Order intake for manufacturers continues to decline sharply. The German kitchen furniture industry continues to suffer from weak order levels due to consumer reluctance to spend. In January 2024, order intake for kitchen furniture manufacturers decreased by an average of 14 percent in terms of units, as internal association evaluations show. Last year, there was a decline of around 11 percent in the quantity of order intake.
The German kitchen furniture industry reacts with great concern to the dramatic decline in housing completions predicted in the "Spring Report of the Council of Real Estate Experts." 'The crisis in housing construction is becoming a very serious burden for our manufacturers,' states Jan Kurth, Managing Director of the Association of the German Kitchen Furniture Industry. Experience has shown that the occupancy of a new building - in addition to the initial furnishing - leads to the purchase of two to three more kitchens through subsequent moves. 'Urgent measures are needed to strengthen the demand for construction, including increased federal support for new construction, a reduction in real estate transfer tax by the federal states, and the tax incentives provided for in the Growth Opportunities Act through declining depreciation,' demands Kurth.
Photo © Hd3dsh | Dreamstime.com
The German kitchen furniture industry continues to suffer from weak order levels due to consumer reluctance to spend. In January 2024, order intake for kitchen furniture manufacturers decreased by an average of 14 percent in terms of units, as internal association evaluations show. Last year, there was a decline of around 11 percent in the quantity of order intake. 'This sales decline already demonstrated the high economic impact of the industry last year and reflects the tense market situation much more realistically than the 0.3 percent decline in turnover reported by the Federal Statistical Office,' Kurth states.
The Council of Real Estate Experts states in its Spring Report mentioned that there is a deep crisis in new housing construction. The number of annual completions is expected to decrease to around 150,000 by 2025, considering the decreased number of building permits and construction times. The Ifo Institute expects a 35 percent decrease in the number of new apartments built annually by 2026. According to estimates by the Central Real Estate Committee, Germany is already facing a shortage of more than 600,000 apartments this year. By 2027, the number is expected to rise to 830,000.
More information:
Verbändegemeinschaft der Holz- und Möbelindustrie
www.vhk-herford.de