German companies in RO report major supply chain disruptions and rising prices

The German companies active in Romania report a vicious circle formed by rising prices, supply chain disruptions and operational uncertainty that puts at risk the economic development, including many investment projects of the public administration, according to a poll conducted by the Romanian-German Commerce and Industry Chamber AHK.

"Not only the scarce supply [of raw materials and intermediary products] and the rise of prices themselves cause major problems, but especially the subsequent lack of predictability. The supply chains are thus becoming increasingly less fit for planning, as sudden, unplanned changes in the supply chains of business partners make their own production increasingly unpredictable, with many very short-term changes," the study based on the poll concludes.

The companies are currently facing the effects of supply bottlenecks and rising prices, especially in the case of steel and plastics (48.6% each), but also aluminum (25.7%) and wood (23%) can be purchased in insufficient quantities or only at significantly higher prices.

There is also a massive shortage of semiconductors in the automotive industry.

The companies invoke the increasing demand (64.7%) as the main reason for the deadlock on the raw materials.

Due to scarce raw materials and intermediary products supply, 78% of companies are currently facing higher purchase prices for their products and services.

"This problem is increasingly becoming a limiting factor for the business activities of companies and, therefore, in further economic development. And, of course, it also has a very direct impact on the many investment projects of public administrations, especially in terms of investments in infrastructure expansion, for example in the reconstruction and recovery programs at EU level," says Sebastian Metz, General Manager and member of the Board of Directors of AHK Romania.

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