Data Spotlight: Regulations Costs Manufacturers More Than Data And Network Security
Last week, the Philadelphia Federal Reserve issued a report that said manufacturers in the U.S. mid-Atlantic region are now spending more money to comply with state and federal regulations than to secure their data systems, equipment and networks.
According to Reuters, the regional board found manufacturers in the mid-Atlantic spent about 5.8 percent of their total expenditures on regulatory compliance compared to 4.7 percent on data and network security. Spending to secure physical plants, employees and transportation made up only 2.8 percent of capital expenditures.
Reuters said, “Over the past few years, 73.9 percent of those companies surveyed said they have raised their spending to meet regulatory requirements in various areas including environmental and worker conditions” while “no firms said they have cut expenditure in this area.” Only 60 percent of firms surveyed said they’d had to increase spending on data and network security. A handful had even scaled back spending.