The wood-furniture sector is facing a changing situation that is bound to continue throughout 2023. This is what emerges from the changes in wood and furniture turnover and production recorded by Istat in the first half of 2023, compared to the same period in 2022: wood turnover and production are at -14.9% and -13.9% respectively, furniture turnover and production are at -0.1% and -5.4%.

An uncertain situation that is also confirmed by the Monitor data processed by the FederlegnoArredo Study Centre, according to which in the first half of 2023, compared to the same period in '22, the wood-furniture supply chain will record an overall contraction of 5.9% with a negative trend for both the Italian market (-6.8%) and exports (-4.5%).

More negative data for the wood sector

The comparison between June '22 and June '23 also shows that it is the woodworking sector that has contracted the most in terms of turnover (-17.1%), to which must be added a very negative figure for production, which reached -13.9%. On the other hand, furniture turnover recorded -0.8%, while production was -5.1%. According to Claudio Feltrin, president of FederlegnoArredo: "If the significant drop in wood turnover can be partly ascribed to the slowdown in the growth of raw material and energy costs sustained in 2022 compared to 2021, the furniture production figure is a different matter, which is above all an indication of a slowdown in demand and exports of our products, even overseas. It is obvious that these two factors will in turn also affect the wood sector, which will begin to feel the effects of a reduction in production, once the demands of 2022, a year with above-normal performance, have been met.

Wood and furniture macro-system data

The overall trend is mainly affected by the wood macro-system, which declines by -12.6%, (-14% domestic sales and -8.3% exports), although with very different trends in the various sectors: from panels in sharp contraction to wooden roofing, structures and buildings, on the other hand, in growth.

The furnishing macro-system, which accounts for 62% of total sales, in the first six months of 2023 closed more or less in line with the same period in '22 (-1.1%): this was due in particular to lower exports (-3.3%) which cancelled out the moderately positive effect of the domestic market (+1.3%).

Forecast with minus sign

The survey indicates a negative year-end for our supply chain at -3.3%, with exports at -2.6% and the domestic market at -3.8%. In this case too, as far as the furniture macro-system is concerned, forecasts speak of a slightly positive total trend (+0.2%) thanks to the greater resilience of the domestic market (+1.3%) compared to exports at -0.7%, while the wood macro-system still sees a negative trend (-8.5% total) without substantial differences between the domestic market (-8.6%) and foreign market (-8.3%).

Companies slow down investments

Claudio Feltrin highlights the consequences that this situation will have for the sector. "It is not surprising that, according to our Monitor, 39% of wood-furniture companies are slowing down investments due to the situation of uncertainty compounded by the difficulty in finding financial resources at affordable costs, due to increases in interest rates and the drop in bank credit lines to companies, which is at its lowest level in over 20 years. In the first half of 2023, 85% of companies say they are affected by higher costs, and the proportion of those that have experienced an increase of more than 20% compared to the same period in 2022 rises to 21%, highlighting a trend that is still ongoing and worsening. Businesses (around 22%) are starting to show more difficulties in accessing credit and are trying to seek new credit facilities from other institutions to overcome the liquidity shortage. 25% are considering reducing credit lines and supporting growth with different resources, including those contributed by shareholders. Our companies,' Feltrin concludes, 'are ready to respond to yet another challenge by putting in place strategies not to suffer these consequences passively, but it is crucial to envisage investment support measures to protect the competitiveness of the entire sector.