The Cost of Federal Regulations and Its Impact on Michigan
September 16, 2014 – Complying with federal
regulations costs Americans over $2 trillion in lost economic growth annually,
according to a new study commissioned by the
National Association of Manufacturers (NAM).
of that lost revenue comes from manufacturers in Michigan — a national leader
in a diverse array of manufacturing subsectors. The state’s leading small business
organization, the National Federation of Independent Business (NFIB),
joined with The Michigan Manufacturers Association (MMA) at MMA headquarters in
Lansing today to announce the results of the new study that details the cost
and impact of federal regulations on Michigan job providers. Local business
owner Craig Carrel, President of Team One Plastics located in Albion, MI was
also present and offered examples of how regulation has stunted the growth of
study, conducted by economists Nicole V. and W. Mark Crain, concluded that manufacturing
businesses face a disproportionate share of the cost burden at $19,564 per
employee per year — nearly double what the average U.S. business pays to comply
with federal rules.
“While Michigan is making great strides in
reining in unnecessary regulations, the federal government is doubling down
with an avalanche of regulations of dubious value,” said Charles Owens, State
Director of the Michigan chapter of NFIB. “Small
manufacturing businesses are especially impacted because they do not have the
staff or time to stay on top of the regulatory tsunami from Washington.”
This study updates previous estimates of the cost to comply with federal
regulations — a top business challenge according to most manufacturers and
small business owners — using new data sources. It incorporated the findings of
an extensive survey of NAM members that showed manufacturers would invest more
in their businesses and in their people if compliance costs were lessened.
large manufacturer in this state started out as a small business,” said Owens.
“Sadly, many will never reach their full potential of creating hundreds of jobs
because of the federal overreach with rules and regulations.”