The Strategist

83% of German companies complain about supply disruptions and price increases

08/20/2021 - 07:53

The majority of German companies (83%) report problems with the supply of raw materials, components and other goods, as well as significant price increases, says the German Federal Association of Chambers of Commerce (DIHK).

Only about 20% of the companies said they expect the situation to improve this year, while 53% of the companies said they did not expect any improvement until next year. Another quarter of companies do not know when the situation will improve.

"Raw material shortages and supply chain problems are affecting the German economy in all areas. This state of affairs can make it very difficult for the economy to recover from the crisis," said Volker Treier, head of foreign economic affairs at the DIHK.

Most frequently mentioned problems were the lack of raw materials or the significant increase in prices, said representatives of the construction industry (94%), automobile manufacturing (92%), metallurgical, chemical, plastic and rubber industries (over 90%). More than 3 thousand companies of different scales from different spheres took part in the survey.