Approximately 66,500 companies (14.8 percent of the national manufacturing sector) and 300,000 employees, (8 percent of the national manufacturing sector) a turnover of 52.7 billion euro (4.2 percent of the national manufacturing sector) exports (38 percent of turnover) that is close to 20 billion euro, the domestic market (62 percent of turnover) just under 33 billion euro and a trade balance of 8 billion euro.
These are the figures from the final figures drawn up by the FederlegnoArredo Study Centre that take a snapshot of the wood-furnishing supply chain in 2023, on the eve of the 62nd edition of the Salone del Mobile.Milano, scheduled from 16 to 21 April at Rho Fiera.
Overall, the turnover of the supply chain closes 2023 down by 7.8 percent after two years of growth, thus dropping from 57.2 billion euro in 2022 to the current 52.7; the domestic market (32.8 billion euro) records -9.6 percent, while exports close with -4.6 percent.
The trend in the wood macrosystem (EUR 21.6 billion) is mainly impacted, which decreases by 10.5 percent. The overall figure is determined by the domestic market at Euro 16.5 billion (76 percent of the total), which is down 11.5 percent, while exports at Euro 5.1 billion (24 percent of the total) are down 7.2 percent. While the furnishings macro-system (€27.8 billion) records a smaller drop of 3.8 percent, but still well above 2019 levels with a similar trend for the domestic market (€13.1 billion) and exports, which account for 53 percent of the total (€14.7 billion) at -3.7 percent and -3.8 percent respectively. The trade balance remained at the previous year’s level (+0.1 percent), with a total value of over EUR 9.7 billion. The performance of timber trade was negative (almost 3.3 billion) at -20 percent.
“There is no surprise in these numbers, which indicate a physiological slowdown after two years that were truly above expectations,” comments FederlegnoArredo president Claudio Feltrin. “What’s more, despite the -7.8 percent of the supply chain, both the Italian market and exports remain above the pre-pandemic levels of 2019, demonstrating precisely that the increase recorded during the previous two years was an extraordinary event, difficult to repeat.
Looking at our data in more detail, it is clear that the drop in turnover is mainly to be found in the domestic market, due to multiple factors: the gradual downsizing of tax incentives in the construction sector, the consequent contraction of the residential market, the erosion of household purchasing power due to the run-up in inflation, and interest rates that still show no signs of abating.
On the export front, in spite of the complicated geopolitical situation, our supply chain can be said to have held up, containing the contraction to 4.6 percent, maintaining a value of around EUR 2.8 billion above 2019 levels. Even the trade balance of the supply chain, thanks mainly to exports of the furniture macrosystem, exceeds 8 billion euro, up 16.7 percent compared to 2022, demonstrating how much the value of our Made in Italy is recognised and desired all over the world. The trade balance of the furniture macrosystem confirms this, touching almost 10 billion and remaining stable compared to last year“.
The year 2023 therefore ended with a negative sign, after two years of relentless growth, in which the inflationary weight certainly also had an influence, turning growth into turnover growth, rather than volume growth, as shown by the ISTAT data on industrial production. It can be seen that the change in turnover 2023 compared to 2019 is mostly attributable to price increases, while the difference between the trend in turnover and the trend in industrial production in the comparison between 2022 and 2023 is only partly attributable to prices. As far as wood is concerned, in the comparison between 2022 and 2023 there is no significant difference between the turnover index (-14.2 percent) and the industrial output index (-14.3 percent), while the change in turnover 2023 on 2019 is +26.2 percent in contrast to an essentially in line output (-0.9 percent). As far as furniture is concerned, the indicators highlight that, while compared to 2022 the 2023 turnover is slightly down (-2.5 percent) but at levels well above the pre-pandemic levels (+25.4 percent), production in comparison with 2022 is at -4.7 percent, while on 2019 it is tapering off to close to zero (+0.9 percent).
“Now the Salone del Mobile.Milano is just around the corner and we know that this appointment will give lifeblood to the sector, especially in terms of exports. Because buyers, architects and designers from all over the world come to Rho. And it is precisely to the second half of the year that we must look to return to positive thinking and assume that the albeit physiological downward curve has come to a halt. We want to think so because optimism is a bit of the ‘madness’ that characterises us entrepreneurs, but also because it is the data from our Monitor that tells us so. From the representative sample of companies,” anticipates President Feltrin, “forecasts for 2024 for the supply chain speak of +4.5 percent overall, broken down into +8.5 percent exports and +1.7 percent domestic market.
Specifically for the furniture macro-system, the estimate speaks of +6.4 percent overall, equal to +10 percent in exports and +2.9 percent in the Italian market. For wood the forecast is more moderate: +1.5 percent total, +4.9 percent export and +0.2 percent domestic market. The hope is that these estimates can be confirmed, in the knowledge that it is now truly complex, not to say impossible, to make long-term forecasts, given the unstable international panorama. All the more reason to continue focusing on the excellence of our products, which can count on a short national supply chain of absolute value and versatility“.
BATHROOM FURNITURE
After two years of strong dynamism thanks to the extraordinary performance of the residential sector, as the final figures of the FederlegnoArredo Study Centre show, in 2023 the bathroom furnishing system will contract by 4.5 per cent. However, the sector remains at €4.2 billion in turnover, above the pre-Covid figure of €3.4 billion. The decline in exports was more marked at Euro 1.7 billion (-6.9 per cent), accounting for 41 per cent of the total turnover, while sales on the domestic market fell by 2.8 per cent to Euro 2.5 billion (59 per cent of turnover).
Exports of the bathroom furnishing system recorded a negative sign in all the main destinations, especially sales to Germany (-11.8 per cent for 269 million euro), which became the second market behind France (271 million, -3.8 per cent). The United Kingdom (EUR 94 million) and Switzerland (EUR 88 million) were stable in third and fourth position respectively. There are 22,898 employees and 923 companies.
“The International Bathroom Exhibition, at its tenth edition, confirms itself as the most prestigious event for our sector and expectations for 2024 are of a recovery on the markets, supported by the many new products that will be presented. This is highlighted by the fact that 70 per cent of the visitors to the Salone del Mobile are foreigners and 30 per cent Italians,” says Elia Vismara, president of Assobagno of FederlegnoArredo. “We will enhance the bathroom product by offering a truly integrated proposal. And we are pleased to welcome to the fair the institutional presence of distribution with Angaisa, an agreement that enriches the offer and demonstrates our ability to work as a system. The companies will present the excellence of the bathroom system in all its components: design, materials, integration from a technological point of view linked to the theme of sustainability. The pavilions have registered a sold-out of the exhibition areas: we expect great interest from visitors from all over the world“.
KITCHENS
Whereas in 2022 the turnover of kitchens, thanks to excellent results both on the domestic and foreign markets, had been close to EUR 3 billion, in 2023 it will drop slightly by 2 per cent, although it will remain at a very high level (around EUR 2.94 billion). Production for the Italian market (around 2 billion euro) is the main cause of the contraction at -3.1 per cent, while exports remain stable at 35 per cent with 1 billion euro.
France remains the leading market, stable at 196 million euros, a share of about 19 per cent of total exports, followed by the United States with 151 million and +10.2 per cent, and Switzerland in third place with 74 million and stable compared to 2022. Germany is in fifth place with -11.6 per cent and an export value of EUR 50 million. China is seventh with Euro 33 million and registers +8.1 per cent, while Russia drops to ninth position with -13.3 per cent. There are 10,878 employees and 591 companies.
“Over the last year, Italian kitchens have achieved a remarkable result, considering the general economic context, namely the stability of sales abroad compared to 2022. This is an important signal, which is also the result of the sector’s ability, which should not be underestimated, to meet the challenges related to assembly processes and after-sales service. This creates the premises for a future of global expansion,” comments Edi Snaidero, advisor in charge of FederlegnoArredo’s Kitchens group. “There is great technological progress taking place, especially in the area of household appliances. In addition, we are witnessing a change in living requirements: kitchens are expanding towards the living area. Consequently, both the design approach and the design proposals have changed. Flexibility has become essential, and Italian companies in the sector will bring customised solutions to EuroCucina, ready to respond to the changes and demands of the different markets.
