The Employer Associations of America (EAA) released its 2011 Economic Trends Survey, which was co-sponsored by The Employers Council in Salt Lake City, UT. “The 2011 Economic Trends Survey displays cautious optimism” according to Monica Whalen, President & CEO for The Employers Council. This comprehensive survey of nearly 2,800 organizations with responses from more than 6,000 locations reflects a consistent, cautiously optimistic view of 2011 by employers across the nation.
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The 112th Congress began its work this week, and the new majority in the House of Representatives is promising greater attention to the issue of government regulations – a source of confusion and uncertainty for manufacturers throughout the United States. Representative Darrell Issa (R-CA), the new chairman of the House Oversight and Government Reform Committee, has indicated that his committee will conduct vigorous oversight of new and proposed regulations and will more thoroughly examine their impact on the U.S. economy. Last month, Rep. Issa sent letters to 150 businesses, trade associations and other organizations asking them to identify proposed or existing regulations that are negatively impacting jobs, the economy and America’s overall economic competitiveness.
The NAM welcomes greater congressional oversight of federal regulations. Rosario Palmieri, the NAM’s vice president of infrastructure, legal and regulatory policy, said, “We need to look government-wide at the cost of regulation and its impact on industry. Few take so broad a look at regulation. Mostly they review the individual agencies or program areas. So this particular review could be very promising because of its ability to look at the cumulative burden of regulation.”
In his letter, Rep. Issa cites statistics from the Small Business Administration (SBA) noting that “federal agencies promulgated 43 major new regulations” in fiscal year 2010. The SBA estimates that the cost of these regulations is $28 billion, “the highest single year increase in estimated burden on record.” This is in addition to the $1.75 trillion burden resulting from existing regulations.
The SBA’s study on the impact of regulatory costs on small firms represents the best research available to identify the disproportionate burden placed on small business by regulation and the even more disproportionate burden placed on small manufacturers.
The NAM is drafting a letter to respond to Rep. Issa’s request. The letter states, in part, “Manufacturers bear the heaviest burden from environmental regulation, while facing similar or more stringent regulations in workplace safety, health, transportation, financial, trade, tax administration, homeland security and export controls.” The NAM also highlights many of the major regulations and proposals and explains how they would harm manufacturers’ ability to do business and compete.
In addition to the Environmental Protection Agency’s (EPA) regulations on greenhouse gas emissions and industrial boilers and its proposals for new ozone standards, the NAM is also deeply concerned about the following regulations:
- Occupational Safety and Health Administration (OSHA) proposals for on-site consultation, noise controls and an injury and illness prevention program;
- Upcoming Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CTFC) controls for over-the-counter (OTC) derivatives;
- Department of Transportation (DOT) limits on hours-of-service for truck drivers and new shipping and handling requirements for the transportation of lithium ion and lithium metal batteries; and
- Implementation of the Consumer Product Safety Improvement Act (CPSIA), particularly the Consumer Product Safety Commission’s (CPSC) product safety database.
"These are all high-priority regulations that can cost manufacturing jobs and will if implemented the wrong way or as currently proposed or finalized," Palmieri said. "We're anxious for some oversight of these programs."
For the United States to become the best country in the world to headquarter a company – one of the objectives of the NAM’s “Manufacturing Strategy for Jobs and a Competitive America” – a very different approach to regulation is needed. Manufacturers cannot be expected to help the lead an economic recovery and hire new workers if they are burdened with stifling regulations.
Burdensome and costly regulations harm manufacturers’ competitiveness and limit their ability to create jobs. However, even with unemployment remaining high at 9.8 percent, regulations continue to mount, making it more difficult for manufacturers and businesses in America to lead an economic recovery. The NAM will work with the new Congress to relieve the regulatory burden on manufacturers and help them compete in the global marketplace.
HOUSE UNVEILS BILL TO REPEAL HEALTH CARE REFORM
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The Republican majority in the House has released the text of a bill to repeal the health care reform law enacted in 2010. A procedural vote will take place on Friday, January 7, with a final vote and expected passage of the bill on Wednesday, January 12.
AMERICA COMPETES ACT SIGNED INTO LAW
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On January 4, President Obama signed the NAM-supported America COMPETES Act, a reauthorization of a number of programs critical to manufacturing, including federal funding for research and development to vital education grants that will aid manufacturers and enhance competitiveness. “Our economic future relies more than ever on our ability to innovate, and the reauthorization of the COMPETES Act will help manufacturers prosper in a globally integrated and highly competitive marketplace,” said NAM President John Engler. Details: Christine Scullion, (202) 637-3133.
EPA REGULATIONS BEGIN
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On January 2, the Environmental Protection Agency (EPA) began regulating greenhouse gas (GHG) emissions from stationary sources under the Clean Air Act. These new regulations fall under the “tailoring rule” and initially apply only to new or modified facilities that have the potential to emit more than 75,000 tons of carbon emissions per year and are already required to obtain pre-construction permits for non-GHG pollutants. Starting in July 2011, additional new or modified facilities will be required to comply with the new GHG permitting requirements. The EPA’s unprecedented actions have already caused significant uncertainty for manufacturers planning to upgrade or build new facilities in the near future. Manufacturers also expect permitting delays as state agencies decide how they will account for GHG emissions in their permits. The NAM continues to fight these job-killing regulations in the courts, the Administration and Congress. Details: Alicia Oman, (202) 637-3174.
NEW COMPLICATED TRUCKING RULE RELEASED
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The Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) published its new trucking hours-of-service (HOS) regulatory proposal in the Federal Register on December 29, 2010 – revising current rules that have been in place since 2004. The regulatory rewrite is the result of a settlement agreement between the FMCSA and Public Citizen reached in October 2009, and a final rule will be published by July 2011. The new proposal eliminates some key flexibility afforded to trucking companies that serve shippers and now mandates a one-hour break during a 14-hour on-duty workday. While some important provisions were maintained, like the “34 hour restart,” new stipulations will require two consecutive day-off periods from midnight to 6:00 a.m. for drivers. The FMCSA also added a new option of extending a “regional” driver’s daily shift to 16 hours twice a week to accommodate for loading and unloading schedules at terminals or ports and allowing drivers to count some time spent parked toward off-duty hours. However, the proposal did not reach a conclusion on daily driving times and left open for comment whether drivers should be limited to 10 or 11 hours of daily driving time, although the FMSCA stated a preference of a 10-hour limit. The NAM is an active voice for shippers in citing our concerns with the proposal and continues to emphasize the importance of the current 11-hour daily driving provision, which is critical for supply chain efficiencies, productivity and controlling costs in an increasingly competitive environment while maintaining high levels of safety. In spite of the trucking industry’s excellent safety record, the new proposal is highly complex. The NAM encourages manufacturers to remain engaged due to the anticipated impacts of the rule for companies that ship by truck. Details: Robyn Boerstling, (202) 637-3178.
PROVISION IN RULES PACKAGE THREATENS FUTURE HIGHWAY AND TRANSIT INVESTMENTS
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As part of a promise to reduce federal spending, the House passed a rules package that will eliminate a current rule that protected guaranteed funding levels in the surface transportation authorization and provided states budgetary certainty for planning and constructing multi-year transportation projects. A compromise approach to make legislative efforts to reduce highway spending more transparent and open to rank-and-file members failed in a conference vote. The fight is likely to continue on the House floor this week. Manufacturers sent a letter expressing disappointment in the House Republican Conference’s approach to investing in transportation infrastructure. The concern expressed by many transportation infrastructure advocates is that appropriators will now have the authority to employ budgetary shell games that potentially take away from transportation investments funded by highway users. However, one positive aspect within the new rules package is a prohibition on spending Highway Trust Fund revenues on non-surface transportation related programs that are contrary to the core mission of the Fund. Details: Robyn Boerstling, (202) 637-3178.
EXPORTING TO MEXICO WEBINAR
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The U.S. Commercial Service and the NAM invite you to participate in an Exporting to Mexico Webinar on January 12 at 11:00 a.m. EST. This free webinar is designed exclusively for NAM members to learn about export opportunities in Mexico. Topics will include: Why Mexico; Safety and Security in Mexico; Overview of the Mexican Market and Best Prospects for U.S. Manufacturers; the Impact of NAFTA; and How to Take Advantage of NAFTA. Click here to register.
Why export to Mexico?
- Exports from the United States to Mexico are up 32 percent from January to June 2010 compared to the same timeframe in 2009. Mexico is the United States’ third largest trade partner and second largest export market for U.S. products.
- Mexico is a large and growing market: With a population of over 118 million, (74 percent urban; 44 percent under 20 years of age; 23 percent wealthy/upper middle class; and 37 percent middle class) and offers a large market with almost $1 trillion GDP.
- With a shared Western and Hispanic culture, U.S. producers find it easier to market and sell their services and products in Mexico.
- NAFTA created a free trade zone for Mexico, Canada and the United States and is the most outstanding feature in the U.S.-Mexico bilateral commercial relationship, clarifying and simplifying rules of trade.
What are Mexico’s hottest markets?
- Agribusiness
- Auto parts and services
- Energy and environmental
- Equipment – packaging, security and safety, telecommunications, transportation infrastructure
- Hotel and restaurant
- Housing and construction
- Internet and IT services
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