Permitting Delays, Energy Costs Push Manufacturers’ Burden to $12 Billion

On top of the nearly $8 billion manufacturers spend each year on acquiring, maintaining and waiting for federal permits, high energy bills and additional delay costs from waiting beyond deadlines in current law add another $4.1 billion a year, according to new analysis from the NAM. Together, these costs bring the total annual price tag of America’s broken permitting system to more than $12 billion a year for manufacturers.

The new analysis builds on the NAM’s “America on Hold” report and finds that the Bipartisan American Affordability and Jobs Act could save manufacturers $4.23 billion annually—a 35% reduction in total permitting-related costs if the legislation is fully implemented.

The map: A new interactive map provides a state-by-state breakdown of permitting-related costs and potential savings under the BAAJA, underscoring the urgency of passing comprehensive permitting reform.

The additional costs: Manufacturers face months or years of delays beyond permitting deadlines established in current law, along with higher energy bills driven by interconnection delays, grid congestion and pipeline constraints. These costs are separate from the nearly $8 billion in annual federal permitting compliance costs identified in the NAM’s earlier report.

The NAM says: “For manufacturers, the nearly $8 billion annual cost of complying with federal permits is only part of the story,” said NAM President and CEO Jay Timmons. “When you factor in the cost of waiting for approvals and the higher energy bills driven by permitting delays, the price tag climbs to more than $12 billion a year. That’s money that could be invested in new facilities, well-paying jobs and affordable, reliable energy for communities. Our new state-by-state analysis puts a price tag on the cost of inaction—and shows what manufacturers and communities across America stand to gain from reform. We can cut costs, accelerate investment and strengthen environmental stewardship at the same time.”

• “This bill is not about politics; it’s about the success of manufacturers here in the United States. Sens. Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT) and Martin Heinrich (D-NM) put country over party to craft this legislation. The Bipartisan American Affordability and Jobs Act will provide the certainty manufacturers need to grow, invest and bring well-paying jobs to communities across the country, while maintaining important environmental protections and a commitment to community engagement. This bill delivers for the nation. Now is the time for action.”

NAM at work: The new analysis builds on the NAM’s nationwide push for bipartisan permitting reform, including manufacturing facility visits with Democratic and Republican lawmakers across the country highlighting the urgent need to cut costs, unlock investment and get reform across the finish line.

• During the October congressional recess, the NAM hosted Sens. Whitehouse and Heinrich, along with Reps. Adam Gray (D-CA), Gabe Evans (R-CO) and Brad Finstad (R-MN).

• The NAM and more than 100 manufacturing and business organizations, including members of its Council of Manufacturing Associations and Conference of State Manufacturers Associations, sent a coalition letter urging Congress to swiftly pass the BAAJA. The list of more than 100 signers can be found here.

In the news: Punchbowl News (subscription) scooped the NAM’s new analysis and Axios also covered it. Punchbowl News reporter Josh Siegel posted about the new analysis on X.

• Sen. Capito also shared a post on X highlighting the analysis and map.