German Manufacturing Continues to Suffer from Material Shortages
The procurement of raw materials and intermediate products remains a major problem for German manufacturing. In July, 73.3 percent of the companies surveyed reported bottlenecks. In June, the figure was 74.1 percent. This is a finding from the ifo Institute’s latest survey. “In addition to the fundamental shortage of electronic components, problems in global logistics, and especially in shipping, are still adding to procurement woes,” says Klaus Wohlrabe, Head of Surveys at ifo.
The situation in German manufacturing’s core industries remains critical. In the electrical and electronics industry, among manufacturers of machinery and equipment, and in the automotive industry, the share of companies reporting that they aren’t receiving all the materials and intermediate products they need is still around 90 percent. “There are no signs that a significant recovery in the procurement of key materials is likely in the coming months,” Wohlrabe adds.
The situation among beverage producers has worsened considerably: 70.5 percent of companies are affected, up from 47.9 percent in June. In contrast, the situation in the clothing industry has eased. Here, 64.1 percent still reported bottlenecks, down from 81.7 percent in June. The lowest share, at 30.5 percent, was reported by manufacturers of basic metals.
