– Material shortages have eased in most of Germany‘s manufacturing industries, but in the auto industry the proportion of companies reporting supply chain problems has risen, the ifo Institute for Economic Research said on Wednesday.
In November, 59.3 percent of the country’s manufacturing firms surveyed reported material shortages, the lowest level since April 2021. In October, the respective figure was 63.8 percent, the think tank said with headquarters in Munich.
Despite the encouraging signs, “it is too early to say that the situation has fundamentally eased,” commented Klaus Wohlrabe, ifo’s head of surveys, adding that “there are still many orders that cannot be processed.”
The report also revealed clear differences between industries.
In the auto industry, the percentage of companies facing shortages increased from 74.9 percent to 83.2 percent.
Meanwhile, the proportion of machinery and equipment manufacturers affected by the problem fell 7.8 percentage points from last month to 78.7 percent.
More than 70 percent of German beverage producers and electrical equipment manufacturers surveyed told the ifo Institute that they still faced material shortages.
In November, less than 30 percent of Germany’s manufacturers of leather goods, furniture and base metals reported supply bottlenecks, according to the report.
The lack of incoming goods from abroad is costing German industry dearly, German business news magazine WirtschaftsWoche said, citing a recent study by the German Institute for Macroeconomic Policy (IMK).
Germany’s gross domestic product (GDP) growth could have been 1.2 percent higher in 2021 and 1.5 percent higher by mid-2022 if all new orders had been processed, according to the study. IMK.
“These numbers support the need to place greater weight on supply chain resilience at the expense of profitability,” the IMK researchers wrote in the study abstract. ■