Russian furniture output surged

In January—September 2023, the Russian furniture output surged by 27.3% YoY, reaching 46.7 million pieces, as reported by Rossiyskaya Gazeta referencing the Association of Furniture and Woodworking Enterprises of Russia. In September 2023, the furniture output increased by 49% compared to last September. The Association forecasts that by the end of 2023, the furniture output in physical terms will surpass last year’s performance by 30.2%. According to Timur Irtuganov, Director General of the Association, the production output in January—September 2023 hit a historic high since at least 2005 and could even be an all-time record. At the same time, producer’s furniture prices have grown by only 1% in the domestic market since the beginning of the current year.

Indicators show that the return rate is extremely low in this industry, noted Alexander Shestakov, President of the Association of Furniture and Woodworking Enterprises of Russia. Meanwhile, 70% of equipment in the furniture industry is made in Europe; such machines are not produced in Russia. Every year, the need to repair the imported equipment increases. Enterprises are at the limit of profitability, and producers can no longer keep the same prices, he noted. This is why, according to Mr. Shestakov, prices of furniture products will start rising soon.