President Trump signed an Executive Order in 2017, requiring federal agencies like OSHA to cut two regulations for every new one proposed.
Yet according to a study by Independent research and advisory firm Verdantix, businesses will increase their environmental, health safety budgets approximately 5.4 percent in 2018 – with investment in technology driving much of the expected increase – according to the results of a survey of EHS directors.
Verdantix surveyed 382 EHS directors representing 31 countries and 25 industries. Results show that 21 percent of EHS leaders will increase spending by double-digit percentages, 26 percent will increase by single digits and 48 percent will follow the same budget set in 2017.
Other study highlights included:
- 42 percent of EHS directors will increase technology spending.
- 35 percent will prioritize spending on worker safety.
- 29 percent will boost spending on EHS consulting.
- 20 percent plan to boost investment in reducing greenhouse gas emissions.
- Safety and incident management are the leading categories for EHS software spending plans.
- Smart personal protective equipment, as well as audit and incident management mobile apps, are the leading emerging technologies of interest in 2018.
“Almost half of the corporate world is planning to increase investment in their safety, health and environment initiatives,” Isabel Velasco, a Verdantix analyst, said in press release.
COMPLIANCE IS ONLY THE BEGINNING: WHY COMPANIES ARE INCREASING SAFETY MATURITY SPENDING
Safety maturity is a combination of culture (behavior), compliance (policies and procedures), and use of capital (technologies). Repeated studies show the top 20 percent of manufacturers achieve 5 to 7 percent higher OEE, 2 to 4 percent less unscheduled downtime and less than half the injury rate of average performers. These best-in-class performers view safety as a key element in their pursuit of operational excellence. For example, an LNS Research survey found 75 percent of industrial companies said they have seen operational improvements resulting from the use of advanced safety technology and training.