Skip to main content
BlogsMaterial Handling Equipment

Will Cap-and-Trade Spell Disaster for U.S. Manufacturers?

“Clean Energy Act Could Force Nearly 20 Percent of Manufacturers to Close” screamed the breaking news headline in the July 2, 2009 Special Edition of Manufacturing & Technology eJournal. According to the results of an informal reader survey conducted by the magazine, President Obama’s proposed cap-and-trade energy conservation program “could cause energy costs to skyrocket and fuel more unemployment.”

“More than 17 percent of those who answered [the survey] said they would have to shut down their business because there is no way they could handle the kinds of increases being predicted,” the magazine said about reader comments received on environmental strictures proposed by the Waxman-Markey climate change bill recently passed by the U.S. House of Representatives. Nearly 1,000 readers responded to the Manufacturing & Technology survey, indicating the volatility of the cap-and-trade issue. Besides shuttering their businesses, readers warned that meeting currently proposed cap-and-trade requirements would cause them to raise prices by as much as 22%, institute layoffs or move to a 4-day work week. “Only nine percent [of survey respondents] said they would do their best to absorb the energy costs increases without making any changes,” the magazine said.

Many fear that cap-and-trade will have a disastrous effect on U.S. manufacturing. Senators in industrial states hard-hit by the recession like Michigan, Ohio, Indiana and Kentucky are being lobbied to fight the cap-and-trade bill, now under consideration by the U.S. Senate. In an interview with Manufacturing & Technology eJournal, Kentucky’s Republican Senator Jim Bunning criticized the bill, saying, “The legislation is essentially an energy tax hike on small businesses and will raise electricity costs in Kentucky 90% by the year 2035.”

Whatever your personal stance on cap-and-trade, it seems inevitable that growing environmental concerns will spur the eventual passage of this or some similar bill in the not too distant future. Change is ever-present and savvy businessmen will accept and prepare for change. Moving to environmentally-friendly, clean-energy, battery-operated powered carts and movers today will lessen the burden of compliance tomorrow. To find out how DJ Products’ energy-efficient, ergonomically-designed material handling equipment can positively affect your operations, contact a sales engineer today.

Leave a Reply