SBA Group's soft furniture manufacturer, Kauno Baldai, reported sales of EUR 20.2 million in the first nine months of this year, marking a 4% increase compared to EUR 19.5 million during the same period last year. The company plans to hire approximately 40 new employees as production volumes grow.
Tomas Mauricas, Head of Kauno Baldai, summarizes the situation in Europe: 'The global furniture trade market is starting to show initial signs of vitality, but they remain weak. This is evident at major international trade fairs such as the German M.O.W. Our clients are cautious about larger orders and are waiting for bank interest rate reductions to impact buying behaviour significantly. While we see a growing number of shoppers in the Scandinavian and Benelux markets—where we are growing by 14-15%—the trend remains weak in Germany.'
He notes that decreased demand, falling raw materials and logistics costs, and stabilized energy costs are affecting the final price of products, prompting buyers to refresh their furniture.
Mauricas explains that the company's design team continuously introduces innovations to drive revenue. This year, Kauno Baldai launched a unique collection of soft outdoor furniture, Sitout, at significant international furniture exhibitions.
'Recent trends show that people want to enjoy comfort not only indoors but also on terraces,' he continues. 'We aimed to design upholstered outdoor furniture that resembles comfortable living room furniture. The biggest challenge was sourcing suitable materials and fillings that are durable and resistant to sun and rain. The first batches have already been successfully delivered to clients in Germany and Scandinavia.'
To meet growing demand, Kauno Baldai is expanding retail locations in Scandinavia and the Benelux countries and aims to increase its workforce by 10%, from 380 employees. The most sought-after positions include production foremen, electricians, foam finishers, technicians, and other specialists.
Given the complexity of producing upholstered furniture, Kauno Baldai is implementing the latest robotic solutions for furniture frames and foam part assembly. The company has invested nearly EUR 1 million in process automation.
Martynas Paulauskas, Head of Quality and Efficiency at Kauno Baldai, states, 'The newly implemented smart conveyor system manages product flow efficiently. Robotic packaging machines have reduced packing time from 5-6 minutes to just 1-3 minutes, significantly decreasing the need for manual labour and allowing staff to transition to more skilled positions. Additionally, RFID (Radio Frequency Identification) technology enables us to identify packed products non-contact and print necessary labels.'
More information:
SBA Group
www.sba.lt