It was explained that the largest increase in overdue debt was recorded by manufacturers of office and store equipment.
compared to last year, their debt increased by 40 percent, reaching PLN 116.5 million at the end of August. Two years ago, the debt stood at PLN 66.5 million.
As the report’s authors stated, this situation can be linked to rising energy costs, among other factors. In addition, it was reported that many furniture manufacturers, which have so far recorded stable revenues, are facing challenges such as downsizing or cutting operating costs.
It is worth noting that only between April 2022 and December 2023, as many as 18,000 full-time jobs disappeared in the furniture industry. This is almost the same as the number of vacancies for teaching positions in Polish state schools in August 2024, it was highlighted.
The number of vacancies for teaching positions in Polish state schools in August 2024 has been reduced.
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Problems have all sectors
According to data collected in the BIG Debtor Register and the BIK database, total outstanding arrears in the area of wholesale furniture, carpets and lighting equipment amounted to PLN 23.6 million at the end of August 2024 (up 12 percent year-on-year). A year earlier, it was PLN 2.5 million less. The number of unreliable company payers is 176 companies, and the average debt per one is PLN 134 thousand.
Also, the debt of the furniture and home furnishings repair and maintenance sector increased by 182 percent y-o-y, to PLN 37.1 million.
Citing data from the Central Statistical Office, the report relayed that the value of furniture production sold in the first half of 2024 amounted to PLN 28.4 billion, down 5 percent compared to the same period in 2023 (PLN 29.9 billion).
On the other hand, from data from the Economic Analysis Department of PKO Bank Polski published in the report +Furniture Industry. The International Position of Polish Manufacturers and Market Development Forecasts to 2027+ shows that in 2022 Poland was the 3rd largest furniture exporter in the world with a share of 5.4 percent.” – indicated.
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The report’s authors further cited data from Dun& Bradstreet, which show that nearly 1.9 thousand companies in the industry suspended operations in the previous year, (up 4.4 percent year-on-year). It stressed that another 1,000 companies suspended operations in the first half of 2024. “If the trend continues, more than 2 thousand suspended businesses in the furniture sector can be expected at the end of December,” it said. – it stated.
The BIK Group includes the Credit Information Bureau and InfoMonitor Business Information Bureau, as well as Digital Fingerprints. Operating since 2004, BIG InfoMonitor is a business information bureau that collects and provides information on the payment reliability of market participants. (PAP)
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