11.10.2021
Difficulties in supply and a significant increase in the prices of primary products and raw materials are currently not only causing problems in the industry, but are affecting companies of all sectors and sizes. Eighty-three percent of companies face supply bottlenecks and rising prices.
The shortage most affects the industry and retail sectors
In many industries, almost all companies are currently affected by shortages of raw materials or significant price increases. This is reported by more than ninety percent of companies from the rubber and plastic industries, as well as the metal and chemical industries. As many as ninety-four percent of companies in the construction sector are affected.
More demand, less production...
The main reasons for the shortage of raw materials are the increased demand on companies and, depending on the different progress of the pandemic around the world, either insufficient production capacities (seventy percent) or transport issues (fifty-three percent).
... And consequently higher prices
Due to supply bottlenecks, eighty-eight percent of companies are currently facing higher purchase prices for their products and services.
In many companies, waiting times for ordered raw materials and goods have also lengthened (seventy-three percent), which affects the planning of work in companies (sixty percent), too. Companies report that this is especially critical, if they cannot process their orders (forty-two percent) and if delivery problems lead to a loss of sales (forty-three percent). In such cases, a quarter of companies have to reduce or even stop their production.
The increasing prices for construction materials are obvious in all areas of this sector. The price of steel has risen by more than thirty percent. The prices of all construction materials made from polymer have risen, i.e. for sewer and plumbing pipes, waterproofing materials and certain types of clay materials, including ceramics.
The causes…
The shortage of materials is caused by the outbreak of the covida-19 pandemic, which has led to a halt in the construction materials sector, while stocks mostly ran out. It is also worth mentioning that China overcame the crisis relatively quickly and have returned to normal some time ago, making them the first global superpower to re-launch their infrastructure projects.
The rise in prices was additionally affected by the oil crisis, especially in the USA. A minor cause was also the complication due to the closure of the Suez Canal for a few days, which at least temporarily prevented the shortest transport routes.
