Like every other industry these days, the furniture industry has also been hit by the economic downturn, resulting in dwindling profits for disgruntled manufacturers, who are struggling to keep the lights on.
Widely regarded as one of Punjab’s prominent industries, the pure wood furniture industry is facing a crisis unlike any other, given the double-digit inflation which has reduced purchasing power to smithereens. “This business used to be profitable before the coronavirus hit, now it is a miracle for us to stay afloat,” informed Maqsood Ahmed, a furniture maker based in Lahore.
“Raw material which was Rs 600 per half kilogram (kg) last year, now costs Rs 1,600 per half kg. Medium-density fiberboards or Lasani sheets, which cost Rs 1,400 last year are now retailing for Rs 3,000,” elaborated Ahmed, adding that the increase in costs had reduced the already low profit margins to nothing.
When pointed out that margins might not have dwindled exponentially as real wood furniture still cost a pretty penny in the market, Ahmed replied that there was a difference between a manufacturer and a seller. “The showrooms which sell furniture are still making anywhere between 100 to 150 per cent profit on the furniture they buy from us,” he explained.
Moreover, double-digit inflation is only a recent problem for pure wood furniture manufacturers like Ahmed, who have already been struggling to compete with cheap imported furniture, mainly from China.
“Presently, Chinese furniture has taken over the market, as it costs less and is modern and sleek,” regretted Haji Shaukat, who is regarded as the chairman of the furniture market in Lahore. “However, what many do not realise is that Chinese furniture is not reliable. It starts deteriorating after a few months,” he added.
Despite the poor quality, Pakistan imports more than 100 million dollars worth of furniture annually, as per Shaukat. “In contrast, we only export about 5 million dollars worth of furniture.”
Another problem that the industry has been hit with is the shortage of wood in the country, which has resulted in rapidly rising procurement costs for furniture manufacturers like Ahmed and Shaukat. As per a market survey carried out by The Express Tribune, sheesham wood, which cost Rs 3,000 a year ago, now costs more than Rs 6,000 per foot to buy. Similarly, the price for kikar wood has gone up by Rs 1,500; and tali wood now costs Rs 3,500 per foot.
However, it is unlikely that these prices will ever decrease given the country’s deteriorating forest space. Javed Gill, Chief Conservator of the Forest Department, Punjab, agrees. “Only a very small area of Pakistan is covered by forests and we cannot imagine cutting them down to supply wood. Instead, we need to focus on increasing forests for the betterment of our populace,” remarked Gill while talking to The Express Tribune.
Published in The Express Tribune, June 11th, 2023.
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