Saturday, 18 May 2024
Wood Industry Struggles with Export Decline, Import Surge: Croatian Chamber of Economy Reports Canva

Wood Industry Struggles with Export Decline, Import Surge: Croatian Chamber of Economy Reports

Written by  Apr 15, 2024

With approximately 2300 businesses engaged in wood processing and manufacturing, employing around 30,000 workers, this economic sector is increasingly facing liquidity problems due to a decline in exports while imports are rising, as emphasized by the Croatian Chamber of Economy.

The situation in the wood processing industry is not promising, as indicated by data from the Croatian Chamber of Economy (HGK) presented to Hina, showing that in 2023, the turnover and revenues of the largest wood processors fell by as much as five to 55 percent, averaging 30 percent.

Additionally, orders in all major assortments for the year 2024 have declined, making yearly planning uncertain, and there is pressure to lower prices. Manufacturers have already reduced prices during the past year, but the tension persists, and it is becoming questionable whether there is room for further price reductions. In these circumstances, companies are striving to maintain employment, and due to the aforementioned circumstances, a large number of them are facing liquidity problems and increased inventory, leading to requests for measures to maintain liquidity, according to the chamber.

According to data for the year 2023, Croatia exported wood, wood products, and furniture worth 1.4 billion euros. Compared to 2022, exports decreased by 15 percent, or 253 million euros.

Raw materials, namely wood and wood products, were the most exported, totalling 1.1 billion euros. Finished wood products, namely furniture, amounted to only 333 million euros, resulting in a ratio of 77 to 23 percent in favour of raw material exports.

Sawn timber was exported worth 454 million euros, while firewood and pallets accounted for 167 million euros. Regarding furniture, seats were the most represented in exports, with 160 million euros. The export of other furniture and its parts amounted to 132 million euros.

On the other hand, in 2023, Croatia imported wood products and furniture worth 1.1 billion euros, an increase of three percent, or 34 million euros more compared to the previous year. The share of wood products in total imports is three percent. Mostly, furniture and its parts were imported, totalling 324.8 million euros.

The leading import markets highlighted by the HGK are Bosnia and Herzegovina with imported goods worth 153 million euros, followed by Austria with 146 million euros, Italy with 125 million euros, Germany with 117 million euros, and Slovenia with 112 million euros.

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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