Manufacturers Face $80B in Compliance Costs Over Next Decade

September 23, 2016

2 Min Read
Manufacturers Face $80B in Compliance Costs Over Next Decade
US manufacturers could face an estimated $80B in compliance costs over the next 10 years. Image courtesy of the US EPA

A new study by the National Association of Manufacturers (NAM) released Thursday estimates that American manufacturers will face $80 billion in regulatory compliance costs over the next decade. The organization places blame for the costs on President Barack Obama’s “destructive legacy” of a “relentless labor regulatory agenda,” according to a NAM press release.

“It has been troubling to watch regulation after regulation with major economic costs come from this administration,” said Aric Newhouse, NAM senior vice president of policy and government relations in a statement. “These regulations are making it harder for manufacturers to continue to create jobs and economic opportunity. It is becoming clear that the administration is dismissing the real-world costs whole manufacturers are losing valuable hours and money spent complying with these regulations.”

A number of occupational safety and labor regulations from government agencies like the National Labor Relations Board (NLRB) and the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) have gone into effect during the Obama administration, like rules on silica dust exposure and injury and illness reporting. As a result of the new regulations, NAM maintains that costs for businesses will increase, millions of hours will be spent on paperwork, and that thousands of jobs will cut.

The NAM Center for Manufacturing Research report, “The Aggregate Economic Cost of New Labor Market Regulations,” also said that about 150,000 manufacturing workers will lose their jobs in the next 10 years due to the implementation of the new regulations. The study’s authors said that 411 million hours of paperwork will be expended in connection with compliance to the regulations.

“We understand the need for reasonable regulations and take pride in creating safe workspaces with opportunities for all, but this increasing stream of burdens is not a balanced approach that we need to succeed. Manufacturers want to spend their time and resources hiring new workers or investing in life-improving products, but the billions being spent complying with burdensome regulations makes that goal increasingly difficult to achieve.”

Of the $80 billion estimated total for compliance and paperwork costs over the next 10 years, rules relating to injury and illness reporting are estimated to cost $10 billion during the period and silica dust rules are forecasted to cost $25 billion.

To read the full NAM report, click here.

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