September 21, 2024

Rising Imports and Operational Costs Hinder Growth of Jordan’s Furniture Industry


The Jordanian furniture industry is facing significant challenges as increasing imports and rising operational costs threaten the growth and sustainability of the sector.

According to Taher Khaled, representative of the wood and furniture industries at the Jordan Chamber of Industry, these issues are severely impacting the industry’s ability to compete and expand within both local and international markets.

In a statement on Tuesday, Khaled highlighted that the influx of imported furniture, which has surged in recent years, poses a direct threat to the survival of domestic manufacturers. Without sufficient customs protection, local businesses struggle to compete against lower-priced foreign goods, leading to potential closures, stunted production growth, and the loss of job opportunities for Jordanians.

In addition to external competition, the sector is grappling with internal challenges, including the high cost of energy and labor. Khaled emphasized the need for the government to implement a clear strateg
y that addresses these issues. He called for measures to reduce production costs, such as lowering energy expenses and providing easier access to financing for industry players.

Moreover, he stressed the importance of introducing targeted support programs to enhance the marketing and promotion of Jordanian furniture products, enabling them to penetrate new markets.

Khaled also pointed to a critical shortage of skilled labor in the sector. Despite the industry’s potential to provide significant employment opportunities, Jordanian youth are reluctant to pursue training or careers in furniture manufacturing. He urged the establishment of specialized training centers to develop the necessary skills and called for the facilitation of hiring qualified technical workers to meet the industry’s needs.

Despite these challenges, the Jordanian furniture industry remains a vital component of the national economy, particularly in terms of job creation. The sector, which employs over 8,000 workers, with Jordanians compri
sing 74% of the workforce, is known for its high levels of skill and craftsmanship.

Khaled noted that the industry’s reliance on labor-intensive production processes and connections to other sectors such as construction and hospitality positions it as a key player in reducing unemployment and fostering economic growth.

The industry comprises 1,900 establishments across the Kingdom, with a collective registered capital exceeding 50 million dinars. These businesses are committed to adopting the latest technologies and equipment to meet international quality standards. Khaled emphasized that the industry focuses on increasing its market share locally and in export markets, with a particular emphasis on modern, high-quality products that cater to consumer demands.

Khaled concluded by stressing the urgent need for a comprehensive and coordinated approach to support the furniture industry. By addressing the challenges of rising imports, operational costs, and labor shortages, the sector can continue to grow and
contribute to Jordan’s economic development.

Source: Jordan News Agency