The Cost of Federal Regulations - NAM

Key Findings

$3.079 trillion

Cost of federal regulations to the U.S. economy

$465 billion

Increase in aggregate regulatory compliance costs since 2012

$277k

Avg. annual compliance costs for a U.S. firm

$29,100

Avg. per employee cost of regulations for manufacturers

$50,100

Avg. per employee cost of regulations for small manufacturers (<50 employees)

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In 2022, manufacturers faced stiffer regulatory hurdles compared to similarly sized peers in the economy at-large. The disparity is particularly acute for small manufacturers.

Survey of Manufacturers: What Would You Do with Funds Currently Allocated to Federal Regulatory Compliance?

Manufacturers would spend 86% of funds currently spent on compliance on reinvesting in their business or employee initiatives if given the choice.

Manufacturers for Sensible Regulations

The National Association of Manufacturers, members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations launched Manufacturers for Sensible Regulations to address the impact of the current regulatory onslaught coming from federal agencies. To ensure manufacturers remain competitive, we are calling on the White House to designate a senior-level adviser to coordinate efforts within the White House to ensure that federal regulators are implementing policies that align with the president’s promise to promote the growth of manufacturing in America.

For more information, please contact us at [email protected].

READ COALITION LETTER

Notable Members

Using Our Voice

Manufacturers are using their voices to sound the alarm the increasing federal regulations that continue to threaten the industry and our economy.

NAM Vice President of Domestic Policy Charles Crain testifies before the House Financial Services Committee on how the SEC’s proposed climate disclosure rule would impose tremendous costs on manufacturers, with small manufacturers being the hardest hit.

Eric Truskoski, vice president of government affairs at Bradford White Corp, addresses the need for regulatory solutions that keep manufacturers competitive.

Steve Gullickson, President and CEO of MGK, an insect control company based in Minnesota, addresses the economic risks posed by the tightening regulatory field.

More Data

The costs of unbalanced regulations impact our workforce, communities and economy.

94%	of manufacturers say increased regulatory burdens make it difficult to create jobs, invest in new equipment and expand facilities.

93	new regulations from across 30 agencies and offices stifling growth and job creation

68%	of voters surveyed by the NAM agree that small manufacturers bear an unfair burden when faced with excessive regulations

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Take Action

Send an email to your members of Congress with one click asking them to protect manufacturing’s resurgence.

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I hope this email finds you well. I am writing to urgently request your support in protecting manufacturing’s economic resurgence by standing with manufacturers against the onslaught of unbalanced federal regulations. Manufacturers for Sensible Regulations, which represents hundreds of thousands of businesses across the U.S., mentioned in their coalition letter to the White House that in 2023 alone, the administration has issued 1,260 final rules and is on pace to issue more than 3,000 final regulations this year to add to more than 6,000 final rules already issued in 2021 and 2022. Of the rules already issued, more than 2,000 affect small businesses. From limiting credit access in local communities by crippling small banks or impeding the construction of energy transformers during a period of high energy costs or imposing draconian time-consuming filing requirements, federal agencies are chilling manufacturing investment, job growth and wage growth, especially among small manufacturers in the United States.

I am particularly concerned by the SEC’s proposed climate-risk disclosure rule which could potentially pull thousands of small manufacturers across the country into its dragnet through the proposed “Scope 3” reporting requirements. Small manufacturers do not have platoons of lawyers. Imposing additional financial and time burdens will only serve to drive manufacturers out of business and others to curtail investment, job creation and wage growth. It’s just not fair. Small manufacturers already face a disproportionate regulatory burden, and these changes will further exacerbate them. It is essential to preserve a fair and stable business environment that supports small manufacturers and allows them to thrive as engines of economic growth and job creation.

To help establish this environment and ensure manufacturers remain competitive, I echo the coalition in requesting that a senior-level adviser be designated to coordinate efforts within the White House to ensure that federal regulators are implementing policies that align with the president’s promise to promote the growth of manufacturing in America.

As our elected representative, your strong voice and unwavering support are crucial in safeguarding the interests of manufacturers and manufacturing workers in the United States. I urge you to prioritize their concerns and advocate for their needs in your correspondence with the administration and your colleagues in Congress to protect our local economy’s resilience and prosperity.

Thank you for your attention to this urgent matter. I look forward to your opposition to unbalanced regulations and your continued advocacy for the competitiveness of manufacturers in the United States.

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From our Newsroom

Click here to view all NAM regulations stories. The latest:

NAM.ORG: NAM Pushes Back on Restrictive Chemical Rule
NAM.ORG: Why the SEC’s Climate Rule Won’t Work
NAM.ORG: NAM Fights Auto Regulation Mess
NAM.ORG: New Regulations Could Hurt Competitiveness
NAM.ORG: Refrigerator Manufacturers Call for a Regulatory Freeze
NAM.ORG: SEC Reverses Course After NAM Legal Challenge
NAM.ORG: FCC Seeks to Reinstate Net Neutrality Rules
NAM.ORG: Chemical Manufacturers Push EPA for Faster Action
NAM.ORG: NAM to FTC: Withdraw Proposed Merger Rules
NAM.ORG: House Passes Emissions-Rules Measure

Become an NAM Ambassador

Leadership in Manufacturing Advocacy

When it comes to our fight for balanced regulations, NAM Ambassadors are using their voices to shape the debate in Washington. From telling their story to hosting a member of Congress, NAM Ambassadors are proven change makers at the core of our Competing to Win campaign. Ready to raise your hand and allow us to help elevate your advocacy? Contact us at [email protected].