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InsiderOnline Blog: September 2012

How Big a Burden Are Government Regulations on Manufacturers?

Some details from a new study commissioned by the Manufacturers Alliance for Productivity and Innovation, as summed up by Thomas Hemphill:

[S]ince 1998, the costs of major federal regulations have far exceeded manufacturing sector growth, with the cumulative inflation-adjusted cost of compliance for major regulations growing by an annualized rate of 7.6 percent. Furthermore, the cost of major regulations has also significantly exceeded overall economic growth, as annual growth in the physical volume of manufacturing sector output averaged only 0.4 percent since 1998, while U.S. inflation adjusted GDP growth averaged 2.2 percent annually. […] [S]uch major regulations could reduce the manufacturing sector’s output by up to 6.0 percent over the next decade. In 2012, the cost of major regulations could reduce the total value of shipments from U.S. manufacturers by up to $500 billion in constant 2010 dollars and lower manufacturing exports by 17 percent.

[…] U.S. manufacturers are subject to an estimated 2,183 unique regulations between 1981 and April 2012, and that because 95 percent of the regulations are non-major (having estimated costs of less than $100 million) and not accounted for in the study (since the federal government does not track their costs or those of independent agencies), the aggregate burden of these non-major regulations could be equal to the cost of the major regulations. [American Action Forum, September 24]

Posted on 09/28/12 02:59 PM by Alex Adrianson

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