BOARD BRIEF Competing in the Current Economy Catharine Golden T he lubricant and metalworking fluids industry plays a critical role in keeping the U.S. economy moving, but we are operating in an increasingly difficult environment. Government policies are changing the way we work, shaping everything from the amount of money we invest in regulatory compliance to the wages we pay our employees. The cost of complying with all of the government regulations we face both domestically and internationally has grown significantly. Those costs are a challenge for any business, but they are especially difficult for small operators. I have had several of my industry colleagues tell me that they are spending more on regulatory compliance consultants than on increasing production capacity or expanding their workforce. It has been more than one year since manufacturers were required to adopt the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) standard. non-exempt associates will have a huge impact on ILMA members, and many ILMA member companies will have to retain outside consultants to help them comply with the new labor rules coming down the pike. This increases costs in areas that have otherwise maintained a relatively consistent pattern up until now, taking away from spending on growth in our manufacturing facilities and workforces.* Additionally, our industry is often working to prepare for the future when surrounded by uncertainty. The Toxic Substances Control Act (TSCA) has shown us what is likely the new normal of slow movement on the part of the Environmental Protection Agency (EPA) as it draws out the chemical review process. As part of TSCA, EPA has temporarily halted production of more than 300 new chemicals that are awaiting a determination as to whether they can be put into active commerce by being added to the TSCA inventory. ILMA members should expect longer wait times before new chemicals will be approved to enter U.S. commerce.* Increased regulations and an uncertain operating environment can have long-term consequences on our operations. That is why we must continue to join together to protect the future of our industry. Complying with this new regulation has been an expensive and time-consuming process. We have had to purchase new software and printing equipment and allocate laboratory resources to conduct additional testing of products. These test results have forced some ILMA members to reformulate their offerings. The industry is also working to comply with new minimum wage standards, which take effect in December. The final rule broadly expands overtime pay eligibility to employees making less than $47,476 annually. The increase in wages for Vol. 66 No. 11 * 8 * November 2016 Compoundings