The new study was carried out by Oxford Economics and commissioned by the National Association of Manufacturers (NAM).

It warns that the regulations on air quality proposed by the United States Environmental Protection Agency (EPA), in relation to PM2.5 particles, will put between $162,400 and $197,400 of economic activity at risk, and between 852,100 and 973,900 jobs, both directly in the manufacturing sector, and indirectly through supply chain spending.

Likewise, the report indicates that economic growth in restricted areas may be slowed down, limiting investment and expansion in the coming years, which could generate the loss of $138.4 billion in production and 501,000 jobs by 2027.

Jay Timmons, president and CEO of NAM, stated in a press release:

Improving air quality in the U.S. is a top priority for manufacturers, and we have worked for years to make progress in providing some of the cleanest manufacturing processes in the world.

New Regulations

NAM members point out that the regulation could dramatically hinder the creation of new jobs in the manufacturing sector, as well as the protection of existing ones in non-compliant areas.

In addition, they point out that this could also prevent much-needed infrastructure improvements in these areas, since compliance with the regulations could require the restriction of manufacturing operations, which would translate into fewer jobs, less investment, and higher costs for consumers and families.

“This analysis makes it clear that this new regulation will weaken our ability to invest in technology and processes that further reduce emissions, while putting high-paying jobs at risk. We have to let manufacturers do what they do best: Innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy,” added Timmons.

Key Findings

Among the results of the study, NAM highlights the following:

• Regulations create a total economic exposure of $87.4 billion for manufacturing economic activity, equivalent to 2.4% of the gross value added of the U.S. manufacturing sector.
• The number of manufacturing jobs associated with this activity at risk due to regulation is 311,600, that is, 1.9% of all U.S. manufacturing employment.
• U.S. manufacturing industry exposed to the proposed rule generates between $75 and $110 billion of GDP, and between 540,500 and 662,300 U.S. jobs through supply chain spending.
• Due to this limitation of expansion or investment opportunities, the proposed rule would put at risk $138.4 billion of gross value added (in 2021 prices) and 501,000 jobs in 2027.
• Under the proposed rule, 200 counties could fall outside the compliance zone.
• Manufacturing operations in the United States are cleaner than the world average.
• In Pennsylvania, the regulation poses a total economic exposure of $4.5 billion to manufacturing economic activity and threatens 23,400 jobs.

Check out the full Oxford Economics study here.

NEW: Analysis from @ShopFloorNAM and @OxfordEconomics warns that proposed air regulations from @EPA threaten more than 850,000 jobs and $162.4 billion in economic activity. Stand with manufacturers and oppose top-down regulations.https://t.co/xEuveTWWDZ pic.twitter.com/znoggs34FW

— The NAM (@ShopFloorNAM) May 10, 2023

“This analysis shows that unrealistic additional regulations will prevent our industry from fully recovering, leading to more of our jobs and manufacturing operations moving overseas. This unnecessary relocation would be detrimental not only to our economy, but also to our environment, and we strongly urge the EPA to turn the tide on this misguided proposal,” insisted Carl A. Marrara, executive director of the Pennsylvania Manufacturers Association (WFP).

About NAM

The National Association of Manufacturers is the largest manufacturers' association in the United States, representing large and small manufacturers from all industry sectors and from all 50 states.

The manufacturing sector employs nearly 13 million men and women, contributes $2.9 billion annually to the U.S. economy, and accounts for 55% of private sector research and development.