The NAM’s annual Manufacturing Summit was held June 10-11. The event brought more than 500 manufacturers of every size and representing dozens of industries to Washington to meet with Members of Congress. Over two days, manufacturers participated in 220 hill meetings and were able to tell their stories to lawmakers about the impact of federal policies on their abilities to provide jobs, expand their businesses and compete in a global economy. A common theme for many manufacturers through the summit was the challenges they face with inefficient and outdated regulations—especially from small- and medium-sized manufacturers.
Richard Gimmel is the President of Atlas Machine and Supply, a small manufacturer of complex compressor equipment and industrial components in Louisville, Kentucky. He discussed why our regulatory system is placing manufacturers in the U.S. at a competitive disadvantage:
“Work force regulations, environmental regulations, [and] tax regulations – the cost of compliance with all of these regulations is extremely burdensome, particularly for a small company like ours. We have 200 employees, and by standards of most manufacturers, we’re below average in size. So, we have to employ resources, disproportionate to our size, just to ensure the paperwork is in order.”
Unnecessary regulatory burdens weigh heavily on the minds of manufacturers. In a NAM/IndustryWeek Survey of Manufacturers released in March, nearly 80 percent of respondents cited an unfavorable business climate due to regulations, taxes and government uncertainties as a primary challenge facing businesses, up from 67.7 percent in the first quarter of 2013 and 62.2 percent in March 2012. The unfavorable business climate due to government policies exceeded rising health care and insurance costs, which ranked second (77.1 percent).
Manufacturing in America is making a comeback, but this comeback could be much stronger if federal policies did not impede growth. If we are to succeed in creating a more competitive economy, we must reform our regulatory system so that manufacturers can innovate and make better products instead of spending hours and resources complying with inefficient, duplicative and unnecessary regulations. Manufacturers are committed to commonsense regulatory reforms that protect the environment and public health and safety as well as prioritize economic growth and job creation. The time is now for members of both parties to work together to find ways to improve the regulatory system.