New EPA Regulations Threaten 852,000 Jobs, $162.4 Billion in Economic Activity
Manufacturers in the U.S. Are Leading the Way on Sustainability, Outpacing Global Competitors
Harrisburg, Pa. – A new report conducted by Oxford Economics and commissioned by the National Association of Manufacturers warns that the Environmental Protection Agency’s proposed air quality regulations for particulate matter (PM2.5) are projected to threaten $162.4 billion to $197.4 billion of economic activity and put 852,100 to 973,900 current jobs at risk, both directly from manufacturing and indirectly from supply chain spending. In addition, growth in restricted areas may be constrained, limiting investment and expansion over the coming years. Due to these limited opportunities for expansion or investment, these areas in nonattainment could lose out on an additional $138.4 billion in output and 501,000 jobs through 2027.
Overall, the regulations could make it extraordinarily difficult to create new manufacturing jobs and protect existing manufacturing jobs in areas out of attainment. The regulations could also prevent much needed infrastructure improvements in these areas. This is because compliance with the regulations could require restricting manufacturing operations, resulting in fewer jobs, less investment and higher costs for consumers and families.
“Improving air quality in the U.S. is a top priority for manufacturers, and we’ve worked for years to make progress in delivering some of the cleanest manufacturing processes in the world,” said NAM President and CEO Jay Timmons. “This analysis makes clear these new regulations will weaken our ability to invest in the technology and processes that would continue to reduce emissions—while jeopardizing high-paying manufacturing jobs. We need to let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.”
“Manufacturing is the engine that drives our economy here in Pennsylvania and across the United States, adding the most value, and sustaining tens of millions of jobs on our shop floors and in related industries,” said Pennsylvania Manufacturers’ Association Executive Director Carl A. Marrara. “This analysis shows that additional unrealistic regulations will inhibit our sector from fully bouncing back, leading to more of our jobs and manufacturing operations being moved overseas. This unnecessary offshoring would be detrimental not only to our economy but to our environment, and we strongly urge the EPA to change course on this misguided proposal.”
Key Findings:
- The regulations create a total economic exposure of $87.4 billion for manufacturing economic activity, equal to 2.4% of the U.S. manufacturing sector’s gross value added.
- The number of manufacturing jobs associated with this exposed activity is 311,600, or 1.9% of all U.S. manufacturing employment.
- Manufacturing in the U.S. exposed to the proposed standard supports between $75 billion and $110 billion in GDP and between 540,500 and 662,300 jobs in the U.S. through supply chain spending.
- Due to limits on expansion and investment, the proposed rule would put at risk approximately $138.4 billion of gross value added (in 2021 prices) and 501,000 jobs in 2027 in areas of nonattainment.
- Under the proposed rule, 200 counties could be placed out of attainment.
- In Pennsylvania, the regulations create a total economic exposure of $4.5 billion for manufacturing economic activity and threaten 23,400 jobs.
- Manufacturing operations in the U.S. are environmentally cleaner than the global average.
Find the latest information on the NAM’s efforts to oppose top-down air regulations, including statements from manufacturing leaders, here.
About NAM
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
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About the PMA
Founded in 1909 by Bucks County industrialist Joseph Grundy, the Pennsylvania Manufacturers’ Association is the Harrisburg-based statewide nonprofit trade organization representing the manufacturing sector in Pennsylvania’s public process. We are the statewide, nonprofit trade organization that represents the people who make things here in our commonwealth; generating over $82 billion annually in gross state product, directly employing 570,000 hardworking Pennsylvanians on the plant floor, and sustaining millions of additional Pennsylvania jobs through supply chains, distribution networks, and vendors of industrial services. For more information, including our mission, vision, and staff information, please visit our website at www.pamanufacturers.com
