“The main problem is the lack of liquidities, which led to delays in paying suppliers, in cashing in invoices from clients, difficulties in reimbursing loans to banks, pressures from clients for lowering previously agreed upon prices by 10-15 percent, reducing the volume of sales on existing orders. Moreover, we have to make allowances for the gradual decline in orders on domestic and foreign markets and the increase in interest rates on granted loans,” Aurica Sereny, APMR’s President, told Business Standard.
Sereny added that the crisis will take its toll on local producers, considering that furniture consists of durable goods, which are purchased mainly in times of social and economic stability and prosperity.
Cristian Rusu, founder and General Manager of the Timisoara-based Rus Savitar furniture producer, with annual business in excess of €20 million, said that “many will not survive the crisis, because on this market a few months without sales means closing the business.”
Traditionally, furniture sales follow a seasonal trend, which translates into lower sales by June-July, then almost doubling in the second half of the year.
According to APMR, the value of the local furniture market amounted to €1.35 billion in 2008, 14 percent higher year-on-year. Domestic furniture production exceeded the €2 bln threshold, up seven percent. Imports cover 38 percent of the local market.
