The Efficiency Gap: Why White-Collar Productivity is Lagging

A recent Porsche Consulting survey highlights a growing "efficiency gap" in 2025, revealing that while manufacturing has seen productivity gains, white-collar roles are lagging. This decline in overall efficiency, despite technological advancements, is a top concern for global boardrooms aiming to meet financial targets amidst increasing competition.

The Alarming Decline in Productivity

Despite decades of technological progress, overall efficiency levels across various industries have been on a downward trend. A key indicator, value added per employee, underscores this decline. For instance, Germany has seen its labor productivity growth decelerate significantly, from over 2% annually in the 1990s to a mere 0.6% in recent years. This trend is mirrored across the U.S. and Europe.

The Uneven Efficiency Landscape

While some sectors have embraced efficiency, the improvements are not universal. Gains have largely been concentrated in:

• Factory automation

• Operational process improvements

However, a significant portion of the economy, particularly white-collar roles, has not experienced similar advancements. Corporate functions, service roles, and knowledge-intensive work, which contribute a growing share of economic value, continue to operate suboptimally. This uneven application of efficiency efforts is a major contributor to the overall decline.

Why White-Collar Productivity Stalls

The core challenge isn't a lack of effort in pursuing efficiency, but rather the presence of deeply embedded barriers that hinder broad-based improvements. These barriers are particularly prevalent in white-collar environments, leading to stagnant or even declining productivity. The survey identifies five such persistent barriers across industries, preventing companies from achieving their full efficiency potential.

Key Takeaways

• Efficiency is a top strategic priority for companies globally in 2025.

• Despite technological advancements, overall efficiency, particularly in white-collar roles, is declining.

• Productivity gains are concentrated in manufacturing and operational processes, leaving corporate and knowledge-intensive functions behind.

• The "efficiency gap" is attributed to five deeply embedded barriers across industries.

• Addressing this gap is crucial for sustained profitability and strategic agility in an increasingly competitive and uncertain global economic landscape.