Tuesday, 9 September 2025
March brings attention not only to the budding trees of early spring but also to World Forest Day and Joiner’s Day, both of which highlight the importance of the woodworking and furniture sectors to Poland’s economy. These industries play a crucial role, providing significant employment and contributing considerable value to national production. However, in recent years, they have encountered mounting challenges—particularly furniture manufacturers, who have seen a sharp increase in financial strain. According to data from the BIG InfoMonitor Debtors Register and the BIK credit information database, the outstanding liabilities of furniture producers have surged by 23 percent over the past year, reaching nearly PLN 336 million.
The Ministry of Development and Technology recognizes wood as a strategically important raw material for Poland. The forestry and wood industry employs over 136,000 people and contributes meaningfully to GDP. Wood is also one of Poland’s key export products, valued both across Europe and globally. In light of this, the government has introduced new regulatory measures aimed at securing national forest resources and stabilizing the timber market. Among the key steps is the restriction of timber exports beyond the European Union, including to China, which had previously been the third-largest recipient of Polish timber. This change has dealt a blow to wood exporters, cutting them off from significant international markets. Furthermore, logging has been limited in 1.3 percent of State Forests, with additional restrictions on the horizon—measures that are likely to raise production costs and, consequently, impact both the prices of end products and the broader financial health of the industry.
According to Dr. hab. Waldemar Rogowski, chief analyst at BIG InfoMonitor, the wood sector now faces the pressing challenge of adapting to these regulatory shifts. The key issue will be striking a balance between preserving forest resources and maintaining the competitiveness of Polish firms on the global stage.
The furniture manufacturing sector, closely tied to the wood industry, is particularly affected. Poland remains a powerhouse in this field, responsible for 19 percent of all EU furniture exports, making it the region’s top exporter. It is also one of the most labor-intensive industries, meaning it is highly sensitive to wage increases and other rising operational costs. The sector is dominated by Polish-owned companies and is heavily export-oriented, with international markets accounting for nearly two-thirds of turnover. This makes it especially vulnerable to global market fluctuations, which are currently unfavourable.
Exports of Polish furniture to Germany—its largest market—fell by about 4 percent last year, while imports from China continue to rise. This shift has worsened the financial condition of domestic producers. At the end of January, debts in the furniture production sector (PKD 31) had risen to nearly PLN 336 million, an increase of almost PLN 63 million compared to the previous year. Office and shop furniture manufacturers are in the most difficult position, with long-term unpaid liabilities increasing by 46 percent to over PLN 118 million. Kitchen furniture producers fared only slightly better, seeing a 20 percent increase in arrears to just over PLN 67 million. The only subgroup that avoided further debt accumulation was mattress manufacturers, though they make up a small fraction of the industry.
Currently, almost 2,900 furniture companies—5.6 percent of the sector—are struggling with overdue payments, a figure that is one percentage point higher than the national business average. Many of these businesses are niche specialists producing specific types of furniture. Like many other sectors, furniture manufacturing relies on complex supply chains, with final products assembled through the collaboration of numerous subcontractors. This interconnectedness can lead to a domino effect of delayed payments. Research from BIG InfoMonitor indicates that nearly 57 percent of entrepreneurs dealing with frozen invoices report that such delays directly impact their ability to meet their own financial obligations.
Paweł Szarkowski, President of BIG InfoMonitor, emphasizes the importance of proactive debt management. He stresses that assessing clients’ payment reliability should now be standard practice in the supply chain, as it is key to maintaining financial stability in any sector.
While the woodworking and furniture sectors are closely linked, the new timber regulations could have paradoxical effects. On one hand, the higher cost of raw materials—particularly wood-based panels—and rising international competition, especially from China, pose challenges to furniture makers. On the other hand, limiting timber exports outside the EU might improve the availability of raw materials for domestic manufacturers, potentially giving them a competitive edge at home. However, this could come at the cost of timber producers losing access to valuable foreign markets.
Ultimately, both industries will need to adapt not only to regulatory changes but also to shifting consumer behavior. In the current climate of economic uncertainty, buyers are increasingly driven by price rather than quality. Preserving consumer demand while navigating the evolving regulatory landscape will be essential to the survival and future growth of both sectors.
Source: InfoMonitor
