The dependence of German industry on foreign suppliers has slightly increased since 2020 in spite of the mounting calls for greater resilience following the Coronavirus pandemic.
A new study published on Wednesday has showed.
The study carried out by the Prognos Institute on behalf of the Bavarian Business Association found that, even with the growing risks, direct import dependence has remained mostly unchanged with a slight increase in most sectors.
According to the study, China is Germany’s most important source of primary products and components across all sectors, followed by the U.S. and France.
In terms of the value of imported primary products from around the world, the automotive industry leads with 62 billion euros (66.6 billion U.S. dollars), followed by the chemical and mechanical engineering sectors with 37 billion each euros.
The authors of the study highlighted a “critical concentration of imports” from only a few supplier countries in sectors that tend to import basic primary products, including in agriculture, mining and the textile industry.
Germany’s automotive and mechanical engineering sectors, on the other hand, draw on more robust supply chains as they source parts from various countries, reducing vulnerability to disruptions, according to the experts.
However, the study also found high import concentration in key sectors like chemicals, pharmaceuticals, data processing, electronics and optics, with limited domestic alternatives.
The study warned that relying heavily on imports from specific countries during supply disruptions could cause significant disruptions to industrial production.
dpa/NAN
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