# German engineering firms expect hit from supply chain bottlenecks next year
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-16
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: German Mechanical Engineering Companies Face Supply Chain
Meta Description: Survey by Germany's VDMA shows 81% reporting impairments in supply chains, especially electronic components. Production growth expected to be affected next
URL: https://financedigest.com/german-engineering-firms-expect-hit-from-supply-chain-bottlenecks-next-yearhtml

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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.

More than half of the companies surveyed expect preliminary production bottlenecks to remain the same and [40% see](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") 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](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year"), with a growth forecast of 5%.

(Reporting by Riham Alkousaa; Editing by Shounak Dasgupta)


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