FederlegnoArredo In July-September Export Supply Chain Slowdown Continues

Rome, 23 January (Adnkronos/Labitalia) - Compared to the same period in 2021, the first nine months of 2022 saw a roughly 15 point six billion euro increase in exports of the wood-furniture supply chain throughout the entire Italian peninsula. Still encouraging, but highlighting the slowdown that has been occurring for some time: consider that in the six months from January to June 2022, the growth in exports of the LA supply chain was 18 percentage points, declining quarterly compared to the quarters of '21: from 21% in the first quarter, to 16 percentage points in the second, to 11 percentage points in July to September 2022.

According to data compiled by the FederlegnoArredo study center from Istat sources, which show the state of a sector primarily focused on exports and where Lombardy, Veneto, and friuli-venezia giulia account for nearly 70% of the exported value, the sector is doing well. With 18.8 percent of supply chain exports, Lombardy (3.7 billion euros) confirms a generally stable trend when compared to the results of January-June (19 percent) and July-September (18.4 percent).

When comparing the first three quarters of 22 to the first three quarters of 21, it decreases from 22.8 percent in January through March to 15.8 percent in April through June before increasing once more to 18.4 percent from July through September. The United States, the second largest market, saw growth of 30 point seven percent, followed by the United Arab Emirates, the tenth largest market, with growth of 27 point seven percent. It exports primarily to France (14 point five percent), but the United States saw the most consistent growth with that rate.

With 983 million euros in exports and a growth of 19 point 2 percent, Monza and Brianza province is third in Italy for export value. Veneto (3 billion euros), on the other hand, exhibits some signs of a slowdown, declining from 15.5 percent in January-June 2022 to 14.5 percent in January-September and then dropping to 12.3 percent in July-September. This represents a retreat of roughly 2 points from the first quarter (14.6 percent) and a significant 4 points from the second quarter (16.4 percent).

The primary market for the region's exports is Germany, where growth there is 19 point 1 percent, but Belgium, the region's seventh-largest export market, saw the highest growth among the most important nations at 20 point 5 percent. With 1.8 billion euros and an increase of 12.7 percent from the same period in 2021, Treviso continues to be the top-performing province in Italy for the export value of the wood-furniture chain.

The region with the highest percentage change in the first nine months of 2022 was Friuli Venezia Giulia (1.9 billion euros), with a 21, 7 percent change, but it was also the one that experienced the sharpest slowdown compared to the 25 percent of the previous six months. The first quarter showed a sharp decline compared to '21 equal to over 11 percentage points, followed by the second quarter with a 23.8 percent change, and the third with a 15 percent change. The United Kingdom takes first place among the top nations with a score of 28.5%.

Canada (92.7 percent), which is ranked seventh, and the United States (51.4 percent), which are tied for second place, have the best trends. With 1.2 billion euros in exports and a 27.2% growth rate, Pordenone is the second-highest exporting province in Italy.

"It is now evident that the growth trend is gradually slowing down across the nation, as well as in the key areas for our supply chain. Claudio Feltrin, president of FederlegnoArredo, states that the same 11 percent in July–September 2022, which was 18–14% in January–June, cannot make us sleep soundly because, as recent research and the Bank of Italy itself demonstrate, inflation is not expected to decline. Additionally, the turnover of businesses, particularly smaller ones, may be inflated by high prices and by the adjustment of price lists, which would significantly reduce growth and the margin.

He adds once more, "If Lombardy manages to maintain stability, greater signs of slowdown are recorded in Veneto and above all in Friuli Venezia Giulia. The merit of the Lombard estate, according to Feltrin, "is the daughter above all of the region's vocation for exports to the USA in the upper end of the range of furniture," he continues. "At the moment it remains premature to be able to give an unambiguous and'scientific' interpretation.

We must not overlook the fact that the effects of the conflict in Ukraine and the burden of high energy prices are felt much more acutely in Europe, as evidenced by data from the Veneto region, which still has its main markets in the older European markets, starting with Germany and France, he emphasizes. The president continues, "The 11 points that friuli-venezia giulia lost seem to find confirmation in the decline on the major outlet markets, starting from the United Kingdom where it has lost 6 and from the United States where it has lost 12 since June.

It is clear that the continuation of the conflict in Ukraine may benefit areas with their primary markets abroad or in developing nations outside of Europe that cater to affluent consumers and are less affected by the high cost of living, he says. With an increase of 16% from January to September 2022, the furniture sector will continue to be the most important in the supply chain in terms of export value (over 9 billion euros in total).

The sector had instead peaked in the first half of the year at 18%, before falling to 11% from July to September 2022. It is obvious that the continuation of the Ukrainian conflict could benefit regions that have their core business overseas or in emerging countries outside of Europe and are targeted at a high-end public, more free from the high cost of living," he writes. "This is broadly reflecting the overall trend of the wood-furniture supply chain, which is particularly devoted to furniture exports.

With an increase of 16% from January to September 2022, the furniture sector will continue to be the most important in the supply chain in terms of export value (over 9 billion euros in total). The sector had instead peaked in the first half of the year at 18%, before falling to 11% from July to September 2022.

It is obvious that the continuation of the Ukrainian conflict could benefit regions that have their core business overseas or in emerging countries outside of Europe and are targeted at a high-end public, more free from the high cost of living," he writes. "This is broadly reflecting the overall trend of the wood-furniture supply chain, which is particularly devoted to furniture exports. With an increase of 16% from January to September 2022, the furniture sector will continue to be the most important in the supply chain in terms of export value (over 9 billion euros in total).

The sector had instead peaked in the first half of the year at 18%, before falling to 11% from July to September 2022. Broadly reflecting the general direction of the wood furniture supply chain, which is particularly focused on furniture exports throughout Europe and targeted at a high-end audience, freer from the high cost of living, he adds.

largely reflecting the general direction of the wood furniture supply chain, which is focused on exports of furniture to various locations in Europe and targeted at affluent consumers who are less burdened by high living expenses, he adds. In terms of sectors, furniture is still the most significant in the supply chain in terms of exported value (over 9 billion euros in total) with growth of +16 percent in the period January-September 2022.

The sector had instead peaked in the first half of the year at 18%, before falling to 11% from July to September 2022. broadly reflecting the direction of the industry's supply chain for wood furniture, which is dedicated primarily to exports of furniture.

Still encouraging, but highlighting the slowdown that has been occurring for some time: consider that in the six months from January to June 2022, the growth in exports of the LA supply chain was 18 percentage points, declining quarterly compared to the quarters of '21: from 21% in the first quarter, to 16 percentage points in the second, to 11 percentage points in July to September 2022.