Furniture imports from China have almost doubled in the last five to six years, and this is putting Bulgarian and European manufacturers under increasing pressure. The warning was issued by Prof. Dr. Vasil Zhivkov, Chairman of the Chamber of Woodworking and Furniture Industries, on the show “Business Start“.
“Over the last 5-6 years, imports from China have almost doubled – this is serious growth. This is pressure on the furniture industry throughout Europe. This is a prerequisite for closing companies, for reducing jobs“, said Zhivkov.
Chairs are among the most affected products
The most affected are manufacturers of mass and small-sized furniture, especially chairs made of beech, softwood and metal. The pressure is weaker in kitchen furniture, as they are usually made to individual sizes, have a higher complexity, and the transportation of bulky finished products is more expensive.
According to Zhivkov, the competitive advantage of Chinese manufacturers comes from cheaper metal, plastic and textiles, lower labor costs and large-scale technological modernization. At the same time, European companies are facing new requirements related to the environment and the circular economy, which are reflected in the final price.
The industry raises the issue of control
The chairman of the Bulgarian Furniture Industry Federation claims that there is not enough real control over the strength of imported furniture and the materials used. According to him, it is not clear whether the presence of harmful substances is systematically checked and whether the goods meet safety requirements.
„In practice, there is no control. At least I do not know that furniture is tested for relevant strength indicators upon import“, commented Prof. Vasil Zhivkov.The European furniture industry unites about 130,000 enterprises, provides employment to approximately 1 million people and generates over 100 billion euros in turnover. According to the Bulgarian Furniture Industry Federation, the pressure is already being felt in Bulgaria – Two-thirds of the companies surveyed reported a decline in production and sales, and 55 percent of exporters reported a deterioration in results.
They want European measures and reciprocity
Bulgarian manufacturers also link the state of the sector to the cooling of the housing and construction markets. After strong demand in the previous period, turnover and production volumes are decreasing, although the number of newly opened and closed enterprises remains relatively balanced.
The industry is urging the European Commission to take measures to protect local production. Among the options being discussed are import quotas and reciprocity, as European companies face serious requirements when trying to sell furniture on the Chinese market.
„Perhaps at this point one of the options is to have some kind of quotas. There should be some reciprocity in the markets, because if the import of Chinese furniture continues like this, at some point we will really be up against the wall“, Zhivkov warned.
Sources: plovdiv24.bg, bta.bg