SPI Calls for Reform in Wake of NAM Report on Manufacturing Industry's Regulatory Burden

WASHINGTON, Sept. 10, 2014 /PRNewswire-USNewswire/ -- SPI: the Plastics Industry Trade Association called on officials across the U.S. to reform the nation's outdated regulatory system Wednesday after the National Association of Manufacturers (NAM) released its report, titled "The Cost of Federal Regulation to the U.S. Economy, Manufacturing and Small Business," that details the disproportionately high regulatory cost that American manufacturers pay in comparison to their non-manufacturing counterparts.

While the average U.S. company pays $9,991 per employee per year to comply with federal regulations, the average manufacturer in the U.S. pays nearly twice as much at $19,564 per employee per year in compliance costs. Additionally, the report found that in 2012 (when adjusted for inflation to 2014 dollars) manufacturers paid $92 billion to comply with Occupational Health and Safety and Homeland Security regulations, $159 billion for tax compliance, $330 billion to comply with environmental regulations and $1.448 trillion to comply with economic regulations, leading to an overall regulatory price tag of $2.028 trillion for America's manufacturers.

"As the nation's third-largest manufacturing sector employing 900,000 men and women, the plastics industry is no stranger to regulations," said SPI President & CEO William R. Carteaux. "While many of these rules and regulations are proposed and implemented with good intentions, the devil has always been in the details and as the NAM report makes clear, America's regulatory framework is in need of a serious reboot. Comprehensive reform is necessary to allow the nation's manufacturers to grow their businesses, hire more workers and keep America competitive abroad."

The report arrives at a time when U.S. manufacturing is in the midst of an ongoing renaissance, as indicators like industrial production and factory hiring continue to rebound from their recessionary craters. While growth across manufacturing sectors, including plastics, has been steady, a host of issues, like new consumer demands and a manufacturing skills gap, have continued to hamstring companies looking to innovate, hire and grow. However, common sense regulatory reform, Carteaux said, would better equip manufacturers to deal with these issues and build on the industry's existing strengths.

"Through its ongoing advocacy, public outreach and business development activities, SPI has worked tirelessly to give manufacturers in the $374-billion plastics industry the tools they need to keep innovating to meet the needs of today's consumer, at home and abroad," Carteaux said. "But it's hard for companies to build a more vibrant 21^st-century manufacturing sector when they have to comply with 20^th-century regulations."

"A modern regulatory regime based on scientific, technological and economic realities, rather than outdated facts, emotion and hearsay, will ensure the safety of workers, consumers and the environment while still fostering the innovation and job growth that manufacturing is poised to unleash," he added. "SPI looks forward to working with NAM and policymakers to make this a reality."

A full copy of the NAM report is available here. For more information on SPI or the plastics industry, visit www.plasticsindustry.org.

Founded in 1937, SPI: The Plastics Industry Trade Association promotes growth in the $373 billion U.S. plastics industry. Representing nearly 900 thousand American workers in the third largest U.S. manufacturing industry, SPI delivers legislative and regulatory advocacy, market research, industry promotion and the fostering of business relationships and zero waste strategies. SPI also owns and produces the international NPE trade show. All profits from NPE are reinvested into SPI's industry services. Find SPI online at www.plasticsindustry.org and www.inthehopper.org.

"From resin suppliers and equipment makers to processors and brand owners, SPI is proud to represent all facets of the U.S. plastics industry," said William R. Carteaux, president and CEO, SPI. Our most recent economic reports show that the plastics industry as a whole is resilient, and has come through the recession significantly better than other U.S. manufacturing sectors."

Contact: Jacob Barron
202-974-5249 (Office)
202-549-6011 (Mobile)

SOURCE SPI: The Plastics Industry Trade Association