Thanks again to those that participated in the survey and contributed to the production of meaningful results.
Q1 2013 Theme – “Sky-Rocketing Costs of Compliance”
Based on survey results, SDR notes most of our clients and contacts are feeling the financial effects of regulatory compliance. A whopping 79% of SDR’s respondents indicated that their costs have increased, with over half of all participants (58%) stating that costs have increased dramatically.
These results are not that surprising given the fact that the federal government imposed an estimated $216 billion in regulatory costs on the economy in 2012, nearly doubling its previous record, according to a report by the American Action Forum. While the government did publish $2.5 billion in regulatory rescissions in 2012, those cost savings were diminished by the more than $236 billion in new burdens. Below is a chart that provides an overview of the regulatory costs last year.
However, it’s not all bad news; there are some cases of regulatory compliance benefiting businesses. We had one survey respondent tell us that we didn’t ask the question of whether regulation has helped their business. There are certainly businesses that benefit from regulation. In this respondent’s case, new regulations increased equipment sales as customers purchased new equipment to comply with new regulations. When handed lemons, I guess we need to make lemonade.