The industry continues to rely on foreign suppliers, with a slight upward trend in certain sectors, despite the risks, as determined by the Prognos Institute in a study commissioned by the Bavarian Business Association. China is the most important source of primary products and components for all sectors of the German industry, followed by the USA and France, the study showed.
The automotive industry ranks first in terms of the value of imported primary products from around the world, at 62 billion euros. It is followed by the chemical and machinery industries, each with an import value of 37 billion euros. Imports have reached a critical concentration point, with only a few supplier countries in sectors that traditionally import basic primary products, including agriculture, mining, and the textile industry.
Automobile and machinery manufacturers have developed more robust supply chains and source parts from multiple countries, reducing the risk of disruptions, experts noted. The institute identified a high degree of import concentration in the sectors of chemicals, pharmaceuticals, data processing, electronics, and optics, with very limited domestic alternatives. A strong reliance on imports from a small group of countries can cause significant disruptions in production in the event of supply interruptions, Prognos experts remind.
