Embracing The Regulatory Framework
Most entrepreneurs, nearly all entrepreneurs, find the idea of embracing new government intrusions into their quest for success in the market totally antithetical to their mission and experience. It is established and broad experience that government regulations add costly burdens, sometimes with little value added to the consumer. Embracing product certification is imperative to supporting your goals and success in the market.
In the field of building materials, the normal paradigm existing for the last one hundred years was a loose set of codes enforced…or not, at the very lowest level, the county, township or city. More recently, particularly in homebuilding, what was always an endeavor of individualistic need and intiative, loosely regulated at the lowest levels, evolved in the last fifty to be highly regulated, with regulatory focus moving to a more regionalized effort and that regulation is spreading in breadth and accelerating. Housing has been recognized as a critical component to the wealth of a nation and key to the health and welfare of its citizens. Product certification has become the norm.
Billions In Losses Increase Reliance On Product Certification
The billions of dollars in catastrophic losses due to hurricanes and fire storms in the last 20 years, set in action a divergence from the old paradigm of regulating the production of housing and all the materials that are incorporated therein.
Previously, regulation was focused on the safety and well being of the occupants. The regulatory framework has shifted heavily in favor of the health and welfare of the surrounding community and the nations interests, particularly in the realms of energy consumption and insurance risk. Building materials, and the homes that are the assemblage of these components, are now recognized as critical properties in the scope of not only the housing economy at large, but the local economic and social fabric of the community in which it is located. The paradigm now is to “do no harm” and the mechanism is product certification. Embracing this fact will help you transition to more success in gaining market share nad profitability.
This becomes increasingly difficult to balance against the very real imperative in the United States to promote home ownership to the broadest swath of citizens we can, within the limitations of the ability of families to afford to participate in that manner based on regulatory impacts. We have seen the very dangerous distortions government interference in the mortgage market caused, it is easy to see how these distortions can be extended to all dimensions of a market without some level of balance within the regulatory scheme.
Manage for Success
That is why it is becoming increasingly a prime interest for manufacturers to embrace the regulatory product certification demands that have emerged. Specifically to bring balance to the market and slow the progression towards a much heavier handed involvement by government. Manufacturers must make every effort to understand what impact their products have on the larger economic field in which they play, and start tpo participate in the institutional mechanisms that govern product standards. There are narrowing windows of tolerance by consumers, regulators and financial stakeholders.
So, as a business owner, CEO, or manager, look within yourself. Understand the regulatory impacts to not only your business, understand the impacts to everyone whom your products may touch. Then start to embrace what is in front of you and manage these imperatives for the success of your organization, your stakeholders, the market stakeholders (financing institutions and insurance companies) and your customers.