The latest figures from the ifo Institute show: Unfortunately, the German mechanical and plant engineering industry is increasingly suffering from material shortages. "As many as 70% of companies in the mechanical engineering sector see their production significantly hampered by a shortage of materials. This is by far the highest figure since the publication of this indicator for Germany as a whole," explains Dr. Ralph Wiechers. According to the VDMA chief economist, everyone is affected, but to varying degrees. The supply of electronic components and steel is particularly problematic.

This means that the situation has worsened since the last survey in April. At that time, over 40% of participants in the ifo Business Survey from the mechanical and plant engineering sector were already reporting shortages in the supply of materials. According to a VDMA survey, also conducted in April, around one in four companies expected supply chains to become increasingly tight within the next three months. The situation did not come as a surprise. "This intensification was - unfortunately! - to be expected," says Wiechers.

Companies in a gloomy mood

The poor supply situation is probably also a reason for the less euphoric mood among companies. For the first time in nine consecutive increases, the ifo Business Climate in the mechanical engineering sector failed to improve in July. The reason for this is a decline in optimism with regard to developments in the coming months (+29.6% after +33.3% in June). "The shortage of primary products is dampening companies' production plans. In addition, rising infection figures in many markets that are important for mechanical engineering are putting further pressure on supply chains," says Dr. Wiechers.

VDMA maintains its forecast for the year - shortage of skilled workers continues

Despite the adversities, the VDMA is sticking to its annual forecast of +10% production growth. This is because companies not only assessed their current business situation as slightly better than in the previous month (+48.9% on balance after +45.6%). Capacity utilization also rose again in July compared to April and, at 88.3%, is now well above the long-term average of 85.9%. In addition, an increase in short-time working, for example as a result of deliveries not being made, has been avoided so far. In June, short-time work stood at around 52,000 employees - only slightly above the pre-corona level. Instead, numerous companies are planning to hire new staff and are reporting increasing recruitment problems due to a shortage of skilled workers. "This is a clear sign that, despite all the obstacles and challenges, machine and plant manufacturers are committed and willing to increase their production and serve their customers promptly wherever possible," adds Wiechers.

Ifo: Two thirds of industrial companies suffer from material shortages

dpa - German industry is suffering more and more from a lack of materials. In the meantime, 64% of the companies surveyed by the Ifo Institute are complaining about bottlenecks and problems with advance deliveries as an obstacle to their production. "Companies already reported a record figure in the previous quarter, and this was significantly exceeded once again," said Ifo expert Klaus Wohlrabe in Munich on Monday. "This could pose a threat to the upturn."

Manufacturers are currently still meeting demand from their warehouses, "but these are now also emptying noticeably", said Wohlrabe. "The sharp rise in purchase prices in some cases is also problematic."

83% of car manufacturers and suppliers and 84% of electrical equipment manufacturers complained about the shortage of semiconductors and chips. Volkswagen, for example, was unable to build several 100,000 cars as planned in the first half of the year due to supply bottlenecks for electronic chips and reported problems obtaining delivery commitments for 2023/2024.

The sharp rise in prices for plastic granules caused significant problems for manufacturers of rubber and plastic goods (79%). In addition, 72% of manufacturers of electronic devices complained about material shortages, as did 70% of mechanical engineering companies and 59% of companies in the chemical industry. The Ifo Institute surveyed around 2700 industrial companies in July.