GERMANY - The German furniture industry faces major demand challenges, reported Jan Kurth, Managing Director of the German Furniture Industry Association.

Orders to manufacturers are notably lower in some cases, prompting a revised 5-7% sales drop forecast for 2023. Factors include inflation and prolonged heating debates, causing consumer uncertainty. To counter this, policymakers seek to stimulate spending and construction.

Early 2023 data shows around 12% fewer orders for German home furniture, with upholstery down 10% and kitchen furniture dipping 2%. Short-time work is on the rise as a coping strategy. Supply issues have improved, but material prices remain high, while packaging and logistics costs escalate.

From January to June 2023, about 430 German furniture manufacturers with over 50 employees experienced a slight 0.2% sales decline. However, this figure doesn't fully capture the market's situation due to various factors. Domestic sales slid by 1.2%, while foreign sales saw a modest 2% uptick.

Within segments, kitchen furniture sales grew by 6.7%, but this figure is influenced by certain factors. Upholstered furniture sales dipped 0.1%, other furniture and parts decreased by 9.6%, and the mattress industry faced a significant 19.3% drop. Capital goods segments like office and contract furniture outperformed consumer goods.