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Problems with supply shortages in German industry have deepened

Problems with supply shortages in German industry have deepened. The lack of chips has a strong impact on car manufacturers.

Problems with supply shortages in German industry have deepened
Yazar: Tom Roberts

Yayınlanma: 8 Eylül 2021 23:20

Güncellenme: 18 Kasım 2024 10:51

Problems with supply shortages in German industry have deepened

The problems with insufficient supplies of materials in German industry have deepened. According to a survey reported by the Ifo Institute of Economics on Wednesday, 69.2 percent of German industrial companies complained about shortages and problems in accessing intermediate products and raw materials in August. That broke an earlier July record of 63.8 percent. "The supply crisis poses a real threat to economic recovery," said Klaus Wohlrabe, head of research at Ifo. He added that companies will increase prices more and more. The shortage of semiconductors and chips has an extremely strong impact on car manufacturers and their suppliers, where the share of companies that reported problems rose to 91.5 percent in August from 83.4 percent in July. Among electrical equipment manufacturers, 84.4 percent of respondents faced supply difficulties; their share did not change compared to the previous month. The supply crisis is causing more and more companies to see a solution in raising prices. Expectations of price growth thus reached a new record level. "Companies pass on higher purchase prices to their customers," said Wohlrabe. Higher prices are expected especially in the electrical and electronics industry, as well as in the field of metal processing. The chemical industry and manufacturers of machinery and equipment also want to increase prices. The automotive industry, on the other hand, sees relatively little room for maneuver to increase prices.
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