RAW MATERIALS GETTING EXPENSIVE – SAVE ON DESIGN AND PRODUCTION

Rise – this word sounds attractive only in the context of the remuneration obtained. Unfortunately, this time it pertains to the rise in the prices of raw materials for furniture production. What are the reasons of this and how to tackle it?

EXPORT OF WOOD TO THE USA AND CHINA

The first signals concerning the reduced supply of raw materials for the production of furniture appeared at the beginning of 2020. The interruption of the supply chain and the uncertainty associated with future government decisions have led to a small confusion in the furniture production process. At the same time an increase could be observed in interest in purchasing from individual consumers who, forced to stay in their own houses on a long-term basis, started to invest in… furniture and the real estate market. An additional impulse to buying real estates is rising inflation and concerns about storing savings on bank accounts.

The increase in demand for furniture and apartments combined with a disruption in the liquidity of the production process in the furniture industry is not all. An enourmous demand for raw materials, especially wood, from the USA and China should be added to the puzzle. The demand generated by these countries has made Europe start exporting its raw materials there, thus contributing to the growing shortages in the domestic market. In May the shortages of raw materials reached such a level that, for instance, in Germany some companies simply had to suspend production.

INCREASE OF RAW MATERIAL PRICES BY 50–130%

What does it look from the numerical side?

In the last 12 months timber prices have increased by approx. 50%, wood-based panels prices have increased by 100%, and upholstery foam prices – by 130%. Currently the most sought-after goods are metal components and hardware; manufacturers complain about shortages of medium density and high density fibreboards, electronic components and packaging materials. The average price of wood in January this year amounted to approx. PLN 250 per m³ – currently it is ca. PLN 400 per m³.

DIGITAL TRANSFORMATION OF THE FURNITURE INDUSTRY

Prices increase, raw materials are missing – what next? We only have to look for savings at other stages of the process. Here it is worth noting what is hidden behind the buzzword to the furniture industry, i.e. digital transformation. A good software can increase productivity, speed up prototyping and production, eliminate production errors and losses, and in the end: quickly become a return as an investment and reduce operating costs in the furniture industry in the long term. Reduction of working time on average by approx. 60%, including saving the time of development of the 2D documentation by up to 99% compared to standard methods, possessing 100% of production data in a single place enabling generation of any technical reports and preparation of cost estimates are the advantages which are difficult to be passed indiferrently.

60% SHORTER FURNITURE DESIGN

WOODEXPERT serves as a comfortable platform connecting various components of the furniture production process: from the first project through the creation of a complete, uniform documentation, to the preparation of processing for NC machines. With just one program you can do more, better, and faster. Do you want to compensate for losses caused by interruptions of raw material supplies and make 2x more orders within the same time? Try WOODEXPERT. You can benefit from a monthly test period, free of charge and obligations, and – most importantly – only by the end of June you can get 50% discount for the purchase of a complete solution. Presentation of software capabilities is a 1.5 h meeting with our expert. This might be the 1.5 h of your time that will make your business rates healthy in the years to come on a fragile market, or you will just take over your competitors.