Survey Shows Increased Costs and Administrative Burdens of Proposed Ozone Rule as Chief Concerns for Manufacturers

Washington, D.C., September 10, 2015 – The National Association of Manufacturers (NAM) Vice President of Energy and Resources Policy Ross Eisenberg released the following statement about findings from the NAM’s third quarter Manufacturers’ Outlook Survey. In addition to the manufacturing outlook, the survey polled NAM members on specific challenges presented by the proposed ozone regulation and what nonattainment could mean for manufacturers.

“Manufacturers have numerous concerns about the impact the Environmental Protection Agency’s ozone rule will have on fundamental aspects of their operations. Manufacturers understand all too well the effects an overly restrictive ozone rule could have on operating costs, options for expansion and the ability to compete in a global economy. With a little less than one month until the Obama Administration is expected to deliver a final rule, it’s time for Washington to work with, not against, the nation’s job creators. Manufacturers cannot afford this costly regulation.”

Manufacturers responded with the following key concerns (note respondents were able to check more than one response):

  • Increased costs for energy, equipment and other input costs—Just more than 80 percent of respondents indicated concerns over increased costs for energy, equipment and other input costs due to the proposed regulation.
  • Additional administrative burdens—Almost two-thirds (65.7 percent) cited concerns over additional administrative burdens, such as lost time and resources spent complying with the regulation.
  • New direct compliance costs and restrictions on expansion—More than half (56.2 percent) of manufacturers who responded to the survey also indicated concerns over new direct compliance costs, and more than one-third (38.7 percent) cited both restrictions on expansion and increased delays relating to air permits as core concerns.

In a previous survey administered last quarter, manufacturers were asked questions on the impact of the proposed regulation. Key findings of that survey included the following:

  • The proposed ozone regulation could hamper new construction. Close to 80 percent of respondents indicated they would likely not proceed, or were uncertain about proceeding, with new construction or major modifications in an area if they learned that area did not comply with federal ozone standards. 
  • Manufacturers are concerned about the impacts of the proposed ozone regulation. Almost two-thirds (66.3 percent) of respondents said they were concerned about the impact these new EPA regulations might have on their businesses, with 16.9 percent uncertain.

To read the full survey, click here. 


 -NAM-


The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 14 million men and women, contributes $2.09 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.