The European Hiccups are reflected on the Polish furniture market. The number of companies with a loss has increased

From 2022 to 2024, the number of furniture produced in the EU was falling; The situation on the furniture market has also deteriorated in Poland. If the industry does not increase revenues, it will have to optimize employment while competition with Asian companies – believes Krzysztof Mrówczyński from Bank Pekao.

Commenting on the report “Current situation and prospects of the wood-Meblar industry” Mrówczyński pointed out that the furniture sector was experiencing one of the longer periods of recession in its history and it lasted from the second half of 2022. His main reasons were the energy crisis, war in Ukraine and an increase in interest rates combined with inflation.

As he said, in 2024 the average volume of production was 12 percent. Lower than in 2021, although in Poland the decline was slightly shallower. He said that the apogee of declines of production volume in Poland fell on 2023, and in the second half of last year the first symptoms of improving the situation were recorded. Throughout 2024, production at fixed prices increased by 2 percent. year on year, and nominally fell by 4 percent. rdr.

Last year, the strongest declines VS 2021 recorded sales to the Visegrad Group countries (in total by over 0.5 md of euro, i.e. 34 percent), Germany (nearly 200 million euros) and Great Britain and Russia (in both cases by about 100 million euros) – before 2022, 55 percent were for these cases. The whole value of Polish furniture exports – noted the expert Pekao.

He added that the lack of revival in the euro area results in stagnation in the national furniture industry, because in the first half of 2025 it recorded the value of production by 1 percent. smaller in an annual basis.

The bank representative pointed out that the growing salary that exert pressure on margins and forces companies to optimize employment is also an additional burden on the sector. “The percentage of furniture companies recording the net loss increased at the end of 2024 to 31 percent. with 24 percent A year earlier, above the average for processing (25 percent)” – said Mrówczyński. He added that the highest percentage of such companies (35 percent) is in a group of small enterprises from 10 to 49 employees.

According to the expert, the situation on the labor market unfavorable for producers will persist in the medium -term temporary horizon, which will cause a further increase in salaries. He forecasts that this year in the enterprise sector average wages will grow by nearly 9 percent. yard, and in the next one by 7 percent rdr. “If furniture companies do not experience a solid increase in revenues at this time, they are still forced to optimize employment or reconcile with further erosion of margins. The more that the market conditions are conducive to the stronger competition of producers on foreign markets. The increasing threat to Polish furniture companies, competing more than a brand, are constantly improving in the quality of the manufacturer Asian ” – believes Mrówczyński.

In his opinion, the confusion in the sector may also be introduced by the tightened US customs policy, as it may result in a weaker export of Polish furniture to this country, and in particular the influx to the EU market of more production from low -cost countries. In his opinion, it may be “reflected” from the American market and redirected to other regions of the world. He added that the bank's analysis indicates that the industry is more exposed to the negative impact of these factors than all Polish processing.

“A difficult topic, which can also affect the competitiveness of the national furniture industry (or more of the entire wood chain) is also the cost and access to the raw material – once the advantage of Polish producers, currently an additional challenge,” noted Bank Pekao's expert. He pointed out, however, that partially alleviate these difficulties would be a decrease in interest rates in Europe and Poland and hope for a stronger revival in the housing and renovation market.

The data cited by the expert comes from the report “Current situation and prospects of the wood and furniture industry” of the National Chamber of Commerce of Furniture Producers, which is to represent the interests of the entities associated in it and shape, among others rules of fair competition. The full report is to be presented at the 10th National Furniture Congress organized by the Chamber of 10 September this year. (PAP)

JLS/ MALK/