Worrying situation on German market.

Situation on the market of the biggest Polish furniture industry partner that is Germany is worrying.

Germany is a strategic partner for Polish furniture industry, where in the previous year we sent about 40% of Polish export for 2,6 billion Euro. Unfortunately, we can’t say that this situation is optimistic. Turnovers are decreasing and furniture production value is falling down. It is direct result of situation on German domestic market and trade exchange Euro zone. Our earlier data from April confirmed. We mentined about decreases and slowdown forecasts and that the only chance for manufacturers are eastern markets.

The same chances are observed by German. According to information of the Fedral Statistical Office, in January and February turnovers for German manufacturers and non-euro zone countries increased – respectively plus 8,6% and plus 3,4% compared to the previous year.

Turnovers of furniture industry on German domestic market were negative – respectively -2,7% and -12,6% compared with the previous year. Little better results were observed  in turnovers with euro zone plus 1,8% in January and -12,2% in February.

The situation at the moment is not clear, whether the reason of production value decrease in Germany furniture industry is consumpion reducing by clients or displacement German goods by imported goods. Very likely is coincidence of both these factors. As a result, this situation may have different influence on situation of some Polish comapnies – negative if the company was a subcontractor of components or positive if we exported finished product.