Home Engagement Sustainability Securing the supply of raw materials
Contact Person Dr. Jean-Philippe KohlDr. Jean-Philippe Kohl
Head of Economic Policy / Deputy Director
+41 44 384 48 15 +41 44 384 48 15 j.kohlnoSpam@swissmem.ch

Securing the supply of raw materials

The companies of the MEM industries are heavily dependent on imported raw materials. It is important for every business to have a clear picture of its own resource dependency.

The demand for raw materials continues to grow worldwide. This is driving up prices, as production capacities, at least for some commodities, have expanded only moderately.

The price trend is exacerbated by oligopolization on the supply side (market power) and by implementation of export restrictions for selected commodities that are produced in only a few countries, such as rare metals in China.

There is a risk that companies in the MEM industries will suffer declining margins and competitiveness if higher procurement costs cannot be overcome. Resource efficiency and finding substitutes for rare metals will reduce the MEM industries’ dependency on raw materials.

Assessing resource dependency

The “Metal Risk Check” is a simple tool with which every company can roughly assess its resource dependency on “critical” metals. This relates in particular to critical metals in semi-finished products and the concomitant supply risks. On this basis, companies can initiate strategies to secure their supply.

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Last update: 17.07.2019