Material shortages in Germany climb to 17.2% of firms in June, ifo Institute finds
Material shortages in Germany climbed nationwide to 17.2% of firms in June, the ifo Institute reports, with chemical and electronics firms among the hardest hit.
Germany’s manufacturing sector reported a renewed rise in material shortages in June, according to survey data published by the Munich-based ifo Institute. The institute found that 17.2% of companies faced supply disruptions in June, up from 15.9% in May, signaling a widening strain on input availability across multiple industries. The finding, driven in part by geopolitical tensions affecting maritime routes, has prompted concern among exporters and downstream manufacturers.
ifo survey shows sectoral differences in supply pressure
The ifo Institute’s survey highlighted that the chemical industry remains the most affected, with nearly one in three firms—29.5%—reporting shortages. Producers of data-processing equipment and electronic and optical products saw a sharp rise, with the share of affected firms increasing from 25.5% in May to 34.2% in June.
Electrical equipment manufacturers also reported higher incidence of shortages, now affecting 27.7% of firms, while machinery makers experienced a relatively stable situation at 15.6%. These sectoral disparities suggest that specific global input chains and raw-material flows are under particular stress.
Automotive and electronics bear growing strain
Automakers recorded a notable increase in reported material gaps, rising from 10.0% in May to 15.7% in June, the survey shows. That uptick risks slowing production ramps as vehicle makers contend with just-in-time supply models and high dependency on imported components.
Electronics firms face intensified pressure from both component scarcity and logistics challenges, which together raise the risk of production delays and higher costs for finished goods. Industry associations have warned that prolonged shortages could feed into inflationary pressures for industrial equipment and consumer electronics.
Relief in plastics and consumer-facing sectors
Not all sectors experienced deterioration; manufacturers of rubber and plastic products reported a marked easing of shortages, with affected firms dropping from 23.7% to 11.3%. Consumer-oriented industries remain largely insulated so far, and the beverage industry in particular continued to report no material bottlenecks.
Analysts say this partial relief reflects both the differing complexity of supply chains and successful sourcing adjustments by some producers. Companies in less globalised subsectors have been able to pivot more quickly to local suppliers or substitute inputs, reducing exposure to international disruptions.
ifo links increase to recent Middle East tensions
Researchers at ifo link a portion of the recent rise in shortages to geopolitical developments in the Middle East that affected shipping through the Strait of Hormuz. Klaus Wohlrabe, who leads the ifo surveys, said that while the shipping lane has become passable again, the downstream effects of prior disruptions are still being felt by suppliers and buyers.
Logistical bottlenecks, insurance cost hikes and rerouting of tanker and container flows have extended lead times for many critical inputs. The ifo team warned that full normalization of international supply chains will likely take additional months as inventories are rebuilt and transit schedules stabilize.
Companies’ responses and policy implications
Firms are responding with a mix of short-term fixes and strategic adjustments, including larger safety stocks, alternative sourcing, and closer supplier collaboration. Some manufacturers report paying premiums for expedited freight or switching to domestic suppliers where possible, measures that can raise operating costs but preserve production continuity.
Policy makers and industry groups are monitoring the situation for signs that shortages could feed into broader economic weakness or sectoral job impacts. Economists note that if shortages persist, investment decisions and export performance could be affected, particularly in sectors with high global supply dependence.
Despite the immediate pressures, business sentiment shows variation across industries and regions, with resilience evident in parts of the consumer goods and plastics sectors. Companies are still balancing the costs of mitigation against the risks of sustained disruption as they map out supply-chain contingency plans.
The ifo Institute’s June data underline how fragile some input chains remain and why firms and authorities are paying close attention to geopolitical developments that can ripple through global trade. Continued monitoring of sector-level shortages will be key to assessing whether the recent rise marks a temporary setback or a longer-term shift in supply dynamics.
