MILAN — FederlegnoArredo, the Italian federation of woodworking and furniture industries, said exports of its fine furnishings and wood were impacted by an economically “complex” second half of the year.
According to its most recent monitor report, the organization said turnover of the wood furnishing sector is expected to fall 2.7 percent, dragged down by sales of its wood industry, which fell 7.5 percent, while domestic revenues slid 8.9 percent and exports dipped 4.1 percent.
Sales generated by Italy‘s finished furnishings sector dropped 3.7 percent with exports falling 4.3 percent and domestic sales sliding 3 percent, according to preliminary figures prepared by FederlegnoArredo Study Center. The figures were based on data compiled by Italian statistics bureau Istat.
The 2.7 percent decline is a sharp pivot from a previous estimate FederlegnoArredo released in June, which pegged the rise in revenues at 1.5 percent in 2024, banking on a rebound of exports.
The sector was hit hard in 2023, plunging 8.1 percent to 52.6 billion euros, it said in February. High interest rates, inflation, rising shipping costs and a housing slowdown across Europe and the U.S. pushed furniture makers into negative growth in 2023.
The majority of Italy’s wood production takes place in forest-rich regions like Lombardy, which is also a heartland for luxury furniture companies.
“Businesses are confident in a small boost in the final part of the year which could herald a slow recovery in 2025,” said president of FederlegnoArredo Claudio Feltrin, on the January-September 2024 Monitor data prepared by the FederlegnoArredo Study Center on a representative sample of companies. The organization said that exports to countries like the U.S., the United Arab Emirates and Saudi Arabia are buoying the industry amid economic uncertainty.
Aside from charting new key geographic markets, Italian furniture companies have come together to help innovate the sector’s supply chain and create a circular economy as a united front. In October, industry leaders revealed the formation of the Extended Producer Responsibility Consortium; the concept was conceived and promoted by FederlegnoArredo and top furniture makers, with the aim of collectively tackling waste reduction and recycling of its end of life products and more.
FederlegnoArredo said that the National Furnishing System Consortium has 15 founding members, companies that collectively posted annual sales of about 2 billion euros.
