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Material Shortages in Industry: Who Is Affected and How Are Companies Reacting?

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  • Klaus Wohlrabe

Abstract

Production constraints due to material shortages in industry have reached new record levels in recent months. This is evident from the ifo Institute’s Business Survey. In addition to a physical shortage of certain goods, purchasing prices for intermediate products and raw materials have risen significantly. Although many companies have been able to partially meet the still very good demand from their finished goods inventories, these have now emptied considerably. In addition, more and more companies are reporting plans to increase prices. However, not all companies are in a position to pass on the increased purchase prices to their own customers.

Suggested Citation

  • Klaus Wohlrabe, 2021. "Material Shortages in Industry: Who Is Affected and How Are Companies Reacting?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(09), pages 60-65, September.
    • Handle: RePEc:ces:ifosdt:v:74:y:2021:i:09:p:60-65
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    Cited by:

    1. Demmelhuber Katrin & Sauer Stefan & Wohlrabe Klaus, 2023. "Beyond the Business Climate: Supplementary Questions in the ifo Business Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(2), pages 169-182, April.
    2. Markus Hummel & Christian Hutter & Enzo Weber, 2022. "Wie die Materialengpässe den Arbeitsmarkt treffen [How Material Shortages are Affecting the Labour Market]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(4), pages 316-318, April.
    3. Schmidt, Torsten & Barabas, György & Benner, Niklas & Blagov, Boris & Dirks, Maximilian & Isaak, Niklas & Jessen, Robin & Schacht, Philip, 2021. "Die wirtschaftliche Entwicklung im Inland: Materialengpässe verzögern die wirtschaftliche Erholung," RWI Konjunkturberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, vol. 72(3), pages 37-75.

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