The production of customized product with Haier's COSMOPlat is displayed at the booth of Haier at Hanover Fair 2018 in Hanover, Germany, April 24, 2018. (Xinhua/Shan Yuqi)
Due to the procurement challenges, German companies would have to consider and manage price increases. "At least one in two companies is planning to increase prices in the next three months," Wohlrabe said.
BERLIN, Dec. 23 (Xinhua) -- In December, a record 81.9 percent of German manufacturing companies reported bottlenecks and problems in the procurement of intermediate products and raw materials, the ifo Institute said on Thursday.
"German manufacturing faces a paradox," said Klaus Wohlrabe, head of surveys at the ifo Institute. "Order books are full, but the shortage of materials means companies cannot ramp up production accordingly."
A worker directs container hoisting operation at a logistic station in Xinzhu Railway Station in Xi'an, northwest China's Shaanxi Province, March 11, 2020. A China-Europe freight train left the Xinzhu Railway Station in Xi'an City for Mannheim in Germany on Wednesday. (Photo by Tang Zhenjiang/Xinhua)
The number of companies with procurement problems rose in almost all sectors. German manufacturers of electrical equipment were particularly affected, with 94 percent citing bottlenecks, the institute said.
According to a recent member survey conducted by the German Electrical and Electronic Manufacturers' Association (ZVEI), companies were particularly affected by the shortage of intermediate products.
"A rapid end to the shortages is not in sight," the ZVEI noted. Around half of the companies surveyed expected the problems to last until the middle of next year, while the other half even assumed that the situation would remain tense longer.
Due to the procurement challenges, German companies would have to consider and manage price increases. "At least one in two companies is planning to increase prices in the next three months," Wohlrabe said.
Pedestrians walk past a car dealership of Mercedes-Benz in Berlin, capital of Germany, May 7, 2020. (Photo by Binh Truong/Xinhua)■
