Government regulations stifle manufacturing, MAPI reports

It seems that not a lot has changed with respect to the government's drive to improve the jobs outlook and promote manufacturing. But you know what they say - what the government giveth with one hand, it taketh away with the other. Last week, the President was in Raleigh, NC, promoting his "Manufacturing Hubs" as a next effort to improve the manufacturing economy. That came on the heels of the latest jobs report that in December, a mere 74,000 jobs were added. The Manufacturing Hub in North Carolina is a public-private effort to develop next-generation power electronics.

It would all be great except that for every effort the federal government makes to create jobs and promote manufacturing, it does something in the regulatory arena to put obstacles in the way of that effort. For example, a study released last fall by the Manufacturers Alliance for Productivity and Innovation (MAPI) in conjunction with NERA Economic Consulting to measure how federal rules affect the manufacturing sector, concluded that manufacturers are being hurt by the enormous number of government regulations.

"Reviewing federal records going back three decades, NERA counted the regulations specifically targeting manufacturers, categorized them by agency, and measured their impact in the aggregate and by industry," said Stephen Gold, president and CEO of MAPI. "While manufacturers know instinctively that they regulatory burden is growing, our findings make it clear that the regulatory system is at best unbridled and at worst dysfunctional."

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