Category: 2014

World production of furniture was worth about US$ 437 billion in 2013 (in current dollars at producer prices), doubling the value in the last decade. This estimate is drawn from the CSIL World Furniture Outlook 2014 report covering the 70 most important furniture producing countries. CSIL is an international furniture research organisation based in Milan, Italy, which also publishes the online World Furniture journal (www.worldfurnitureonline.com).

While economic indicators are beginning to turn upwards in the EU and market confidence is rising, these trends are filtering only very slowly into the European tropical hardwood trade. The latest EU trade data indicate imports of tropical hardwood products in the first four months of 2014 were 1.385 million m3 in roundwood equivalent terms, down 1% compared to the same period last year (Chart 1). Although imports of tropical hardwood sawn and veneer have increased this year by 3% and 14% respectively, these gains have been offset by declining imports of tropical hardwood logs (-34%), mouldings and decking (-3%), plywood (-8%) and glulam/window scantlings (-6%).

The European economy has climbed out of recession and, after six years of trauma, appears to be on the mend. The countries that required European Union-backed rescues are beginning to exit from them. However the latest GDP figures released on May 15 by Eurostat indicate that the recovery is very slow and tentative (Chart 1).

The latest EU trade data indicates that the tropical hardwood market started the year very slowly. In the first 2 months of 2014, EU imports of tropical hardwood logs, sawn, mouldings and plywood were all significantly lower even than in 2013, a year when tropical hardwoods were at a record low in the EU.

The EU imported tropical wood products with a total value of €1.91 billion in 2013, 12.6% less than the previous year[1]. Between 2012 and 2013, import value declined across all product groups including sawn wood (down 13.2% to €633 million), joinery products (down 8.8% to €208 million), plywood (down 5.6% to €206 million), mouldings and decking (down 26.4% to €177 million), veneers (down 4.9% to €168 million), flooring  (down 21.7% to €88 million), logs (down 15.6% to €83 million) and other products (down 8.8% to €347 million). EU tropical wood import value last year was around 50% of the peak achieved in 2007 and is the lowest recorded in recent years (Chart 1).

According to a preliminary estimate by Eurostat, GDP rose by 0.1% in the EU28 and fell by 0.4% in the euro area during 2013. Quarterly data shows that the European economy has been recovering slowly since the second quarter of 2013 (Chart A). Of the large EU countries, the UK was the best performing economy in 2013. The UK’s services and manufacturing sectors were the drivers of 0.7% growth in the fourth quarter, taking the annual growth rate to 1.9%, the strongest since 2007. In the euro-zone, 0.4% and 0.3% GDP growth respectively in Germany and France in 2013 helped offset further declines in Italy and Spain. However, all these economies were recovering slowly in the second half of 2013.

After record lows in 2012, the latest EU trade data indicates that imports of hardwood products from tropical countries fell even further during 2013. In the first 11 months of 2013, EU28 imports of sawn hardwood from tropical countries were 870,200m³, 8.2% less than the same period in 2012. Imports of tropical hardwood logs were only 170,900m³ between January and November 2013, 23.6% less than the same period in 2012. Direct imports of hardwood plywood from tropical countries (i.e. excluding imports from China) declined 4.8% to 1.14 million m³ during this period. Tropical hardwood veneer imports fell 7% to 251,500m³.

The recession in Europe has created many challenges for the European wood furniture sector. However the sector remains globally significant as a driver of design and production innovation. There are also signs that the international competitiveness of the European furniture sector is improving. 

While economic conditions varied across the EU during 2013, the latest European Commission (EC) data indicates 0% GDP growth for the region as a whole during 2013 (Chart 1).  That at least was an improvement on the 0.5% fall in GDP during 2012. The EC is also now confident that there will be a return to growth in 2014, albeit feeble at around 1.4%.

Reviewing the position of the tropical wood trade in Europe at the turn of the year is a sobering experience. Following the all-time low in EU tropical hardwood imports in 2012, all the signs are that imports in 2013 fell even further. In addition to low demand, an emerging problem has been the progressive erosion of the infra-structure to supply tropical hardwoods into Europe. Looking ahead, prospects for tropical wood in the European market do not look good. However, an increased focus on marketing and communication offers some grounds for optimism.