In 2024, Ukrainian furniture manufacturers exported products worth $909 million, which is 15.5% more than the previous year, as reported by Oksana Donskaya, a board member of the Ukrainian Association of Furniture Manufacturers (UAM) and an export expert, to the Interfax-Ukraine agency.
"Together, the woodworking and furniture industries rank among the top 10 commodity groups in exports, accounting for 5.7% of Ukraine's total exports. I am confident that we will maintain the upward trend in furniture exports, and there is a chance that we will surpass the $1 billion mark this year," Donskaya stated.
This optimistic forecast was explained by the trends in the global furniture market, which has returned to growth, particularly in European countries, with increases of 8 to 10% per year.
"Another positive factor is that IKEA is returning to us for the procurement of a fairly wide range of furniture. At the same time, we are seeing an increase in the number of exporters to large companies. This applies to both small and medium-sized businesses, which are compelled to export due to a significant contraction of the domestic market," she noted.
According to her, experts had estimated the capacity of the domestic market at $1-1.2 billion before the war, but it has now halved to approximately $500-600 million.
Despite this, Ukrainian furniture manufacturers achieved export growth in 2024 amidst a labor shortage (estimated by producers to be 30-40%). Grant support from both the government and international donors helped them optimize production costs and maintain competitive pricing, allowing them to upgrade equipment in their factories and increase productivity. Donskaya estimates that around 50 of the most active producers (out of approximately 11,000 enterprises) attracted state assistance, a significant portion of which aimed at scaling up from small to medium-sized businesses. As for microbusinesses, they actively sought narrow specializations and partnerships.
Industry associations, both nationwide and local, played a role in addressing labor issues and stimulating exports. According to Donskaya, thanks to UAM's training programs, more than 800 people have been brought into the industry since December last year, and the furniture school has graduated 295 equipment operators and furniture designers. The project to promote exports has also shown positive results. "Participating in an international exhibition with a separate stand is expensive and not accessible to everyone. However, joining a few square meters in a national exposition is feasible. Thanks to this program, over 200 companies showcased their products at international exhibitions in Poland, Germany, the UK, Italy, and the UAE," Donskaya reported. Additionally, the issue of training and staffing was addressed by individual furniture clusters (Lviv, Rivne).