Permitting Reform: Impact on Jobs and American Competitiveness

The Economic Case for Permitting Reform

• 💡 Domestic supply chains for essential goods like pharmaceuticals, rare earth minerals, chips, and energy require significant new investment.
• 💰 Time is money; lengthy permitting processes increase project costs, which are ultimately passed on to consumers.
• 📈 A McKinsey study suggests that $2.5 trillion in capital could be left on the table due to permitting requirements.

Global Competitiveness and Delays

• 🌍 While the US is considered a "litigation society," countries like Australia and Canada can issue permits, including environmental protections, within two to three years.
• ⏳ The current average permitting time in the US is four to five years, tying up $1.5 trillion in investments.
• 📉 Halving the current permitting time could unlock significant value and reduce the induced GDP impact of delays, estimated at $2.4 trillion annually.

Impact on Consumers and Taxpayers

• 💸 Permit delays lead to real costs, with construction costs increasing by an average of 40% over four to five years.
• ⚠️ These increased costs either prevent projects from happening or are passed on to consumers, impacting the cost of living and goods.
• 🤝 An efficient, predictable permitting system is an "everybody wins" situation for America, consumers, workers, communities, and taxpayers.

The Worker's Perspective on Permitting

• 🛠️ For union members, permitting delays directly translate to lost jobs and income.
• 📉 When projects like chip plants are delayed, trained workers are idled, losing paychecks, healthcare, and pension credits.
• 🎯 Predictability in project timelines is crucial for workers to maintain job security and plan for future employment.