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Maja Mobelwerk, a prominent German ready-to-assemble (RTA) furniture manufacturer headquartered in Wittichenau, has declared its intention to cease production by the end of December 2023.<\/span><\/p>\n This determination has an impact on 450 employees who have contributed to the annual production of up to six million furniture pieces. The verdict follows a notification from a long-standing customer, stating its decision to terminate the partnership and discontinue all orders by the close of December 2023.<\/p>\n Despite considerable investments and diligent attempts to sustain production, including the pursuit of new high-volume clientele, no viable solution was discovered to maintain operations in Wittichenau.<\/p>\n The outlook for 2024 and 2025 does not hint at a substantial recovery. A blend of factors, including the energy price shock from the Russia-Ukraine conflict and elevated inflation, has dampened consumer demand. Market uncertainty, combined with the aftermath of the pandemic, has further diminished the requirement for new furniture.<\/p>\n Uwe Gottschlich, Managing Director of Maja-Mobelwerk GmbH, underscores the company's dedication to aiding all impacted employees during the shutdown process and finding fitting resolutions for them.<\/p>\n Since its establishment in 1992, Maja-Mobelwerk GmbH in Wittichenau has significantly contributed to the furniture industry. Specializing in large-scale lightweight furniture, the company has played a crucial role in the sector's advancement over the years.<\/p>\n German furniture industry sales to drop 5 to 7 percent in 2023<\/strong><\/p>\n The German furniture industry faces major demand challenges, reported Jan Kurth, Managing Director of the German Furniture Industry\u00a0Association.<\/p>\n Orders to manufacturers are notably lower in some cases, prompting a revised 5-7% sales drop forecast for 2023. Factors include inflation and prolonged heating debates, causing consumer uncertainty. To counter this, policymakers seek to stimulate spending and construction.<\/p>\n Early 2023 data shows around 12% fewer orders for German home furniture, with upholstery down 10% and kitchen furniture dipping 2%. Short-time work is on the rise as a coping strategy. Supply issues have improved, but material prices remain high, while packaging and logistics costs escalate.<\/p>\n From January to June 2023, about 430 German furniture manufacturers with over 50 employees experienced a slight 0.2% sales decline. However, this figure doesn't fully capture the market's situation due to various factors. Domestic sales slid by 1.2%, while foreign sales saw a modest 2% uptick.<\/p>\n Within segments, kitchen furniture sales grew by 6.7%, but this figure is influenced by certain factors. Upholstered furniture sales dipped 0.1%, other furniture and parts decreased by 9.6%, and the mattress industry faced a significant 19.3% drop. Capital goods segments like office and contract furniture outperformed consumer goods.<\/p>","protected":false},"excerpt":{"rendered":" Maja Mobelwerk, a prominent German ready-to-assemble (RTA) furniture manufacturer headquartered in Wittichenau, has declared its intention to cease production by the end of December 2023. This determination has an impact on 450 employees who have contributed to the annual production … Continue reading