The procurement of raw materials continues to be very strained. Many companies are therefore adapting their supply chains.

Although the Swiss Purchasing Managers’ Index (PMI) from Credit Suisse and Procure fell slightly in August, the strong recovery in Swiss industry continues. The purchasing situation continues to be very difficult. Around one in two companies say they have already changed their supply chains as a result of the corona crisis. In July 2020, it was only one in three. Once again, the most frequently mentioned measures are increased purchasing from suppliers in Switzerland, followed by a switch to those from Europe and a reduction in purchases from Asian suppliers. In addition,

companies have tended to try to diversify their supplier base more broadly.

Price spiral remains strong

There is little hope for lower commodity prices according to a cross-national study by the management consultancy Horváth & Partners, which surveyed 1041 executives from Europe on the between March and July 2021. These managers do not expect the price spiral to end in the medium term. On the contrary: Whether steel, metal or plastics – for almost all raw material groups, the affected industries expect further price increases in the double-digit range by the end of the year. Sustained high demand, limited supply, interrupted transport routes and empty warehouses will thus continue to overstretch commodity markets.

Naturally, as an independent and owner-managed family business, we do everything in our power to supply you on time. At the end of last year, when the first signs of a raw material shortage could already be seen on the world market, Roth’s management decided to increase its raw material stock.