Federal regulations are a significant barrier to economic growth for specialty chemical manufacturers, say respondents in an industrywide business outlook survey of small, medium and large specialty chemical manufacturers.
The Society of Chemical Manufacturers and Affiliates (SOCMA) and United Business Media (UBM) this week announced via webcast the results of the survey, which was conducted between November 2014 and January 2015.
According to the survey, a majority said federal and state regulations were a significant barrier to growth last year and will continue to be a barrier in 2015. Company respondents also expect to spend more money on regulatory compliance in 2015 than last year, and a quarter of respondents say they would need an improved regulatory environment before deciding to expand their manufacturing business.
“The survey results underscore the need for Washington to work better for specialty chemical manufacturers,” said Lawrence D. Sloan, SOCMA president and CEO. “Onerous and inefficient regulations deprive our members of significant growth opportunities.”
When asked to select the biggest risks to supply chain stability, companies named regulatory pressures among the top three responses. This response ranked second only to global competition. Rounding out the top three risks was availability of suppliers.
“There is a place for—and often a need for—effective, efficient regulations that help protect the environment, instill public confidence in our industry and protect workplace and consumer safety,” said Sloan. “Unfortunately, there are regulations on the books now that ultimately impose significant burdens and costs that impact companies of all sizes. Many SOCMA members are small and medium-sized businesses, which are disproportionately impacted by regulations. We need smarter regulations that will achieve their intended goals without compromising industry’s ability to innovate and compete in the global marketplace.”
The business outlook survey found that, overall, specialty chemical manufacturers are moving into 2015 with increased confidence over prior years, with plans for new product introduction and capital investments in 2015.
SOCMA is the only U.S.-based trade association dedicated solely to the specialty chemical industry. For more information, visit www.socma.com.
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