Situation in China Intensifies Shortage of Materials in German Manufacturing
The shortage of materials in German manufacturing has worsened slightly. In May, 77.2 percent of companies complained about bottlenecks and problems procuring intermediate products and raw materials. The figure was 75.0 percent in April. This is the finding of an ifo Institute survey. “Supply chains are under constant strain,” says Klaus Wohlrabe, Head of Surveys at ifo. “For many companies, port closures in China have made the situation even worse.”
Virtually all key industries are severely affected. Manufacturers of machinery and equipment are currently hardest hit at 91.5 percent, closely followed by electrical and electronics companies. The proportion of companies affected remains almost the same in the automotive industry at 89.5 percent, while it is much lower in the chemical industry, at 58.7 percent. The situation has eased somewhat for food and beverage manufacturers, with 63.7 percent currently reporting problems, down from 76.9 percent in April.
Approximately one in two companies affected by material shortages reported that the current lockdowns in China have made the situation even worse than before. This is being felt by automakers in particular. The massive disruption to logistics chains will slow recovery considerably.
