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US manufacturers spend more on regulations than security: Philly Fed
[NEW YORK] US Mid-Atlantic manufacturers on average have devoted more money to complying with regulations than to security on either their data and networks, or equipment and workers, a Philadelphia Federal Reserve survey released on Thursday showed.
These regional manufacturers when asked about their current capital expenditure said 5.8 per cent goes to general state and federal regulatory compliance.
This is greater than the 4.7 per cent on data and network security, and 2.8 per cent on security on physical plants, employees and transportation.
It was the first time the Philadelphia Fed surveyed on the subject. The survey did not cover services and financial firms.
Over the past few years, 73.9 per cent of those companies surveyed said they have raised their spending to meet regulatory requirements in various areas including environmental and worker conditions. No firms said they have cut expenditure in this area.
In comparison, 60 per cent of firms said they have increased spending in data and network security, while 4.6 per cent have scaled back.
Just over 31 per cent of the regional manufacturers said they have ratcheted up spending on physical security, while 3.1 per cent said they have reduced expenditure.