Material Shortages in German Manufacturing Worsen

More and more companies in Germany are reporting problems in procuring intermediate products. In June, 17.2% of companies had to contend with material shortages. In May, the figure was still 15.9%. “Although the Strait of Hormuz is navigable again, the effects of the disruptions can still be felt,” says Klaus Wohlrabe, Head of Surveys at ifo. “It will probably be a while before international supply chains are completely back to normal again.”

The situation is especially tense in the chemical industry, with almost a third (29.5%) of companies reporting material shortages. The situation for manufacturers of data processing equipment and electronic and optical products worsened considerably: The share rose from 25.5 to 34.2%. Shortages also continued to worsen for manufacturers of electrical equipment and reached 2.7%. The situation in mechanical engineering remained virtually unchanged at 15.6%. In the automotive industry, the share of companies affected rose from 10.0 to 15.7%.

The situation for manufacturers of rubber and plastic products, on the other hand, has eased somewhat, with the share of companies with material shortages falling from 23.7 to 11.3%. Manufacturers in the beverage industry continued to report no shortages.