According to the latest data from the Polish Central Statistical Office (GUS), from January to May 2022, the total export value of Polish furniture reached 32 billion zlotys (about 47 billion yuan), a year-on-year increase of 14.8%. In terms of quantity, Poland exported 2.049 million tons of furniture in the first five months, down 2% year-on-year.
Marcin Luzinski, an economist at the Santander Bank Economic Analysis Department in Poland, pointed out that while foreign sales are still rising in value terms, they are showing a downward trend compared to previous years. The total value of furniture exports in the first five months of this year increased by 14.8% year-on-year, but the first five months of 2021 increased by 36% compared to the same period in 2020.
According to experts, after years of booming, Polish furniture exports are starting to slow down and may even last until 2024, in terms of export value and volume as of the end of May.
The reason is that more than 90% of the furniture produced in Poland is exported to foreign countries, mainly in the EU, especially Germany, which accounts for more than one third of Poland's total exports, but the EU is affected by the crisis brought about by the Russian-Ukrainian incident. strong influence. Experts expect less demand for Polish furniture in the European Union, and high inflation and slowing home sales are bad for Polish furniture makers.
Economist Marcin Luzinski said: “The weak performance was largely based on a marked deterioration in consumer sentiment in Europe. It was the result of rising inflation, the outbreak of war in Ukraine and the threat of an energy crisis, all of which left consumers feeling less confident, limiting non-essential purchase of goods.”
Furthermore, he pointed out that Poland relies heavily on Russian raw materials, especially wood. However, due to sanctions and other reasons, Russia has restricted wood exports, which has led to a lack of sufficient wood for domestic furniture manufacturers in Poland.
At the same time, countries such as Europe and the United States restrict the import of Russian timber, but do not prohibit the import of Russian furniture. As Russian furniture exports grow, it competes with the Polish furniture industry.
In addition to experts who believe that furniture exports are starting to slow, Polish furniture manufacturers also believe that tough times are coming.
In July, furniture companies continued to experience falling domestic and foreign orders and production, rising inventories or deteriorating financial conditions, according to the Polish Central Statistics Office's monthly survey of business conditions in the manufacturing sector.
Polish-listed furniture company Forte Furniture said its EBITDA was PLN 82 million in the first half of 2022, compared to PLN 113 million in the same period last year. The company bluntly stated that there was a marked slowdown in the market, which negatively affected the dynamics of furniture sales in all markets.