The furniture industry in Poland has faced a particularly challenging 2024, with rising debts, lay-offs, and soaring costs for energy and raw materials. According to BIG InfoMonitor, the average debt per company in the sector is 115,000 PLN, and by August 2024, overdue liabilities amounted to 325 million PLN. This financial strain is compounded by reduced sales, with the value of furniture production falling by 5% in the first half of 2024 compared to the same period in 2023.
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Poland, which was once the third-largest exporter of furniture globally, has struggled with increasing debts, particularly among manufacturers of office and store furniture, whose overdue debts surged by 40% from the previous year. One key issue is the rising energy costs, which have put considerable pressure on manufacturers, even those with previously stable finances. This has led to significant job losses in the sector, with 18,000 positions disappearing between April 2022 and December 2023.
Retailers have also been impacted, with their outstanding debts reaching 23.6 million PLN by August 2024, a 12% increase from the previous year. The overall decrease in demand, both domestically and internationally, combined with high storage costs, has worsened the financial position of many companies. However, there is some optimism for the sector in the growing trend of second-hand furniture sales, which could offer opportunities for the repair and maintenance sector, a niche that has seen an increase in debt as well.
The industry faces a tough road ahead, with companies needing to adapt to changing consumer preferences, manage debt more effectively, and possibly capitalise on sustainability trends in the second-hand market.
Source: www.biznes.meble.pl