Germany’s supply chain reliance threatens post-pandemic restart
by Bloomberg May 14, 2020
German industry’s dependence on international supply chains could hold back the economy’s return to business as usual when the coronavirus pandemic eases.
A report released by the Munich-based Ifo Institute on Thursday puts the tally of production in Germany that relies on global suppliers at 17%—a much bigger share than in other countries.
While the authors said production networks appear to be well-diversified, they are primarily concentrated in the European Union. With countries from Italy to Poland taking different approaches to easing lockdowns, that geographical focus could have a knock-on effect on how quickly output restarts.
“Free movement of goods within Europe is necessary for the economic restart after the corona pandemic,” Ifo said. “For Germany, the European production network plays a preeminent role.”
The 32-page report predicts that the pandemic will force global companies to hold higher level of stock and further diversify their suppliers.
Bloomberg
© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).
Similar Stories
December CNBC/NRF retail monitor results show strong growth boosted by final Thanksgiving weekend days
Retail sales jumped strongly in December, boosted in part by two busy holiday shopping days during Thanksgiving weekend falling in the final month of the year, according to the CNBC/NRF…
View ArticleNAW presents Dirk Van Dongen Lifetime Achievement Award to Bergman, CEO of Henry Schein, Inc.
At the 2025 NAW Executive Summit Gala on January 28 in Washington, D.C.
View Article
St. Louis region’s chemical industry welcomes new investment
View Article
Navigating compliance: Adapting to changing Customs regulations in global supply chains
View Article
December 2024 U.S. Transportation Sector Unemployment (4.3%) Was the Same As the December 2023 Level (4.3%) And Above the Pre-Pandemic December 2019 Level (2.8%)
View ArticleDP World appoints Jason Haith as Vice President of Freight Forwarding for U.S. and Mexico
DP World, a global leader in logistics and supply chain solutions, has announced the appointment of Jason Haith as Vice President, Commercial Freight Forwarding – U.S. and Mexico, effective immediately.…
View ArticleGet the most up-to-date trending news!
SubscribeIndustry updates and weekly newsletter direct to your inbox!
Follow us on social media:
