During the pandemic and after the start of the war in Ukraine, timber prices rose sharply, but now they have fallen. At the same time, the furniture itself has not become cheaper – on the contrary, prices are constantly rising, and less of it is being produced, Juris Griķis, head of the Furniture Manufacturers Association, told the Latvian Radio 4 program "Domskaya Ploshchad" (Dome Square). Rus.lsm.lv writes about this. The scale of furniture production has decreased by 15 percent. Some companies have sent employees on vacation, some are shortening their work shifts, and some are working 4 days a week. Now furniture prices have fallen slightly, but they are still unlikely to reach pre-pandemic levels. "In addition to raw materials, other factors also affect the final price. Electricity, logistics, salaries – all costs have increased recently," Juris Griķis explains. "The Latvian furniture industry works mainly for export," the specialist continues. "Our companies participate in the production chains of large furniture companies from Denmark, Sweden, Germany. The middle class of manufacturers is looking for its niche. Small companies are somehow trying to survive from order to order." According to Griķis, the industry is mostly hampered by the so-called garage workers – private individuals who make furniture in their garages using artisanal methods. Not only do these people not pay taxes, but they also often use "gray" raw materials – materials illegally brought from Russia and Belarus under the guise of, for example, Kazakhstani materials.
