That Serbia has become very attractive to foreign investors in the past decade is shown by those from France, Italy and Austria, but also many others, who have built factories with the goal of supplying the local market, but also the EU market and the growing market of Russia.
Serbia can serve as a manufacturing hub for duty-free exports to a market of more than 1.3 billion people that includes the European Union, the Russian Federation, USA, Japan, Australia, Kazakhstan, Turkey, South East Europe, the European Free Trade Agreement members, and Belarus.
– What’s interesting is that, just like in other industry sectors, there’s a lot of interest from furniture producers which have facilities in China in creating new production facilities in Serbia, in order to be closer to the EU and deliver their products to their clients in Europe without a problem – the Development Agency of Serbia says for eKapija.
Wood processing and furniture industry in Serbia consists of 3,734 companies
Out of the total area of 2,252,400 ha of forests in Serbia, 39.8% ha are state owned and 52.2% ha are privately held.
Serbia is among largest producer of sawn hardwood in the Balkans. Sawmills make up 49% of the total number of wood processing companies and at the same time, sawn wood accounts for 19,8% of exports in this sector.
The wood processing and furniture industry comprises 3,734 companies employing 52,041 workers.
More than 90% of enterprises are privately owned and mainly are located in the central areas of Serbia. The majority of these companies deal in timber and wood products, while the rest are engaged in furniture production.
The sector’s share in Serbia’s GDP is 1.4%, while the wood processing industry’s contribution to total export amounts to 7,5%, with an ongoing positive growth trend over the last few years.
Versatile furniture market
Serbia’s furniture market is a versatile market which generates many possibilities for furniture producers. All categories of furniture and furnishings are produced in the country, such as household kitchens, office, shop fixtures, hotels, restaurants, nurseries, and schools. Numerous companies also produce custom designed furniture.
Furniture is generally produced from particle board. Particle board is the wood product with the highest demand in Serbia, the brochure says. The demand for high-quality solid wood furniture is ever present locally, as well as on foreign markets.
No negative impact of Corona on the sector
The wood industry, especially the furniture industry, unlike many other sectors and fields, has not suffered any major negative effects of the Covid-19 pandemic. What’s more, the production of furniture in the international market is growing, the Development Agency of Serbia says.
Export-oriented companies from this sector, those who export to the EU anyway, operate without a problem and realize excellent results.
When it comes to the global wood industry, producers of upholstered furniture are mostly looking for locations to move their production.
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