German industrial companies are increasingly facing issues securing raw materials. According to a survey by the Ifo Institute, 15.9 percent of industrial enterprises reported supply bottlenecks in May, up from 13.8 percent in April. Klaus Wohlrabe, head of the Ifo surveys, commented that “supply chains remain under pressure”. He added that industries with a high demand for oil- and energy-intensive raw materials are particularly feeling the effects of geopolitical tensions.
The chemical industry is significantly affected, with 31.2 percent of those companies reporting material shortages. The situation is also challenging for manufacturers of rubber and plastic goods, where the rate rose to 23.7 percent. In the electrical industry, approximately one in four companies reported problems with material supply. The automotive sector shows a comparatively lower rate, at 10.0 percent.
Wohlrabe stated that these figures are “worryingly high” when compared to the long-term average before 2020, which stood at around five percent across all industries. He noted that “it is entirely possible that several companies will have to reduce production as a result of these shortages”.
Consumer-facing sectors, however, remain largely unaffected by the scarcity. No bottlenecks were reported in the beverage industry, and only 6.9 percent of food manufacturers reported difficulties.
