rich gimmel Archives - Shopfloor

Executive Branch Regulators Could Learn from ‘Lean’ Thinking

By | Regulations | No Comments

Rich Gimmel, president of the Louisville-based Atlas Machine & Supply, Inc., testified Thursday before the House Judiciary Subcommittee on Courts, Commercial & Administrative Law’s hearing on H.R. 527, “Regulatory Flexibility Improvements Act of 2011 – Unleashing Small Businesses to Create Jobs.”

Rich, a member of the Board of Directors of the National Association of Manufacturers, brought his own business experience to bear on the challenges of excessives regulation. From his prepared statement:

NAM Board Member Rich Gimmel of Atlas Machine

A decade ago, many of us in manufacturing transformed our operations by adopting a Japanese principle called “lean” thinking. The concept is very simple. You identify everything in the organization that consumes resources but adds no value to the customer. That’s called, “muda,” or waste. Then you look for a way to eliminate efforts that create no value. My modest proposal is that the government learn something from manufacturing and incorporate ―lean thinking into the development of regulation.

A careful and thoughtful analysis of every regulatory requirement and its absolute necessity and an estimation of its value are important when considering regulations that will be imposed on small businesses. Many of the proposals being offered by this Subcommittee — including more detailed statements in the RFA process and requirements to describe duplicative, overlapping or conflicting regulations — will do just that.

But an even more important way to incorporate ―lean thinking, the elimination of waste and continuous improvement is through amendments to the periodic review requirements of Section 610 of the RFA. There was great hope that this original provision would rationally reduce or eliminate unnecessary burdens that had outlived their usefulness or had not appropriately considered the concerns of small business when they were first promulgated.

Video of the hearing is available here.

Congress Scrutinizes Regulations, Impact on Manufacturing Jobs

By | General, Regulations | No Comments

The Washington Post reports on Republicans have targeted regulations and Chairman Darrell Issa of the House Oversight and Investigations Committee has gathered input from business groups about the effect of overregulation on the economy and job creation. Reporters obtained documents. No, really. Actually obtained documents and read them for purposes of reporting the story, “GOP eyes rules that firms say hurt jobs.”

The Associated Press reports the same basic story today, “Republicans out front of Obama on regulations.” Among the groups cited are the Aircraft Owners and Pilots Association, the American Beverage Association, the American Chemistry Council, and the National Credit Union Administration.

Here is the National Association of Manufacturers’ letter to Chairman Issa detailing which regulations will have the most detrimental effect on employers and the economy.

As noted below:

NAM President Jay Timmons testifies Thursday at a House Oversight Committee hearing on regulatory impediments to job creation. Also Thursday, NAM Board Member Richard Gimmel, president of Atlas Machine & Supply, testifies before a House Judiciary subcommittee hearing, “Regulatory Flexibility Improvements Act of 2011” – Unleashing Small Businesses to Create Jobs.”

Atlas Machine & Supply is an excellent choice to provide the perspective of a manufacturer affected by regulations. Consumers will be unfamiliar with its products, but the Louisville-based company is right in the middle of the industrial economy. From the company’s website.

Atlas Machine and Supply designs, repairs, and remanufactures complex equipment and components for industry and municipalities. Atlas also is a leading supplier of industrial air compressors, pumps, and related products and services.

Our customers are steel mills, aluminum mills, automotive suppliers, paper mill industry, crushed stone industry, waste water treatment facilities, utility plants, and other manufacturers that provide products and services in the United States and throughout the world.

UPDATE (10:25 a.m.): From Politico’s Playbook: “ONLINE BY 11 A.M.: Chairman Issa is posting the 100+ responses he received to his inquiries to businesses, trade associations and think tanks about regulatory barriers to job creation: ‘Issa sees this as an opportunity to make this effort inclusive and complementary to the President’s.'”

Dispatch from the Front: The Week of February 7, 2011

By | Dispatch from the Front, General | One Comment

Issues involving competitiveness, business and regulations will get a good airing this week, but Egypt will continue to lead the news — unless more unrest breaks out elsewhere, sweeping across the Middle East and further demonstrating the imperative of developing U.S. domestic oil, gas and other energy supplies.

Jay Timmons, president of the National Association of Manufacturers (NAM),  testifies Thursday at a House Oversight Committee hearing on regulatory impediments to job creation. Also Thursday, NAM Board Member Richard Gimmel, president of Atlas Machine & Supply, testifies before a House Judiciary subcommittee hearing, “Regulatory Flexibility Improvements Act of 2011” – Unleashing Small Businesses to Create Jobs.”

President Obama speaks at the U.S Chamber of Commerce this morning and then lunches with Paul Volcker. On Thursday, he travels to Marquette, Mich., to promote the expansion of federally subsidized broadband access and the National Wireless Initiative. More on the weekly schedule.

The Senate convenes at 2 p.m. today and continues consideration of the FAA authorization, S. 223. Two votes on confirming U.S. District Court nominees are also scheduled.

The House convenes at 2 p.m. Tuesday. Major items on the suspension calendar are H.R. 514, extending expiring provisions of USA PATRIOT Improvement and Reauthorization Act of 2005 and Intelligence Reform of Terrorism Prevention Act of 2004 relating to access to business records; and to extend trade adjustment assistance and the Andean Trade Preference Act. On Thursday, the House considers the resolution requiring standing committees to review executive branch regulations, past, present and future. The week’s schedule is here.

House Hearings: Tuesday — A Transportation subcommittee hears testimony from FAA Administrator Randy Babbitt. House Rules considers a resolution to direct committees to review federal regulations, jobs and growth. Wednesday: A House Financial Services subcommittee asks obliquely, “Can Monetary Policy Really Create Jobs?” House Budget holds a hearing on the U.S. economy, with Fed Chairman Bernanke testifying. The full Ed & Workforce Committee reviews the health care law’s impact. An Energy & Commerce subcommittee considers the Energy Tax Prevention Act, to block EPA regulation of greenhouse gas emissions. Ways & Means holds a hearing on President Obama’s trade policy agenda, with Ambassador Ron Kirk testifying. Transportation’s Aviation Subcommittee hears from stake holders on FAA reauthorization. (And really, doesn’t everyone hold a stake in the FAA’s budget?) Small Business weighs the burden of the health care law’s 1099 reporting requirements. A Financial Services subcommittee holds a hearing on GSE reform “to protect taxpayers and the end the bailout,” focusing on Fannie Mae and Freddie Mac. Thursday – House Agriculture chews on OTC swaps markets regulations under Dodd-Frank. A Ways & Means subcommittee considers how to help unemployed Americans find jobs. House Budget reviews the CBO’s budget and economic outlook, with Doug Elmendorf testifying. A Homeland Security subcommittee holds a hearing on terrorism and transportation security. Ed & Workforce reviews education in classrooms. An Energy & Commerce subcommittee looks at stimulus bill broadband spending. A separate subcommittee asks what effect the Middle Eastern unrest will have on U.S. energy prices. A Judiciary subcommittee holds a hearing on E-Verify. A Judiciary subcommittee discusses the “Regulatory Flexibility Improvements Act of 2011,” and small business. Friday — An Ed & Workforce subcommittee reviews emerging trends at the NLRB. A Transportation subcommittee considers the BP Oil Spill Commission recommendations. A Homeland Security subcommittee holds a hearing, “Preventing Chemical Terrorism: Building A Foundation of Security At Our Nation’s Chemical Facilities.” An Armed Services subcommittee mulls over the DOD’s role in cybersecurity.

Senate Hearing: The Senate Finance Committee on Tuesday considers the Chairman’s Mark entitled, “Airport and Airway Trust Fund Reauthorization Act of 2011.” More detail here.

Executive Branch: Secretary of Treasury Geithner is in Brazil to discuss bilateral economic and Group of 20 issues. Energy Secretary Chu and Interior Secretary Salazar are in Norfolk, Va., today to promote permitting of off-shore wind farms. Commerce Secretary Gary Locke is leading a business delegation to India, with export controls a major issue. On the USTR schedule, Ambassador Sapiro travels to Europe for meetings, remarks.

Economic Reports: It’s a light week. Commerce releases wholesale trade figures Thursday and December’s international trade figures on Friday. Also on Friday, the release of consumer sentiment figures. For more, see Neil Irwin’s column at The Washington Post.