In 2012, a study found that manufacturing regulations put in place by the EPA was predicted to cost the manufacturing industry hundreds of billions of dollars as well as millions of jobs. The six regulations in question were found to have no net benefit to society and to increase energy and maintenance costs for manufacturers.
EPA manufacturing regulations heavily impact the United States manufacturing industry. While regulations on manufacturing are necessary to keep companies — and the industry itself — in check, many believe that the EPA is placing regulations on the industry more freely and at more cost than is wise. EPA regulations cost the manufacturing industry billions of dollars in extra expenditures and have led to the elimination of millions of jobs. Neither of these negative impacts is good for a recovering economy.
The 2012 study, conducted by the ndp|consulting, found that the unnecessarily restrictive EPA manufacturing regulations hit the industry with increased energy and compliance costs while decreasing opportunities for investing and the number of available jobs. The cost of compliance with the various new regulations caused some companies to close their doors entirely.
More importantly, these regulations made manufacturing in the United States 20 percent more expensive than manufacturing in competing nations like China. The demand for products made in the United States is great for a recovering economy because it promotes growth in the industry to meet that demand. This net benefit is erased, however, companies struggle to meet the standards set by overly complicated or restrictive manufacturing regulations.
The EPA is an important factor in the manufacturing industry. The EPA promotes a safe environment for both consumers and manufacturer employees. However, the EPA has enacted more than 2,100 new regulations on manufacturing, forcing companies to spend much-needed funds on compliance and paperwork rather than on running a profitable business.
Though the manufacturing regulations are put in place with good intentions, over-regulating any industry can cause serious harm to both the growth and sustainability of that industry. Money spent on paperwork and making changes to equipment is money not spent on hiring new employees, investing in new equipment, or expanding service or product offerings. In the long run, the cost of the regulations far outweigh the benefits.
More EPA regulations equate to higher manufacturing costs and fewer manufacturing jobs. These increased costs born by manufacturing companies increases the price charged to consumers as common goods and materials like steel, medicine, and processed foods become more expensive to manufacture.
Though the EPA may have good intentions to provide a safe environment for everyone, creating hundreds of new regulations is not the best way to ensure safety and quality. This method increases the burden carried both by manufacturing companies and unemployed workers looking for jobs in this industry. Manufacturers and industry leaders continue to fight manufacturing regulations in court when necessary, but deeper change is needed for the manufacturing industry to thrive—or even survive.
Image courtesy of D W S on Flickr.com
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!