Great Export, Little Money

The euro/leu currency rate is troubling the furniture manufacturers. Even though the euro fees they receive have increased by approximately 9.7%, the RON (Romanian New Leu) fees have actually decreased.

The value of the exports in the first months of the year have showed an increase by 9.7%, as far as the foreign currency is concerned, in comparison to the similar period of 2004, according to the data from the National Statistics Institute. The furniture manufacturers say that the currency rate, the increase in the price of the utilities and in the price of the used wood have seriously affected their incomes, in comparison to the last year. $53.5 million euros have been cashed in from the export in the first six months of this year, in comparison to the same period of the last year, when 423.2 million euros were cashed in. The average leu/euro currency rate of the Romanian National Bank of the first six months of 2004 was 40,621.3 lei/euro, different from 36,890 lei/euro rate of this year.

"If we do the computation in the national currency of the sums cashed in from the furniture export, we will see the important sums that were lost", Aurel Rizea, the president of the Association of the Furniture Manufacturers in Romania, stated. He says that 6.5 million euros worth of contracts were lost since the beginning of the year and 650 millions have been cashed in during the first eight months of the year.

EXPORT ADDICTED. "The furniture export represents 75% of the production and last year’s main clients were France (18.3%), Germany (17.0%), Italy (12.5%), Holland (8.1%), Austria (7.6%) or England (7%)", Rizea explained. According to the data supplied by the Association of the Furniture Manufacturers in Romania, 86% of the furniture production went to the EU states last year. The main competitors that threaten Romania in Europe are Poland, the Czech Republic, Slovenia and Slovakia. "The wood and furniture industry is a competitive segment. We hope to see an increase in the furniture export this year, in the same way we did in the past years", Aurica Sereny, the deputy general director of the Ministry of Economy and Commerce (MEC), stated.

PREFERENCES. The foreigners prefer the furniture made of massive wood panels. The Romanian manufacturers produce classical pieces of furniture, like the old styles, as well as modern pieces of furniture, so that they are able to cover the demand of the clients in the internal and external market. Romania exports mainly pieces for classical living rooms and bedrooms, which are made of valuable wood (oak, cherry, linden, nut tree etc.)

SUPPORT. "They say a company that doesn’t take part in fairs and exhibitions doesn’t exist", Colev Cornel, the director of the Association of the Lumbermen in Romania, said. MEC has a program to support the furniture manufacturers in their going to international fairs and exhibitions. "The state gives a subsidy of 90% of the expenses of the producers that want to go to furniture exhibitions in Moscow, Köln etc. This year, the funds for this segment reach 40 billion lei" Aurica Sereny stated.