Witness says regulatory uncertainty, tariffs and U.S. port capacity are hindering automation and reshoring

Dr. Shippy, a witness at the Joint Economic Committee hearing, told committee members that uncertainty in U.S. policy and regulation is discouraging business investment in automation and reshoring manufacturing.

"The uncertainty is killing businesses," Dr. Shippy said, describing private-sector responses to abrupt policy changes. He said supply-chain executives reacted calmly when new tariff regimes were announced because the greater damage was the unpredictability of policy, not any single action.

Dr. Shippy also compared U.S. port operations unfavorably with major global ports, saying his visits to Dubai, Singapore, Shanghai and Rotterdam were starkly different from visits to U.S. ports. "If you want to get depressed, do the same tour that I did and visit the Port of Los Angeles or any other port in the United States," he said.

The witness connected those logistical and regulatory problems to firms' decisions about automation and location. Companies, he said, will consider both cost and time-to-market, and face constraints including long regulatory processes and a lack of predictable rules.

The committee member who opened the exchange asked what barriers or incentives — including EPA or other regulations — might encourage automation. The record shows a discussion of regulation length and unpredictability, but no formal recommendation or committee action was adopted at the hearing.

The exchange included no motions or votes and concluded as a discussion between the committee member and Dr. Shippy.