The furniture industry in the face of crises

Starting with the COVID-19 pandemic, to armed conflicts, to high inflation – the last few years around the world have been associated with many difficulties for manufacturers in various industries. The economic and geopolitical crises have also affected the furniture industry, which continues to feel their effects this year.

According to the Central Statistical Office (CSO), in 2021, the furniture industry in Poland reached a value of almost PLN 60 billion, 20% more than in 2020. Growth is still discernible in the first half of 2022, but in the third quarter, a clear drop in production is already visible. In the group of wooden furniture used in table rooms and living rooms, production fell by -25%, in the group of kitchen furniture by -18% and in the group of seating furniture by -6%. The downward trend continues today, and this slowdown is forecast to continue until 2024.

BIG InfoMonitor also points to a decline in furniture sales. Although the minimum wage has risen, energy and fuel costs have increased along with it and the price of raw timber has risen. The result is a growing number of bankruptcies, as well as new unreliable payers, whose number in September this year, according to BIK data, amounted to 249. The Dun&Bradstreet report from June this year, on the other hand, shows that only 3% of the 12,500 companies are in very good financial condition. Five per cent of companies are in very bad shape and 47.5 per cent in poor shape. About 45% can speak of a good situation.

Also read: ‘You can’t stop in a crisis’. Dariusz Piotrowski on investment in Melaco

In the midst of this poor news, experts are looking with hope towards the changes in the procedures for the sale of State Forests, which have caused a drop in timber prices, as well as the resurgent housing market. While the 2% Secure Credit has had an impact on housing prices, it could also lead to an increase in signed contracts with the bank, while – at the same time – translating into more sales and the need to furnish a home. Will this be enough for manufacturers to take a breather?

Krzysztof Mrówczyński of Bank Pekao, who spoke at September’s 8th All-Polish Furniture Congress, presented an analysis of current statistical data, indicating that since the second quarter of last year, the wood and furniture industry has been experiencing a slowdown on the wave of weaker demand at home and abroad. However, forecasts show that the downturn may be close at hand, with the gradual economic recovery in Poland and the rest of the EU, as well as the aforementioned rebound in the property market, playing a role. Among the development prospects, the expert mentioned the automation of production and expansion into foreign markets. The development of the e-commerce channel, on the other hand, could be an opportunity for producers who are currently lagging behind the competition.

The future of furniture: functionality, aesthetics and sustainability

The future of the furniture industry is closely linked to environmental protection and sustainability. The increasing environmental awareness of society is a factor that can no longer be ignored. Companies must look for innovative solutions that allow them to produce furniture with a reduced environmental impact. The criteria of quality and price are therefore being joined by ecology, and the introduction of solutions to support sustainable production is another investment.

New design trends are also becoming apparent: bold, expressive colours and surface structures reign supreme at furniture fairs. Consumers are looking for interesting solutions and meeting their expectations is now more important than ever.

Also read: SICAM 2023 trade show: an overview of trends

A partner who understands your needs

At Melaco, we are aware of the needs and difficulties faced by the industry. For 30 years, we have been providing our business partners with solutions and technologies that help them enrich their offerings and meet the growing expectations of consumers.

We are ready for the challenges because:

• We regularly visit industry trade fairs in Poland and Europe, closely following the trends, predictions and innovations that furniture manufacturers offer. Would you like to know more about them? Take a look at our blog →
• We are constantly developing the idea of sustainable production, which is becoming such an important argument for consumers – we offer our partners products that match their expectations, creating a strong sales argument. Find out about our internal green initiatives here →
• We invest in technology, enabling us to create innovative furniture collections and products that are different from others. We provide our Partners with access to our experts’ knowledge and support in finding the right technologies and solutions. Find out more  →

So we have the tools, experience and openness to face difficulties together with our Partners. If you would like to make use of them, contact us today and let’s take on the challenges of the industry together:

Agata Sroczynska
sales coordinator

+48 538 557 456
a.sroczynska@melaco.com.pl