Stephen Gold is president and CEO of Manufacturers Alliance for Productivity and Innovation (MAPI), an executive education and business research organization in Arlington, Va. (www.mapi.net).
Costs Keep Mounting
In other words, even when the economy is slumping, even when American manufacturing is severely contracted and facing the most intense global competition ever, federal regulatory costs keep mounting. There is no political or managerial discipline. For a country that can’t shake off its economic slump and can’t create jobs, this is like shooting ourselves in the foot.
Not that everyone sees it that way. Some advocacy groups continue to portray manufacturers as "bad guys" that need tighter and tighter controls placed on them. To them, a growing manufacturing base means a growing risk to public health and safety. As Rena Steinzor, the president of the Center for Progressive Reform, said to me prior to a recent radio debate, "This country’s problem is there aren’t enough regulations."
Fortunately, a growing number of policymakers understand that the vast majority of manufacturers are good employers and good citizens who play a critical role in generating innovation, national income and employment. They recognize the need for balance, because manufacturing has been one of the lone bright spots in the economy since the recession ended in June 2009.
Of course, highlighting the growing regulatory burden on manufacturers does not equate to calling for elimination of regulation. Health and safety rules obviously have a critical role to play in an increasingly complex economy. Manufacturers simply need a more cost-effective, coordinated system through which federal agencies issue rules targeting their operations.
