That Serbia has become very attractive to foreign investors over the past decade is proven by those from France, Italy and Austria, but also by many others who built factories with the goal of supplying the local market, but also the EU market and the growing Russian market.
The position of our country in the heart of Southeast Europe has contributed to that, which makes it an excellent location for investment. Companies based in Serbia are able to provide services and transport of goods to the European and Middle Eastern markets in a predictable and flexible time frame.
Serbia can serve as a production hub for duty-free exports to a market of more than 1.3 billion people in the European Union, Russia, the United States, Japan, Australia, Kazakhstan, Turkey, Southeast Europe, EFTA and Belarus.
– It is interesting that, as in other industrial sectors, there is great interest of furniture manufacturers who have their plants in China, to create new production facilities in Serbia, in order to be closer to the EU and deliver products to their customers in Europe – they say for eKapija from Razvojna Serbian Agency (RAS).
The wood and furniture industry in our country consists of 3,734 companies
Of the total area of 2,252,400 ha of forests in Serbia, 39.8% ha are state-owned and 52.2% ha are privately owned.
Serbia is among the largest producers of sawn hardwood in the Balkans. Sawmills account for 49% of the total number of wood processing companies and at the same time sawn wood accounts for 19.8% of exports in this sector.
The wood industry and the furniture industry in our country consist of 3,734 companies, which employ 52,041 workers, it is stated in the latest data from the brochures that are available on the website of the Development Agency of Serbia. It is especially emphasized that this is a highly qualified workforce, which has a strong tradition of engaging in this activity.
More than 90% of companies are privately owned and are mainly located in the central areas of Serbia. Most of these companies are engaged in wood and wood products, while the rest are engaged in the production of furniture.
The share of the sector in the GDP of Serbia is 1.4%, while the contribution of the wood processing industry to total exports is 7.5%, with a continuous positive growth trend over the last few years.
Versatile furniture market
The Serbian furniture market is versatile and creates numerous opportunities for furniture manufacturers. Furniture for kitchens, offices, shops, hotels, restaurants, nurseries, schools is produced. A large number of companies also produce custom furniture.
Although most production is done by medium-sized companies, micro and small enterprises have an important share in the furniture industry when it comes to developing small quantities of products or custom-made furniture. These family companies have been successfully exporting products to the EU market for years.
The furniture is mainly made of plywood, which is in the greatest demand in Serbia, it is highlighted in the brochure. Demand for high quality solid wood furniture is always present locally as well as in foreign markets. However, only 30% of all furniture in Serbia is made of solid wood, so it is believed that great investment potential lies in this relatively unexplored sector given the growth of international demand.
– High quality raw materials and modern design, combined with low operating costs and labor costs, as well as the strategic location of Serbia near the main markets of the EU and Russia, provide a solid basis for investment in this sector – it was stated.
The corona did not negatively affect the sector
The wood industry, and especially the furniture industry, unlike many other sectors and industries, did not experience major negative effects during the Covid – 19 pandemic. Moreover, the production of furniture on the international market is on the rise, say the RAS:
– The current crisis and a complete change of habits, including the transition to work from home, has made people stay at home more, and thus attach more importance to furnishing living space, so the world market shows a growth trend when it comes to demand for furniture.
Companies from Serbia in this sector, which are export-oriented and which otherwise export to the EU, operate smoothly and have excellent placements.
When it comes to the global wood industry, mostly upholstered furniture manufacturers are looking for locations to relocate production.
– Logistics, transport and supply chains in all segments of production in the world have experienced the biggest problem since the beginning of the pandemic, especially for factories located in China and the East, which is a reason for investors to look at new potential locations for investment and relocate factories. Some of the destinations like Serbia, where they will place their products in Europe safer and faster – they conclude in the Development Agency of Serbia, eKapija reports.
