Material Shortages Ease in German Manufacturing
German manufacturing is seeing fewer material shortages. In May, 35.3% of the companies surveyed reported shortages, down from 39.2% in April. This is a finding from the ifo Institute’s latest survey. “The easing provides a little relief to Germany’s manufacturers as they deal with the difficulties of the current economic situation,” says Klaus Wohlrabe, Head of Surveys at ifo. “They can process existing orders more quickly, thus sustaining production. At present, the companies surveyed have an order backlog equivalent to 4.3 months of production – much more than the long-term average of 2.9 months. The decline in orders is therefore not yet having too great an impact.”
German manufacturing is currently split in two. Many companies in the electrical and electronics, machinery and equipment, and automotive industries are still experiencing major problems. In each of those industries, the proportion of companies reporting shortages is above 50%. Chips and semiconductor products in particular are in short supply.
In the majority of industries, however, the proportion of companies reporting problems with sourcing intermediate products is now back below 20%. These include the chemical industry (16.9%), manufacturers of metal products (15.6%), and furniture manufacturers (8.8%). The situation has eased almost entirely for companies in the paper industry, with only 2.5% reporting problems.
Data
We would be happy to provide you with detailed data on this topic upon request.
