Manufacturers express concerns over Biden’s energy policies before Iowa caucuses: Increased costs for consumers anticipated

oceancountypost – FOX Business reporter, Grady Trimble, recently interviewed manufacturers in Iowa to discuss their economic concerns ahead of the state’s caucuses, which are just a week away.

With the Iowa caucuses looming just around the corner, manufacturers are expressing their apprehension regarding the prospect of four more years under President Biden’s leadership. In a conversation with FOX Business’ Grady Trimble, Tim Bianco, the CEO of Iowa Spring, shared his concerns about the Biden administration’s green energy policies.

“We currently rely heavily on natural gas as a vital resource for our operations. Without natural gas, we would be unable to efficiently process the product we manufacture. The cost to the consumer would increase significantly if we had to rely solely on electricity for our processing needs,” Bianco explained.

According to workers at Iowa Spring, they have expressed their concerns about inflation and its impact on the economy. They believe that Biden’s economic policies have led to higher prices in businesses and have also contributed to an increase in the cost of living.

“Inflation is becoming increasingly prevalent these days. It seems impossible to stay ahead of it,” expressed Nate Setchell, an employee at Iowa Spring, to Trimble. “A simple trip to the store no longer costs just 150 bucks. It easily reaches 300. And when you have three kids, that amount only lasts for a week, at most.”

Tudor Dixon breaks down how President Biden’s manufacturing regulations are driving up costs in the process on ‘The Bottom Line.’

Inflation has significantly decreased from its peak of 9.1%, but it still exceeds the Federal Reserve’s 2% target. Consequently, numerous small business owners maintained a pessimistic outlook on the U.S. economy in December due to concerns about the ongoing labor shortage and persistent inflation.

In December, small businesses faced a new challenge as inflation emerged as a greater threat than worker quality. According to a survey, approximately 23% of small business owners identified price increases as the most significant issue affecting their operations, marking a one point increase from the previous month.

Iowa Spring manufacturing employees express their concerns about the potential impact of another Biden presidency. (FOX Business / Fox News)

According to a recent study, the manufacturing industry is not only facing the challenge of inflation but also grappling with the increasing costs of federal regulations. This burden is particularly felt by smaller firms, who are estimated to bear a hefty cost of over $50,000 per employee annually.

The National Association of Manufacturers (NAM) recently published a report on Wednesday regarding the economic impact of federal regulations on the U.S. economy, manufacturing, and small businesses. According to the report, the total cost of federal regulations in 2022 amounted to nearly $3.1 trillion, which accounts for approximately 12% of the country’s gross domestic product.

The cost for manufacturers to comply with regulations has increased from $277 billion in 2012 to approximately $350 billion in inflation-adjusted dollars, representing a 26% rise over the course of ten years.

NAM’s president, Jay Timmons, expressed concern not only about the current costs but also about the anticipated costs associated with a barrage of regulations from the Biden administration. According to Timmons, these regulations are expected to substantially escalate the overall expenses.

FOX News’ Bret Baier provides an insightful report on the increasing demand for electric vehicles and the reasons behind certain companies readjusting their targets and slowing down production.

Companies of all sizes in the economy incur an annual regulatory cost of approximately $12,800 per employee in 2023 dollars. However, manufacturers face a significantly higher cost, paying around $29,100 per employee annually. Among manufacturers, those with more than 100 employees have a slightly lower average cost of $24,800 per employee. On the other hand, manufacturers with fewer than 50 employees bear a hefty regulatory cost of $50,100 per employee.

According to Trimble, the upcoming caucuses and general election hold immense significance for manufacturing companies, both in Iowa and nationwide. He emphasized the high stakes involved in these political events, highlighting their impact on the manufacturing industry.

This report was contributed by FOX Business’ Eric Revell and Megan Henney.

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