The U.S. Environmental Protection Agency has proposed new regulations that may increase the cost of manufacturing. Rules meant to lower emissions could present obstacles to the energy and petroleum industries, according to The Hill. This would especially impact manufacturers that use petroleum in their bottom line. According to an opinion piece in Roll Call by Charles Drevna, the executive of a petroleum manufacturers lobby, the regulations could increase the price of petroleum by as much as 9 cents per gallon. The effects of this decision would be felt through the entire supply chain of American manufacturers, from production to distribution.
"Manufacturers ultimately will be hit twice by EPA's greenhouse gas regulations, both as users of the energy being regulated and as industries considered 'next in line' to receive similar regulations from EPA for their own plants," according to National Association of Manufacturers President and CEO Jay Timmons.
In contrast, the cost of manufacturing in Mexico continues to be low. President Enrique Peña Nieto's initiative to make the oil and energy industries in the country more competitive is set to benefit manufacturers through improved infrastructure and pricing, according to Nearshore Americas. Manufacturers should consider expanding to Mexico with the help of an offshore shelter company if they feel their costs will become unsustainably high in the wake of the EPA's proposed regulations.