need to do right now is to get about a domestic supply chain for vaccinations. I think weve also been able to escape, so far at least, most americans now realize depending on the drug, 6070 of the basic chemical compounds that go into our drug supply are sourced out of china. It may be cheaper out of china but i think americans will be willing to pay a few cents more per pill if we can make sure that weve got a domestic supply and i think there will be a redefinition of National Security that will include things like ppe testing and drug upply. I also think my beef is not with the Chinese People but with the communist party of china and xinping and his approach and there could be a coalition of the willing that would think about not only domestic supply chains but a liberal democracy supply chain that operate under rule of law but america under this administrations retreat from that kind of International Cooperation will make that kind of coalition of the willing visavis china a little harder to pull out. Let me bring to our discussion barbara, ceo of siemens usc and one of the sponsors of todays. Rendan ogrady, ceo of [inaudible] usa today. We spoke yesterday and barbara, thank you for joining us. You heard the senator just layout that we need to do what we did after neat 911. Ethink what we are producing even did to where when it comes to when i learned was a pi or the active ingredient that right now are based in china and there may be things that you hear about barbara, you are at siemens and you are an International Transactional company of human at huge assets in the United States but as you look at it its not the question of restoring production, i dont think but its a question of what you think we need to do to take productive capacity in this country and better ready it for a time like this . Stuart, thank you for the opportunity to talk about this. I do agree with senator warner that this is a moment that will help us drive change that we have needed anyway. We are in the middle of a Fourth Industrial Revolution paid your bringing Industrial Software to the world and with tools today that simply did not exist one decade ago. While we have been on this transformation the last two months have shown us that manufacturing is absolutely Critical Infrastructure that we need to strengthen. But when we look at it, i see two really important opportunities. The first is something i will call the strategic digital twin reserve. What is that . What im thinking about is think about what happened as coronavirus began to impact us and we thought about the healthcare needs and we look for what kind of equipment our medical technology would be needing to take care of patients. Quickly identify ventilators is a real need. We needed hundreds of thousands, if not millions ventilators and we do not have that and feared we did not have the capacity. [inaudible] makes ventilators and they made their engineering, design and manufacturing process available and we captured what is called the digital twin. Capturing what is known about the physical properties and its parts that can make up and reassemble and make that available to digital file. Think about the powerful approach this could be if we could capture the digital twin of medical devices and even pharmaceuticals because its not really advantageous to manufacturing the scale and most businesses step forward to do that but in a time a real crisis, like weve been going through, this could give us the resilience and Rapid Response that we need. Barbara, that sounds great and we got a lot of laypeople, ncluding myself listening. We talked about the defense production act, it sounds like the government coming on and telling businesses what to do and some are applauding that and some say wait, thats too much so where are you enacted on the defense production defense production act connected anymore, do we need less . How do we do this right. What ive seen so far is an absolutely fantastic partnership between government and business. Youve seen public and private businesses stepping up to the plate and readjusting their manufacturing and a lot of people look to what siemens do and we chose to use our manufacturing knowhow and the technology that enables manufacturers to help them modify their lines with ramp up production of ppe or as i say enable others to step into vital roles of manufacturing, medical devices. I think that we have that technology now and we have the ability to use the defense production act but also to use grateful assets in the department of defense. A lot of people may not be familiar with the concept of the organic industrial and this is an opportunity for us to upgrade the 30 factories managed by the foreman of defense and prepare them to be able to produce supplies when needed. I want to bring in Brendan Ogrady and then get senator warner to help figure out what the deficits are right now. If we were to need something and if we were to think about acts that need to be put in place as he mentioned the 911 commission, brendan, you and i had a conversation and ill tell the public is available on the coronavirus report which the hill did yesterday, and he made an important, the thing about strategic supply of medicines like we think about the Strategic Oil reserve. I love to give you an opportunity to expand more on that. Yeah, sure, stuart, i hope you can hear me ok. I think that when we think about pharmaceuticals and we about medicine and critical help needs you know, those are very important things to keep our country running on a daily basis. We think about a lot of things in this country, being strategic and having a Strategic Oil reserve and having Strategic Reserves of other things and i r pharmaceuticals, whether it is medicines that are focused on icu patients or very critical medicines, antibiotics and paralytics and things like that, when we have a National Emergency or a global pandemic, making sure we have access to those critical things and that supply chain is intact is important. There are numerous ways to be able to protect against that. You can start to put manufacturing back into the United States. You can partner with different companies. You can do things like treaties with other nations that also manufacture medical supplies. One of the shortterm things and maybe one of the easiest things to do is build some Strategic Reserves and stockpiles on medication so that if there are a need or use for those, we have those available. I think that is a longterm problem to maybe a longerterm issue. Let me make this fun. Senator wanted just said he was surprised that china, in particular, but other places out there make so much of the active ingredients. You told me america makes almost none of them. How do you get between zero and something to make senator warner more comfortable with the active ingredient side of drug production . It is a discussion that we have been having internally for over a year. I spoke with numerous members of congress on the hill about it. Almosthink the fact is all of the chemicals are made in china. That moved onshore years ago. Moved tousiness has china, india, Eastern Europe and other places largely because of having to produce a competitive product. I think whatever we do to bring that manufacturing back to the u. S. , it has to be cost competitive and it has to be sustainable. There are numerous ways to attack that. In the short term, i think it is partnering with those companies that have a strong api business and making sure that we have access to that api for those critical medicines is one of the shortterm things that i think we can do. Very little if any api is made in the United States. Thank you, senator warner. In past, we have had discussions about capitalism and rebalancing the social contract so that somehow, when you look at technology and you look at everything that is happening and you look at the inequality in the United States, that we needed to do something because capitalism was, in a sense, your sense, broken. You are one of the former Business Leaders in the United States senate today. That was before covid hit. Now we have a massive pandemic. It shut down the entire economy. I am interested on your insights on how capitalism is going to work now and do we have an opportunity to improve it or do we need to change course . Steve, i love that question. It is my sweet spot. I want to make a quick comment on barbaras comments first. You know, i think brendan is right on the ipas and the basic chemical compounds. There is nothing unique about those businesses being in china, other than the fact that they are slightly more costeffective. I think americans and europeans, going forward, would be willing to pay a couple of cents more if we can bring production back. I think you will find huge bipartisan support for it. That we owe you these areas are real moved to bring manufacturing back to america. Proud of the fact that that is a great presence in virginia. That is one example. I think the administrations response on pp has been a complete disaster. The fact that we have seen Hospital Systems bidding against Hospital Systems in a totally inefficient market, when andave tried to source the screening ability of the u. S. Government, somebody knows a guy who knows a guy, that is an absurd methodology for the greatest country in the world to access that. We need to bring some supply back home. Same has been happening president , whyce cant we have a master database . What is in the pipeline from the fda . We should have that in the transport form. The administration has not been willing to complete that because they dont want to own this problem. I am not working with johns. Opkins university capitalism, i will give you three quick things that i think there will be a potential for bipartisan we talked about this with the dislocation coming out of this pandemic. We need a portable benefit system. Think we need to make sure that no matter what kind of work some portion of that that goes to benefits and travels with you from job to job. Have that portable benefit system. We need to change the laws aroundng investment and human capital. We need to get rid of the absurdity right now. If the same company trains two human beings to be more efficient than the robot, you dont get the same treatment. , the fcc isove doing this, to an equalized investment in human beings. They said it is maybe think about stakeholder capitalism rather than shareholder capitalism. Ouran also do well by employees and our communities as well. The capitalism that might be coming to the greatest economy in the world. I think we have run away from that. Businesses andee leadership recognizing that and the American Public is going to demand that as we make all of this spending. I think there is going to be an that there will be a responsible role. I think there is this moment in time. Be how capitalism works in the 21st century. Thank you so much, senator. I know you have to run now. Normally i would say in a mortar room, you would get a big round of applause. People are applauding as you transition on. Thank you for joining us. Let me continue with Brendan Ogrady and barbara for a few more minutes. Ofill ask brendan a question what can be done between the pharmaceuticals industry. I know you are the largest manufacturer of generics in the world. What can the pharmaceutical industry and your industry do with government to deal with this real anxiety that americans have right now about drugs at a time like this . That is a great question. It is one we have spent a lot of time talking about. Is about 50 of our portfolio is printed on the specialty side. The other 50 is generic. We occupy unique space. We have talked to the government about ways to ensure supply medication. Whether that is bringing manufacturing back to the United States or whether it is making sure we have the right agreements, whether it is a withy or some other thing friendly allied nations where we make medications or others make medications to make sure we have access to those and we share those in a time of crisis. Beyond thes pharmaceutical industry. This extends to personal protection equipment. Other Health Supplies and so forth. Broad problem. It is one that, with the white a,roboration rycroft for cooperation there are people who have trouble accessing health care and making that more affordable and more transparent is a high priority. Let me come back to you. We can do more. We have new totals. I have been wondering about this. We have seen science and genetic engineering. We also have major leaps and how we think about manufacturing. One of the most moving things i saw about ventilators and ventilator pieces, making some of them go to more than one patient at a time was the people at home using 3d printers they had to do this. I know you are right. I know you are deep in this. Share with people who may not be as familiar with big production, what some of that stuff is that has been revolutionary that can help us do more quickly dualpurpose sing manufacturing lines in a crisis like this. Of theviewed the head cdc, dr. Robert redfield. He was he held nothing back. He said we are lucky right now in a way. Noty for some that it did hit when we are in flues season. When flu season comes, you have the double impact. We may be in a nightmarish situation without a vaccine. I hate to depressed people. It is something to think about. What you may be suggesting may be needed more quickly then we are thinking today. Thats right. Lets think about this on multiple fronts. Maybe it is this pandemic or a different viral agent that has a different effect on us. We have to face reality and we have to be ready to mobilize. A lot of people dont know that manufacturing has moved into the hightech era. A joke but i mean this seriously. The education people can get today and the future of wellacturing could very be in videogames. Capabilities and the tools. To take advantage of the Digital Tools that transformed communication and entertainment over the last couple of take his decades. Think about the transmission that occurred transformation that occurred when the iphone was produced, that same transformation is happening with manufacturing and pharmaceuticals have been an example. Considering processing from to continual processing could be a game changer. Digital tools will enable us to be able to think about things that we are learning from science and practical medicine. It is happening very often. The tools are going to assimilate the capability of future medical devices. Simulation is going through some of their longerterm processors. We could just get a good idea of whether we are headed in the. Ight direction the workforce,ut critical thing is to get people opened up to the fact that manufacturing used to be dangerous and now we have a vibrant, hightech sector of the economy that can be attractive to a lot of people. Important for folks to take advantage of online courses that will get them ready for be ob that are going to these jobs that are going to become essential. There are 2. 5 million jobs in manufacturing. While we are in reduced production right now, we will be coming back strong because of the focus on making sure we bring production closer to the point of demand. Minute, brendan, what barbara just laid out was a picture of what we can do with production, new tools, moving y. Re quickly and more agilel somebody hopefully will come up with a vaccine. You dont make vaccines. You make other elements for the drug system. Somebody is going to come up with a vaccine. That is going to create an immediate 5 billion demand of files, of stoppers. I have talked to people like this who say it is not out there. What is inhibiting us today from saying we are going to have Something Like this and people are talking about doses, do we need to put those doses in something . , would love to hear from you what do we have to get in place today to using some of what to not just shared have this when we come up with a vaccine . I think that was very insightful. I think manufacturing is changing and modernizing, not just in the pharmaceutical industry but everywhere. Whatnk, as you mention, the vaccine once the vaccine becomes available, it is not just a vaccine, is the stopper it is the stopper and all of the other elements. The key is manufacturing supply. It will not just be an event in the United States, it will be a global event. All of our companies have Global Supply chains and our global economy. We will cooperate not just with the unite states for with other governments and ensure the consistency and distribution is going to be key. I want to thank you both. I want to thank barbara and Brendan Ogrady. Thank you both for helping us understand. I am sure as i was saying to brendan yesterday, this notion of supply chain andro