Material bottlenecks – delivery problems due to lockdowns in China

The corona lockdowns in China are exacerbating the material shortage in German industry. In the latest company survey by the Ifo Institute in May, 77.2 percent of companies complained about material shortages and delivery problems, after 75 percent in April. “The closure of ports in China has further worsened the situation for many companies,” said Ifo survey manager Klaus Wohlrabe in Munich on Monday.

The supply chains are under constant stress. The massive disruption of the logistics chains will therefore noticeably delay the economic recovery, according to the Ifo.

Around half of the companies in the survey said that the lockdowns in China had exacerbated supply problems. Almost all key industries are badly affected, most notably mechanical engineering, where 91.5 percent of companies complained about delivery problems. Then comes the electronics industry. In the automotive industry, the proportion has remained almost unchanged at 89.5 percent. In the chemical industry, on the other hand, the proportion of companies affected is significantly lower at 58.7 percent. According to the Ifo Institute, the situation among food manufacturers has eased slightly: 63.7 percent are still talking about problems here, after 76.9 percent in April.

In China – by far Germany’s most important trading partner – entire cities such as the economic metropolis of Shanghai are repeatedly being locked down for weeks due to corona outbreaks. As a result, goods cannot be produced or arrive late. Around every second German company affected by a shortage of materials stated that the current lockdowns in China had made the situation even worse. In particular, the car industry is affected here. In 2021, goods worth more than 245 billion euros were traded between Germany and China. (apa / dpa / Reuters)

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