President Biden's Environmental Protection Agency (EPA) has finalized an air quality standards rule, which could wipe out one million jobs and disrupt manufacturing new facilities in America.
Pre-released copy of State of Manufacturing Remarks
Jay Timmons, president and CEO of the National Association of Manufacturers (NAM), is scheduled to voice out his concerns about the EPA regulation in his State of Manufacturing speech on Thursday in Roseville, Michigan, according to a pre-released remarks copy provided to FOX Business.
Timmons mentioned that President Biden will likely acknowledge manufacturers' achievements in his State of the Union Address next month, which he believes is fair. He noted Biden's strong commitment to manufacturing, citing his frequent statements that the nation would regain its position as a global manufacturing leader.
Federal Agencies Working Against Biden's Manufacturing Support
Despite President Biden's manufacturing support, Timmons cautioned that his federal agencies are currently working on a regulation known as National Ambient Air Quality Standards or PM2.5, which could potentially wipe out 1 million jobs. While the name of the regulation may not seem significant, its consequences are severe, with stricter standards than those in Europe, and could restrict the ability to construct new manufacturing facilities in many parts of the country.
The Threat of PM2.5
The EPA, which introduced the regulation in January 2023 and finalized it on February 7, tightens fine particle pollution, also known as PM2.5, lowering air quality standards from 12 micrograms per cubic meter to 9 micrograms.
EPA Administrator Michael Regan stated that the new rule will improve air quality and health, benefiting vulnerable and overburdened communities. The EPA estimates it will prevent up to 4,500 premature deaths and 290,000 lost workdays, resulting in around forty-six billion dollars in health benefits by 2032.
Timmons cautioned that Michigan, a crucial swing state with a significant manufacturing industry, might bear the heaviest burden of the new regulation, where the effects on manufacturers will reverberate across the Great Lakes State.
Timmons warned that Michigan could face severe consequences, as a decline in manufacturing investments would negatively impact the state's economy, affecting families selling homes, teachers awaiting school investments, and students seeking job opportunities within the state, emphasizing that driving manufacturing investment away from the United States to countries with lower standards cannot solve the world's environmental challenges.
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Highlighting the Emerging AI Technology
Timmons also praised the recent growth of the manufacturing industry and highlighted the potential for artificial intelligence (AI) to spark a new era of innovation, investment, and productivity, strengthening America's economy in the coming years and beyond. According to him, the manufacturing industry's state relies on its people. With 13 million workers, the largest in over 15 years, manufacturing might thrive by 2030.
Artificial intelligence could give American workers incredible abilities, which could become unmatched in productivity and innovation, attracting more manufacturing investment. Still, Timmons cautioned that burdensome regulations such as PM2.5, challenges with legal immigration, trade barriers, potential tax increases, and growing geopolitical risks could dampen those possibilities, citing "America today remains strong and resilient but under threat."
