Index

1
THE FURNITURE SECTOR IN EUROPA BART DE
TURCK SECRETARY GENERAL EUROPEAN FURNITURE
MANUFACTURERS FEDERATION Budapest November 23 2006
2
The Furniture Industry in the EU and in the
worldThe International Furniture
tradeDifference EU 15 - NMS HungaryUEA policy
and WFO
3
The Industry
4
FURNITURE GLOBAL PRODUCTION IN 2005
5
TOP 20 FURNITURE PRODUCING COUNTRIES.
6
FURNITURE PRODUCTION IN THE EU
In
In MIL
EU25 EU15 0.2
TOTAL 2005 PRODUCTION 93.4 BIO
7
2005 FURNITURE PRODUCTION IN EUROPEAN COUNTRIES
In
In MIL
8
TYPES OF FURNITURE MANUFACTURED IN EU25
9
MATERIALS USED
10
PRODUCTION COSTS
11
EMPLOYMENT EU 15
12
NUMBER OF EMPLOYEES / IN TOTAL INDUSTRY
TOTAL 2004 EMPLOYMENT 1.1 Mio PERSONS
13
HOURLY WAGES AND NOMINAL VARIATIONS IN
2003/1996
Variations /
Wages /
14
International Trade
15
FURNITURE GLOBAL TRADE IN 2005
16
TOP 20 FURNITURE EXPORTING COUNTRIES.
17
TOP 20 FURNITURE EXPORTING COUNTRIES. VALUE
18
TOP 20 FURNITURE EXPORTING COUNTRIES.VOLUME
19
FURNITURE EXTRA-EU EXPORTS
Mio Euro
20
FURNITURE EXTRA-EU IMPORTS
Mio Euro
21
FURNITURE TRADE BALANCE
Mio Euro
22
FURNITURE TRADE BALANCES
Mio Euro
23
Trade EU China
24
(No Transcript)
25
FURNITURE TRADE BALANCE - HU
01-08/2006 vs. 01-08/2005 X 8.7 M 10.9
Mio Euro
26
The Differences EU 15 - - EU NMS - Hungary
27
Variation production EU 15
28
Variation Production 5 years EU NM
29
Evolution production 5 year period EU 15
30
Evolution production 5 year period NM
31
Comparative productivity per employee
32
Trade balance EU 15
33
Trade Balance EU NM
34
Apparent consumption EU NM
35
Apparent consumption by Country
36
Market penetration EU 15
37
Market Penetration EU NM
38
Comparative overview EU 15 EU NM
39
COMPETITIVENESS EU25 HUNGARY2000-2005
40
(No Transcript)
41
Challenges for Hungarian manufacturers

• Increase productivity
• Improve product development and design
• Develop home market
• Develop closer relation with end consumer
• Create brands
• Participate in distribution
• Personalised products

42
UEA Policy and WFO
43
MISSION STATEMENT
44
UEA KEY ACTION AREAS

• Improve competitiveness EU furniture industry
  (offensive)
• Defend EU furniture industry against imports
  (defensive)

UEA Strategic axes
45
UEA priority actions
Promote cost reducing measures Lobby for labor
intensive industries Support networking and
co-operation Eliminate import duties Provide
information Promote EU furniture research
offensive
Representation Communication Research and
Innovation Co-operation
UEA strategic axes
UEA activity areas
defensive
Become more active in the design
protection Obtain better control and enforcement
of imports infractions Create an EU furniture
information label Create/use EU legislations
46
Strengths WFO

• Strength EU Furniture Industry
• Meeting point
• Net Working opportunity
• Information source
• Influence for EU industry on international level
  or in non EU countries
• Reinforcement of importance EU furniture industry

• Strength UEA
• International recognition
• Increased visibility
• Reinforcement position towards EC
• Reinforcement position against non members or
  other organisations
• Strengthening of position in relation to workers
  unions

47
Opportunities WFO

• Opportunities EU Furniture Industry
• Influencing international and non EU legislations
• Co-operation opportunities
• Elimination of all tarifs on materials and
  products
• Promotion and acceptance EU standrads
• Control respect legislation
• Defending level playing field

• Opportunities UEA
• Financial
• Orientation international agenda
• Closer relation and additional importance toward
  international companies

48
MARKET ACCESS
IMPORT DUTY RATES

• Furniture markets of interest
• Australia 5
• Brazil 18various taxes (up to 20)
• Argentina 18
• Korea 8luxury tax on expensive items
• India 15.15additional duties (up to 20)
• Indonesia 5 10luxury tax on expensive
  items

49
MARKET ACCESS
IMPORT DUTY RATES

• Furniture markets of interest
• South Africa 12
• Egypt 40
• Russia higher between 20 or Euro component
  (between 0.5 and 0.8 /kg) compulsory
  certificate of conformity
• Ukraine from 6 to 15

50
EU IMPORT DUTY RATES PARTS AND HALF FINISHED
PRODUCTS

• Some examples
• Particleboards/Fibreboards 7.5
• Plywood 7.0
• Aluminium 6.0
• Woven cotton fabrics 8.0