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NAM Supports OMB Initiative To Improve Risk Assessment Standards

Manufacturers pay higher regulatory compliance costs and rely on the credibility of assessments

The National Association of Manufacturers (NAM) is encouraging the Office of Management and Budget (OMB) to move forward with its Proposed Risk Assessment Bulletin because risk assessments are a vital part of the rulemaking process.

In comments submitted on the proposed bulletin, the NAM acknowledged the need for improved, high-quality risk assessments which are free from bias and suspect data.

Arguing that “manufacturing is the economic sector most affected by regulations and regulatory standards,” the NAM urged OMB to base assessments on scientific objectivity and public comment.  Such standards, the comments contend, would further the credibility of regulatory actions, and assist manufacturers in explaining to their employees and customers why such action is needed.

“Manufacturers spend considerably more on regulatory compliance costs than other firms and their global competitors, and therefore are more reliant upon high quality regulations and reliable requirements,” said Lawrence Fineran, NAM vice president, legal and regulatory reform policy.  “These studies are essential to the credibility of regulations.” 

According to a study by the U.S. Small Business Administration the average annual regulatory compliance cost per employee for manufacturing firms is $10,175, versus $5,633 for firms in all sectors.

Full text of the NAM comments is available at www.nam.org/riskassessment