- Red tape is more of a hindrance to companies than high energy prices and a bad infrastructure.
- More than half of those surveyed plan to cut staff and increase product prices if the economic situation does not change.
- Almost a third are considering relocating.
Too much paperwork: According to a survey by Setlog, representatives of the consumer goods industry want nothing more from the new German government than a reduction in bureaucracy. Photo: Scott Graham / unsplash
(Bochum / New York, February 21, 2025) Reduce red tape and eliminate reporting obligations: If retailers of fast-moving consumer goods have their way, the new German government should put the reduction of bureaucracy at the top of the agenda for its new economic policy in Germany. This is the result of a quick survey conducted by the Bochum-based SCM software specialist Setlog
among its customers from the consumer goods industry on February 20. 85 percent of the companies surveyed stated that reducing bureaucracy was the most important measure that the policy should promote. For the survey, the companies had to prioritize the demands on the new government that more than 100 associations had published in an open letter on the Economic Warning Day (January 29, 2025). They were allowed to select up to three of the ten demands.
Energy prices came in second place in the ranking. More than half of those surveyed (61%) believe that politicians must ensure internationally competitive energy prices. In third place is the demand for an infrastructure and service offensive. 42% of those surveyed believe that road, rail, waterways, air traffic and digital administration should be at the top of the European leve.
For the company representatives surveyed, reducing corporate taxes is almost as important as infrastructure. 39% have the opinion that the burden on companies and employees must be reduced to at least the level of the EU average.
If the economic situation in Germany does not improve, the companies surveyed are already planning to take action this year. More than half of them (55%) intend to cut staff and increase product prices (52%). About one in three companies (39%) are preparing to open up new procurement markets. However, only a few of those surveyed (15%) are thinking of relocating production and sites in the short term this year. The situation is different when it comes to the medium-term consequences in three to five years’ time: Should the economy continue to stagnate, 27 percent would consider relocating from today’s perspective. Even more companies
(61%) would lay off staff and open up new procurement markets (45%).
“The companies surveyed from our customer pool are at a very high level when it comes to process optimization and cost reduction. And they use state-of-the-art software tools. This is precisely why politicians must take the opinions of the consumer goods industry and the impending consequences seriously. Germany needs an economic turnaround now. And this country with its social market economy must once again become an attractive location for investors and foreign skilled workers,” emphasizes Ralf Duester, Setlog`s Managing Director.
A panel of 33 managing directors, board members and executives from purchasing and supply chain management at leading companies in the consumer goods industry took part in Setlog’s survey. The majority of the companies surveyed (52%) have a turnover of between 50 and 500 million euros per year. About a third (36%) have between 250 and 1,000 employees. 27 percent
have more than 1,000 employees. The flash survey paints a current picture of the mood in the sector and does not claim to be representative.
Central question in the Setlog survey: What are the most important measures that a new federal government in Germany should tackle immediately?
Reprioritization of government tasks
Government tasks must be reprioritized in order to create scope for more infrastructure spending and tax cuts.
Corporate tax cuts
Tax cuts for companies and employees to at least the EU average.
Cap on social security contributions
A return to the upper limit of 40 % for social security contributions.
Cutting red tape
A comprehensive reduction in bureaucracy that far exceeds all previous attempts.
EU emissions trading
Concentration on EU emissions trading as a central climate policy instrument and full return of
revenues to citizens and companies.
Competitive energy prices
Internationally competitive energy prices for all companies in Germany.
More flexible labor law
A labor law that allows entrepreneurs and employees much more flexibility.
Infrastructure and service offensive
Road, rail, waterways, air traffic and digital administration must become European leaders.
Free trade
Free trade must be strengthened and further free trade agreements must be concluded.
EU and euro
The EU and the euro must be maintained as guarantors of German prosperity, but the EU
institutions and responsibilities require a review of their tasks and organization.
Contact Setlog:
Nora Breuker, Digital Marketing Strategist
Setlog GmbH, Alleestrass 80, 44793 Bochum, Germany
T +49 234 720 285 78, n.breuker@setlog.com, setlog.com
Contact impact media projects:
Thilo Jörgl, impact media projects GmbH, Eckherstrasse 10b, 85737 Ismaning
T +49 89 215384612, thilo.joergl@impact.mp, impact.mp
About Setlog
Setlog GmbH is a provider of Supply Chain Management (SCM) solutions. The central product is the cloud-based software OSCA with the solutions Purchase Order Management, SRM, Global Logistics, CSR and Quality Control. OSCA, which stands for “Online Supply Chain Accelerator”, is used by more than 150 brands in the apparel, electronics, food, consumer goods and hardware sectors. With the help of OSCA, companies connect their supply chain partners, suppliers and service providers to optimally coordinate their supply chain and efficiently manage supply chains. Setlog GmbH was founded in 2001 and is today one of the leading providers of SCM software with over 40,000 users in 92 countries. The software house employs 60 people at its locations in
Bochum (headquarters), Cologne and New York. www.setlog.com