The German furniture industry is urging policymakers to implement stronger measures to urgently revive housing construction. While the number of building permits for residential units has been rising since the beginning of the year, the number of completed new homes continues to decline, noted Leo Lübke, President of the Association of the German Furniture Industry (VDM), during the joint member meeting of the VDM and the Associations of German Upholstered and Residential Furniture Industry in Frankfurt last Thursday. According to current forecasts, the negative trend in completions is not expected to reverse until 2027.
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"Simpler and faster approval procedures alone are not enough to increase housing construction," Lübke said. "Funding programs must also be consolidated and made significantly more attractive." Additional measures could include a temporary reduction in property transfer tax, extra depreciation allowances for new builds, and subordinated loans for owner-occupiers. The declining demand for furniture resulting from the slowdown in housing construction, alongside weak consumer sentiment and US tariff policies, represents one of the biggest challenges for the German furniture industry, Lübke emphasised.
Another key topic was the much-debated EU Deforestation Regulation (EUDR). On Thursday evening, the EU Commission, Council, and Parliament agreed on a revision and further postponement of the EUDR until the end of 2026. Extensive reporting obligations for the use of relevant raw materials such as wood will be limited to the "first placer on the market," and the transfer and collection of associated reference numbers will only extend to the next processor in the value chain. The European Parliament still needs to confirm this negotiation outcome in its session on 16 December 2025. "The changes align with the demands of the entire wood and furniture value chain and represent genuine bureaucratic relief for all downstream users and processors along the production chain up to the finished furniture," stated Jan Kurth, Managing Director of the Association.
Members also discussed activities to promote export business. In 2026, a German joint stand will be presented for the fifth consecutive year at the key US kitchen fair KBIS (17–19 February, Orlando). For the third consecutive time, a joint presence is planned at Clerkenwell Design Week in London (19–21 May). Preparations are underway for joint exhibitions at Index/Hotel-Show (2–4 June, Dubai) and CBD kitchen fair (8–11 July, Guangzhou, China), as well as a first-ever business development trip to Chicago and New York.
In a guest lecture, Philipp Trompeter of consultancy Dr. Wieselhuber & Partner explained potential applications of artificial intelligence (AI) in the furniture industry. AI can be used, for example, for realistic product visualizations, trend analysis, optimizing receivables and personnel planning, and identifying cost-saving potential in materials procurement. High-quality data is essential for successful AI projects.
Additionally, guest speaker Holger Siebert, Deputy Chairman of the Caravaning Industry Association, highlighted joint marketing efforts by member companies. Over the past years, numerous measures, including television campaigns, have significantly improved the industry's public image.
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