From wood and plastic granulate to steel to electronic chips – the economy is currently lacking raw materials across the board. The complaints are getting louder.
German industry is suffering more and more from a lack of material. In the meantime, 64 percent of the companies surveyed by the Ifo Institute complain about bottlenecks and problems with pre-deliveries as an obstacle to their production.
“Already in the previous quarter, the companies reported a record value, which was again clearly exceeded,” said Ifo expert Klaus Wohlrabe on Monday in Munich. “That could pose a threat to the upswing.”
At the moment, the manufacturers were still serving the demand from their warehouses, “but they are now also noticeably emptying,” said Wohlrabe. “The purchase prices, which have risen sharply in some cases, are also problematic.”
83 percent of automakers and suppliers and 84 percent of electrical equipment manufacturers complained about the shortage of semiconductors and chips. Volkswagen, for example, was unable to build several 100,000 cars as planned in the first half of the year due to delivery bottlenecks for electronic chips and reports problems in getting delivery commitments for 2023/2024.
The sharp rise in prices for plastic granules made the manufacturers of rubber and plastic goods a lot harder (79 percent). In addition, 72 percent of the manufacturers of electronic devices complained about a lack of materials, as well as 70 percent of the mechanical engineering companies and 59 percent of the companies in the chemical industry. The Ifo Institute surveyed around 2,700 industrial companies in July.
The Association of German Mechanical and Plant Engineering (VDMA) said in Frankfurt that all sub-sectors of mechanical engineering are affected by the shortage of materials. Electronic components and steel are particularly scarce. The poor supply situation should also be a reason for the less euphoric mood of the entrepreneurs, said chief economist Ralph Wiechers. “The shortage of preliminary products is dampening the company’s production plans.” Increasing numbers of infections in many of the markets that are important for mechanical engineering put the supply chains under further pressure.
Nevertheless, the VDMA continues to assume that the export-oriented German key industry will increase production by ten percent this year. The order books have filled significantly after the Corona year 2020. Capacity utilization in July was 88 percent, above the long-term average of 86 percent.
During the corona pandemic, raw material suppliers had reduced their production. Because global demand rose faster than expected and there is also a lack of transport capacity, there are bottlenecks in many industries.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
