The Finnish furniture industry is in crisis, with significant layoffs and bankruptcies expected to continue in the coming years due to dwindling demand and rising costs.
The Finnish furniture sector is facing unprecedented challenges, highlighted by the recent bankruptcy of Indoor Group, which owns well-known brands Ask and Sotka. Industry representatives emphasize that the sector is not at the bottom yet, forecasting that the downturn will persist for at least another year or two. They note that the economic issues faced by companies are intertwined with broader trends in construction and real estate, which have also seen a slowdown, exacerbating the crisis in the furniture market.
According to Walter Ihander, managing director of the Finnish Furniture Retailers' Association, expectations for a significant recovery in consumer demand are bleak within the next few years. The statistics reveal an alarming increase in the number of furniture manufacturers that ceased operations, nearly doubling two years ago. Compounding this problem is a drastic drop in demand for furniture over the past five years, contrasted with a substantial increase in living costs, which have surged by roughly 25% over the last decade.
Experts in the field predict that more closures and bankruptcies will occur among both manufacturers and retailers in the furniture industry. The current situation points to a broader economic vulnerability, as the furniture market grapples with a significant imbalance between rising operational costs and plummeting consumer interest, raising concerns about the long-term sustainability of many businesses in this sector.
