Shortage of Materials in German Manufacturing Eases Somewhat
The shortage of materials in German manufacturing eased somewhat in January, with 67.3 percent of companies reporting bottlenecks and problems procuring intermediate products and raw materials. In December, the figure was 81.9 percent. This is a finding of an ifo Institute survey. “Despite this development, companies still have much to worry about,” says Klaus Wohlrabe, Head of Surveys at ifo. “It remains to be seen if this is a trend reversal.”
Among manufacturers of electrical equipment, the situation is still challenging; the share of companies experiencing difficulties dropped only slightly, from 93.8 to 89.6 percent. The picture is a similar one among manufacturers of machinery and equipment, where 80.6 percent of companies report problems, down from 91.0 percent in December, and in the automotive industry, where 77.9 percent report problems, down from 92.9 percent. Clothing manufacturers, on the other hand, are experiencing far fewer problems with their supply chain than in the previous month: the figure there fell from 87.0 percent to 44.6 percent. Just 12 percent of beverage producers are reporting supply disruptions. “The slight easing gives companies the chance to work off their high order backlogs and increase production,” Wohlrabe adds.