The Impact of Regulations on U.S. Manufacturers

Public awareness about the importance of the role of manufacturing in U.S. economic growth is on the rise, judging by the increased attention policymakers have given to this key sector over the past few years. However, concern is also increasing about the number of federal regulations on the books, the rate at which the number of new regulations is growing, and the impact of regulation on business, and particularly manufacturing. The Manufacturers Alliance for Productivity and Innovation (MAPI) commissioned NERA Economic Consulting to examine the qualitative and quantitative impacts of federal regulations on the U.S. manufacturing sector.

Among the preliminary findings:

Since 1998 growth in the cost of major regulations has far exceeded both manufacturing sector and overall economic growth;

• U.S. manufacturers are subjected to over 2,000 unique regulations enacted between 1981-April 2012;
• Major regulations could significantly reduce manufacturing output over the next decade;
• The Environmental Protection Agency imposes the largest regulatory burden on manufacturers in both number of regulations and cost.

The report is especially timely in light of the increased attention to the state of U.S. manufacturing overall, and specifically as it relates to the current election cycle.