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Polish furniture industry struggling with the increase in production costs

by Dignity News
According to the data of the Polish Chamber of Commerce of Furniture Manufacturers (OIGPM), the revenues of the Polish furniture industry in 2021 amounted to almost PLN 60 billion which is 18% more than in 2020. The Chamber is forecasting further growth and estimates that 2022 will bring revenues of nearly PLN 65 billion.

Good sales results do not mean, however, that Polish furniture makers do not feel negative phenomena in the market environment. The significant increase in the cost of raw materials, materials, energy and wages is reflected in the profitability of production, which fell from 6.7% in 2020 to 5% in 2021.

The President of OIGPM, Jan Szynaka, points out that Polish furniture manufacturers have so far been competitive in foreign markets mainly for price reasons. “The growing costs of furniture production in Poland are extremely important for the future of the furniture industry, as they can mean the loss of the price and cost advantages currently enjoyed by Polish producers on the global markets”, notes Jan Szynaka.

The report “Polish furniture – Outlook 2022” says that the furniture industry employs nearly 200 thousand people in the country. After the initial staff cuts in 2020, the level of average employment in Polish furniture companies has returned to the situation before the pandemic.

Dominika Wajnert, a member of the management board of the company Wajnert Meble, is convinced that despite the difficulties, the Polish furniture industry will cope with global markets.

“The number of furniture manufacturers in Poland is huge, and yet the demand is still growing. Since the 1980s, we have developed unique know-how. We know how to produce furniture en masse, but maintaining its individual character, which makes it a great value and opportunities for the entire industry”, convinces Wajnert.

In 2021, Polish manufacturers sold goods worth EUR 12.9 billion abroad (an increase of 17% y / y) which allows Poland to maintain its leading position in Europe and the second place in the world in terms of the value of exported furniture.

The most important recipient of Polish furniture is Germany (EUR 4.4 billion, 34.3% of total exports), followed by the Czech Republic (EUR 946.1 million, 7.3%) and Great Britain (EUR 897.5 million, 7% of total exports).

Adrian Andrzejewski order

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