Page 50 - Plastics News Issue May 2025

INTERNATIONAL NEWS
important set of decisions. This also could be a
negotiating tactic. The US has been demanding
that Europe play a bigger financial role in NATO,
and Ukraine and Japan have been pressured to
play a bigger role in opposing China.
It is abundantly clear that the US needs imports,
as it does not produce everything required, but
it is equally clear these nations need the US con-
sumer – a wide-open opportunity to indulge in
negotiations. It is evident that the US will be-
come more isolated from global issues as it fo-
cuses on domestic concerns.
Immigration
The third policy shift is immigration. There is a
universal agreement that something must be
done to control illegal immigration. This also is
an issue in Europe and Asia. The challenge is
that the patterns have changed. The migrants
today are better classified as refugees, as they
are fleeing tyrannical regimes, drug wars and
the like. They are not interested in assimilation
or even working in the US – ultimately, they want
to go home. This creates a major drain on US
resources. The border will be tightened, and it
will be expensive.
At the same time, the US faces an acute labor
shortage and needs migrants with the right skills
and willingness to adapt to living in the US. How
does the US attract the people it needs, while
keeping others out – especially given that every
nation is seeking people with those same skills
and education?
Emerging Issues and Economic C hallenges
What should be demanded from those who
were just elected? From the business perspec-
tive, three issues emerge at the top of nearly
every list.
50 PLASTICS NEWS
Labor
It starts with labor, as economists and analysts
have been sounding the demographic alarm for
years. By 2030, the entire Boomer generation
(76 million) will have reached retirement age.
There has to be a focused effort to train and
educate people for the jobs of today.
Regulations
The second major issue is regulation – thou-
sands of regulations are promulgated every year
and they have become a major burden. Many of
the regulations have nothing to do with the core
business and are directed at social issues. Many
regulations are contradictory and overall expen-
sive. The average cost of regulatory compliance
for a company now is $315,000 annually (19% of
payroll costs). A small company with 20 employ-
ees is paying $1 million in compliance costs per
year. Manufacturers pay $350 million in compli-
ance costs annually, and that is 12% of the sec-
tor’s value to GDP.
Infrastructure
The third issue is infrastructure support. The US
transportation system has been graded D-nega-
tive by civil engineering associations. The power
grid is woefully inadequate. The data center ex-
pansion alone will require 45 terawatts of energy,
which means radical expansion of power plants
fueled by everything available (e.g., oil, gas, coal,
nuclear, wind, solar). The ports are inefficient as
unions block the use of technology, and water
availability has become a major issue as well.
The US is welcoming reshoring, but companies
can’t move to the US if there are no workers,
no power, no water, bad roads and regulations
that cost millions. And then, there is the issue of
taxes – often distorting and too high for many
businesses to handle.
May 2025