romania

Asian competition and tax burden threaten Romanian furniture manufacturers

Article by Philipp Matzku (adapted for holzkurier.com; translated by Eva Guzely) | 16.06.2025 - 11:47

The furniture industry is one of Romania’s strategically important industries and contributes approximately €1 billion annually to the country’s trade balance. Over 90% of the produced furniture is exported – to more than 120 countries worldwide. The industry generates an annual turnover of approximately €2.5 billion, with 55% added value and approximately 200,000 people who are employed directly or indirectly in the furniture and wood sector, as zf.ro reports.

Between 2016 and 2024, production value fell by 35% due to higher costs for energy, raw materials, transport, and personnel. Profit margins are said to range from only 2 to 5% at the moment. According to the APMR (Asociaţia Producatorilor de Mobila din România), the frequent changes in tax policy are particularly problematic since they undermine planning security. Also, tax increases can no longer be dealt with without cutting wages, investments, or jobs.

According to the APMR, Romanian furniture manufacturers are in direct competition with low-cost, state-supported suppliers from Poland, Vietnam, China, and Turkey, and they are also suffering from US protectionism and Asian subsidies.

The association currently has 373 member companies, including 232 furniture manufacturers and designers. To maintain the industry’s competitiveness, the APMR calls for targeted measures such as investments in skilled labor training, promoting innovation within companies, improved access to affordable energy, and a coherent export strategy under the “Mobila Româneasca” label.