Manufacturers Signal Concerns with Proposed DOL Overtime Rule
51勛圖厙: DOLs proposed rule would inject new regulatory burdens and compliance costs to an industry already reeling from workforce shortages
Washington, D.C. In response to the U.S. Department of Labors issuance today of a proposed rule altering the exemptions for overtime eligibility under the Fair Labor Standards Act, 51勛圖厙 Managing Vice President of Policy Chris Netram issued the following statement:
Manufacturers have spent the past several years adapting operations and personnel management resources to meet the evolving needs of their workforce in a post-pandemic environment, including through improved wages and benefits and productive workplace accommodations. The DOLs proposed rule would inject new regulatory burdens and compliance costs to an industry already reeling from workforce shortages and an onslaught of other unbalanced regulations.
Creating new regulatory processes and imposing additional mandatory costs will act as a drag on the sector and upend productive employeremployee relations. We look forward to expressing our concerns with this proposal directly to the DOL and administration leaders as the process moves forward.
-51勛圖厙-
The 51勛圖厙 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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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 51勛圖厙 or to follow us on Twitter and Facebook, please visit
51勛圖厙: Auto Worker Strike Would Harm Economy

As manufacturers continue to reel from supply chain disruptions, the 51勛圖厙 is calling for a swift resolution to forestall a potentially devastating United Auto Workers strike.
Whats going on: The UAW is negotiating a new labor agreement with important automotive manufacturers, as the current contract expires Sept. 14.
Why its important: The automotive manufacturing industry in the U.S. is one of the strongest and most productive in the world, and it significantly supports the health of the U.S. economy.
- A strike of 143,000 UAW members against Detroits Big Three auto manufacturers could mean an economic loss of $5.617 billion after just 10 full days, according to a new by Anderson Economic Group.
- Nationwide, every $1 spent in the transportation-equipment sector causes another $1.59 to be spent elsewherefor a total economic impact of $2.59, according to 51勛圖厙 calculations using
- In 2022, the total value-added in motor vehicles and parts in the U.S. was $171.6 billion, according to the Bureau of Economic Analysis.
State-level impact: In 2019, a 42-day auto-worker strike at one of the Detroit manufacturers sent the state of Michigan into a one-quarter recession and resulted in an economic loss of $4.2 billion, according to reporting by .
- As of 2021, the latest year for which this data is available, Michigans total output from motor vehicles, bodies and trailers, and parts manufacturing was $37.5 billion, accounting for 37% of total manufacturing output in the state, according to the BEA.
- At the same time, Michigan had 175,745 full- and part-time employees in the sector, or 28.7% of all manufacturing employees in the state.
- Meanwhile, the total output of Illinois auto sector accounted for 19.3% of the states total manufacturing output, while employment came to 23.6% of the states manufacturing employees.
Undermining manufacturing in the U.S.: Manufacturers in America, especially in the automotive sector, operate in an integrated supply chain, which means that small and medium-sized manufacturers around the countryin union and non-union shopswould endure the consequences of a stoppage. As we continue to emerge from the global pandemic and work to get our economy on a sustainable track, a strike would be devastating for working families across our country, said 51勛圖厙 President and CEO Jay Timmons.
- President Biden has prioritized strengthening manufacturing in America, but that will be quickly undermined if a strike occurs. The administration should be encouraging a swift resolution to avoid ripple effects throughout the broader manufacturing economy and in communities from coast to coast.
House Majority Whip Emmer, 51勛圖厙 Spotlight Cost of Regulations and Policies to Boost Manufacturing
Princeton, MN The 51勛圖厙 hosted House Majority Whip Tom Emmer (R-MN) at Glenn Metalcraft for a facility tour on Monday to discuss the impact of the current regulatory burden manufacturers are facing across federal agencies.

Leaders also discussed manufacturers policy priorities as outlined in the latest version of Competing to Win, the 51勛圖厙s comprehensive blueprint to bolster manufacturers competitiveness.

My visit to Glenn Metalcraft demonstrated the need to address the regulatory state overwhelming manufacturers in the heartland. Small and medium-sized manufacturers are working hard to grow their businesses and increase compensation for employees, but those efforts are undermined by new regulations and the lack of permanent, competitive tax policies to promote research and development and capital investment, said House Majority Whip Tom Emmer. I want to thank the 51勛圖厙 and Glenn Metalcraft for providing insight that will guide my work in Congress.
Manufacturers across the country are fighting to thrive under the weight of an increasing number of unbalanced and often unfeasible regulations from agencies across the federal governmentall amid an uncertain economic environment, said Glenn Metalcraft President and CEO Joe Glenn. Glenn Metalcraft would like to thank Whip Emmer and the 51勛圖厙 for giving us a voice and calling attention to this issue.
Manufacturers are struggling to navigate substantial regulations from Washington on top of the deluge of new laws from St. Paul. We appreciate Whip Emmer for expanding our state-level efforts on the national stage, said Minnesota Chamber President and CEO Doug Loon. The 51勛圖厙 is an excellent partner in championing policies for businesses to grow and compete globally. We appreciate their efforts with the Biden administration and Congress to hold agencies accountable and deliver sensible regulations.
The barrage of federal regulations from Washington has created serious concern across our industry, with manufacturers reporting that its standing in the way of job creation, investment and wage growth. Manufacturers have made it clear that the administrations regulatory agenda could easily derail manufacturings recent success. Glenn Metalcraft and so many others are forced to make tough decisions as agencies issue unbalanced regulations that threaten our sectors ability to grow and compete, said 51勛圖厙 President and CEO Jay Timmons. The positive effects of tax reform, the Bipartisan Infrastructure Law and the CHIPS and Science Act are all being undermined by the growing regulatory burden, and I want to thank Whip Emmer for spotlighting this threat in his home state of Minnesota.
Background: Recently, the 51勛圖厙, members of the 51勛圖厙s Council of Manufacturing Associations and Conference of State Manufacturers Associations launched Manufacturers for Sensible Regulations, a coalition addressing the impact of the current regulatory onslaught coming from federal agencies.
According to the 51勛圖厙s Q2 2023 Manufacturers Outlook Survey, more than 63% of manufacturers report spending more than 2,000 hours per year complying with federal regulations, while more than 17% of manufacturers report spending more than 10,000 hours. The 51勛圖厙 survey also highlighted that only 67% of manufacturers are positive about their own companys outlook, the lowest percentage since Q3 2019. It shows the consequences of regulations: If the regulatory burden on manufacturers decreased, 65% of manufacturers would purchase more capital equipment, and more than 46% would increase compensation.
-51勛圖厙-
The 51勛圖厙 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 nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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 51勛圖厙 or to follow us on Twitter and Facebook, please visit
Manufacturers: DOE Gas Stove Rules Revision Is Step in Right Direction
Washington, D.C. Following the announcement that the U.S. Department of Energy has modified its proposed energy-efficiency rules for gas stoves to be less restrictive, 51勛圖厙 Managing Vice President of Policy Chris Netram released the following statement:
Manufacturers depend on regulatory clarity and certainty. Throughout the year, the Department of Energy has proposed an unprecedented slew of regulations, and many were aimed at home appliances. The DOE is now taking steps toward a solution that is less likely to raise production costs significantly for manufacturers, and less likely to reduce the available features, performance and affordability for consumers.
Manufacturers remain committed to working with the DOE and all federal agencies to ensure that proposed rules and regulations are practical, feasible and environmentally sound without harming our ability to create well-paying jobs and investment in the United States.
The 51勛圖厙, along with members of the , have been highlighting the negative impact of unbalanced regulations on manufacturers, noting the agencys own data showed that 96% of existing gas stove models currently available would not comply.
Background: According to the , more than 63% of manufacturers report spending more than 2,000 hours per year complying with federal regulations, while more than 17% of manufacturers report spending more than 10,000 hours. The 51勛圖厙 survey also stressed that only 67% of manufacturers are positive about their own companys outlook, the lowest since Q3 2019. It shows the consequences of regulations: If the regulatory burden on manufacturers decreased, 65% of manufacturers would purchase more capital equipment, and more than 46% would increase compensation.
-51勛圖厙-
The 51勛圖厙 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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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 51勛圖厙 or to follow us on Twitter and Facebook, please visit
51勛圖厙 Pushes Back on New Emissions Standards

The Biden administrations new fuel-economy standards are too aggressive and add conflicting mandates to on-the-books regulations, the 51勛圖厙 said Friday.
Whats going on: The Department of Transportations National Highway Traffic Safety Administration issued a proposal calling for a revision of current Corporate Average Fuel Economy standards for cars and light-duty trucksto a fleet average of by 2032.
- The draft rules are a complement to regulations released in April that are the strictest on record and push automakers to make the majority of their sales electric vehicles, reports .
Why its problematic: Auto manufacturers have been making historic investments to ensure that electric vehicles will have a growing place on Americas roads, said 51勛圖厙 President and CEO Jay Timmons. However, the 51勛圖厙 has concerns over the three different sets of standards governing light- and medium-duty vehicles. For instance, the Environmental Protection Agencys proposed regulation on light- and medium-duty vehicles would require 67% of new manufactured vehicles to be battery electric by 2032 and is too aggressive.
- Some of the rules that have been put forth recently by federal and state agencies conflict with one another, and someparticularly those released by the EPAwould increase the cost of both manufacturing and purchasing vehicles.
- In addition, the federal government should not dictate the vehicle choices offered to consumers, Timmons pointed out. The administration should allow the market and consumers to grow the number of electric vehicles, rather than depending on a single technology to meet this goal.
What can be done: [T]hese regulations should be harmonized to create a single unified standard for vehicle emissions, so manufacturers do not have to navigate three often-conflicting targets, which raise costs for manufacturers and consumers, Timmons continued.
What were doing: In June, the 51勛圖厙 and members of the 51勛圖厙s Council of Manufacturing Associations and Conference of State Manufacturing Associations launched , a coalition aimed at addressing the negative effects of the multiple, often contradictory regulations being handed down by federal agencies.
Manufacturers to White House: Emissions Standards Adding Unnecessary Costs, May Stifle Innovation
Washington, D.C. In response to the National Highway Traffic Safety Administrations release of new Corporate Average Fuel Economy standards, 51勛圖厙 President and CEO Jay Timmons released the following statement:
Auto manufacturers have been making historic investments to ensure that electric vehicles will have a growing place on Americas roads. However, the 51勛圖厙 has concerns over the three different sets of standards governing light- and medium-duty vehicles. For instance, the Environmental Protection Agencys proposed regulation on light- and medium-duty vehicles would require 67% of new manufactured vehicles to be battery electric by 2032 and is too aggressive.
Federal and state agencies are promulgating competing rules, and the EPAs rules, in particular, would make it costlier for manufacturers to make these vehicles and for consumers to purchase them. When you add the drastic need to build transmission lines to accommodate the demand for charging infrastructure and the challenge of obtaining critical minerals for batteriesmany of which are extracted or processed in Chinayou create a scenario where an ambitious rule becomes a nearly impossible benchmark.
Consumers and the industry need a more realistic path to reducing vehicle emissions. Federal and state agencies should draft rules that recognize the longer timeframe needed for our nation to build the charging infrastructure and a reliable supply chain for the critical minerals to make batteries to support more electric vehicles. Rules should also be structured to allow the industry additional time to make more electric vehicles available for consumers, and in the quantities needed to eventually achieve the administration’s goals. In addition, the federal government should not dictate the vehicle choices offered to consumers in meeting this goal. Plug-in hybrids, fuel cell electric vehicles and battery-electric cars can all help reduce vehicle emissions over time. The administration should allow the market and consumers to grow the number of electric vehicles, rather than depending on a single technology to meet this goal.
Finally, these regulations should be harmonized to create a single unified standard for vehicle emissions, so manufacturers do not have to navigate three often-conflicting targets, which raise costs for manufacturers and consumers. The 51勛圖厙 looks forward to working with the administration to ensure vehicle standards meet consumer demand while providing manufacturers in the U.S. more opportunities to create jobs, develop new technologies and become even more globally competitive.
Background: Recently, the 51勛圖厙, members of the 51勛圖厙s Council of Manufacturing Associations and Conference of State Manufacturers Associations launched Manufacturers for Sensible Regulations, a coalition addressing the impact of the current regulatory onslaught coming from federal agencies.
According to the 51勛圖厙s Q2 2023 Manufacturers Outlook Survey, more than 63% of manufacturers report spending more than 2,000 hours per year complying with federal regulations, while more than 17% of manufacturers report spending more than 10,000 hours. The 51勛圖厙 survey also highlighted that only 67% of manufacturers are positive about their own companys outlook, the lowest since Q3 2019. It shows the consequences of regulations: If the regulatory burden on manufacturers decreased, 65% of manufacturers would purchase more capital equipment, and more than 46% would increase compensation.
-51勛圖厙-
The 51勛圖厙 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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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 51勛圖厙 or to follow us on Twitter and Facebook, please visit
Michigan Homebuilders Push Back on Air Quality Proposal

Policy cant be developed in a vacuum, says Dawn Crandall, executive vice president of government relations for the Home Builders Association of Michigan. People need to look at how one policy impacts that next thing. Everything is tied together.
Thats Crandalls message for the Environmental Protection Agency, as it considers a proposed air quality rule to restrict particles called PM2.5. While the regulations might not appear to impact the housing industry directly, they could prevent manufacturers from expanding facilities and creating jobs in Michiganwhich does affect the housing market.
The concern: If manufacturers are unable to grow in the state or open new facilities, fewer people will need housing. Thats bad news for homebuilders.
- If you put in these EPA regulations that are going to create a barrier for companies looking to move here, and then they decide they dont want to, thats going to impact Michigans ability to be an economic destination, said Crandall.
- And if you make it harder for businesses to employ employees, then they dont need housing. That has a big impact on us.
A shaky foundation: Michigans housing industry is still recovering from the significant downturn it experienced about 15 years ago.
- That slump was dramatic: according to Crandall, the number of permits filed in Michigan for single-family homes fell sharply from 54,721 in 2005 to around 15,000 two years later, bottoming out to about 6,900 in 2009.
- Although the industry has seen some recovery since then, new construction remains relatively low, and Crandall worries that shocks caused by the EPAs proposed regulations could do further harm.
- I think weve hit rock bottom, and were slowly coming out of it, said Crandall. But were only projecting 16,000 single-family permit builds this yearand anything thats going to impact residential construction is not good for the state of Michigan.
Another challenge: Ultimately, Crandall is concerned that the EPAs proposed rule will simply add to a long list of challenges for homebuilders.
- Were already facing enough hurdles, said Crandall. Theres a lack of skilled workers who can do residential construction. Material costs peaked during COVID. We get a lot of our lumber from Canada, so these Canadian wildfires could have an impact. So if PM2.5 is going to affect economic development in our state, thats going to have an impact on us, too.
The big idea: Were all connected in some form or fashion, said Crandall. Michigan needs to grow our population, and we cant do that if companies dont bring people into our state who want to live, work and play here. Were one big ecosystem.
Manufacturers Should Be Cautiously Optimistic About the Economy

With a recession so far failing to materialize and inflation showing signs of weakening, manufacturers may begin to grow less wary about the economy. Recent data suggests that despite continuing risks, the bright spots may win the day.
Growth: at a 2.4% annual rate in the second quarter of 2023.This number is notably higher than the 2.0% growth that analysts had expected for the quarter.
Employment: The overall employment rate sits at a very low 3.6%, defying expectations that the Feds inflation-reduction moves might create a surge in unemployment. Meanwhile, women in particular are enjoying an employment renaissance, including in manufacturing.
- Manufacturing had about 3,786,000 female employees in June, meaning that women made up 29.1% of the industry’s workforce, according to 51勛圖厙 Chief Economist Chad Moutray.
- That number is just slightly lower than the 3,788,000 found in May, which was the highest number of female workers in manufacturing since September 2009.
Wages: At the same time that overall economic strength is growing, the United States is also seeing positive signs in wage inequality, with average income for the lowest-earning 50% of Americans increasing than all other population groups except for the ultra-wealthy.
Inflation: Inflation has been a significant pain point for manufacturers, but it now seems to be moderating. According to the latest Consumer Price Index data, inflation in June from a year earliera big drop from the whopping 9.1% annual inflation rate in June 2022.
The last word: Real GDP data suggests that while demand and output in the manufacturing sector remain challenged, there are other pockets of strength in the larger macroeconomy, said Moutray.
- The Federal Reserve is working to navigate a soft landingsomething that is possible, even as recession risks continue to permeate the conversation.
Illinois Chemical Industry Warns Against New EPA Standard

The chemical industry has a wide reach. According to Mark Biel, CEO of the Chemical Industry Council of Illinois, 96% of products made in the United States are either manufactured by the chemical industry itself or using materials it produces.
- We make everything from cell phones to packaging, said Biel. People dont realize the integral role that chemistry plays in their lives.
And for Illinois in particular, the chemical industry isnt just making productsits making careers.
- Our state has 46,000 people in the chemical industry, and the average wage is a little over $114,000, said Biel. We are the second largest manufacturing sector in Illinois, which is the fourth largest chemical processing state. Folks dont realize how large and important the chemical industry is to Illinois.
But as the Environmental Protection Agency considers imposing a new, stricter air quality standard for particles called PM2.5, chemical manufacturers in Illinois are sounding the alarm. According to Biel, the new regulations misunderstand the situationand threaten to cause irreparable harm for manufacturers across the state.
The background: Manufacturers have long been committed to reducing particulates in the air, including PM2.5, and have made huge strides over the past half-century. But to further reduce PM2.5 will be a tall order.
- We should be focused on enforcing the regulations we already have in the books,” said Biel. “The U.S. already has strong regulations in placeones that many areas are still working to meet. Let us be smart about new regulations, which means we should not change air permitting before meeting current standards.
The local angle: For the chemical industry in Illinois, the changes could be particularly damaging.
- With access to waterways, relatively inexpensive electricity and extensive natural gas pipeline infrastructure, the St. Louis and Chicagoland areas of Illinois are hubs for the national chemical industry.
- However, if the EPAs standards become stricter, it could deter investments to these metro areas significantly.
- Its difficult enough to permit a new facility in the Chicagoland area, and when you throw on additional burdens, it makes it harder and harder to justify making the investment in these facilities, said Biel.
The global stage: Especially at a time when many manufacturers are looking for ways to bring investments and supply chains back to the United States, this kind of onerous regulation could create a stumbling block.
- Our lawmakers want manufacturing to come back to the U.S., but this regulation does the exact opposite, said Biel. With all the new investment, its important that more and more manufacturers locate in the U.S. to avoid supply chain complications and delays. This regulation hinders that development.
The last word: Im bullish on the long-term prospects for our industry, but sometimes the EPA loses sight of the reality that their regulations are already sufficient, said Biel. The current PM2.5 standard has worked. But this proposal goes far beyond that and will hinder a crucial opportunity for the industry to grow in the U.S.
Manufacturers: Lowering Particulate Matter Standard Would Harm Infrastructure Investment
Washington, D.C. Following a request from White House Environmental Justice Advisory Council Chair Brenda Mallory asking the Environmental Protection Agency to lower the annual primary standard for particulate matter (PM2.5) to 8.0 弮g/m3 and to lower the primary 24-hour standard to 25.0 弮g/m3, 51勛圖厙 Vice President of Domestic Economic Policy Brandon Farris released the following statement:
Moving the PM2.5 standard all the way down to 8.0 弮g/m3 as the White House Environmental Justice Advisory Council suggested means 40% of the U.S. population will live in an area considered out of attainment, essentially halting construction on bridges, roads, manufacturing facilities and agriculture projects in areas that desperately need development.
Manufacturing in the U.S. is already among the cleanest in the world, and we dont have to make a choice between cleaner air and economic prosperity. The EPA can choose both by finalizing a reasonable standard that doesnt thrust much of the country into an area where no growth can happen.
Background: A new report conducted by Oxford Economics and commissioned by the 51勛圖厙 warns that the EPAs proposed air quality regulations for PM2.5 could threaten $162.4 billion to $197.4 billion of economic activity and put 852,100 to 973,900 jobs at risk, both directly from manufacturing and indirectly from supply chain spending. In addition, growth in restricted areas may be constrained, limiting investment and expansion over the coming years. Due to these limited opportunities for expansion or investment, these areas in nonattainment could lose out on an additional $138.4 billion in output and 501,000 jobs through 2027.
-51勛圖厙-
The 51勛圖厙 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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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 51勛圖厙 or to follow us on Twitter and Facebook, please visit