Thank you for being with us, or being near us, at least in the technology since. I welcome all of you to todays hearing that weve entitled, examining the response to the covid19 pandemic. The subcommittee at the sound of the gavel will come to order. As the nation continues to fight the unprecedented Public Health crisis, americans worked to protect against further spread of the virus while trying to maintain a certain degree of normalcy, including maintaining a job and earning a paycheck. There is not a corner of the u. S. Economy that has not felt the impact of the pandemic todays discussion will talk about the harmful effects on the Manufacturing Sector. During this pandemic, many in the Manufacturing Community have adapted their operations to help provide products needed to prevent the spread of the virus. Distributionlesale company that pivoted to manufacturing face masks in response to a dire National Supply shortage, or a cartridge printer Manufacturing Company switching to hand sanitizer, we have examples of manufacturers in kansas taking the lead to compete globally and assist in meeting the needs that arise with the pandemic. Im involved in the oversight of the institute of standards and technology. It distributes resources to 51 states, designated centers to assist small and mediumsize manufacturers. The cares act specifically provides an additional 50 mean dollars to the fiscal year 2020 appropriation to augment support in response to the pandemic. The law provided trip additional assistance for all funding that fiscal year. Comprehensive Pandemic Response package offered assistance to manufacturers and other businesses including but not limited to the paycheck protection program, the main andet Lending Program Economic Development administrations recovery assistance brands. Congress must uphold its oversight responsibility and make refinements where appropriate to ensure federal investment. In addition to resources, regulatory and technical patents to enable new manufacturing venues such as production of mask, gloves, gowns, ventilators and other relevant items. While i understand the u. S. Food and drug judgment the National Institute of health, fundamental in sharing critical information to enable solutions. The private sector plays a Critical Role in disbursement of this information. Coupled with Robust Resources dedicated to testing and ppe will play an enormous role in the nations economic recovery. As congress enters negotiations for future covid19 response package, i urge my colleagues to use todays discussion to reinvigorate their efforts to provide thoughtful federal policies and resources to our nations job creators and innovators. I like to highlight senate bill 3705, a bipartisan piece of legislation of develop with senator warner to allow the Aviation Manufacturing sector to retain workers who are at risk of permit reduction through furlough. This proposed costsharing program would enable the private and Public Sector to come together to preserve uniquely hardhit industry. I would be remiss if i did not address unique National Security and economic consequences if the u. S. Does not immediately fortify an increase its manufacturing capacities in supply chain as it relates to Strategic National stockpiles of ppe. The threat from china to our Manufacturing Sector is real. In 2019, medical equipment and wereed products in china estimated to have 20. 7 billion dollars value. According to calculations based thisficial u. S. Data, number likely understates the current extent to which the u. S. Relies on china for pharmaceuticals and medical equipment, products, and supplies. Demand for the supplies rose during the pandemic. The American Manufacturing industry is plato rigell role in mitigating harm stemming from this pandemic and it is vital for congress to acknowledge this work by providing appropriate support with thoughtful policymaking. Kansas is home to wichita which leader withnations innovative collaboration that takes warm in various other manufacturing capacities. Todays conversation is personal to me and to my constituents. I look forward to hearing from our Witness Panel that provides different perspectives to the same important issue. Mr. Neil gilman, the chairman and chief executive of cycle think based in shawnee, kansas, and mr. Ny stove all michael wessel, commissioner of the u. S. Economic and security review commission. The National Association of manufacturers provided their american renewal action plan describing their collaborative efforts of their Member Companies and responding to the pandemic and i asked that this document be submitted to the record. With that, i turned to the ranking member, mr. Blumenthal. Glad you have joined us, thank you. Ordinarily i would be with you in person in washington, d. C. , but im taking the precaution to participate from home today. For you and for me and for many of us, the issue is indeed personal, and im so glad that you and the chairman have agreed to do this. To neilcially grateful gilman for participating remotely, as i am doing. I want to just make a couple of quick points, and i know we have a vote, so we have to take a recess. The coronavirus pandemic has created a surge in demand for personal protective equipment and other Public Health products all across our country and the world. Everyone, particularly Health Care Professionals and essential workers, or heroes today, urgently need face masks and hand sanitizer, among other products. There is a universal need for critical supplies. It exposed vulnerabilities in our system and our supply chain. The United States relies heavily on the import of medical supplies and equipment but china and other countries focus solely on their own National Health response. As a result, supplies severely careled and are Health Officials and First Responders and frontline workers were put at unacceptable risk. Fortunately american manufacturers took up the mantle and produce ppe. Companies all around the country began repurchasing existing manufacturing and invested in new equipment often putting their infrastructure out of their own pockets during this crisis. There is a modern connecticut success story. It is a model for america. Im very proud of neil gilmans family and all of the companies ,n connecticut that stepped up stood out, and spoke up to help address this address Public Health crisis. , there currently produce 200,000 face shields every day. By early next year they aim to ramp up. They are growing. They are planning to open a facility, they are going to hire new employees to meet demand. I look forward to meeting with them and other companies in connecticut. At preferredtime protective equipment. A Global Leader in manufacturing healthd retail public care. Ofst responders complain headache and discomfort from extended face mask use as well as concerns about single use nature. They use their expertise to design a new face shield that is comfortable, it can be reused, it is affordable, and it is a great public service. The expertise of them and countless others our central workers have been served by is really a Great Success story. Safeguarding our supply of ppe is not only a matter of Public Health and national ready, it is a test National Security, it is omputer protection Consumer Protection issue. Unfortunately, counterfeit ppe n95 face and 90 masks flooded the market. There was little to guide them. Inadequate measures were taken to find or remove fake medical supplies. The consequences are that is why it is so important to ensure a reliable domestic supply of ppe. Manufacturers can work hand in hand. Congress and the federal government should do more. Actdefense production provides useful tools. Unfortunately for all americans the president has failed to utilize the defense production act to support american manufacturers. House passed tens of billions of dollars in funds to assist health care suppliers and it would require the president to use his authority to support more production of diagnostic tests, medicine, and other crucial medical supplies. Chairman andthe senator moran for calling this hearing. Nothing is more important than providing this kind of affordable, reliable, and robust andly of ppe medical supply other aid to our frontline workers and to americans as a whole. Thank you, mr. Chairman. View you wereken at least temporarily absent, i failed to complement you and thank you for your cooperation in putting this hearing together. I think we thought this would be, looking back, unfortunately, we have not escaped to the challenges that lie ahead. While we are looking at what has transpired in the past, we are doing so in preparation to make sure our country is prepared for today and tomorrow. Thank you for your cooperation, your assistance. Thank you for working closely with me to see that this hearing took place. We are going to turn to witness testimony. The order our witnesses will testify is mr. Ballou so, mr. , and mr. S. Stovall wessel. I now call on you for your five minutes of testimony. Welcome, and thank you for being here. Thank you, senator blumenthal. I appreciate this opportunity. We are based out of kansas. I would like to take us through the journey we have gone through so far. Struckhe covid pandemic in the early part of this year. The covid pandemic which started at the beginning of this year continues to impact society. It exposed critical gaps in our Health Care System and opened up fault lines we never knew existed. This isoot of all of one harsh reality. We do not have a Strong Manufacturing base for ppe or equipment that is used to make ppe. Single use disposable masks are going against established practice of 50 years. Manufacturing the equipment, is overseas dependent. From masks to ventilators. Machinery and raw manyial from overseas times precovid. Raw materials a minimum of 30 to 60 times overseas. Domestic production continues to not meet the demand. We rely on imports. Are there Quality Controls on the manufacturing process . We do not know. Gaps inestions leave our preparedness that need to be addressed. How can we set up our economy and society for resilience in this pandemic for, god forbid, future disasters . Mask was pioneered in america. Why is it we have a scarcity of good quality face masks today . How can we achieve selfsufficiency . Way to actually achieve our is through producing own medical manufacturing equipment as well. And to secure our own supply chain. Chain. Material supply factory is based out of the wichita area of kansas. This was a few miles north of where i lived. My wife, a physician, works on the frontline in an underserved area. My younger daughter at that time was nine months old. Still nursing. I requested her, selfishly, if she would consider quitting her job. She shut me down immediately and said, that was what i had signed up for when i married her. So i started looking for solutions. Solutions to keep her and her colleagues safe. Quickly i realized charity was just not going to cut it. We had to manufacture. We had to do that to address three critical areas of availability, quality, and supply chain rebel ideally reliability. Make them out of american raw materials. We pivoted to make face masks. Learned bulk buyers of ppe, state and local governments, were procuring them at the lowest price, so the overseas product that has been dumped in the u. S. Ends up being the default choice. Ironically, the best opportunity to strengthen our supply chain is deepening our dependence. The direct to consumer sales front was very challenging. Well intended policies by social media and the ecommerce channels and at preventing price gouging were inadvertently stifling american manufacturers like us. Prevented we still are prevented from directly advertising to consumers. We are forced to rely on oldfashioned cold calling. And yet the american manufacturers who, in the true american spirit of fortitude in the face of threat, facing pressure on either end, i take to thetion from the ride moon. 1961 propelled our dominance in space and the human race benefited. Technology is what inspired firstgeneration immigrants to come to america to contribute positively to change. To help people policy that , theshes innovation promise manufacture superior quality and the zeal to take the human race forward. Let us not ask can america do it, because america has done it multiple times before and very successfully so. Recommendations for consideration. Thet selfsufficiency in production of medical equipment as a national priority, just like we treat National Security, foodmic security, and security. Incentivize startups to democratize, release the animal spirit of innovators. Supportive policy will help them thrive, especially in the face of relentless dumping of overseas product. Educe regulations statistically speaking, 99 of startup businesses die in their infancy. The first one to two years. Regulations during this phase can be very detrimental to this very critical industry that is already under significant stress. Regulate, let us remember america has always produced more than enough not just for ourselves, but for the entire world. The human race always benefited from americas progress. To blanket restrictions, consider nuance data driven policy to keep the doors open for foreign markets. This will most certainly result in secondary and tertiary benefits that in a postpandemic world put us in a better position, much like the gold to land on the moon did. I take this opportunity to urge fellow members my fellow manufacturers to fix this. Thank you all for the opportunity. Testimonyou for your and the passion with which you presented it. Let us not hear from mr. Neil gilman. Hear from mr. Nei l gilman. Thank you for the opportunity to provide testimony today on the urgency of sustaining a domestic supply chain for ppe during the covid pandemic. I come before you as a secondgeneration business owner. A Manufacturing Business in connecticut. Made textiles in new england. My father built a business for theyall training equipment started in 1929. My company is the nations leading manufacturer of when the pandemic struck and the nations governors were issuing stayathome orders and most if not all high schools and as well as the entire National Football league, the game of football was on hold. College football at 591 schools was canceled or moved to the spring. High School Football in 24 states was canceled more moves to thespring or moved spring. Our entire market collapsed. We were on the brink of shutting down and laying off all of our employees. Potentially going out of business. Grandfather, who repurposed his textile mill to make Army Blankets during world war ii. Too, wanted to contribute in some meaningful way to help medical professionals on the front lines battling this deadly covid virus. About the terrible shortage of ppe in our hospitals, nursing homes, assisted living, and urgent care facilities. I saw pictures of doctors gowns, rain ponchos as using ski goggles as i protection, and recycling n95 masks. I later learned the whole domestic ppe market moved manufacturing to china to take advantage of cheap labor and material. Time, china was dealing with their own domestic pandemic. Hospitals found the normal supply chain choked off, unable to meet their demand. Gilman gear has a large operation. Equipment. I think we have lost mr. Gilman. That westion is probably need to reset anyway so i can cast a vote, the other members can cast their votes. Now i will arrive at the end of the first vote and return. Is expected toe replace me to help accomplish that, he can reconvene the hearing. Mr. Gilman, if you can hear me, we will start the second phase of our hearing with the conclusion of your testimony. Thank you. The committee will stand in recess
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