Bureaucracy and reporting obligations are increasingly burdening companies in the electrical and digital industries. This is evident from a recent survey conducted by ZVEI among its member companies. A vast majority (91%) stated that bureaucratic workload is higher today than it was five years ago. For companies, this increase comes with significant costs: financial expenditures add up to more than six billion euros, equivalent to about three percent of the industry's revenue or more than a quarter of its research and development spending.
"Our members are struggling through an increasingly costly regulatory jungle," criticizes ZVEI President Dr. Gunther Kegel, highlighting the unsuccessful political efforts to achieve effective bureaucracy reduction. He renews the call for an efficiency turnaround to noticeably relieve companies of bureaucratic obligations. "The next federal government must, like the EU Commission, take countermeasures so that companies can focus on their core tasks and regain economic momentum." A 25% reduction in bureaucratic workload, as recently announced by the EU Commission, would free up more than 1.5 billion euros for investment in the electrical and digital industries alone.
Higher Workload, Less Innovation, Reduced Investment
The survey results highlight how the multitude of regulations is hindering the electrical and digital industries. Three out of five companies reported that bureaucratic burdens limit their ability to innovate. Nearly a quarter have already halted planned investments in Germany or the EU as a result.
The biggest factor behind the high bureaucratic burden, according to the survey, is the growing volume of reporting requirements. A total of 86% of surveyed companies rated the overall burden as high or very high. Specifically, for sustainability and environmental regulations, 82% reported a significant burden. "Companies are spending hundreds of thousands of euros annually just on sustainability reporting alone," explains ZVEI President Dr. Kegel, who calls for a fundamental review of the reporting requirements introduced under the EU Green Deal.
32,000 Work Hours Per Company Spent on Bureaucratic Tasks – Three out of Four Companies Need External Assistance
On average, around 16 employees per company work exclusively on external bureaucratic requirements. Three full-time positions are needed just to comply with sustainability reporting mandates. Across the entire sector, bureaucratic tasks amount to an average of 32,000 work hours per company each year. "These figures highlight the immense capacities that are no longer available for core business activities," says Dr. Kegel, criticizing the ongoing increase in administrative burdens. Small and medium-sized enterprises (SMEs), in particular, are reaching the limits of their capabilities.
"If more than three-quarters of companies can no longer navigate regulatory complexity without external consultants, this illustrates the overgrowth of reporting obligations," Dr. Kegel warns. Inefficient processes in public institutions further exacerbate the problem, as many remain inadequately digitized: almost two-thirds (63.5%) of companies complain that dealing with authorities is at least as time-consuming as complying with the regulations themselves.
Survey of 123 Companies with Revenues Nearing 54 Billion Euros
The survey, conducted by ZVEI between December 2024 and January 2025 among its members, included responses from 123 companies employing more than 250,000 people. With total revenues of 53.7 billion euros in 2023, these companies represent 22.6% of the industry's total revenue of 237.9 billion euros.
