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How Much Impacts The Polish Furniture Industry Will Have Due To The Conflict?

Views: 0     Author: Shinlin Furniture     Publish Time: 2022-05-06      Origin: jia.com

Recently the conflict between Ukraine and Russia is intensifying without clear clue that when it will end. Poland is now the second largest furniture producer in the world after China. Its exports in 2021 alone will be worth nearly $14.2 billion. While most of Poland's exports are destined for Europe, the value of Polish furniture exports to the U.S. (including wooden bedroom furniture, kitchen furniture and upholstered furniture) is worth more than $343 million in 2021, up 46% from 2020. So what will be the major impacts due to the conflict?

Labor Shortage In The Furniture Industry Escalated

Tomasz Wiktorski, CEO of B+R Studio, a Polish furniture market analysis firm, estimates that there are currently 200,000 employees in the Polish furniture industry, at least 10% of whom are from Ukraine.

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But affected by the recent situation, where men between the ages of 18 and 60 are no longer allowed to leave Ukraine, while many others have returned to Ukraine to participate in the war, the Polish furniture industry is losing its workforce. Tomasz Wictorski estimates that about half of the Ukrainian workers in Poland have returned home.

The supply of raw materials Tighten and Costs Increase

While Poland sources its wood domestically and from neighboring countries such as the Czech Republic and Slovakia, the wood used in furniture production comes mainly from Ukraine and Belarus, which supported the Russian-Ukrainian war, so that wood imports pose certain problems.

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According to B+R Studio's estimates, between 7% and 10% of Poland's man-made boards such as solid wood, particle board, MDF and HDF and their components are imported from Ukraine, Belarus and Russia. Obviously, the conflict has affected the supply of raw materials and will also affect the price of materials.

Polish Furniture Has Potential To Ride The Wave Of Expansion

Many Russian, Belarusian and Ukrainian producers will not be able to supply to the EU. So many Polish suppliers are receiving inquiries from EU countries. Western furniture importers, including furniture parts importers, may shift some of their business to Poland. Leaving aside the possible effects of inflation, the gross product and production of the Polish furniture industry are expected to grow by 8% and 6%, respectively, this year. 

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With new refugees from Ukraine arriving and settling in Poland, demand in the local furniture market is likely to grow by 10%.


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