Getting out of the industry crisis

One of the first industries where the financial crisis starts to go away, this is our wood industry.

Unlike furniture darvoprerabotvatelite slight push from the bottom, since they started the crisis in the mid last year and already the peak passes, told BTA Chairman of the Branch Chamber of woodworking and furniture industry Kalin Simeonov.
Over 50% of companies in the woodworking industry expect to increase our speed by the end of 2009 by 5 to 15 percent. About 30 percent of companies believe that they will maintain their current speed, and only about 5-6 percent decline expected. Increasing staffing levels by the end of this year nearly 30 percent plan. In 60 percent of the companies, however, lack of staff is a very big problem.
Over 70% of companies in this industry plan from 0,5 to 2,5 million investment by the end of the year, as they are mainly for technological renovation / 35 percent /. Operational programs will apply over 24 percent. By the end of the year fall in sales of furniture companies are likely to reach 40% due to a sharp decline in domestic demand, predicted Simeonov.
According to data from retail chains demand for furniture has fallen by 50 percent over the same period last year. This flies in the estimates of statistics by the end of last year, according to industry expectations were for 15-percent increase in furniture production, commented the head of the Chamber. By reducing the peak in construction and increased sales of homes with mortgages affect the domestic demand for furniture, comment from the industry. According to statistics, the production of furniture in Bulgaria in 2008 increased by 3.2%. In the summer of 2009 but sharply decreased demand for construction wood and wood many companies currently have difficulties.
In the furniture industry is currently experiencing a little better, but demand has fallen significantly. There was a decline of about 20-25 percent the price of the furniture. There are companies who are even ready to sell products below cost just to secure funding. Decline by about 25 percent and had orders for equipment of hotels, restaurants and retail outlets.
Development of exports of furniture and wood products from Bulgaria last year also showed a decline. Elements are mainly exported trucks, blocks and less wood construction. Exported from furniture chairs, upholstered furniture and solid wood furniture, mostly oak. By June of furniture imports declined by 40 percent and exports – by 30 percent. From the Chamber commented that the Bulgarian companies that produce furniture, export most of the production.
On timber imports fell by 50 percent, while exports from Bulgaria levels decreased by 8 percent minimum. Companies in the furniture industry have problems in securing raw materials from local sources because of the lack of a new Forest Act, says the chairman of the branch organizations. He explained that the Chamber has proposed changes in wording in the law which have not yet been approved by the government and this can happen as early as spring next year.

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Finance