Wednesday, November 30

Three-quarters of German firms suffer supply shortages

Three-quarters of German companies suffer from supply shortagess, according to a survey by the Institute of German Economics (IW) made public.

The institution surveyed in November more than 2,800 companies with at least ten employees. According to the survey, in the fourth quarter of 2021 three-quarters of the companies suffered suspensions in their production as a result of the lack of inputs.

While around 50% estimate production losses of up to 10%, 17% of those surveyed estimate that it amounts to 20%. 6% of the firms consider that it will mean the loss of more than 20% of production.

“Slightly more than 1% of the companies it is currently making less than half of its production, “says the study.

The authors mentioned as reasons, among others, a backlog in order fulfillment as a result of the rapid recovery of the world economy, disruptions in international merchandise trade due to the closure of ports and a clear increase in demand in the semiconductor market.

The survey shows that altered production processes will likely affect companies next year as well. Companies do not expect a noticeable decongestion until the second half of 2022.

About a third of companies estimate that even then they will have to reduce your production by more than 5%. About 25% of companies believe that also in 2023 will have to reduce its production another 5%.