BRAZIL - Furniture exports from the Bento Gonçalves, Brazil (RS) continue to improve performance in the first nine months (9M) of 2018. From January to September, compared to the same period last year, exports grew by 8.9%, from USD 26 million to USD 28 million.

Colombia and the United States were the highlights, being among the top five destinations for Bento Gonçalves furniture, in addition to Saudi Arabia, Chile and Uruguay, with significant increases in shipments in the period. India, Ecuador, Puerto Rico and South Africa also had important improvements in the period.

Despite the high growth of exports the International Director of Sindmóveis (Sindicato das Indústrias do Mobiliário de Bento Gonçalves), Leonardo Dartora, argued that the increase in prices and production costs end up canceling real growth for the furniture industry in Bento Gonçalves. According to Sindmóveis members, the sector has been impacted by cost hikes - up from 5% to 10% - in freight, electricity, and MDF and MDP panels.

Moreover, the increase in furniture accessories priced in dollars further impacted furniture manufacturers.

Sindmóveis works to leverage the international competitiveness of its members developing promotional actions and market research carried out by its International Committee. “The association celebrates the performance, but there is still a long way to return to the 2010 and 2011 levels, close to USD 60 million a year, and the pre-financial crisis of 2008/09, when the industry exported more than USD 80 million annually”, commented Dartora.