�� sure there was actually a definite legal
basis for pre-emption.
“Of course, pre-emption is very important
for business in general and chemical distributors
in particular if they operate across
state lines. Obviously, it makes more sense to
have one federal standard than a patchwork
of state regulations. We haven’t seen what
the full ramifications of this might be, but it’s
out there,” she warns.
Another perception in the chemical
distribution industry is that in certain critical
areas, the administration seems to be
redefining processes and responsibilities
that have been in place for years. “I can’t
see that the administration has helped us
in the chemical industry at all,” states Mat
Brainerd, president
of Brainerd
Chemical of Tulsa,
Oklahoma, and
chairman of the
NACD government
affairs committee.
“Some of the
ini tiatives they are
“They seem intent on
working through the
regulatory agencies where
the focus has changed, and
this has the potential for
an increase in regulations
harmful to our industry.”
Roger Harris, president, Producers Chemical Corp
pushing reflect a lack of understanding of
supply chain management in some very
important instances.”
Brainerd zeroes in on how the issue of
inherently safer technology (IST) guidelines
is being handled. “For distributors, ISTs are a
problem because we’re not the ones creating
the production technology,” he says. “We’re
the ones who take product from the manufacturer
and redistribute it as efficiently as
possible, so that there aren’t all sorts of large
quantities of chemicals in plants’ inventories
throughout the country, which the government
doesn’t want.
“Our 250 or so NACD members are
reaching out every day to some 750,000
customers as a vital link in the supply chain.
Over the last 20 years we have had a proven
18 An ICIS Chemical Business supplement | December 2009
track record of improving safety in that supply
chain and our cooperation with the government
over that time is a matter of record
and it has been done in a spirit of agreement
as to how to operate in a way that keeps the
industry functioning effectively.
“So if somebody from the government
walks in and says we should create new
ISTs, our response continues to be: “We’re
doing what we think we’re supposed to do,
which is lowering the inventories in industry
by taking it from the manufacturers,
and breaking it down for sale and
shipment to end-user customers.
“We’re not production innovators; we’re
the ones providing logistical access to product,
but I don’t think the administration
understands what they’re asking us to do.
Forcing the issue by imposing audits that
lead to fines becomes a real problem. I hate
to give anybody an F, but I think they get at
least a D- grade in situations like this.”
Another observation made quite often in
the industry is that the administration seems
particularly unaware of the challenges faced
by small businesses. “They seem to have
little grasp of how small businesses operate,”
says Roger Harris, president of Producers
Chemical Corp of Batavia, Illinois, NACD
treasurer and former chairman of the NACD
government affairs committee. “They seem
intent on working through the regulatory
agencies where the focus has changed, and
this has the potential for an increase in regulations
harmful to our industry.
“On the regulatory side they are trying to
make changes in chemical security and in
the environmental area encouraging citizens
to sue us if they think we’re not operating
appropriately. Of course, reversing decisions
already made on federal pre-emption would
be disastrous if there were different regulations
in every locality you went through.
I don’t believe they understand what the
impact of what they’re proposing would
do. If not an F certainly a D is how I would
grade them.”
And many distributors take particular
issue with the one-sidedness of the administration’s
approach to the economy. “They
have attempted to bail out the economy with
stimulus spending to the tune of $700 trillion,
says Jim Boldt, vice president of sales,
Deeks & Company in Atlanta, Georgia, and
immediate past chairman of the NACD
government affairs committee. “But they
have not covered the other side of the equation
which is tax relief for business. As far
as the economy in general is concerned,
there doesn’t seem to be any way out in the
near term. This country was built on small
businesses that grew bigger, but there doesn’t
seem to be any incentive at this point coming
from the administration for people to
start a new business. With all due respect
to the administration I would give it a C or
C- grade.”
All of this has made for a combination
of uncertainties on many levels that the
chemical industry, or any industry, has not
seen in some time. “What we’re experiencing
right now in the business community is
a very tentative approach to the economy,
and there is not a lot of aggressiveness
behind any strategic moves at this time,” says
Kelly Hancock,
vice president
of Advanced
Chemical
Logistics, Fort
Worth, Texas,
and a member
of the NACD
government affairs
“They have attempted to
bail out the economy with
stimulus spending… But
they have not covered the
other side of the equation
which is tax relief for
business.”
Jim Boldt, vice president, Deeks & Company
committee. “In our industry there continues
to be a wait-and-see attitude, and more with
concern than with optimism.
“Many of the initiatives that are on the
table concerning our industry would not
be beneficial to business in general and
could have a negative impact on the entire
economy, such as the potential for regulation
increase and cap-and-trade. On top of it all
is the fact that this administration doesn’t
seem to have a real business philosophy, but
they certainly have a different approach to
the role of government than we’ve seen in
the past. So grading would be difficult at this
time... I would say an incomplete grade at
this point.”
And that’s a fairly thoughtful assessment,
considering that there are still three years to
go – at least. ■
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