NAM to DOJ: Conflicting State Regs Raise Costs
The NAM is urging the Department of Justice to address the patchwork of state laws that are driving up costs and threatening U.S. manufacturing competitiveness.
- The DOJ requested public input on state laws that have “significant adverse effects on the national economy or interstate commerce,” by either creating barriers for businesses operating nationwide or undermining federal authority.
Why it matters: Manufacturers face rising compliance burdens and liability risks as they attempt to fulfill inconsistent mandates across 50 states.
- Small and medium-sized manufacturers already spend more than $50,000 per employee each year on federal compliance, and the regulatory conflicts among the states are increasingly adding to those costs.
Our take: The NAM weighed in on more than a dozen regulatory priorities in environmental, energy, tech, health and food and beverage policy, emphasizing the following principles:
- Manufacturers need certainty. Legal and regulatory predictability is essential for manufacturers to invest, grow and create jobs.
- Federal preemption is critical where appropriate. Uniform national standards are needed in areas like AI, pharmaceuticals, food ingredient safety and labeling, greenhouse gas emissions and securities disclosures.
- Tort reform is urgent. Exploitive state lawsuits create conflicting outcomes and massive defense costs and divert resources away from innovation and job creation.
The bottom line: “Manufacturers need straightforward, standardized rules of the road that allow our industry to invest confidently, adopt new technologies swiftly and focus resources on productivity and jobs, ensuring America remains a leader in the global economy,” NAM Vice President of Domestic Policy Jake Kuhns told the agency.