Italian furniture companies maintained solid economic and financial fundamentals in 2025, even as credit risk edged upward amid growing global uncertainty. According to the Crif Observatory, the sector's default rate rose slightly to 3.2% by the end of the year, still below pre-pandemic levels and broadly in line with the national average of 3.4%.
© Marek Uliasz | Dreamstime
While lending to the sector increased by 13.8% in the first nine months of 2025, reflecting continued financial support, the outlook has become more complex due to geopolitical tensions. The escalation of conflict in the Middle East, alongside existing pressures such as US tariffs, the slowdown in China and the closure of the Russian market, is expected to heighten risk across industries. For furniture companies, the impact is particularly significant given their strong export orientation, 34% have a high level of international exposure compared to just 4% of Italian companies overall.
Additional strain comes from supply chain challenges and rising input costs. Italian manufacturers rely heavily on imported wood, around 80%, making them vulnerable to fluctuations in fuel prices and logistics disruptions. At the same time, competition from low-cost Chinese producers continues to put pressure on pricing, particularly in the mass market segment.
Despite these challenges, the sector remains relatively well-positioned. Financial leverage is lower than the national average, and liquidity levels, while slightly weakened, remain satisfactory. Past crises have demonstrated the industry's ability to adapt, supporting expectations that Italian furniture companies can navigate the current period of uncertainty while maintaining overall stability.
Source: www.en.ilsole24ore.com
