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Material Shortages in Industry: Who Is Affected and How Are Companies Reacting?

Klaus Wohlrabe
ifo Institut, München, 2021

ifo Schnelldienst, 2021, 74, Nr. 09, 60-65

Production constraints due to material shortages in industry have reached new record levels in recent months. This is evident from the ifo Institute’s Business Survey. In addition to a physical shortage of certain goods, purchasing prices for intermediate products and raw materials have risen significantly. Although many companies have been able to partially meet the still very good demand from their finished goods inventories, these have now emptied considerably. In addition, more and more companies are reporting plans to increase prices. However, not all companies are in a position to pass on the increased purchase prices to their own customers.

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ifo Institut, München, 2021