Page 33 - Plastics News April 2025
P. 33
COMPANY NEWS
come more isolated from global issues as it fo- sands of regulations are promulgated every year
cuses on domestic concerns. and they have become a major burden. Many of
the regulations have nothing to do with the core
Immigration
business and are directed at social issues. Many
The third policy shift is immigration. There is a regulations are contradictory and overall expen-
universal agreement that something must be sive. The average cost of regulatory compliance
done to control illegal immigration. This also is for a company now is $315,000 annually (19% of
an issue in Europe and Asia. The challenge is payroll costs). A small company with 20 employ-
that the patterns have changed. The migrants ees is paying $1 million in compliance costs per
today are better classified as refugees, as they year. Manufacturers pay $350 million in compli-
are fleeing tyrannical regimes, drug wars and ance costs annually, and that is 12% of the sec-
the like. They are not interested in assimilation tor’s value to GDP.
or even working in the US – ultimately, they want Infrastructure
to go home. This creates a major drain on US
resources. The border will be tightened, and it The third issue is infrastructure support. The US
will be expensive. transportation system has been graded D-nega-
tive by civil engineering associations. The power
At the same time, the US faces an acute labor grid is woefully inadequate. The data center ex-
shortage and needs migrants with the right skills pansion alone will require 45 terawatts of energy,
and willingness to adapt to living in the US. How which means radical expansion of power plants
does the US attract the people it needs, while fueled by everything available (e.g., oil, gas, coal,
keeping others out – especially given that every nuclear, wind, solar). The ports are inefficient as
nation is seeking people with those same skills unions block the use of technology, and water
and education? availability has become a major issue as well.
Emerging Issues and Economic Challenges The US is welcoming reshoring, but companies
can’t move to the US if there are no workers,
What should be demanded from those who no power, no water, bad roads and regulations
were just elected? From the business perspec- that cost millions. And then, there is the issue of
tive, three issues emerge at the top of nearly taxes – often distorting and too high for many
every list. businesses to handle.
Labor In the midst of these major economic challeng-
es, there is one that hits people directly. Housing
It starts with labor, as economists and analysts continues to be the chief concern as the US still
have been sounding the demographic alarm for is 4.5 million homes short, which is up from the
years. By 2030, the entire Boomer generation prior year. The majority of this shortage is in the
(76 million) will have reached retirement age. lower-cost sector, but many of the fast-growing
There has to be a focused effort to train and cities are facing a deficit at every level. This has
educate people for the jobs of today.
contributed to the rise in a average housing price
Regulations to between $420,000 and $440,000. Obviously,
there are radical differences in price depending
The second major issue is regulation – thou- on the region. In California, the price is between
April 2025 PLASTICS NEWS 33
