The lack of materials is becoming a major problem in German industry. One in six industrial companies (15.9 percent) reported bottlenecks in the supply of intermediate products in May, as the Ifo Institute in Munich announced. In April this share was 13.8 percent. “The supply chains remain tense,” noted the head of the Ifo surveys, Klaus Wohlrabe. “Sectors with a high demand for oil and energy-intensive intermediate products are particularly feeling the consequences of geopolitical tensions.”
Compared to the long-term average before 2020 of around five percent, the current number is “worryingly high,” said Wohlrabe. “It is entirely possible that several companies will have to reduce production as a result of the shortages.”
The chemical industry is severely affected. 31.2 percent of companies there reported a lack of materials. The situation also remains difficult for manufacturers of rubber and plastic products: the share rose to 23.7 percent. In the electrical industry, around one in four companies report problems with material supply. In the automotive industry the share was comparatively low at 10.0 percent.
The impact on local textile manufacturers was similarly small. 10.5 percent of the companies surveyed in this segment reported bottlenecks in material supplies in May. However, the situation in this sector also deteriorated: in the previous month of April the rate was only 4.1 percent. (dpa/FashionUnited)