The barrage of federal regulations being handed down is disproportionately burdening manufacturers, costing small firms an average of $50,100 per employee, according to the findings of a newly released NAM-commissioned study.
Key takeaways: Among the topline findings of the study, conducted by economists Nicole V. Crain and W. Mark Crain this past summer, were these key points:
- The total cost of federal regulations in 2022 is approximately $3.079 trillion (in 2023 dollars).
- Federal regulations cost the manufacturing sector at large about $350 billion a year, an amount equal to 12% of U.S. GDP.
- A small manufacturing company with just 20 employees is required to pay about $1 million annually in compliance costs.
- Since 2012, there has been a $465 billion increase in aggregate regulatory compliance costs.
What the NAM’s doing: In June, the NAM, along with members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations, launched Manufacturers for Sensible Regulations, a coalition of leading voices intended to address the regulatory onslaught coming from federal agencies in recent years.
The last word: “The unbalanced federal regulations make it challenging to grow manufacturing in America by siphoning resources away from job creation and our communities,” said NAM President and CEO Jay Timmons. “The burden continues to grow year after year … chilling investment, curtailing our ability to hire new workers and suppressing wage growth, especially for small and medium-sized manufacturers. It is time for the Biden administration to take action to reverse course.”