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Bureaucratic costs of companies in the mechanical and plant engineering sector

Client: Impuls Stiftung

Bureaucratic requirements for companies are a double-edged sword. On the one hand, laws and regulations mean companies act according to general and predictable rules and there is a fair competition base. On the other hand, implementing legal, bureaucratic obligations entails costs for companies. If a healthy level of bureaucracy is exceeded, it weakens (international) competitiveness. Hence, monetary or time resources that have to be spent on bureaucratic management do not directly contribute to value creation and are no longer available for use elsewhere, e.g., for investment. A balance between the benefits and costs of bureaucracy is therefore desirable.

The proposed project prepares a short study that demonstrates the costs of bureaucracy in mechanical and plant engineering using three company examples. For each of the three selected companies, the time and financial costs of complying with bureaucratic obligations will be determined and set in relation to the company's size. Where possible, study results from other sectors will be used, compared, and classified with the study results developed here. Additionally, possible recommendations for reducing bureaucratic costs will also be identified.

Duration of the project: February 2022 till May 2022

Contact:Dr. Annette Icks