The American Chemistry Council (ACC) released the results from a survey of chemical manufacturers that gauges how expanding regulations are impacting companies and national priorities such as clean energy and infrastructure developments.
According to a press release from ACC, companies reported that the growing number of regulations is negatively impacting expansion in the United States and could lead to a decrease in hiring, spending on capital replacement and investment in research and development.
The survey revealed 86% of responding chemical manufacturers said the overall level of regulatory burden has risen, particularly at the federal level, and they expect the volume of new regulations to rise even further across all levels of government a year from now. Fifty-eight chemical producers participated in the survey and 38% of survey participants are classified as “small businesses.”
U.S. chemical producers provide the foundation needed to achieve many of the priorities of the Biden administration, including the manufacturing of computer chips and electric vehicles, producing clean energy, rebuilding the country’s infrastructure and supporting healthcare and biotechnology.
However, 67% of companies reported that current or forthcoming regulations negatively impact their ability to competitively manufacture inputs for clean energy priorities domestically. In addition, 57% of semiconductor producers and 56% of companies in the biotechnology sector believe forthcoming regulations are stifling their ability to manufacture competitively.
“The results of this survey should serve as a wakeup call to policymakers. Unless the Biden administration takes a different approach to how it creates and implements regulations, the availability of critical chemistries will dwindle—and the country’s climate, infrastructure and supply chain priorities will suffer as well. It’s quite simple - America’s success depends on American chemistry,” said Chris Jahn, ACC president and CEO in a press release.
Read the full report here.
