FEDERLEGNOARREDO/ FURNITURE CHAIN'S TURNOVER AT €51.7 BILLION, STILL ABOVE 2019 AND 2021 LEVELS

The projected turnover of the furniture supply chain for 2024 is €51.7 billion, reflecting a decline of 2.9%. Nonetheless, it still shows growth compared to 2019 (+19.6%). The decline has been more pronounced in the domestic market (-3.3%), which at €32.3 billion accounts for 62% of the total. Exports have decreased less (-2.1%) to €19.4 billion, representing 38% of the supply chain's turnover and over 52% for the furniture macro-system alone. The final figures compiled by the FederlegnoArredo Studies Center just days before the opening of the Salone del Mobile, Milano, paint a picture of this, revealing that the wood-furniture supply chain includes 64,144 companies and employs nearly 297,000 people. With the reduction of fiscal incentives in Italy and the contraction of key European markets in 2024, the downsizing initiated in 2023 continued after a two-year growth period. Most of Italy's exports are directed to Europe, particularly the EU market (51%), which accounts for nearly €10 billion of the total €19.4 billion in exports. France, the top market, recorded a 3.3% decline, particularly affecting the furniture macro-system. Germany, now the third-largest market, saw a 6% decrease, showing no signs of recovery. However, there is hope that the country's internal economic policy plan will be a booster for its recovery and, consequently, furniture exports. The extra-EU European market, the second-largest overall, is also down by -4%, mainly due to the negative performance in the UK and Russia. "The export data over the years," explained Claudio Feltrin), President of FederlegnoArredo, "shows that 2024 remains well above the levels achieved in 2021 after hitting the highest peak in 2022 with €20.9 billion. 2023, the decline was -4.9% compared to 2022, versus -2.1% in 2024. In this context, the UAE's performance stands out positively, securing the eighth position in the top ten with the best growth, followed by Saudi Arabia." The United States, the leading non-European market, showed improvement in 2024 (+1.5%) after a -10.6% decline in 2023. North America grew by +1.9%, with the United States (+1.5%) and Canada (+6%) contributing to the increase. "We are awaiting production data for January 2025, which will confirm the positive sentiment among entrepreneurs, as the first month of the year seems to show a favourable trend that could signal positive growth for both exports and furniture production. This would be a reassuring signal, though relative to just one month, offering hope for 2025." However, Feltrin also cautioned that Trump's 20% tariff on all European products could drastically change the scenario. "As Prime Minister Meloni said, this is a wrong measure that benefits no one. We await further details on how the U.S. will implement this measure, and we hope to see Europe's countermeasures. We hope to avoid the worst-case scenario—one of muscle-flexing—where both economies would suffer. I do, however, see a potential positive outcome: Europe has the chance to act as a united body, with solidarity and determination, as emphasized by President Mattarella, to protect the productive sector." As always, sector entrepreneurs are ready to do their part, as well as the upcoming Salone del Mobile. Milano will be even more strategic for exploring and opening up to markets previously considered secondary, reaffirming the value of quality and innovation that only our design can offer. Our small and medium-sized enterprises' flexibility and quick adaptability will be the keys to navigating such a complex situation." FURNITURE MACRO-SYSTEM The furniture macro-system closed in 2024 with a production turnover decrease of -2.3%, amounting to over €27.5 billion. This sector includes over 20,700 companies and employs nearly 139,600 people. Both domestic sales (-2.9%) and exports (-1.8%) contributed to the overall result, though these remain above pre-pandemic levels. The contraction was seen across all systems (furniture, bathroom furniture, lighting, and office furniture), albeit with varying intensity: from -5.5% in the office furniture system to a stable performance in bathroom furniture (-0.5%). Positive trends were recorded in educational furniture. In 2024, the furniture macro-system's exports amounted to just under €14.4 billion, a slight decrease of -1.8% compared to 2023. The drop was mainly attributed to lower exports to France (the top market, down by -3.6% to over €2.3 billion) and China (which dropped from seventh to eighth position, with sales of €393 million and a decline of -17.9%). Among the top ten destinations, Germany (-3.2%, particularly in the first half of the year) and the UK (-3.7%) also saw significant declines. The Netherlands was down by -5%. In contrast, the United States (second in the ranking) recorded a smaller drop of -0.8%, and Switzerland saw a -1.4% decrease. On the positive side, the UAE (which has shown positive growth for the fourth consecutive year, rising to seventh place from ninth in 2023 with a +22.2% growth) and Spain (in sixth place with +4.1%) helped offset the negative trends. Notable increases outside the top ten markets include Poland (+9.7%) and Saudi Arabia (+14.6%). LIGHTING SYSTEM The lighting system's production turnover in 2024 reached €2.3 billion, showing a -2% decline. This was due to reduced exports (-1.3%, totalling just under €1.9 billion) and weaker domestic sales (-4.6%, just under half a billion euros). The lighting system involves over 1,200 companies and employs just under 10,500 people.