Wood construction against the general situation in the construction industry in 2022
The latest CSO data on the construction sector are not optimistic. In May this year, the general business climate index stood at minus 14.0 (in April it was minus 15.4). An improvement in the business climate was signaled by 8.8% of companies, while its deterioration was signaled by 22.7%.
How does this look in the furniture and woodworking industry?
The wood construction industry and the furniture sector are also not immune to factors affecting other players in the market. However, we can see problems persisting as a result of the pandemic and the war in Ukraine. Payment difficulties are the most common.
Furniture manufacturers have been at the forefront of global and European rankings for years. In the “Polish Furniture Outlook 2022” report, the sector’s production value amounted to 46.9 billion zlotys.
However, according to the National Debt Register, things are not so optimistic. Furniture companies have nearly 92.8 million zlotys to repay.
There are more than 3,200 furniture companies in the KRD. According to this statistic, 2312 entities are woodwork manufacturers. The average debt is 29 thousand zlotys. The largest number of companies in arrears is based in the Wielkopolska and Mazovia provinces.
The KRD reports that the trade is waiting for the return of 11 million zlotys of debts from furniture manufacturers. Banks, meanwhile, are waiting for more than 45 million zlotys.
The increase in employment costs …
Financial troubles are not only about arrears, but also a significant increase in employment costs. The burden of mandatory contributions, rising inflation, and the resulting expectations of employees are being hit hard by companies in the wood construction and broader carpentry industries.
Increasingly higher taxes
Representatives of the real estate development industry, interviewed by money.pl, pointed out at the beginning of 2022 not only the increase in the cost of doing business. Also, the mandatory contribution to the Developers’ Guarantee Fund has caused costs to rise. This, in turn, entails an increase in prices, which at some point could result in serious problems with sales.
2022 under the sign of shortages
During the pandemic, we strongly felt the broken supply chains. Now, the shortage of raw materials needed for production is also adding to the problem. This condition is felt most acutely by furniture manufacturers. The concern is compounded by the fact that the largest suppliers of plywood and wood-based panels were located in… Belarus, Russia and Ukraine. The war has called into question further cooperation and the availability of basic materials for production. Worryingly, there is no change for the better on the horizon so far, nor a direction that could 100 percent guarantee the availability of basic goods.
What do manufacturers and investors choose?
Market analysts forecast a decline in GDP at the end of the 3rd and beginning of the 4th quarter of this year. Many are wondering, how can this be remedied?
Manufacturers and investors are trying to confront the problems in different ways. Above all, 2022 appears to be the year of conscious choices of ecological, energy-saving and ergonomic solutions.
Investors and designers are betting on ideas that bring us ever closer to energy self-sufficient construction. An example of such a solution is modular wood construction.
This type of construction has many advantages. First of all, it is faster than traditional ways of putting up houses. By combining several or more elements, the manufacturer is able to erect a house practically on the spot. Many builders, when deciding on modular solutions, also do so because of the quick possibility of arranging the space. If the project requires it, a given modular building can be enlarged or reduced in a short time.
Modular construction means lower costs – both in materials, transportation and manpower.
Also important from an ecological point of view is the fact that modular construction leaves virtually no residue on the construction site to litter the environment.
Among the many products in its portfolio, Marcopol has a wide range of structural fasteners for the wood construction and furniture industries.
Our flagship product is, of course, screws. Those for joining wooden structures, structural nailing connectors, screws for reinforcing cross sections of wooden structural elements, screws and threaded connectors for connecting beams and girders, and elements for anchoring load-bearing wooden beams.
Recognized recently by professionals in the Building Brand of the Year ranking, they are an interesting solution in the modular solutions industry.
Marcopol, as a leader in solutions for the furniture industry, also has solutions dedicated to the industry. Wood screws, tempered wood screws, slides or hinges – these are just a small part of the products available off-the-shelf and at good prices for furniture manufacturers.
Marcopol with an idea for the crisis
As Marcopol, we operate in many different industries. Whether it’s modular construction, furniture manufacturing, retail or a range of other activities, we have a broader view of the market and the challenges that await us in the near future.
One answer to the problems described above may be IDEA’s consignment warehouse offering. Although the service itself is already several years old, we can quickly and effectively solve supply problems in both large and smaller companies. Especially the latter, including those in the construction industry, can benefit from our proposal.
What are the benefits of IDEA depots?
– incurring costs in accordance with the actual use of the products, rather than with their one-time overall purchase,
– Purchase planning and more efficient procurement,
– Reducing inventory-related costs,
– Automatic generation of orders and analysis.
Also important in difficult times are state-of-the-art machinery, a skilled team of employees and production facilities to respond to changes.
The use of our technical and commercial experience is also an unquestionable opportunity. What solutions to use in a given investment? Is there an opportunity to optimize costs? These are just some of the questions that together we can find answers to.
