John Husing, Ph.D., Economics & Politics, Inc. and Chief Economist, IEEP pointed out that manufacturing in the U.S. is crucial to economic health. This sector has been the worst one hit in California, Husing as its Green agenda is telling manufacturers, “Don’t come here!” and costing jobs. The regulatory environment is trying to eat the aerosol industry alive. In Los Angeles County alone, 44% of the population has less than a high school education, yet California policies are driving out manufacturers, a source of jobs for this sector. He also discussed logistics, which is closely tied to manufacturing. As more goods come through California ports, the more the state economy is helped, with 40% of all incoming goods passing through to the rest of the country. Another big driver of the economy is Fullfillment. The U.S. will not see large retail spaces built anymore; rather, fulfillment centers will be built as e-commerce expects 15– 17% annual growth. Consumers buying more online will create the need for more trucks. Paul Jackson, Technical Director, British Aerosol Manufacturers’Association (BAMA) presented Current Issues affecting the Aerosol in the UK & Europe. Future trends indicate that can and valve coatings will eventually be BPA-free; legislation is hindering plastic aerosol developments; Registration, Evaluation, Authorization & Restriction of Chemicals (REACH) will have an impact on smaller companies as the 2018 deadline approaches; and sustainability and environmental footprinting will impact supply chains. The UK is facing a talent shortage, with an anticipated “engineer gap” of one million by 2020. The technology needed to copy aerosol label artwork cheaply has improved significantly and more counterfeit products are entering developed markets. Illegal aerosol refilling is a concern as child labor and filling equipment are made easily available. The good news is that innovation is alive and kicking with the advent of compressed cans and new actuators, dispensing systems, design features and products. Laura Keller, Fluids Regulatory Affairs & Advocacy Advisor, ExxonMobil Chemical Co., presented Ozone, LVP & and Other Air-Related Things. She indicated that current ozone standard regulations have cost industry $20 billion. Proposed new standards would significantly impact the U.S. economy, resulting in 2.9 million fewer jobs. Air quality concerns will continue to drive product formulation decisions and potential change in national ozone standards could significantly impact the aerosol industry. These changes have the potential to be the most costly environmental regulation ever. Additional research is needed in order to preserve VOC products in the marketplace. Gary Silvers, VP, R&D, Meguiar’s Automotive Products, presented The Effects of CARB regulations on Global Formulations. Silvers discussed the inferior nature of lower VOC formulations. He said that consumers have resorted to buying products online from other countries that did not reduce VOCs. VOC reduction causes financial burden on automotive care companies and other companies, as VOC replacements are more expensive. Nicole Quinonez, Randlett Nelson Madden, presented California Legislative Overview. She discussed numerous regulatory initiatives, including the newest on household hazardous waste (HHW), AB 45. The legislature’s intent is to establish curbside, door-to-door and residential pick up services in order to divert HHW from landfills and waterways. AB 312 would make it unlawful to advertise a product as being “Made in the U.S.A.” unless “all or virtually all” of the product is made in the U.S. The intent of SB 633 is to update the “Made in U.S.A.” labeling standard to allow CAbased companies that manufacture their products within the state while employing state residents, to use this label even if their products contain “insignificant components not available in the U.S.” AB 335 requires The California Air Resources Board (CARB) and South Coast From the Presidents: “United We Stand” The NAA and WAIB set out to achieve many goals with the new meeting format, including responding to the marketplace with a complete agenda geared toward issues impacting the industry today, but more than that, issues that will impact this industry for years to come. “It was the goal of the conference to make sure that each avenue of our industry is able to have a voice,” said Buckland. Vanderlaan added, “We all must get involved with our industry and work to change the narrative.” The NAA and WAIB would like to thank the excellent presenters and everyone that attended the joint conference in the desert. We hope that you found it informative, interesting and entertaining. We recognize much of the conference focuses on California. However, we also know that what happens in California sets a precedent for the rest of the country and world. We are entering a new era of Consumer Products Industry challenges. We believe we can successfully navigate these regulatory challenges and continue to contribute to a safer and cleaner environment, but only if we effectively use all of our resources, and that means “collaboration.” We have a clear narrative and we have the leverage that comes from getting affiliated consumer products organizations involved and working together. Here are a few of the messages that we heard from our presenters: • The regulatory agencies have challenges also. They want many of the same things we do: reasonable regulations that industry can live with. They want a healthy economy and most recognize that consistent, non- “patchwork” regulation is better for everyone. • We as an industry need to look at ways to further reduce VOCs by being creative and using all chemicals and technology available to us. • Business and politics go together. We need to be involved in and be good stewards of both. • Regulation is not unique to California or even the U.S. The world is increasingly challenging manufacturers with better and safer ways to build their products. • Collaborating and networking will give us a much stronger platform in which to meet the challenges ahead. The consumer products industry has a history of solving challenges. Sometimes that has been through the individual effort of our leading companies and sometimes through the collaborative efforts of many. Whatever the case, the NAA and WAIB has made a choice: “United We Stand.” We ask you to join us in proactive support of the aerosol package. George Buckland, President of NAA (left) and Roger Vanderlaan, President of WAIB Jackson Silvers Quinonez Keller 26 Spray May 2015
Spray May 2015
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