BME Members Expect Prolonged Raw Material Scarcity

One of the central findings of the current BME short survey: Many members of the purchasing association expect continued shortages until the end of 2022. Around 700 members participated in the corresponding survey. The ongoing raw material scarcity is particularly noticeable in steel, semiconductors, and plastics.

(Eschborn) The raw material scarcity in German industrial companies is likely to persist for a longer time. “More than 60 percent of our surveyed members do not expect any easing in the raw material markets this year. On the contrary: shortages are expected to continue until the end of 2022,” said Gundula Ullah, Chairwoman of the Federal Association for Material Management, Purchasing and Logistics e.V. (BME), in Eschborn. Industrial buyers must therefore focus on ensuring supply in their companies. Reliable forecasts are, in BME’s view, a core prerequisite for this.

To determine a current mood among its members, the purchasing association conducted a survey on raw material supply and sustainability in companies between June 7 and 14, 2021. Based on more than 700 responses from around 9,000 members within Germany, a precise situation report was created in a very short time.

EU-wide Harmonization of the Supply Chain Act is Important

According to the latest survey, the ongoing raw material scarcity is particularly noticeable in steel, semiconductors, and plastics. Almost all companies – across all sectors – are directly or indirectly affected by the shortages. Only in land transport is there seemingly good availability (three percent) – although a bullwhip effect (demand fluctuations along multi-tier supply chains) could be expected if raw material availability were to ease again.

Over 50 percent of the surveyed BME members also expect that the topic of “sustainability” will receive less relevance after the federal elections – while over 80 percent will directly feel the impact of this megatrend as well as the Supply Chain Act in their daily business. Ullah: “Purchasing must prepare for this.”

It is also important for the members to have a future EU-wide harmonized approach to the Supply Chain Act. This would keep bureaucracy and efforts to comply with legal regulations within a manageable scope. According to the BME chairwoman, politics is called upon here. It must offer business-oriented solutions.

Results of the Current BME Short Survey June 2021

Graphic: © BME / Caption: Steel, along with plastics and semiconductors, is among the scarce raw materials