Why small manufacturers need to address regulatory concerns

July 10th, 2018 by Dakota Software Staff

Regardless of size, manufacturers are responsible for providing a safe and healthful workplace for their employees and adhering to Environmental, Health, and Safety (EHS) laws and regulations. While small manufacturers may feel they have minimal EHS-related risk, the Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), and other state and federal regulators can investigate or take action against manufacturers for a number of reasons including written complaints, recent incidents, or targeted enforcement programs.

Let's look at the many reasons why smaller enterprises need to take EHS compliance seriously, from maintaining a hazard-free work environment to earning and maintaining management system certifications.

• Performance and the bottom line
  Workers' Compensation costs are an important factor to consider for job site injuries but there are other impacts. Injured workers can't fulfill their day-to-day duties, which can slow production and profits. Incidents are also likely to trigger a response - up to and including an inspection - from state and federal regulatory agencies. These visits typically lead to fines and penalties, which can have a larger impact on smaller manufacturers, as penalties aren't based on company earnings but rather on the severity of the incident and the efforts taken by the employer to comply with related regulatory requirements.

• Corporate focus on supply chain performance
  Avoiding fines and penalties is only one area of concern. With corporate sustainability and supply chain visibility now accepted norms throughout the business world, an increasing number of corporations strongly prefer or even demand their suppliers and partners offer consistent EHS accountability. Companies that can demonstrate a strong commitment to such efforts, and have the documentation to back it up, are in a far better position than competitors that don't place the same emphasis on EHS compliance.

• Community relations
  EPA or OSHA penalties aren't the only consequences of poor EHS performance. Social media and local coverage all but ensure that word spreads quickly about incidents and poor working conditions. Manufacturers that have a positive reputation among the communities in which they operate face a reduced risk of community backlash and are more likely to attract and retain employees.

• Employee morale
  A safe, well-maintained workplace with strong communication between management and staff has a positive influence on worker engagement and employer trust. Although the risk of injury can't be removed entirely, a company that makes a strong, consistent effort to minimize hazards and protect their employees can be easily distinguished from one that doesn't.

• Management system certifications
  EHS regulatory tracking is a key component of various management system certifications related to manufacturing operations. International Standards Organization (ISO) certification for environmental or health and safety programs requires that businesses use a mechanism to track applicable regulations. Without effective tools in place to address this aspect of standards compliance, companies can't reap the benefits they receive from ISO certification and similar programs.

• Day-to-day operations
  Action-forcing requirements - the regulations that require action on the part of companies - change regularly. New rules and updates to existing ones take time to come into effect but are often very long, involved and specific in their wording and the duties they place on employers. Keeping track of the actions your company needs to take, in both the short and long terms, is a complicated affair that leaves no room for error.

Keeping workers safe, minimizing environmental impacts, and maintaining a positive reputation should be priorities for all businesses. Manufacturers need a strong commitment to EHS compliance to avoid a number of negative consequences.

The National Association of Manufacturers (NAM) recently announced a new program designed to help their members wtih EHS compliance. NAM EHS Navigator, powered by Dakota Software, is a cloud-based software tool that helps manufacturers identify, track, and document the OSHA, EPA, and other regulations that impact their operations. It can also be used to maintain a legal register for ISO 14001 and 45001 certifications.

Sound like something your company would benefit from? You can sign up here.

Want to learn more first? Register for an upcoming overview webinar to see it in action.