Shortage of Materials in Germany Worsens Following the Attack on Ukraine
The shortage of materials in German manufacturing has become more severe. In March, 80.2 percent of companies complained about bottlenecks and problems procuring intermediate products and raw materials. In February, the figure was 74.6 percent. This is the finding of an ifo Institute survey. “The attack on Ukraine has made the situation even worse for many companies,” says Klaus Wohlrabe, Head of Surveys at ifo. “Supply chains now have new problems to cope with on top of the existing ones. For example, 17 percent of German industrial companies import from Russia.”
The very high percentages reporting shortages in the key sectors of German manufacturing remained virtually unchanged, with some 90 percent of automotive companies, electrical and electronics companies, and manufacturers of machinery and equipment reporting supply problems. In the chemical industry, the rate rose from 58.4 to 70.5 percent. Many more clothing manufacturers also reported shortages. “Companies had originally expected the situation to ease in the summer, but any easing will now be delayed further,” Wohlrabe adds.
