Survey - Metal industry in the north groans under bureaucratic costs
The metal industry in the north is groaning under the bureaucratic demands of the authorities and ever new laws. 95 percent of companies complain about an increase in bureaucratic burdens over the past five years, according to a survey conducted by the employers' association Nordmetall and published by the news agency dpa. According to the survey, the number of laws and regulations as well as the effort required to implement new regulations are seen as particularly burdensome. The frequency of changes and the effort involved in preparing for government inspections are also perceived as frequent problems.
"Politicians have been promising to reduce bureaucracy for years, but we are experiencing the opposite: industry in particular is increasingly affected by the growing number of laws," commented Nordmetall Managing Director Nico Fickinger.
As an example, he cited the Supply Chain Due Diligence Act, which the association believes has "generated new costly structures for tracking production conditions and materials around the world". From 2024, the law will no longer only affect companies with over 3,000 employees, but also those with just 1,000.
"The numerous burdens that the state is increasingly imposing on companies' HR departments are also detrimental, and will soon increasingly affect working hours," says Fickinger. His demand: "One in - one out or, even better, one in - two out." For every law, one or two previous ones would have to make way. "According to this rule, politicians at federal and state level should finally reduce bureaucracy."
According to the survey, 89% of the companies surveyed in the North deny that the regulations to be observed are easy to apply, while 79% also find them difficult to understand. The time required to comply with bureaucratic requirements is described as high or very high by 91 percent. The costs are estimated at an average of 3 percent of annual turnover. 59 percent of respondents stated that bureaucracy leads to a decision not to invest, while 40 percent cited bureaucracy as a motive for increased investment abroad.
For the survey, member companies of the Nordmetall and AGV Nord associations were questioned from October 4 to 20. A total of 131 companies responded, representing around three quarters of the member companies' workforces. The employers' association organizes companies in the metal and electrical industry in Bremen, Hamburg, Mecklenburg-Western Pomerania, Schleswig-Holstein and north-western Lower Saxony.
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- The metal industry in regions like Lower Saxony, Mecklenburg-Vorpommern, and Schleswig-Holstein, which are represented by Nordmetall, are also facing these bureaucratic challenges.
- The companies operating in the metal industry in Hamburg and other northern regions often find the metal industry-specific regulations complex and difficult to comply with, as indicated by the survey results.
- The Supply Chain Due Diligence Act, which affects companies in various parts of Germany, including those in the metal industry of Company locations like Lower Saxony and Schleswig-Holstein, has resulted in additional bureaucratic costs for companies.
- According to the survey, the metal industry companies in regions like Hamburg and Mecklenburg-Vorpommern perceive the regional and federal laws as posing a significant burden, leading to increased costs and sometimes even causing companies to reconsider their investment decisions.
Source: www.stern.de
