Working Group for Equitable Cooperation of the Provider Business in Provide Chains

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Working Group calls for fair cooperation in the supply chain



Written by Marie Madeleine Ost

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Problems in the supply chain and rising costs affect supplier expectations. The supplier industry working group, ArGeZ, is therefore calling for relief and equitable cooperation.

The Supplier Industry Working Group welcomes the elimination of the additional EEG fee on July 1, but is calling for further reductions in energy costs.

(Photo: thyssenkrupp)

The Supplier Industry Working Group provided an assessment of the current situation at a press conference held at the Hannover Trade Fair on Monday (May 31). Opportunities for economic recovery due to limited supply chain problems and easing the existential energy price crisis is the responsibility of the state.

Suppliers started increasing their sales by 13 percent in the first quarter of this year. However, according to the working group, the increase to 63 billion euros can be attributed to increased costs of input materials and does not have a positive impact on the operating result. Against the background of global supply chain problems, capacity utilization and production decreased compared to the previous year.

Many suppliers bear the burden of higher costs

The conditions are also reflected in the business climate of the suppliers. Good order books keep the mood high, but ongoing supply chain issues and skyrocketing prices for raw materials and energy still lead to mostly skeptical forecasts for the rest of the year.

The Audi production lines in Neckarsulm are currently still standing.  Problems in the supply chain are the cause.

The increase in costs puts many suppliers under tremendous pressure. Raw material prices are still rising to historic highs and suppliers are also suffering from rising energy costs. The working group said on Monday that government measures to ease these price increases have not brought any noticeable relief so far.

The communication therefore states that the committee welcomes the elimination of the EEG surcharge, but that more state tax relief is needed in order to obtain competitive energy prices. In the case of gas, for example, carbon dioxide2The price to be suspended.

The working group calls for a fair “burden-sharing”

The working group’s view of the automakers is less positive. Customers are criticized for continuing to generate high profits, while medium-sized suppliers are unable to afford the costs incurred. The community sees this as a threat to powerful European supply chains and calls on OEMs to share the burden fairly.

In order to secure supply chains in the long term, society is also calling for diversification and better production opportunities in Europe. The risky dependencies on other regions of the world should be identified through monitoring and reduced as much as possible in the medium and long term. Consistent pursuit of defined sustainability goals and securing skilled workers were also a topic of the press conference.

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