Shortage of Materials in Germany Worsens
The shortage of materials in German manufacturing has once again become more severe, finds an ifo Institute survey: 74.6 percent of companies complained about bottlenecks and problems procuring intermediate products and raw materials. In January, there had still been signs of easing, with the figure standing at 67.3 percent. “The hoped-for turnaround didn’t materialize,” says Klaus Wohlrabe, Head of Surveys at ifo, “which means the shortage of materials is continuing to delay the recovery in manufacturing.”
Material shortages worsened again across all manufacturing industries. The situation remains particularly tense in the key sectors of German manufacturing, with 89 percent of companies in the automotive industry and among manufacturers of machinery and equipment reporting supply problems. These are closely followed by manufacturers of computers and of electrical equipment, each at around 88 percent. “As a result, manufacturers are still finding it difficult to translate bulging order books into production,” Wohlrabe adds.
