ARGENTINA - The Report on the Situation of Argentine Wood and Furniture Sector 2015 is a document prepared by the Wood and Furniture Observatory based on the survey of members of the Chamber of Wood, Furniture and Equipment of Cordoba (CAMMEC), the Chamber of Wood and Related Products of San Francisco and the Chamber of Wood and Related Products of Rio Cuarto. 

It aims to provide information on the evolution of the main indicators of the sector in the fourth quarter of 2015, as well as evaluating the overall performance of the data in relation to 2014 and, finally, identify prospects for this year.

Among the most interesting results, it was revealed that an important number of companies increased their sales on the fourth quarter of 2015 compared to the same period of 2014 (43%).

Analyzing the employment figures, most of the companies surveyed had not incurred in layoffs or suspensions during the fourth quarter (over 70%), but there was an increased in the number of companies that have done so over the previous quarter. Only 23% of the companies surveyed reported hiring personnel during the last quarter of 2015.

With regard to production capacity, the companies indicated that they are currently using 70% of installed capacity, somewhat less than the previous quarter.

Referring to the evolution of the profitability of surveyed companies, 39% said they had suffered a decline in their profitability in the fourth quarter of 2015 compared to the same quarter of 2014. While several companies were able to maintain their profitability, this indicator only improved slightly this quarter against the previous quarter.

Comparing performance during 2015 against 2014, highlighted by the report is a stable sales performance and a significant decline in profitability. However, the sector managed to maintain a high level of investment and employment. Overall, 2015 was a better year for the sector, as indicators showed improved performance.

As for the sector's outlook for 2016 it is interesting that for the sales and investment, most companies (57.14% and 52.38%, respectively) said that these variables will have a moderate increase in 2016, while profitability and number of employees will remain similar to 2015 levels (47.62% and 61.90%, respectively). Finally, 38% also said they expect that the levels of profitability and employment will increased moderately in 2016.