The Austrian furniture industry is confronting significant challenges as it seeks to maintain its position as a competitive manufacturing hub. Key issues include rising energy prices, high labour costs, increasing raw material expenses, and pressure from Southeast Asian imports.
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The sector is focusing on high quality standards, cost-reduction reforms, and strategic collaborations to improve efficiency and sustainability. Companies are adopting circular business models such as furniture leasing and take-back schemes in preparation for new regulations under the European Sustainability Product Regulation (ESPR), which will mandate durability, repairability, and recyclability requirements from 2027.
Political support is sought to reduce bureaucracy and implement targeted subsidies. The industry advocates for fair competition within Europe and calls for stricter controls on Asian imports to ensure compliance with environmental and social standards, preventing market distortion caused by low prices.
The 'Austria Quality Mark for Furniture' serves as a seal of approval for products with more than 50% domestic value added and above-average quality, providing consumers with guidance and trust.
To mitigate rising costs, companies are exploring energy efficiency measures, including expanding their own energy supply via photovoltaics, and support the Electricity Price Cost Equalisation Act for 2025/26. A cap on non-wage labour costs is also proposed to align unit labour costs with international standards.
Source: www.moebelmarkt.de
