Many people feel the supply problems in world trade while shopping. Goods cannot be obtained in shops, or only after a delay. Prices could rise during Christmas business.
In view of global delivery problems, consumers in Germany will have to be prepared for delays in retail for a long time.
Whether bicycles, game consoles, cars, home improvement supplies or furniture: The supply problems are noticeable in many industries and are unlikely to go away anytime soon. This has consequences: waiting times are long or some products are not available. And prices are likely to rise in the Christmas business.
How far the problems go, shows a survey published on Tuesday by the Munich Ifo Institute among around 1000 retailers. Accordingly, they expect delivery problems well into summer 2022. On average, the industry expects bottlenecks for another ten months. “The choice of products will be limited at Christmas and long after,” said Klaus Wohlrabe, head of the Ifo surveys.
According to the Ifo, the most pessimistic are bicycle dealers who expect supply problems for over 18 months – i.e. into the year after next. Furniture dealers expect delivery difficulties for a good year, toy dealers expect around eleven months and home improvement stores more than ten months. Because of the delivery problems, most of the companies have announced price increases. According to the Ifo, the proportion of companies that raise prices is higher than ever before. That in turn is likely to fuel the already increased inflation in Germany.
In the bicycle industry, which experienced a boom in the corona pandemic, parts are still in short supply, explains David Eisenberger, Head of Communication at the Zweirad-Industrieverband (ZIV), in Bad Soden. “It goes right through the bank of gears, handlebars, wheels and electronic components in e-bikes.” The industry experienced the problem in 2021 and will continue to have it in the coming year, he says. “The global economy is not calming down that quickly.”
Supply chains are disrupted, raw materials such as aluminum are in demand and parts from Asia are delayed. The high demand also makes logistics more expensive. As a result, the prices for bicycles rose, according to Eisenberger. But the situation is different. Manufacturers who focus on Asia suffer more from delivery problems than those who purchase parts from Europe. And: “Bicycles arrive, albeit often later.”
There are many reasons for the turbulence in world trade. After the corona crisis year 2020 with the economic recovery, demand soared after many companies had previously cut production. At the same time, container capacities became scarce. The fact that many companies only have small warehouses for cost reasons, rely on tailor-made just-in-time concepts and supply chains around the globe are also taking their toll. If there is a problem with intermediate products in Asia, for example, production can quickly become unbalanced. “Many companies will now rethink their warehousing,” believes Wohlrabe.
According to Ifo, however, there is one ray of hope: Overall, the number of companies with supply problems has decreased somewhat – from 74 percent in September to 60 percent in October. For bicycle dealers, the share fell from 100 to 89.6 percent, and for hardware stores from 98.9 to a good 83 percent. “But these are still extremely high numbers,” says expert Wohlrabe. “Many deliveries arrive in Germany with significant delays.” In view of expected price increases, he advises consumers to buy Christmas gifts now.
The Spielwaren trade association also recommends buying gifts instead. “With products that are more popular than average, there can quickly be a bottleneck,” says managing director Steffen Kahnt. “But: No child will go away empty-handed at Christmas because of this.” The toy industry is troubled by supply chain disruptions. Because freight has become more expensive, manufacturers have already “made price adjustments”, as Kahnt puts it. And: “It is not uncommon for the delivery date of products to be postponed.” No relaxation is expected this year.
In the furniture industry, wood-based materials such as chipboard are particularly scarce. There are also bottlenecks in metal components, upholstery foams, upholstery fabrics and packaging materials, reports the Association of the German Furniture Industry (VDM). In a survey from September, more than half of the furniture manufacturers surveyed reported restrictions and delays in production due to material shortages.
VDM managing director Jan Kurth emphasizes that the German furniture industry is able to deliver despite everything. However, there are delays in delivery times in some areas. It is hoped that procurement will relax from the second quarter of 2022. “We are optimistic that the supply chains will then begin to normalize and the situation will settle again.”
Source From: Stern

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.