Thailand furniture industry and woodworking machinery market inspection report

Abstract From December 19th to 24th, 2012, a group of 22 people from Qingdao Woodworking Machinery Association visited the Thai furniture industry and woodworking machinery market. The delegation was invited to visit SKL Thailand and met with Thai furniture...
From December 19th to 24th, 2012, a group of 22 people from Qingdao Woodworking Machinery Association visited the Thai furniture industry and woodworking machinery market. The delegation was invited to visit SKL Thailand and met with the president of the Thai Furniture Industry Association, ARAK SUKSAWAD. The general manager of Thailand Dazhou Industrial Co., Ltd. Zhang Youcheng accompanied the delegation.

First, the status quo of the Thai furniture industry

Thailand's two major furniture trading countries are Japan and the United States. Now both the United States and Japan are in the downturn of world economic development. Coupled with the growing strength of competitors, the Thai furniture industry is suffering a double blow. The advantage of cheap labor in Thailand faces the challenge of cheaper labor in other neighboring countries, mainly from Malaysia, Indonesia and of course China.

Last year, Thailand’s exports to Japan fell to 15.6% due to Japan’s economic downturn, which was longer than the United States. The United States fell to 5.67%. What made the situation worse, however, was that all of the top 10 export markets in Thailand saw a significant decline in exports. Except for three of the countries, namely the United Kingdom, Canada and the United Arab Emirates, although the increase is more, it is still difficult to make up for the losses.

Like other industries in the world, Thai furniture manufacturers have felt that many of their previous businesses have gradually flowed into neighboring China and other smaller developing countries with many cheap labor resources. And this is not just in the furniture industry, almost all industries in Thailand are facing competition with China. Since only 11% of Thai furniture factories are considered to have large exporters, local officials have not increased their efforts to promote their technological advantages, especially when foreign productive investment is turned to China. Therefore, the government is making every effort to promote Thailand. Hand-made capabilities, furniture quality, “natural materials with unique characteristics”, culturally influenced furniture styles and complex crafts in textile fabrics, teak and sandstone hand-carving techniques, and exquisite multi-layer finishing techniques on large furniture The advantages. In addition, the political and economic environment in Thailand is relatively stable and relatively better than competitors in Vietnam, Indonesia and Malaysia. Thailand has a long history of producing style and quality furniture.

In 1989, Thailand was forced to introduce a ban on commercial deforestation of teak, which seriously affected the supply of Thai teak. Today, Thailand still retains the manufacturer of teak-exported furniture. Now teak furniture manufacturers must go abroad to import teak from neighboring countries. Since then, the alternative product developed by the furniture industry is rubber wood, made of old rubber trees that no longer produce glue.

Second, inspections, talks and exchanges

On December 22nd, the delegation visited SKL. SKL is a company specializing in the production and processing of Thai rubber wood furniture, rubber wood panels, finger joints and other products.

As the demand for this big US customer continues to fall, producers have to change expectations. In addition to waiting for the market to recover, manufacturers are also facing a major challenge - the California Air Resources Management Board (CARB) recently passed a toxic airborne control measure to reduce formaldehyde emissions from composite wood products, demanding since 2009 1 From the 1st of the month, the formaldehyde emission limit requirements for hardwood plywood particleboard and medium density fiberboard sold in the state will be gradually reduced by category and stage. “In the wood products manufacturing industry, formaldehyde is widely used to enhance the bonding strength of adhesives. However, studies have shown that this substance is carcinogenic, so the detection of such substances in the United States will be more stringent. Local authorities recommend that manufacturers can more The use of rubber wood, because Thailand's rubber and wood resources are very rich. If the wood products industry relies on imported wood for a long time, the expensive energy costs will increase the cost. On the contrary, if you turn to the country's abundant materials, domestic manufacturers will be able to Maximize profits. The cost of buying wood accounts for 40% of the cost of furniture, and the cost of paying labor is also a big cost. Only by improving the technical level of the labor force and using technology better can improve overall competitiveness.

On December 23, some representatives of the delegation met with the president of the Thai Furniture Association ARAK SUKSAWAD.

THAI FURNITURE INDUSTRIES ASSOCIATION, established on March 17, 1980, includes furniture manufacturers, furniture distributors, paint and adhesive manufacturers, furniture, rattan, leather, metal, alloys, Particleboard, MDF and plywood, furniture accessories, are exported to domestic and foreign markets.

During the talks, Chairman Zhao Lide of Qingdao Woodworking Machinery Association also briefly introduced the status quo of Qingdao woodworking machinery industry and the development of the association. The representatives of the two sides conducted in-depth discussions on increasing communication and exchanges and exploring multi-field cooperation. President Zhao Lide issued a sincere invitation to the president of TFA. The president of ARAK SUKSAWAD also stated that he would lead the team to visit Qingdao in due course. Subsequently, the two sides exchanged the annual information of the association and took a group photo.

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