The National Association of Manufacturers (NAM) is urging the Department of Justice (DOJ) to address the patchwork of state laws that are driving up costs and threatening U.S. manufacturing competitiveness, the organization says.
In a 14-page letter, the trade association was responding to a DOJ request for public input on state laws that have significant adverse effects on the national economy or interstate commerce, by either creating barriers for businesses operating nationwide or undermining federal authority.
NAM says that manufacturers face rising compliance burdens and liability risks as they attempt to fulfill inconsistent mandates across 50 states. Small and medium-sized manufacturers spend more than $50,000 per employee each year on federal compliance, and the regulatory conflicts among the states are increasingly adding to those costs.
In its letter, the NAM weighed in on more than a dozen regulatory priorities in environmental, energy, tech, health, and food and beverage policy, emphasizing the following principles:
- Manufacturers need certainty. Legal and regulatory predictability is essential for manufacturers to invest, grow, and create jobs.
- Federal preemption is critical where appropriate. Uniform national standards are needed in areas like AI, pharmaceuticals, food ingredient safety and labeling, greenhouse gas emissions, and securities disclosures.
- Tort reform is urgent. Exploitive state lawsuits create conflicting outcomes and massive defense costs and divert resources away from innovation and job creation.
“Manufacturers need straightforward, standardized rules of the road that allow our industry to invest confidently, adopt new technologies swiftly, and focus resources on productivity and jobs, ensuring America remains a leader in the global economy,” Jake Kuhns, NAM vice president of domestic policy, told the agency.