While everyone is talking about the election results, let’s not forget about the slow and steady slog for better government—by which we mean, a stable and predictable regulatory system that encourages manufacturing growth instead of hampering it.
Recently, NAM President and CEO Jay Timmons made the case for government-wide regulatory reform in a letter to the House Committee on Oversight and Reform. Here’s what he had to say.
The numbers: If you had any doubts that manufacturers pay a lot for regulatory compliance, lay them to rest:
- “On average, manufacturers pay $19,564 per employee to comply with federal regulations, or nearly double the $9,991 per employee costs borne by all firms as a whole.”
- “This burden falls heavily on small businesses; of the 248,039 firms in the manufacturing sector in 2017, all but 3,914 had fewer than 500 employees, with three-quarters of these firms having fewer than 20 employees.”
- “For the smallest firms (i.e., those with fewer than 50 employees), regulatory costs equal $34,671 per employee.”
A recap: Timmons also reminded the House that many of the NAM’s regulatory recommendations have already become policy—and that it’s working just as hard to support manufacturers during the COVID-19 pandemic.
- In 2017, the NAM submitted a list of 132 suggested reforms to the Trump administration—and since then, 89% of those suggestions have been addressed or adopted.
- In April of this year, the NAM released the “American Renewal Action Plan,” which included regulatory proposals designed to strengthen America’s response to COVID-19 and ensure manufacturers are poised to lead the recovery and renewal of the American economy. Dozens of these proposals have also been adopted—and the NAM is working on more.
What’s next: Timmons’ letter came with a list of proposals for further reforms, which will support manufacturers while benefitting consumers and protecting our environment. These include:
- Modernizing the Administrative Procedure Act, which governs federal rulemaking;
- Providing clarity on the difference between legally binding rules and nonbinding guidance;
- Ensuring that regulatory enforcement and adjudication is fair, efficient and transparent;
- Tackling the growing trade of dangerous counterfeits and other illicit goods; and
- Addressing international regulatory burdens.
The last word: “These proposals serve as a roadmap to smart regulation,” said NAM Director of Regulatory Policy Graham Owens. “These bipartisan measures would create a more effective and efficient regulatory system better equipped to protect worker safety, public health and our environment—while providing manufacturers with the regulatory certainty and uniformity necessary to unleash our country’s economic potential.”
You can read the full letter—and the entire list of recommendations—here.
Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.
With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.
“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”
The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.
The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.
Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.
The National Association of Manufacturers 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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org