Over the last few years the sector of the furniture industry in Ukraine demonstrates an active and steady growth. The dynamic development is observed not only in the production of furniture Ukrainian enterprises, but also in the marketing, import and export of manufactured furniture. Experts predict that the momentum of production and growth in the coming years. Volume growth for the following sectors: home furniture, office furniture, furniture for special purposes, is estimated at 10-15% per year. Continuing the trend to a decrease in the market share of the segment of cheap furniture and increasing the share of the segment mid-priced furniture. It is also predicted that the trend reduce the market share of imported furniture and the active trend of the market towards the redistribution of regional consumers.
The total number of enterprises for the production of furniture in Ukraine, about 8 thousand of them acting enterprises 3 thousand; large and medium – 2 thousand.
The basic countries – buyers of Ukrainian furniture are the CIS countries and the countries of Western Europe (triggered geographical proximity of these regions and the traditional focus on the near abroad). Exports of furniture products provides about a quarter of the companies involved in its production. The main exporters are large furniture companies.
Simultaneously, the annual decrease in the share of imported furniture on the Ukrainian market. Domestic producers displace imported furniture from the lower and middle price segments, reserving them mainly the segment of expensive furniture. The leader among imported products is furniture made in Italy. In addition, a significant share of imports accounted for furniture Belarus, Lithuanian, German, Polish, Romanian French, Finnish, Czech manufacturers.
In the next few years, experts expect continuation of growth of the furniture market. Furniture Company actively carried out the modernization of production capacities. Over the past few years, new equipment was purchased more than half of the enterprises. Enterprises purchased equipment, both domestic and foreign production. Most of the furniture industry enterprises engaged in their own development in order to improve production.
Today Ukrainian furniture companies operate mainly on the domestic production of raw materials. In the future it is expected to increase the proportion of domestic raw materials as a result of improving the quality of products Ukrainian enterprises – producers of raw materials and semi-finished products.
Although the investment of production of Ukrainian enterprises is carried out mainly at the expense of most businesses, but also the rise of foreign investments in the furniture industry. The major share of investment funds is sent by enterprises to purchase new equipment. Investments in technologies produce mainly large enterprises.
Prospects for stimulating the development of the furniture industry at the state level:
1. Create favorable conditions for the development of these sectors, enhance their competitiveness and export potential of the industry’s need to provide stakeholders the benefits and simplify customs procedures;
2. Development program for the woodworking and furniture industries to 2025 .;
3. Implement a policy to stimulate the activity of national enterprises exporters. For example, in the framework of export development policy of the two main tools you can use: technical consulting and assistance, as well as grants.
4. To limit the annual growth of furniture imports by the introduction of import duties at the rate of 10%;
5. Reduce or abolish import duties on hardware, accessories and equipment for furniture production;
6. Develop mechanisms for non-tariff protection of the domestic market.