{"id":78978,"date":"2020-04-02T05:39:56","date_gmt":"2020-04-02T05:39:56","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/polands-furniture-manufacturers-face-huge-risks-due-to-coronavirus-pandemic\/"},"modified":"2025-09-19T08:52:58","modified_gmt":"2025-09-19T08:52:58","slug":"polands-furniture-manufacturers-face-huge-risks-due-to-coronavirus-pandemic","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/polands-furniture-manufacturers-face-huge-risks-due-to-coronavirus-pandemic\/","title":{"rendered":"Poland’s furniture manufacturers face huge risks due to coronavirus pandemic"},"content":{"rendered":"

The coronavirus pandemic may cause the collapse of Polish furniture manufacturers, which face many production curtailments.\u00a0The five main Polish furniture manufacturers estimate that the economic risk would be equivalent to two points of GDP, and asks that the government aid announced for SMEs and MSMEs not to exclude large companies.\u00a0<\/em><\/p>\n

90% of Polish furniture production is for export, mainly to Europe, analysis money.pl.\u00a0And since all European retail stores have been closed, the demand for furniture has dropped to almost zero.<\/p>\n

Without support, companies will have to proceed in the coming weeks to collective redundancies.\u00a0The CEOs of big companies call the Polish government to abandon the differentiation of support for companies according to their size.\u00a0They also want the amount of the allowance paid to short-time employees to be at least 80% of the\u00a0\u00a0minimum wage or 40% of\u00a0average earnings, regardless of the position held.<\/p>\n

''It is crucial that the aid does not differentiate Polish companies due to their size.\u00a0It should apply to both small and medium-sized enterprises, as well as large ones, which generate a significant share of turnover of the entire industry and employ a dominant number of all employees of the furniture sector,'' says Grzegorz Przondziono, President of the Management Board of Agata SA.<\/p>\n

Immediate implementation of these activities is an opportunity to maintain the Polish furniture industry in the face of a serious crisis, the first symptoms of which are already being felt, and which may subsequently have very significant effects on the Polish economy, including a noticeable drop in GDP and a visible increase in unemployment.<\/p>\n

Turnover of the furniture industry through the pandemic will fall by 35% y \/ y in 2020<\/strong><\/p>\n

The estimated decline in furniture industry turnover in 2020 will amount to PLN 17 billion, or 35% (as at March 25 this year), the company B + R Studio Furniture Market Analysis reported in a report created in cooperation with the Polish Chamber of Commerce of Furniture Manufacturers .\u00a0<\/span>In addition, layoffs announced in the furniture industry will reach 40 thousand people.<\/span><\/p>\n

\n

\"Due to regulations introduced as a result of the outbreak of the coronavirus throughout Europe, the situation in the Polish furniture industry has become dramatic overnight. The closing of trade opportunities and recommendations to stay at home caused an earthquake that stopped the Polish locomotive on March 16 and 17. On 24-25 March, B + R Studio in cooperation with the Polish Chamber of Commerce for Furniture Manufacturers conducted a preliminary survey among furniture industry companies estimating the current situation and its impact on the results of the furniture industry. The survey was attended by 15 entities from the group of large, medium and small. The emerging image is dramatic \"\u00a0 we read in the report.<\/span><\/p>\n<\/div>\n

\n

The analysis was completed with an estimate of the situation in the furniture industry prepared on the assumptions of:<\/span><\/p>\n<\/div>\n

\n

- the epidemic situation in Poland and in most European countries will start to improve from June 2020 and the possibility of opening trade outlets will be restored,<\/p>\n

\n

- there will be no second wave of the virus in the fall.<\/span><\/p>\n<\/div>\n

\n

\"The estimated result of sold production of the furniture industry in 2020 will amount to only PLN 33 billion against PLN 50.5 billion in 2019, which means a decrease by 35%\" - it was emphasized.<\/span><\/p>\n<\/div>\n

\n

The most difficult situation is in companies producing residential furniture for sale in traditional trade - relatively the best in micro-companies producing furniture to size, added.<\/span><\/p>\n<\/div>\n

\n

\"All surveyed companies indicated that day by day there was a drastic reduction in orders (80% of responses) or reduction of orders (20% of responses). The largest slump occurred on March 16-17, when the majority of significant customers withheld their orders after announcement during the previous weekend restrictions on trade in Poland and other countries. As many as 33% of respondents indicated that they suspend production the following week - most of them are large companies working for retail chains. 40% of companies declared a radical reduction in production, and 27% small reduction of production. Companies operating on the contract market and carrying out production on orders have a portfolio of orders for 3-4 weeks, rarely for longer,but because of the dynamic situation, they are afraid of withdrawing orders and settling the obligations for furniture, \"we also read.<\/span><\/p>\n<\/div>\n

\n

The reason for the crisis in the furniture industry is the lack of demand resulting from the ban on trade, recommendations to stay at home and a sudden drop in consumer confidence indicators.\u00a0Cutting off demand was the most important problem for all respondents.\u00a0The second problem in the hierarchy of importance is payment congestion - as a very significant problem and a significant problem, 20% and 47% of companies respectively indicated this issue.\u00a0Absenteeism due to coronavirus, supply or inventory are not a problem at this point - none of these aspects have been identified as a significant problem, B + R Studio reported.<\/span><\/p>\n<\/div>\n

\n

The conclusions of the study show that redundancies in companies are already taking place.\u00a0First of all, the jobs filled by agency workers have been reduced.\u00a0Recruitment has been suspended.\u00a0The declarations say that forward contracts will not be extended gradually.<\/span><\/p>\n<\/div>\n

\n

\"In the longer term, companies will have to make more drastic decisions depending on how the situation develops. 36% of respondents declare that painful decisions will have to be made after 4 weeks, 29% of respondents want to avoid significant reductions for at least 2 months, and 20% for a period of up to 4 months. Only 15% of survey participants declared that they are able to survive without major changes in current conditions, \"reads the report.<\/span><\/p>\n<\/div>\n

\n

The survey and estimates carried out on March 24-25 on a selected sample of small (2 interviews - 14%), medium (4 interviews - 27%) and large (9 interviews - 60%).<\/span><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

The coronavirus pandemic may cause the collapse of Polish furniture manufacturers, which face many production curtailments.\u00a0The five main Polish furniture manufacturers estimate that the economic risk would be equivalent to two points of GDP, and asks that the government aid … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715],"tags":[4292,3301,3293],"class_list":["post-78978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-coronavirus","tag-furniture","tag-poland","topic-wood-furniture","area-europe"],"acf":[],"yoast_head":"\nPoland's furniture manufacturers face huge risks due to coronavirus pandemic - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/polands-furniture-manufacturers-face-huge-risks-due-to-coronavirus-pandemic\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Poland's furniture manufacturers face huge risks due to coronavirus pandemic - 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