download FURNITURE INDUSTRY 2008
TRENDS IN THE EUROPEAN FURNITURE INDUSTRY IN 2008
2008, despite a positive first half year, the production value of furniture has recorded a decrease of 3.7%. This drop in the production was even worse in volume, if the increase in production prices is considered (+2.7% in 2008).
This negative trend was due to a dramatic decline in the production of furniture in almost all the EU 27 member states. The crisis generated a weak global demand that resulted in less production and exports for the EU27 furniture manufacturers. All the major furniture producing countries faced the crisis and the recession by contracting their production.
The Extra-EU imports
Extra-EU imports reached 12,477 million Euros. For the first time after the first enlargement, the imports recorded a decline of 1.2%. Imports from China rose by 2.9%, to 6.2 billion Euros. Vietnam (now the second supplier of furniture to the EU27) and Turkey (+12.4% to 639 million Euros) were the other countries that shipped to the EU more furniture than in 2007.
Imports from all the other countries decreased by 5 to 10%.
The extra-EU exports
The extra-EU exports grew by 3.8% to reach 11,510 million Euros. Exports to the USA continued their decline (-12% to 1,813 million Euros) and represented 80% of their 2004 level.
On the contrary exports to Russia (+22% to 1,701 million Euros), United Arab Emirates (+38% to 402 million Euros) and Ukraine (+12% to 350 million Euros) were still on a positive trend, probably because of orders placed in 2007.
The trade balance deficit amounted to 967 million Euros.
Because of the global crisis, the economic situation was quite bad in almost all the EU countries resulting in weak demand and imports. The new member states which seemed to surf on positive trends even during periods of recession, are now also facing a reduction in their exports and production values.
In Italy, the production value dropped by 4.3% because of decreasing exports, the local demand also driving this negative evolution.
In Germany, the production value decreased by 1.8%, whilst the imports decreased by 5.4%. The trade deficit is now almost eliminated.
The French manufacturers are loosing market shares in their domestic but have increased their presence in the export markets (exports rose by 1.6% to 2,477 million Euros).
The Spanish furniture industry recorded one of the highest decreases among the various industries in Spain. With a decline of 12.5%, furniture manufacturers are facing major difficulties in a very weak domestic market. Even the imports have sharply decreased.
Poland whose growth rates were usually above the 10% level, is now facing difficulties. With a decrease of 2.2%, Polish companies try to be more competitive in the export markets and in their domestic market where imports account for 85% of the local consumption.
The Netherlands witnessed a net increase in the furniture production (+2%).
Czech Republic (-6.1%), Belgium (-5%), Slovakia (-2.5%) & Portugal (-0.8%) are also on a negative trends.
Two Scandinavian states (Denmark & Sweden) and two Baltic states (Estonia & Latvia) have also atrocious negative results.
In Lithuania and in Hungary, the production value rose by respectively 16% and 17%.
