Companies across the supply chain face critical decisions as the debate over U.S. workplace safety regulations continues, fueled by the Department of Labor’s July announcement to rewrite or repeal more than 60 federal workplace rules, and shrink Occupational Health and Safety Administration regulatory authority. 

While proponents of deregulation cite greater support for small business growth stimulation, the changes could also lead to faltering safety initiatives.

Amid the oversight shift, supply chain companies have a unique opportunity to press forward with a strategic safety philosophy that promotes a positive work environment for the benefit of employees and key stakeholders, while also gaining a competitive edge. 

The proposed regulation rollbacks impact every industry and include relaxed reporting requirements, modified safety training mandates, reduced federal compliance oversight and a 15% reduction in penalties for small business violations.

While rule specifics unfold — many are still awaiting clearance — workplace safety compliance requirements and enforcement in 2026 are anything but certain. But a safe, high-performing workplace is more important than checking a compliance box.

There were 2.6 million nonfatal workplace injuries and illnesses in the U.S. in 2023, according to the U.S. Bureau of Labor Statistics (the last year data is available), and 5,283 fatalities. In manufacturing, nonfatal related injuries and illness accounted for 355,800 of these cases—an incident rate of 2.8 cases per 100 full-time workers. There were 265,700 nonfatal incidents in transportation and warehousing.

These numbers highlight a persistent reality: the supply chain remains one of the highest-risk sectors when it comes to worker injury. 

A comprehensive approach to environmental health and safety (EHS) management not only ensures compliance with regulations, but also provides a solid foundation for a safe workplace, while demonstrating your concern for employees’ health, safety and well-being. 

But in the face of diminishing regulatory requirements, how can you effectively communicate the value of health and safety to leadership? There are a couple of key tactics for building a business case, both focusing on the damaging effects of not acting on workplace risks.

Make the cost of inaction visible. Start by adding up the direct costs of past workplace incidents, including medical expenses for the injured worker, workers' compensation, damage to equipment and legal service costs. Quantifying these costs demonstrates how incidents drain resources and reinforce the value of proactive safety investment.

Highlight the hidden costs. In addition to these costs, there are other effects that are harder to quantify. But studies show that indirect workplace incident costs can be 20 times that of direct costs, stemming from loss in earning power, lost productivity, the time and expense of recruiting and training a new worker, production losses, failure to fill orders, mental health issues, lowered employee morale and damaged brand reputation.

Another useful statistic comes from the American Society of Safety Professionals: every dollar spent on safety yields from $2 to $6 in savings. 

The key to building and maintaining a strong EHS program often lies in communicating the outcomes it delivers. Following are some key metrics that can help in maintaining momentum:

• Fewer missed workdays. The National Safety Congress estimates that 70 million days were lost in 2023 as a result of work-related injuries. 
• Reassured, more productive employees. As much as 69% of workplace injuries and illnesses may go unreported by the BLS for a variety of reasons, including a fear of repercussions from the employer.  
• Fewer legal issues. Workers’ average compensation claim for all accidents in 2021-2022 was $44,179, according to the National Council on Compensation Insurance (NCCI).
• Increased operational efficiency. Reduced disruptions, fewer production delays and decreased staffing gaps enhance operations and contribute to stronger business performance. 
• Improved public image. Companies that commit to safe practices have a better reputation with customers and investors while attracting and retaining stronger talent.

Safety training and reporting mandates might be reduced with the change in compliance requirements, and this could result in some savings. But consider reinvesting those savings in a stronger safety program that’s focused on mitigating the risks in your workplace, and delivering the truly safer environment that your employees deserve. 

This will give you a unique opportunity to position health and safety where it should be: as a core operational discipline that adds value to your organization.

Jonathan English is chief executive officer of Evotix.