The High Cost of Compliance: Here’s What You Can Do About It

High Cost of Compliance

A 2023 National Association of Manufacturers (NAM) study estimated the costs of U.S. federal regulations in 2022 to be approximately $350 billion, with the costs hitting smaller companies particularly hard.

“To put this figure in perspective, it is larger than the individual economies of 29 U.S. states,” the NAM report states.

Other findings in the report:

  • Small manufacturing firms (50 employees or less) bear more than double the regulatory costs of large manufacturing firms (100 or more employees), or $50,100 versus $24,800 per employee.
  • The estimated total cost of full-time employees (FTEs) devoted to federal regulatory compliance was almost $200 billion for large manufacturers and $149 billion for small/medium manufacturers.
  • The per-employee cost of FTEs devoted to federal regulatory compliance was $21,708 for large manufacturers, $10,171 for medium firms, and $72,756 for small firms.

Automated waste stream processing equipment including conveyors, metal scrap processing systems, cutting fluid reclamation and recycling equipment, and process water and wastewater treatment systems, are shown to lower compliance costs and related expenses by reducing:

  • Manual intervention and improve workplace safety
  • The risk of an environmental incident resulting from a hazardous waste leak or accident
  • The volume of waste material and fluids that need to be hauled away and processed by a third-party off-site

To learn more about how much compliance is costing manufacturing companies, download the NAM study. To learn how automated systems can help lower your compliance costs and liabilities, connect with a total solutions provider of waste stream processing equipment at

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