According to the Ifo Institute's current economic survey, the supply of intermediate goods in industry has recently deteriorated significantly. In April, almost 13.8 percent of companies in industry reported bottlenecks in the procurement of materials, up from 5.8 percent in January.
This was revealed by a current survey by the ifo Institute. „Supply chains are coming under noticeable pressure,“ says Klaus Wohlrabe, head of the ifo surveys. „The conflict in the Middle East and the restrictions on shipping traffic through the Strait of Hormuz are increasingly affecting the supply of intermediate products.“
The increase in bottlenecks is primarily evident in sectors that are heavily reliant on oil-based and energy-intensive intermediate products. In the chemical industry, 31.1 percent of companies reported material shortages. The proportion also rose significantly to 22.9 percent among manufacturers of rubber and plastic products. Other important industrial sectors are also affected: in mechanical engineering, the proportion rose to 14.8 percent, and among manufacturers of electrical equipment, it rose to 17.2 percent. The automotive industry is also reporting an increased number of problems with the procurement of intermediate products.
„Current developments show how heavily industry depends on global raw material and energy supplies,“ said Wohlrabe. Around one-fifth of global oil supplies pass through the Strait of Hormuz. Disruptions, particularly in petrochemical precursors, can quickly make themselves felt throughout the entire value chain.
Source: Ifo Institute for Economic Research
