This year is likely to be a transitional and strengthening phase for the furniture industry of Latvia, where growth will be selective and depend on the ability of companies to adapt to new market and regulatory conditions, said Ieva Erele, Executive Director of the Latvian Furniture Manufacturers Association, to the LETA agency.
She noted that the domestic market will remain at the same level with activity in certain segments — in the areas of renovation, public procurement, and specialized projects — but without significant growth in overall turnover.
Erele also explained that previously made investments in production modernization, energy efficiency, and digitalization will begin to yield practical results in increasing productivity and stabilizing costs. Companies that invested in these processes in a timely manner will gain competitive advantages.
On the other hand, the greatest challenges for the industry will be the implementation of EU and local regulations, access to financing, maintaining profitability, and the availability of labor against the backdrop of ongoing market uncertainty, Erele emphasized.
She reported that in the short term, the priority for the industry is to ensure stability, which includes both dialogue with government institutions regarding public procurement practices, where quality, reliability of supply, and proportionality of sustainability criteria are assessed alongside price, and cooperation with the financial sector to improve access for manufacturing enterprises to working capital.
In the medium term, it is important for the industry to strengthen competitiveness, which means investing in labor availability and skill development, as well as significant productivity growth through automation, digitalization, and energy efficiency solutions, Erele emphasized.
In the long term, according to the association, it is crucial to strengthen the ecosystem in which exporters, small and medium-sized enterprises, and specialized subcontractors work complementarily.
Erele noted that this year growth will be uneven and will focus on those companies that are actively working to enhance competitiveness, productivity, and market diversification.
Overall, the industry has endured a very difficult economic cycle, and the current situation rather reflects a phase of strengthening before the next stage of development, Erele stated.
The "Latvijas mēbeles" association was founded in 2001. Its members produce upholstered furniture, beds and mattresses, solid wood furniture, glued bent furniture, case furniture, specialized furniture, as well as various furniture elements, components, fittings, interior elements, and other products.
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