The Cost of Federal Regulations

The current regulatory onslaught threatens the competitiveness of manufacturing in America, chilling manufacturing investment, job creation and wage growth and blunts the positive impacts of tax reform, the Bipartisan Infrastructure Law and the CHIPS and Science Act. With millions of hardworking men and women relying on manufacturing for their livelihoods, the stakes are high.

The Cost of Regulations

Excessive regulation is a hidden tax on every manufacturer.

Federal regulations drain more than $3 trillion from the U.S. economy every year — and manufacturers shoulder a disproportionate share. For small manufacturers, the per-employee burden is the heaviest of all, pulling resources away from wages, equipment and growth.

$3.079trillion a year

The total annual cost of federal regulations on the U.S. economy — a burden manufacturers feel more than most.

Key findings

What regulation really costs manufacturers

$29,100
per-employee regulatory cost for the average manufacturer
$50,100
per-employee cost for small manufacturers (fewer than 50 employees)
$277K
average annual compliance cost for a typical U.S. firm
$465B
rise in aggregate compliance costs since 2012

Source: W. Mark Crain and Nicole V. Crain, The Cost of Federal Regulations to the U.S. Economy, Manufacturing and Small Business, commissioned by the National Association of Manufacturers (2023).

94%

of manufacturers say rising regulatory burdens make it harder to create jobs and invest.

A better way

The case for sensible regulation

Smarter, Not More

Regulation should be grounded in real-world costs and benefits — protecting health and safety without imposing burdens that outweigh the gains.

Count the Cumulative Cost

Rules pile up year after year. Agencies should weigh the total, compounding burden on manufacturers — especially the smallest, who can least afford it.

Protect the Resurgence

Sensible reform frees manufacturers to do what they do best — invest, innovate, hire and grow here in America.

Protect manufacturing’s resurgence

Outdated and excessive regulations cost manufacturers billions and hold back growth. Tell Congress it’s time for smarter, sensible regulation.