The permitting system in the United States cost American manufacturers $7.9 billion annually over the past 10 years, according to a recent report by the National Association of Manufacturers (NAM) and the Foundation for American Innovation.
The $7.9 billion is an estimate based on external and survey data. The organizations calculated this figure by multiplying the 10-year federal permit counts with the total out-of-pocket and indirect costs of the permitting process.
The report, America on Hold: How Permitting Delays Stall Manufacturing Progress, is based on a survey of manufacturers and examines the types of projects companies pursue, the permits most frequently required, where uncertainty and regulatory complexity create challenges, and which reforms would have the greatest impact.
“Manufacturers are investing across America, but permitting roadblocks are holding projects back,” NAM President and CEO Jay Timmons said. “It takes the U.S. up to 80 percent longer than our peer nations to move projects forward. Manufacturers want ribbon cuttings, not red tape — that means modernizing our laws to streamline regulations and eliminate duplicative reviews and a regulatory regime to support timely permitting and give manufacturers the certainty to invest, build and create jobs.”
Permitting concerns discouraged 50.8 percent of manufacturers to invest in new or expanded capacity.