How Can the Pandemic be an Opportunity for Local Furniture Producers?

At the moment, there are around 8,000 companies in Serbia that process wood. Of these, around 2,900 companies produce furniture, whereas the others either process wood or make products from wood.

The production of furniture, according to the data of the Statistical Office of the Republic of Serbia, recorded a growth of 10.1% in the January-May 2021 period compared to the same period in 2020. The hampered transport of goods from Asia could also be an opportunity for local furniture manufacturers.

– The potentials are opening for cooperation with the markets where a deficit in furniture and wood products is appearing due to the pandemic and the hampered transport of goods from Asia. This situation gives an opportunity to local producers of furniture and wood products to export their products primarily to the demanding markets of the EU states – Natasa Govedarica, the secretary of the Association for Forestry, Wood Processing and Furniture and Paper Industry at the Chamber of Commerce of Serbia, says for eKapija.

In the local market, a slight drop in the trade has been recorded compared to the summer months of 2020.

– This year, tourist trips were liberalized, so some of the funds that were invested in renovating the households last year were spent on summer vacations this year – she says.

Work force from abroad

The biggest problem during the pandemic is the increase in the prices of the raw materials and secondary raw materials which are used in the production, as well as the lack of certain materials which are procured from other markets.

Another big problem remains the lack of work force in all the sectors of the wood industry.



– Local companies are trying to get workers from abroad as well, so that the production processes would not suffer – Govedarica points out.

She adds that, due to the chronic lack of the work force, what’s needed are investments in the digitization of the production processes and continued investments in the education of the staff through dual education, and then later the academic education at the pertinent faculties.

– Certainly, investments and subsidies are needed in this industry sector – our interviewee believes.

The biggest potential for the development of the industry is the existence of the local base of raw materials, which need to be processed through local supply chains so that there would be a final product with a high added value at the end.

– This will achieve recognition of Serbian furniture when it comes to the quality and the origin, which in turn multiplies the product price relative to the primary processing of the raw material itself – concludes the secretary of the Association for Forestry, Wood Processing and Furniture and Paper Industry at the Chamber of Commerce of Serbia.

Udruženje za šumarstvo, preradu drveta, industriju nameštaja i papira PKS

Association for Forestry Wood Processing and Furniture and Paper Industry at the Chamber of Commerce of Serbia

Nataša Govedarica

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