„We are currently going through an unfavourable economic cycle, with a slowdown not only in furniture but also in other manufacturing businesses. The real estate market, which is directly linked to the furniture trade, has also slowed down due to higher interest rates. The economy has cooled down worldwide, but there are positive signs. In recent months, sales have stopped falling and have stabilised, which means that we may be bouncing back from the bottom. But the recovery will not be sudden. We forecast that we will see stronger growth in the beginning or middle of next year“, – says Raimonda Kižienė, the head of SBA Home, which unites 4 furniture manufacturing companies in Lithuania.
In the first half of this year, only the new Inno Line factory, the most robotised and automated in the region, was able to increase its sales among the furniture manufacturing companies of the SBA Group. By increasing its production scale, the company, which operates near Klaipėda, sold EUR 66 million worth of products, a fifth more than in the same period last year. Klaipėdos baldai's sales fell by just over a tenth to EUR 49 million. Visaginas linija generated revenues of EUR 32.5 million, one-third less than in the first half of 2022. Šilutės baldai sold €18 million worth of products. SBA company Kauno Baldai, a producer of upholstered furniture, generated revenues of EUR 14.2 million in the first half of the year, 5% less than at the same time last year.
According to Ms Kižienė, during this period, the companies are taking part in tenders for new products, preparing new energy-saving projects, preparing equipment for the production of new products, and meticulously assessing processes to increase efficiency.
„The upcoming winter and heating season will have a major impact on the European economy and the dynamics of new orders. Although Western countries have secured gas stocks, if the winter is cold and energy prices rise again, the recovery will be delayed because consumption will not grow as expected. It is, therefore, particularly important that the prolonged stagnation does not cause Lithuanian businesses to lose competitiveness in global markets, with all the ensuing consequences,“ said Ms Kižienė.
SBA Group furniture manufacturing companies will produce EUR 389 million worth of furniture in 2022, an 8% increase from EUR 361 million in 2021.
SBA Group operates in the furniture, textiles, real estate and investment management sectors. It exports its products to 50 countries worldwide, with consolidated group sales of €438.8 million in 2022.