According to data recently released by the Italian National Statistical Institute (Istat), compared with the same period in 2022, the turnover of the furniture industry in the first half of 2023 fell by 14.9%, and the output decreased by 13.9%; of which the turnover of the furniture industry decreased by 0.1%, and the output dropped by 5.4%.
Industry associations pointed out that it is clear that while wood processing production has shrunk, demand from the furniture industry has also declined. Rising raw material and energy costs over the past two years have led to a significant increase in industry turnover, so the current decline in turnover is partly due to lower costs and product prices.
"Part of the reason for the sharp decline in the turnover of wood products may be the fall in raw material and energy costs in 2022. The figures for furniture production are another story, showing first of all a slowdown in demand and exports for our products, even in overseas markets This is also true,” explained Claudio Feltrin, president of Federlegno Arredo, the Italian wood and furniture industry federation.
Feltrin said that weak demand for furniture will also in turn affect the wood industry. Once the backlog of orders in 2022 is completed, orders and production in the wood products industry will begin to decrease, and production in 2022 will be higher than normal levels, which will be reduced compared with the implementation this year.
The Federation Research Center conducted a sample survey of the industry, and the results showed that in the first half of 2023, the overall turnover of the Italian wood products supply chain shrank by 5.9%, with the Italian market declining by 6.8% and exports decreasing by 4.5%, both showing negative growth trends.
The wooden building materials industry has the greatest impact on the overall supply chain. In the first half of the year, turnover shrank by 12.6%, local market sales fell by 14%, and exports fell by 8.3%. The increases and decreases in each segment were quite different: sales of panels contracted significantly, while sales of roofing, wooden building frames and other products increased.
The sales of the furniture industry, which accounts for 62% of the total supply chain turnover, in the first six months of 2023 are basically the same as the same period in 2022, down 1.1% year-on-year. The main reason for the decrease is a 3.3% drop in export business, which accounts for more than half of the total turnover. %, while sales in the Italian local market increased by 1.3%.
Industry associations said that the current situation in the furniture industry is constantly changing and the prospects are difficult to predict. However, according to the agency's survey, in 2023, the turnover of the Italian wood products supply chain will experience a negative growth of 3.3%, with exports falling by 2.6% and local market sales falling by 3.8%.
In terms of wood furniture, sales in the local market are expected to grow by 1.3%, exports will decline by 0.7%, and full-year revenue will slightly improve, with a slight increase of 0.2%. The wooden building materials industry is expected to see a decline in annual turnover of 8.5%, with local market sales decreasing by 8.6% and exports decreasing by 8.3%.