Wood-Processing First Bulgarian Industry to Recover from Crisis

Unlike wood-processing, Bulgaria's furniture industry is still struggling over the crisis. Photo by bginterior.com

The wood-processing industry is one of the first economic sectors in Bulgaria which has started to recover from the economic crisis.

This has been stated by Kalin Simeonov, Chair of the Bulgarian Chamber of Wood-Processing and Furniture Industry, as cited by BTA. Simeonov reminded the wood-processing industry in Bulgaria was one of the first economic sectors affected by the crisis.

Over the last year, Bulgaria’s import of lumber declined by 50% whereas its export dropped by only 8%.

According to Simeonov, over 50% of the wood-processing firms in Bulgaria expect an increase of their turnover of 5-15% by the end of 2009, and only about 5% of the companies expect a decline.

30% of the firms in the industry are planning to hire more employees but some 60% point to the shortage of qualified workers as a huge problem.

Bulgaria’s furniture producers, however, are still struggling as the slump in their sales is predicted to reach 40% by the end of 2009 because of the sharp decline of demand on the Bulgarian market after the collapse of the construction sector.

The average furniture prices have dropped by up to 25% since the start of the crisis, and some producers are said to be ready to sell at a loss in their attempts to secure cash.

Bulgaria’s furniture import dropped by 40% in the first six months of 2009 year-on-year, whereas its export declined by 30%.

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