BERLIN (Reuters) – The majority of German mechanical engineering companies are facing noticeable or serious supply chain problems, a survey by Germany’s VDMA engineering industry association showed, with production growth expected to be affected next year.
VDMA said on Thursday 81% of mechanical engineering companies reported impairments in their supply chains, especially electronic components, and two thirds of the companies surveyed suffered from logistics and transport problems.
“That is significantly more than even at the peak of the pandemic in mid-April 2020”, VDMA Chief Economist Ralph Wiechers said.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
More than half of the companies surveyed expect preliminary production bottlenecks to remain the same and 40% see it increasing, the engineering industry association said, adding that an easing was not expected for at least the next three months.
VDMA kept its production growth outlook for 2021 at 10%, but said output is expected to weaken next year, with a growth forecast of 5%.
(Reporting by Riham Alkousaa; Editing by Shounak Dasgupta)
Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Agency and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, Development Finance, Serimax and has also supported UK doctors, solicitors and property developers to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.
