{"id":87439,"date":"2024-04-03T08:53:32","date_gmt":"2024-04-03T08:53:32","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/crisis-in-the-polish-wood-industry-but-signs-of-improvement-arise\/"},"modified":"2025-09-19T09:01:47","modified_gmt":"2025-09-19T09:01:47","slug":"crisis-in-the-polish-wood-industry-but-signs-of-improvement-arise","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/crisis-in-the-polish-wood-industry-but-signs-of-improvement-arise\/","title":{"rendered":"Crisis in the Polish wood industry, but signs of improvement arise"},"content":{"rendered":"<p>Poland's timber industry is grappling with a crisis. Reports of collective dismissals are emerging. Nevertheless, alongside these negative news, there are also signs indicating an improvement in the situation for this important sector of the Polish economy. <span id=\"more-35028\"><\/span>The growth of private consumption, both in Poland and abroad, may contribute to reversing the current trends. Polish companies are significant exporters in Europe, which presents an additional opportunity for the timber industry. There is also increasing interest in paper and wooden products as alternatives to those made from plastic. \"Eco\" substitutes are gaining popularity not only in Poland but also abroad, presenting an opportunity for Polish companies to increase their market share internationally.<\/p>\n<p>According to the Polish Chamber of Commerce of the Wood Industry, one of the key sectors of the Polish economy is facing increasing problems. The industry lists a long array of challenges, including:<\/p>\n<ul>\n<li>Rising operating costs, primarily due to increasing electricity prices.<\/li>\n<li>Monopolistic practices of State Forests.<\/li>\n<li>Restriction on tree felling for six months from January in ten areas of Poland.<\/li>\n<li>Issues with the certification of Polish timber.<\/li>\n<li>Unsatisfactory prices for timber.<\/li>\n<\/ul>\n<p>Concern is confirmed by data from the latest report by PKO BP Bank. The analysis indicates a decrease in profitability in this industry. In the third quarter of 2023, the sawmill industry recorded a negative net profit, and the sales profitability of wooden products manufacturers fell to an unprecedented level of 3%. Manufacturers of pulp and paper are also facing challenges, with the sales profitability index reaching 2.6% in the third quarter of 2023, and wooden panel manufacturers achieving 1.7%.<\/p>\n<p>Nevertheless, the authors of the PKO report also see signals that could contribute to improving the market situation. The analysis indicates an increase in profitability for paper product manufacturers (by 10.7%) and also an improvement in the average profitability of the furniture industry (5.9% ROS in the third quarter).<\/p>\n<p><strong>E-commerce as an opportunity for Polish smaller companies<\/strong><\/p>\n<p>\"In 2024, it is expected that the growth of private consumption in Poland and in the main export partner markets will contribute to reversing the negative trends in the timber industry. Poland is a leader in furniture exports in the European Union and the second-largest exporter of wooden products after Germany. Poland's value as an exporter of paper industry products is also increasing, especially in the production of paper packaging. The long-term trend of replacing products with a high carbon footprint with natural origin products also positively affects companies producing paper packaging,\" explains Pawe\u0142 Bilczy\u0144ski, Country Manager at Expandeco, a company that helps online stores expand their sales in foreign markets.<\/p>\n<p>It should be noted that Poland is not only the largest furniture exporter in the EU and the second-largest, after Germany, exporter of wooden products. Poland's importance in EU exports of paper industry products is also growing (6th place in the period I-III quarter 2023), particularly in the production of paper packaging (3rd place).<\/p>\n<p>\"Designers collaborating with Polish manufacturers can perfectly adapt to global trends and give products universal applications. As a result, their offer may exceed what is available in the local market. An example of such a situation is solid wood furniture. Although investing in furniture showrooms outside Poland can require significant financial resources and may not always bring the expected profits, it is worth noting that online sales are becoming increasingly popular. This applies especially to companies in the timber industry specializing in wooden accessories or paper products. However, furniture sold in self-assembly form also finds buyers online,\" says Pawe\u0142 Bilczy\u0144ski.<\/p>\n<p>Expandeco's expert emphasizes, however, that competition is fierce. At the largest furniture trade fairs in Pozna\u0144, interest in the Polish market was seen not only from Chinese manufacturers but also from Romania and Ukraine.<\/p>\n<p>\"They presented themselves as an alternative to local producers, so it can be assumed that they will not skimp on efforts to gain a place in Polish homes. While Polish exports to European markets cannot be an escape from the problem of growing competition, it is worth considering creating additional sales channels,\" comments Bilczy\u0144ski.<\/p>\n<p><strong>Financing investments in the timber industry<\/strong><\/p>\n<p>What challenges await Poland's timber industry? Limitations in timber supply, difficulties in finding employees, and economic slowdown are the main shortcomings of this sector. How can the current high pace of development in the industry be maintained, which in the case of the furniture industry is as high as 8% annually?<\/p>\n<p>What conditions must be met to establish oneself in foreign markets? According to an expert from Expandeco, a company should primarily have a strong position in the domestic market. Expansion, in his opinion, is not the right path for a company that is not performing well in the domestic market.<\/p>\n<p>\"We often confront our clients with the fact that if they cannot establish themselves in the domestic market, where they have the most know-how, know potential customers the best, and basically have no obstacles to conducting business, then why would they succeed in Romania or Germany, for example. Before expansion, it is very important to ask yourself what added value as a company we can bring to this market,\" warns Bilczy\u0144ski.<\/p>\n<p>However, analysis alone is not enough. Companies thinking about actively acquiring foreign customers must ensure their proper service. This involves several factors, such as preparing the offer and after-sales service. In the case of self-assembly furniture, well-prepared instructions for local customers, clear translations, and access to a hotline in the local language are also important. Logistics? This is a challenge for furniture companies, often sending products in large packages that exceed standard limits due to the length of elements or their weight. Fortunately, there are already offers available on the market from companies specializing in serving this industry, which understand its requirements well and can send two employees with transport who are able to carry furniture into the customer's home.<\/p>\n<p>\"At the Pozna\u0144 fairs, it was evident that Polish manufacturers are ready for expansion. They presented themselves as international brands. At first glance, it was difficult to guess the country of origin,\" says Bilczy\u0144ski and emphasizes that it is not always so obvious: \"Sometimes it is difficult to internationalize a Polish brand. Its name, sound, all communication tailored to the Polish market often has to be reinvented when expanding. I won't be overly innovative here if I say that international guests at trade fairs quickly directed their steps to the booths of companies whose name immediately 'told them something,' such as 'Versailles Furniture'\".<\/p>\n<p><strong>Wooden skyscrapers are already a reality<\/strong><\/p>\n<p>The PKO BP report discussing the situation in the timber industry also mentions other interesting factors that could affect its improvement. It is worth paying attention to several of them:<\/p>\n<ul>\n<li>Demand for carpentry - due to thermomodernization works, the industry can benefit from growing interest in carpentry. This is particularly important in the context of the so-called renovation wave.<\/li>\n<li>Timber construction - the increasing popularity of timber construction may contribute to the revitalization of the timber sector. An example is the wooden office building being built in Warsaw with four floors. This project has minimal environmental impact due to the use of wood instead of traditional concrete. Similar investments are also taking place in other countries, such as Scandinavia.<\/li>\n<li>Hybrid constructions: In Perth, Australia, a 191-meter high-rise building is being built. It will be a hybrid structure, where columns and the core of the building are made of reinforced concrete, while the remaining elements are made of cross-laminated timber (CLT) and glued laminated timber (glulam). Wood accounts for as much as 42% of the structure of this building.<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Poland&#8217;s timber industry is grappling with a crisis. Reports of collective dismissals are emerging. Nevertheless, alongside these negative news, there are also signs indicating an improvement in the situation for this important sector of the Polish economy. The growth of &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/crisis-in-the-polish-wood-industry-but-signs-of-improvement-arise\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83683,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-87439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crisis in the Polish wood industry, but signs of improvement arise - 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\/crisis-in-the-polish-wood-industry-but-signs-of-improvement-arise\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crisis in the Polish wood industry, but signs of improvement arise - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Poland&#039;s timber industry is grappling with a crisis. Reports of collective dismissals are emerging. Nevertheless, alongside these negative news, there are also signs indicating an improvement in the situation for this important sector of the Polish economy. 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