Natural Wood Furniture Industry 2020

natural wood industry

Natural Wood Furniture Industry In Europe 2020

It is far too early this year to determine COVID-19’s effect on imports of EU natural wood furniture, but early indicators suggest that the slowdown is going to be at least as strong as during the 2008-2009 financial crisis.

The European furniture industry in particular has been severely impacted by new trade and travel constraints, with its trade fairs discontinued, showrooms shuttered and stocks of larger items increasingly curtailed because of social distancing. Brands already in a precarious place have been failing such as Lombok and Laura Ashley in the UK.

Natural Wood Furniture

According to a survey cited by Statista on the effect on Europe’s retail revenues of COVID-19, retailers are anticipated tolose GBP3.26 billion (USD 4 billion) from the latest epidemic between 9 March 2020 and 21 April 2020. Möbel is one of the most destructive industries when consumers renounce luxury transactions to buy food and domestic supplies.

In order to respond to the crisis, larger, better prepared retailers, particularly those with a vast and highly advanced online presence, are best positioned. Ikea’s choice of responses was distinct from that of any of its rivals as the biggest natural wood furniture seller worldwide.

In particular, in its domestic office segment, Ikea has re-centered its e-commerce website and records an improved demand for many goods. Ikea seeks to ensure that the sourcing modifications are more stable, offer loans and speed the delivery of invoices to the vendors affected.

However, Ikea is like too large a retailer, and the consequences of the crisis will be severe for smaller retailers and manufacturers world-wide, undermining their very survival as companies.

Natural Wood Furniture

In a recent statement made by the Vietnam Timber and Forest Product Association (VTFPA), the difficulties were clearly highlighted by the fact that several companies remained unordered from now on until 2021 in the wood industry in Vietnam due to the COVID-19 pandemic.

“Some Vietnamese wood processing firms have suspended orders,” says the VTFPA. Eighty percentiles have been cancelled or postponed for Vietnamese exporters to US and EU markets since March.

The VTFPA Declaration also highlights a dramatic rise in commodity rates for wood and other products for timber processing firms as freight costs increased $500-1,000 per crate. Some Vietnamese furnishing firms now sit in 100s of finished goods containers that can not be delivered and will be kept in warehouses for an undisclosed amount of time at substantial costs.

Unfortunately, several natural wood furniture manufacturing districts now have the same situation where the sustainability of companies depends heavily on the scale, quality and efficacy of government action that enables them to cope with the crisis.

The American Hardwood Export Council states that “all in Italy has virtually ceased, based on information from industrial contacts, on the situation in Greece in early April. Many of the non-essential facilities, including wood dealers and their clients, are closed (muebles, walls, carpets etc.); are also closed. In the Italian newspapers there are estimates that 40% of the sector can not reopen until the constraints on lockout are lifted.

Natural Wood Furniture

During these problems the natural wood furniture business may be somewhat different from the one that has left the furniture business.

While the majority of the companies involved in woodworking are facing significant consequences from the epidemic of corona viruses, many of them are positive about the future following the virus and continue to invest supplies and to reprogram their production.

Below are some of the highlights of a Woodworking Network poll at the end of March. 562 replies were received and a clear description of what woodworking firms face and how they deal with the situation, and how health workers deal.

Nearly three quarters of survey respondents state that the spread of the virus has a moderate to major impact on their activities. More than 36% say they have a big effect on their business and almost 36% state that it does have a strong but not important impact. Around a quarter (23.7 percent) of respondents indicated that the epidemic had no effect on their companies. The virus is said to have no impact at all just 4.1 percent.

Including broken operations, market failure and stock interruption, these businesses are the main impacts. Around 69% of respondents suggested that the epidemic contributed to broken plans. More than half (55.1%) said they are already suffering market failure. Almost half (46.8 percent) have been told that they are struggling with supply chain problems.

The Government has been ordered shutdowns and cancelled directives, other significant impacts recorded. Roughly 39% of respondents said they had to live with involuntary shutdowns. More than one third (34.5%) of orders are cancelled. Almost 15% reported other results including problems relating to cash flow, personnel challenges and emotional tension.

The sector usually has optimistic views, in spite of these challenges. Nearly two-thirds state that they see a big short-term effect, but expect a long-term recovery. Less than 30 percent see potential negative implications and say long-term expectations unclear. Some 8% said they see no impact whatsoever.

For more information please see the following: https:/ industry-news / survey-woodwork-industry-faces-major impacts-still-optimistic February figures indicate that imports from tropical hardwood and hardwood products are down sharply across-the-board. Additional figures indicate that almost 7 million people in the second week of April sought unemployment benefits. The overall estimates then hit about 17 million employees, about 10% of the workforce. In March the rate of unemployment increased to 4.4%.

Natural Wood Furniture

Most economists and analysts in the sector predict substantially greater future declines, as more States seek the end of non-important industries, and people remain home to prevent coronavirus spread.

Global Trade Figures Tropical hardwood shipments from the US Saved Tropical hardwood fell by 30% to the lowest level in February in over 10 years. The imported 10116 m3 is less than half as big as last February. In February, all imports from Brazil and Malaysia dropped by 48%.

Economical Effects of Global Pandemic

COVID-19’s economic downturn has impacted global imports, whereby the value of the majority of wood varieties has dropped by 25 to 55%. Balsa’s sales rose by 28%, but this resulted in a January, the lowest for Balsa in over ten years.

Hardwood plated natural wood furniture imports fell by 32 percent in February from US hardwood plywood imports. In eight years, the import volume was the lowest in 160,042 cubic metres. Imports have decreased by 57 percent from all the major trade partners; Malaysia has decreased by 49% and China has decreased by 46 percent.

Tropical veneer imports US Tropical hardwood veneer imports have dropped by a 41 percent in February since September 2016. Italian imports decreased by 65%, while Cameroons and India imports decreased by 60% and 57% respectively. Imports down 32 percent year-to-date.

Molding imports from the US dropped by 21% in February and by 9% year on year relative to 2019. In February imports from Brazil dropped to below $160,000, the lowest level of which has by far been in over a decade.

In February, however, unimpacted assembled floor imports dropped by 14%, compared with February 2019 imports of assembled floor panels by 10%, compared with February 2019 imports. A 29 percent increase in imports from Canada held the COVID-19 downs to imports, at least for the time being. The gross annual average amounts to 3% until 2019.

In February the production of hardwood floors decreased by 12% and the total for 2019 by 25%. Imports from Brazil have fallen by 41% and Indonesia by 20%. Imports from Malaysia and China rose marginally for the month, but all have declined to over 50% by the year.

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Wood will continue to be an attractive raw material in the natural wood furniture market share accounting for over half of all furniture sales globally. The reason behind huge demand of the material resides in benefits offered by wood over other materials such as high strength & durability, ease of maintenance, cost effectiveness among many others.

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