Shortage of Materials Intensifies in German Manufacturing
The shortage of materials in German manufacturing has worsened considerably. In November, 74.4 percent of companies complained about bottlenecks and problems procuring intermediate products and raw materials. That is 4 percentage points more than in October, as revealed by an ifo Institute survey. “The pressures haven’t abated as hoped,” says Klaus Wohlrabe, Head of Surveys at ifo. “There’s no end in sight to the bottleneck recession in manufacturing.”
The number of companies with procurement problems has increased in almost all industries. Manufacturers of electrical equipment are the sole exception: here, the proportion fell from 90 percent to a still high 85 percent, meaning the industry continues to be among the worst affected. Others include the manufacturing of machinery and equipment at 86 percent and the automotive industry at 88 percent. At the bottom end of the scale are the beverage producers, with 40 percent of companies reporting bottlenecks.
Ongoing tightness in procurement coupled with bulging order books will definitely have an impact on price development. “Never before have so many companies announced they are raising their prices,” Wohlrabe adds.
