Subscribe to our free, weekly email newsletter!


MAPI: Growing number of federal regulations continues to challenge manufacturers

2013 update shows no sign of abatement; MAPI’s Gold: ‘Inefficient system is a drag on manufacturing growth.'
By Modern Materials Handling Staff
October 24, 2013

An update of key elements of a 2012 report on the impact of federal regulations on the manufacturing sector finds that the problems continue to persist, and in fact have increased in 2013.

NERA Economic Consulting’s update of a report commissioned by Manufacturers Alliance for Productivity and Innovation (MAPI) shows that manufacturing regulatory costs increased an average of 7.6% per year since 1998 compared with average annual growth of 0.4% for manufacturing output.

Further, the analysis found that since 1981 the federal government has promulgated 2,302 manufacturing-related regulations—up from 2,187 in 2012 and an average of just under 1.5 regulations per week for 30 years. With 270 of these considered “major” regulations (those determined to have an annual effect on the economy of $100 million or more), this means about 90 percent of the regulations targeting manufacturers do not undergo a cost-benefit analysis.

“Each year federal agencies layer regulations onto manufacturers, one on top of another, without any transparency or any clue as to the true cost to our factory sector,” said Stephen Gold, president and CEO of MAPI. “Such an inefficient system is clearly a drag on manufacturing growth, and therefore overall economic growth.”

Total major regulations, both manufacturing and non-manufacturing, have increased markedly from the Clinton administration through the Bush administration and now through the Obama administration. During President Clinton’s term there was an average of 36 per year. During President George W. Bush’s term this average increased to an average of 45 per year. The Obama administration is promulgating an average of 75 major regulations per year.

This increased pace is affecting business operations in America. NERA’s analysis concluded that, assuming federal agencies maintain their current pace of regulatory activity, the load will reduce manufacturing output by up to 6% over the next decade and by as much as $500 billion this year alone.

“Since 1998 we’ve had a 41% increase in the number of regulations affecting manufacturing, but manufacturing output has increased only 12% over that time,” Gold emphasized. “More alarmingly, the manufacturing workforce has declined by 32% since 1998. While there have been a number of factors driving this loss of jobs, the growing regulatory burden has to be considered one of them.”

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Dallas-Fort Worth-based regional operation offers service and support for key logistics hub.

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

The prolonged operating hours of automated distribution operations leave limited time for maintenance. For tightly-scheduled fulfillment operations, unplanned downtime not only cuts into slim profit margins, it jeopardizes future business and customer loyalty. Download this complimentary white paper to learn five mission-critical benefits of implementing a resident maintenance program.

Article Topics

News · Economy · MAPI · All topics

About the Author

Josh Bond, Associate Editor
Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce. Contact Josh Bond


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA