The woodworking and furniture technology sector continues to grapple with a challenging economic environment, as the industry sees its ninth consecutive quarter of reduced orders. This slowdown follows a period of exceptional growth in the two years after the pandemic, where the industry and the economy as a whole experienced a significant surge. Now, the industry appears to be resetting to pre-pandemic levels, with little sign of immediate improvement on the horizon.

Despite this downturn, industry leaders are urging caution against excessive pessimism. “We must not surrender to pessimism, as the values are remaining at significant levels,” said Dario Corbetta, director of Acimall, the association of Italian manufacturers. Corbetta pointed out that while global uncertainty is causing hesitation in investments in industrial equipment, the Italian woodworking industry remains a pillar of national excellence.



Latest Industry Data Reflects Continued Challenges
According to the latest quarterly survey by the Studies Office of Acimall, the figures for April to June 2024 indicate a 2.8% decrease in overall orders compared to the same period in 2023. International orders held steady, but domestic demand showed a further decline, with orders dropping by 5.9% compared to last year.

The orders backlog has also shrunk, with the average book now at 2.9 months. In terms of pricing, the industry has seen modest increases, with prices rising by 0.9% since January 1, 2024.

Industry Outlook: Stability or Further Decline?
The quality survey reveals a divided industry sentiment. Of the companies surveyed, 45% expect production to remain stable, while 50% foresee further reductions, and a small 5% anticipate growth. Employment outlooks are similarly cautious, with 80% predicting a stable workforce, while 20% expect cuts.

Inventory levels are also a key point of concern, with 55% of respondents reporting stable stock levels. However, 25% report a reduction in available stocks, while 20% have seen an increase.

Domestic and International Market Predictions
Looking ahead, the forecast survey suggests a continued cautious mood. Half of the respondents anticipate stability in the domestic market, while 45% expect further declines. Just 5% hold out hope for a short-term rebound. On the international front, there is a slightly more optimistic view, with 50% predicting stability, 35% expecting a downturn, and 15% believing global demand will pick up.

As the woodworking and furniture technology industry awaits signs of a more robust economic recovery, the emphasis remains on maintaining a steady course amid uncertain conditions. Industry leaders and businesses will be closely watching both domestic and international markets for any potential shifts that could signal the start of a recovery phase.

Source: acimall.com