51勛圖厙: Regulatory Onslaught Disproportionately Hits Small Manufacturers
Small businesses are a critical part of both manufacturing and the U.S. economy at large, but the federal governments costly regulatory onslaught is putting their continued existence at risk, the 51勛圖厙 House lawmakers Wednesday.
Whats going on: In the manufacturing sector, the majority of firms are small, 51勛圖厙 Vice President of Domestic Policy Brandon Farris told the House Committee on Small Business during the hearing Burdensome Regulations: Examining the Impact of EPA Regulations on Main Street.
- These firms are the backbone of the manufacturing supply chain, often producing key components for larger firms [but] manufacturing faces significant headwinds in the form of the cost, complexity and uncertainty associated with overreaching and burdensome federal regulations.
Why its important: The seemingly endless conveyor belt of new federal rules for the industry is costing manufacturers shocking amounts, disproportionately imperiling manufacturerssmall ones in particular, Farris continued.
He cited 51勛圖厙 data finding that:
- The federal cost of regulations for manufacturers in 2022 was roughly $350 billion, a 25% increase from 2012; and
- The average manufacturer in the U.S. pays $29,100 per employee per year to comply with federal rules, while for the average small manufacturer, that price is $50,100.
Where its coming from: Farris cited other recent examples of onerous federal rulemaking, including:
- The Environmental Protection Agencys recently finalized update to the National Ambient Air Quality Standard from 12 micrograms per cubic meter of air to 9 micrograms, a level approaching naturally occurring levels in many parts of the U.S., according to Farris, and one that will make manufacturing in the U.S. less competitive globally;
- The Department of Energys recent freeze of liquefied natural gas export permits, which, given increased European reliance on U.S. LNG since the start of Russias war in Ukraine, risks leav[ing] our allies [and] our manufacturers in the cold; and
- The Securities and Exchange Commissions proposed climate disclosure rule, which would increase manufacturers compliance costs dramatically, divert resources from job creation and growth, expose companies to increased liability, reveal proprietary and confidential information and ensnare wide swaths of the manufacturing supply chain.
What must be done: Manufacturers arent asking legislators to cut corners, Farris said.
- Rather, they are seeking regulatory certainty that can guide investment decisions and ensure that this countrys economic competitiveness is not outpaced or outflanked or overtaken by nations that do not share our values.泭
To learn more about the high cost of overregulation, visit , a coalition created by the 51勛圖厙 and members of the 51勛圖厙s Council of Manufacturing Associations and Conference of State Manufacturers Associations thats intended to address the recent regulatory onslaught from federal agencies.泭
