Portugal's wood and furniture industry is facing mounting disruption as conflict in the Middle East impacts exports, leaving significant volumes of completed orders undelivered.
According to the Portuguese Association of Wood and Furniture Industries (AIMMP), there are "hundreds of thousands of euros worth of furniture produced and already ordered, held in stock in Portugal" due to rising transport costs and limited shipping availability. These constraints are delaying deliveries and placing additional pressure on company cash flow.
© AIMMP
AIMMP president Vítor Poças.
Although the Middle East accounts for around 1% of exports, valued at €15.3m in 2025, it remains a growing market for higher value products. However, logistics challenges, including port disruptions, have forced companies to seek alternative routes, with transport costs in some cases "tripled or quadrupled".
Across Europe, logistics costs have also risen by around 8%, driven largely by higher fuel prices, further impacting competitiveness.
AIMMP president Vítor Poças warned that energy and fuel costs are having a "decisive" impact on the sector and has called for government intervention, including reduced fuel taxation, to help ease pressure.
Despite challenges, companies are adapting by diversifying into markets such as the United States and strengthening their resilience.
Source: www.idealista.pt
