German furniture industry faces supply issues

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Fordaq
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The German furniture industry is currently facing major challenges. "In addition to the short-term change between open and closed retail spaces, the supply situation for essential supplier products is currently worsening for the industry," says Jan Kurth, Managing Director of the German Furniture Industry Association (VDM / VHK).

In a current association survey, more than two thirds of the production companies report bottlenecks in the supply of wood-based materials. "The agreed quantities are shortened, postponed or canceled at short notice by the suppliers," criticizes Kurth. According to the survey, there are also acute delivery problems with metal parts, fittings and functional elements as well as with upholstery materials such as foams, tiles, fabrics and leather. Packaging materials and transport capacities are also scarce.

“These bottlenecks lead to a considerable disruption of the value creation and logistics processes,” says Kurth, outlining the situation in the furniture industry. Production planning is severely impaired - with corresponding effects on delivery times. In addition, since the beginning of the year there has been a further tightening of prices for a number of supplier products.

“Against this background, we demand solidarity in the furniture industry from sub-suppliers to the furniture trade. If, despite the fact that furniture production is often lower, as a result of the lockdown, the required raw materials are not available in a predictable manner, this has a direct impact on the ability to deliver. In this challenging situation, sanctions for exceeding delivery times do not have to be applied, ”Kurth demands.

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