Italy is one of the leading producers and exporters of domestic and professional furniture. The fundamental sector in 2020 suffered a heavy setback due to the Covid-19 emergency. Production in the Wood-Furniture-Lighting sector is in fact expected to drop by 9,4% for this year, a percentage mainly influenced by the drop in exports.
These are the data contained in the Wood-Furniture-Lighting report elaborated by 24 ORE Ricerche e Studi in collaboration with the Mediobanca Research Area. A study that analyzes the financial statements of listed and unlisted companies over the last 5 years and provides initial hypotheses on the possible impacts and consequences of the Covid-19 emergency, with expectations for the current year in relation to turnover, exports and investments.
WOOD-FURNITURE-LIGHTING: ITALIAN EXCELLENCE
The world production of domestic and professional furniture is estimated at 481 billion dollars. Italy, together with Germany, is in fourth place in the ranking of world producers, with sales of 22,8 billion dollars. Only China, the United States and India can do better. As far as exports are concerned, Italy is in third position, with a market share of 6,2%. First and second place respectively for China (36,4%) and Germany (7,5%).
“Summing up all the links in the wood-furniture-lighting supply chain (from the processing of the raw material to the retailer that sells to the consumer), the ranking of the five largest European producers sees Germany in the lead with 73,8 billion euros, ahead of 'Italy which follows with 42 billion and which in turn precedes France with 33,5 billion”, reads the report. Italy is in second place in Europe for export volume (16,5% at 11,3 billion euros) and in first place in Europe for exports to non-EU countries with 27,9% of the total.
AN ANALYSIS OF THE SECTOR
There are a total of 428 Italian companies with a turnover of more than 10 million euros operating in the lighting and furniture production segments. These companies have developed sales of 18,6 billion euros employing over 72,5 thousand employees.
Speaking of size, in the sector the Italian-controlled medium-sized enterprises prevail with sales of 7,3 billion (39,1%) and the medium-large ones, also under Italian control, which invoice a further 7,4 billion (39,8%) . The high-end sector achieved sales of 3,8 billion (20,4% of the total), while small Italian-controlled businesses accounted for 2,7 billion in sales, equal to 14,6% of the total.
From a company profile, the report identifies 5 "top players":
- Saviola Holding which operates in the wood and derivatives sector at 606,8 million euros,
- Inca Properties (Friul Intagli) which produces other household furniture at 591,1 million, 3
- Natuzzi of the armchair and sofa sector at 428,5 million,
- Molteni, active in the living & sleeping sector, at 334,3 million,
- Fantoni (Novolegno), a wood and derivatives company at 331,2 million.
“In terms of specialization, the processing of the raw product and the production of semi-finished products Cuba sales of 3,9 billion. Among the finished furniture productions, the most representative is that which includes chairs, tables and accessories with 3,7 billion. Followed by contractors with 2,8 billion, lighting manufacturers with 2,1 billion and kitchens and upholstery both with 2 billion. The set of products for the living room and bedroom, including bedrooms for adolescents, is just below with 1,9 billion, while the turnover attributable to pure bathroom furniture manufacturers, limited to 256 million, appears more contained", analyzes the report .
COVID-19 EFFECT
The study hypothesizes two scenarios. In the first, due to Covid-19, the global wood-furniture-lighting supply chain will record a 2020% contraction in 10, for a turnover of 430 billion euros. In 2021 there will then be a partial recovery, while in 2022 turnover could reach 485 billion (roughly the level of 2019) and 555 billion in 2026, almost sixty billion below the level expected before the pandemic. In the second, less pessimistic scenario, the fall in world furniture production is in the order of 5%, with a terminal value in 2026 of around 570 billion euros, 15 billion above the worst case scenario, but still 40 billion below the level expected before Covid-19.
As regards Italy, as mentioned, a 2020% drop in production is expected for 9,4, while an increase of 2021% is estimated for 5,3.
“To guide the relaunch, companies in the sector have put in place a series of initiatives related to innovation, environmental sustainability, corporate image renewal and plans to address new markets and sectors. With the right tools and the right priorities, the wood-furniture-lighting industry will also be able to overcome this crisis, confirming its international competitiveness” concludes the report.
