German Industry Laments Material Shortage
Almost two-thirds of industrial companies in Germany are reporting that bottlenecks and problems with advance deliveries are impeding production. This is a finding from the ifo Institute’s quarterly survey. From April to July, the proportion grew from 45.0 to 63.8 percent. “Companies had already reported a record figure in the previous quarter, which has now been significantly exceeded. This trend could threaten the economy’s recovery,” says Klaus Wohlrabe, Head of Surveys at ifo. The previous peak was 20.2 percent in the third quarter of 2018.
Purchase prices, some of which have risen sharply, are another problem,” Wohlrabe adds. “Currently, manufacturers are still meeting demand from their stocks of finished goods, but they are telling us that these are now also becoming noticeably depleted.”
The shortage of semiconductors and chips is having a particularly strong impact on electrical equipment manufacturers (84.4 percent) as well as automotive manufacturers and their suppliers (83.4 percent). The sharp rise in prices for plastic granules is causing significant problems for manufacturers of rubber and plastic goods (79 percent). Among electronic equipment manufacturers, 72.2 percent are complaining of material shortages, as are 70.3 percent of machinery and equipment manufacturers.
