7 advantages of investing in a former furniture factory in Romania
The forest resources are an important element in developing the Romanian furniture industry. In Romania, forests occupy 26.4% of the country’s total area. The woodworking industry beginnings traces back around 1900. After the communist regime, the development of this industry has accelerated. By 1989, the wood industry in Romania was organized in companies and complex wood-manufacture factories, comprising two major industries: the forestry exploitation industry and the furniture industry.
After 1989, the structural changes in the Romanian economy influenced to a great extent the furniture sector. Losing the traditional markets, changing economic mechanisms, delayed privatization, foreign exchange fluctuations and inconsistent attitudes with the principles of market economy have contributed, in the early years of transition, to a negative evolution of the sector.
Numerous advantages of the sector (high production capacities due to highly skilled workforce, domestic material resources, increasing demand from foreign markets), foreign investments and domestic private capital formation led to a recovery achieved through means of deep restructuring. The existing production capacities were divided, restructured and re-oriented, but most companies in the furniture sector are new flexible, dynamic and having a great desire to progress. In 2010, according to Eurostat, in Romania, have been 3077 furniture companies with a number of 60.482 million employees.
For the country’s processing industry, the Romanian furniture industry represents a priority taking into account the following advantages:
1. In terms of workforce, it has highly skilled labor force and qualified personnel capable to adapt to modern technical and management demands.
2. Increasing performance of the existing production facilities by upgrading them.
3. The specificity of the industry allows creating small capacity production units located close to raw material sources, thus contributing to regional development.
4. 90% of materials can be purchased within the country;
5. The furniture industry creates ecological products by mainly using local regenerative resources;
6. It has substantial contributions to the GDP every year;
7. Regarding the foreign trade the balance has always been positive;
Consumer expectations are becoming increasingly selective according to quality, functionality and special design. Thus, furniture manufacturers in Romania must identify the main consumption patterns and their trends both on the internal and external market for better satisfying their needs.
By promoting competitive products, in terms of quality, design, functionality and price the developing strategy of the furniture industry in Romania aims at placing the sector among the world leaders. Objectives regarding future developments are focused on promoting green technologies, improving management and marketing, diversifying production structures, expansion of information technology, appropriate technology development and market consolidation.
In any economic activity, furniture production is a permanent presence due to the fact that is an inseparable part of the microenvironment in which people spend most of their time working and resting. So, it is only natural that the furniture industry should occupy an important place within the economy of EU countries.
Having a longstanding tradition in furniture production, which was heavily developed during the communist years and maintained during the transition to a market economy, Romania offers many investment possibilities in its furniture sectors. Whether you start your own business or invest in a former furniture factory, which will save you some money, offers are many and can be found everywhere in newspapers, magazines and on line.