2 | 22 Fraunhofer magazine companies could rely their materials being deliv- ered “just in time” for production. However, for months now, jams in container ship traffic, staff shortages in the logistics industry and an imbalance between supply and demand have been leading to empty warehouses, reduced production and enormous price increases. Supply chain manage- ment has become a major challenge for German industry, which is oriented towards exports and largely consists of medium-sized companies. The return of lockdowns in China, Germany’s most important trading partner, as well as upheav- als in world trade caused by the war in Ukraine and sanctions against Russia, mean that, once again, there is no immediate improvement in sight for supply chains. The effects of material shortages and price increases could be mitigated through new measures in the areas of trade, industry and environmental policy. In the short term, the suspension of duties or punitive tariffs on certain scarce products could bring some relief. The European Union (EU), for example, imposes various anti-dumping duties on steel, aluminum and fertilizer products that are either currently in short supply in Europe or have seen sharp increases in price. Political intervention aside, companies are working at full steam to make their supply chains more resilient. And as survey figures show, they are examining their supply relationships and production sites with a critical eye. The German Chambers of Commerce and Industry, a network of 79 chambers of industry and commerce in Germany, and the German Chambers of Commerce Abroad (AHK), which has 140 locations in over 90 countries, actively support companies to help them restructure their supply chains. A number of “German chambers of commerce abroad” (German organizations established in foreign countries with the aim of advising, supporting and representing German companies) have come together to set up the AHK Industrial Suppliers Forum. The purpose of the forum is to connect industrial suppliers from European countries with buyers and sales partners from Germany, thereby creating one of the largest supplier communities in Europe. In addition, the German Federal Ministry for Economic Affairs and Climate Action (BMWK) is supporting competence centers that focus on raw materials, which are located at several AHKs in resource-rich countries. The aim of these com- petence centers is to provide information about the opportunities and risks associated with the e k c i h c S s n e J / K H D I : o t o h P markets and to support companies in establishing business relationships, whether for procuring raw materials or marketing their own mining technologies. Politicians must support the realignment of supply chains by providing suitable framework conditions. Diversifying import sources and work- ing to expand and intensify trading partnerships through trade agreements, for example, can help companies to spread their supplier network across several countries and regions. After all, reliable trade agreements break down barriers to trade and create common standards based on legal security and planning security. For example, the EU could implement the trade agreements negotiated with Mercosur, South America’s common market that includes Chile, Mexico and New Zealand. In addition to trade policy measures, the EU will also provide vital momentum for ensuring the resilience of supply chains in terms of industrial and environmental policy. Expanding the cir- cular economy in Germany and the EU can help ensure that raw materials remain sufficiently available. Increasing the rate at which materials are reused will not only ensure a lower output of emissions, but also a greater level of independence when importing primary raw materials. There is a need for greater research and development, both in terms of materials that can be recycled, i.e. as part of a circular economy, and in terms of recycled materials that can be used in place of primary raw materials. Higher rates of energy efficiency in industry will also contribute to alleviating shortages of raw materials, offering scope for further research regarding, for instance, increasing the utilization rates of energy carriers and increasing the energy efficiency of production by converting machines and making it possible to process alternative materials. Political measures to promote research projects, help the workforce acquire the necessary expertise and remove reg- ulatory hurdles in these fields would also have a positive effect. However, at a time when company supply chains are in such disarray, increasing the bureau- cratic requirements that companies must meet, for example through the Supply Chain Due Dili- gence Act (Lieferkettensorgfaltspflichtengesetz, LkSG), creates further challenges. In order to get an overview of the risks in their supply chains, companies will tend to limit themselves to fewer suppliers from fewer countries, which prevents necessary diversification processes and negatively effects the resilience of their supply chains. “There is a need for greater research, both in terms of materials that can be recycled, i.e. as part of a circular economy, and how recycled materials can be used in place of primary raw materials.” Dr. Volker Treier Chief Executive of Foreign Trade at DIHK and Mem- ber of the Executive Board since January 2019. Dr. Treier first started with the German Chambers of Commerce and Industry e. V. in 2003 and has since held numerous positions, from head of the depart- ment for economic cycle and growth policy, to Managing Director Inter- national Economics Affairs. Studied economics and completed a doctorate in Economic Sciences in Bam- berg on the subject of fis- cal competition in Central and Eastern Europe enti- tled “Realität oder Fik- tion?” (Reality or fiction?). Was born in Creglingen in Baden-Württemberg on August 6, 1969. back to page 1 33