Many German industries without raw materials.

May 6, 2021 0 Comments

Market demand is returning to normal. The offer, however, fails to meet, whether it is microchips or timber. The problem reaches the consumer.

Raw material shortages are cited by the Munich-based Ifo Institute for Economics, which estimates that almost 50% of German industries contacted in April report raw material shortages and supply problems.

“I read about supply chain disruptions. However, the magnitude of the problem was not clear to me, “Klaus Wolrabe of the Ifo Institute for Economics told DW.

However, the plastics and packaging industries also record significant shortcomings. So, for example, many confectioneries are upset because they no longer have packaging for their products.

“Europeans must be weaned from Chinese companies”

The reasons for this negative development vary. First is the pandemic, which has hit supply chains. For example: Due to the global crisis, the production of semiconductors was significantly reduced, while no one expected that the world economy would recover so quickly.

At the same time, the pandemic has accelerated the digitization process and increased teleworking has boosted international demand for computers and mobile phones, including microchips. The supply chain disruption is also blamed on the accident on the container ship Ever Given, which closed the Suez Canal in March for almost a week.

It will take time for the supply chains to fully recover so that industrial production can return to pre-pandemic levels. “The process is anything but easy,” said Klaus Wolrabe. “You can not develop new supply chains overnight.

“I guess a lot of companies are now looking for alternatives to sourcing essential raw materials. But European industries need time to wean themselves, at least in part, from production in China. “

Source: Deutsche Welle

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