The country that banned the entry of foreign products becomes one of the countries that increased its demand the most from January to September and offset other falls in the ranking
The Algerian market has gone from being a serious stumbling block to a true lifeline for the furniture sector in the province of Castellón. Gone is that fateful 2017, when the Government of Algeria prohibited the entry of foreign products to its country such as, among others, ceramics or Spanish furniture. Then, the National Association of Furniture Industrialists and Exporters of the Valencian Community (Anieme) warned about the decline in this market and the difficulty that would entail recovering it. Over time, Algeria allowed the entry of furniture but ‘by pieces’, in order to save part of its local production.
The truth is now Algeria has become a lifesaver board for this sector, which is concentrated in the Baix Maestrat. According to data from the national furniture association, Algeria was the second client of Castellón furniture that increased its demand the most in the interannual rate. At least, in the period between January and September of this complicated 2020. Specifically, the sector exported 2.3 million euros to Algeria, 72.7 percent more than a year before -1 , 3 million euros-. This increase earned it sixth place in the commercial ranking of the sector abroad.
We talk about the second increment because the first fell to the Dominican Republic, eighth country in the leaderboard. This market imported furniture from Castellón worth 1.2 million euros, 530 percent more than in the same period a year earlier – just 193,000 euros in purchases.
As a whole, the furniture sector in Castellón exported production valued at 68.6 million euros between January and September. This data brought with it a year-on-year fall of 2.1 percent. The coronavirus crisis is behind this setback in statistics.
And is that the Valencian Community as a whole also lost volume of furniture business abroad. The region exported 347.3 million euros in furniture, 16.2 percent less in the interannual rate. The fall was more modest in Castellón than in Valencia and Alicante. The first province contracted its demand by 19.4 percent and the second by 17.4 percent.
France continues to be Castellón’s natural furniture market. Between January and September, it imported products worth 14.6 million euros, 15.1 percent less in the interannual rate. The second place was occupied by Italy, with 11.6 million euros and an increase of 10.2 percent. The United States, before the arrival of Joe Biden to the presidency, was the third market to which CastellÃ³n exported the most furniture. He did it for 10 million euros, a figure that represented a drop of 8 percent.
United Kingdom, fourth market, bought for a value of 6.4 million euros, almost 12 percent less; Portugal, fifth, imported 18.3 percent more, with 5.4 million; Algeria, sixth, as already mentioned, notably increased its demand; Saudi Arabia, the seventh customer, increased its purchases by 53 percent to exceed one million euros; Dominican Republic surprised with its rapid rise in the ranking; Germany, with 1.1 million euros, increased buying by 53.7 percent and finally, Mexico, closing the ‘top ten’, decreased its imports by 38 percent, remaining with 838,000 euros.
THE POSTURE OF THE EMPLOYER ANIEME
National contraction. The president of Anieme, Juan Carlos MuÃ ± oz, declared that Â «the decline in Spanish furniture exports during the first nine months of 2020 reflects the serious economic consequences of Covid-19 worldwide. This 16.2 percent drop has affected all European countries, Spain’s main trading partners, while countries such as the United States have shown somewhat more positive behavior.
Optimism. Â «The data for the period January to September 2020 reflect a significant recovery, improving by 5.3 points the results obtained during the first half of the year. Covid-19 has led us to a world trade situation that will cost to reverse. However, and without reaching the figures prior to the pandemic, we are optimistic that the year can be closed continuing with a positive trend of recovery in exports, “he said.
Channels. Â «In the retail channel, prospects are better, given the need to furnish the home and condition it to the reality that is being lived. On the other hand, furniture manufacturing companies focused on ‘contract’ projects for furnishing facilities and hotels have had to reorient themselves towards other channels such as equipping home-office spaces to work from home ».
Town planning The CEV defends the industry against the ‘cut’ in the land reserve next to the CastellÃ³n intermodal
EconomÃa The Ascer Tile Industry Association distrusts the budget of the SÃ¡nchez Government for the recovery
EconomÃa The ceramic sector activates gas demand and recovers 94% of pre-Covid consumption