Spanish factories make record materials collection and aggravate tension of supply chains

Spanish factories seek to fill their intermediate products stores, since the shortage of supplies has already led some of them to have to stop production. To

Spanish factories make record materials collection and aggravate tension of supply chains

Spanish factories seek to fill their intermediate products stores, since the shortage of supplies has already led some of them to have to stop production. To prevent this from happening, try to buy in advance what you will need the next few months, even though prices go up to historical rhythms.

The industry in Spain devoted efforts in December to stock and fill its stock warehouses from the raw materials and the necessary inputs for its production, in an exercise of forecast that in turn aggravates the tension in the global supply chain.

This is deduced from the last PMI Index published on Monday by the Consultant Markit, which has detected in Spain an increase in challenges related to supply and prices in the manufacturing sector.

The growth of production increases, but new orders decrease; Delivery times are lengthened at a considerable rhythm and prices continue to rise in the sector, according to the key conclusions of the firm.

"The scarcity of inputs imposed some restriction on productive capacities, and companies continued to strive to supply inputs and reinforce stocks whenever possible, it is likely that said anticipated purchase of products aggravates the pressure in supply chains, already In the same time tense, "said Paul Smith, director of Economics of Markit.

The PMI index stood at 56.2 in December, below 57.1 in November, which demonstrated a slowdown in the industrial sector. "The rhythm of growth was the slowest than last February in the midst of some reports that the price increase is having an adverse effect on sales levels," explain.

The cost increases suffered by companies began to move in December at rates charged to customers. In fact, the increase in prices of finished products was the highest in the series only slightly below that was recorded in November.

"The surveyed companies commented that the vast majority of raw materials have increased price, as well as the costs related to energy, electricity and transport services," they said.

For the future, the country's industrial companies were optimistic and expect the production to continue increasing in 2022. That led them to promote a recruitment round and a modest growth of employment was recorded.

However, they are still concerned about supply problems and price increases as factors that will probably have an adverse impact on the behavior of the sector in the coming months.

"Such concerns helped explain the continuous effort in making a collection of any type of input available in the suppliers' units, companies recorded the third stronger increase in raw materials stocks and semi-finished products in the history of the study in December ", Stubine.

Updated Date: 07 January 2022, 03:56

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