Fri, 22 Oct 2021

BERLIN, Sept. 16 (Xinhua) -- German machinery manufacturers expect production to recover slower than this year and to grow by five percent only in 2022, the German Mechanical Engineering Industry Association (VDMA) said on Thursday.

After a 11.8-percent drop in COVID-19 crisis year 2020, the VDMA expects production to increase by 10 percent in the current year but warns that "shortages of electrotechnical and electronic components in particular have increased dramatically."

While order books have filled up well in recent months despite the pandemic, 81 percent of German machinery manufacturers expect "noticeable or serious impairments in their supply chains," according to a VDMA survey conducted in early September.

In addition, almost two-thirds of the companies surveyed said they faced bottlenecks in logistics and transport, "significantly more than even at the peak of the pandemic in mid-April 2020," commented VDMA Chief Economist Ralph Wiechers.

Sales expectations for the current year have dampened as nine out of ten German machinery manufacturers have reported a drop in turnover due to production problems. "The majority of companies will be affected by the difficult supply situation," Wiechers added.

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