University of Mannheim: Congestion in the Suez Canal: Production downtimes hit many industries in Baden-Württemberg particularly hard

Regions with a high proportion of industrial production suffer more from interrupted supply chains, as is currently the case because of the wrecked “Ever Given”. This is what the economist Jannis Bischof from the University of Mannheim says.

The blockade of the Suez Canal by the “Ever Given” lasted only a few days. The disruption of global trade routes as a result of the incident will, however, also hinder the local economy for a long time to come – especially in Baden-Württemberg and the Rhine-Neckar metropolitan region. Economics professor Jannis Bischof from the University of Mannheim is convinced of this.

“We know from our surveys that companies from the manufacturing sector such as mechanical engineering are particularly affected by interruptions in the supply chains, such as those that occurred during the corona crisis,” said the business administration expert. The long-term consequences of a delivery backlog like the one in the Suez Canal therefore hit the regional economy particularly hard: Baden-Württemberg is the leading center of German mechanical and plant engineering. Around a quarter of all German mechanical and plant engineering companies are based here.

But also textile producers (58.9 percent), wholesalers (41.1 percent) and, depending on this, retailers (42.5 percent) report in the survey of above-average restrictions, especially when goods are obtained from overseas for resale.

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