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News digest

  • How will businesses react to a possible military invasion?
  • Staff shortages will worsen
  • Duty-free exports to Turkey
  • February Poznan Furniture Fair postponed
  • Advises the creator of “IKEA”

Read everything that happened last week in Ukraine and around the world and that is relevant and interesting for the furniture maker in our digest:

1. The European Business Association conducted a survey of 136 CEOs and representatives of member companies. The survey aimed to find out how the business plans to behave in the event of a military invasion. Almost half of the respondents, namely 45%, said they plan to stay in the country and continue to do business even in the event of an emergency. Another 17% of respondents are considering the possibility of moving to western Ukraine. In the worst-case scenario, 10% of businesses may leave the country, and 7% believe that aggression from a neighbouring country will lead to the closure of the company.

At the same time, 67% of respondents believe that Ukraine should prepare for any development, and 25% think that the situation is based on misinformation and psychological attack. Business does not sit idly by and prepares for any changes. 40% of companies have already developed an emergency action plan, another 40% are considering the need to develop such a plan and only 15% of businesses do not have a potential scenario.

2. Poland changed the rules for Ukrainian workers on January 28. If earlier invitations to work were issued for a period of up to six months, now this norm has been increased to two years. This may contribute to the influx of labour migration. Poles thus compensate for the shortage of unskilled and low-paid workers.

For Ukraine, labour migration has become a huge problem: there is a shortage of labour. The Ukrainian furniture industry, which has suffered and is still suffering from staff shortages, should be ready for an even greater outflow of labour.

3. The Ministry of Economy said that within the framework of the free trade agreement with Turkey, Ukraine will not only be able to import more than ten thousand items of goods to Turkey duty-free but will also receive tariff quotas and tariff reductions for another 1.3 thousand. Exports of not only raw materials but also products with deep processing and greater added value will increase. The problem of additional tariffs that Turkey has introduced from time to time over the last few years will be removed. This applies to all goods, not just zero-duty categories. Exports to Turkey will grow by approximately $ 313 million a year.

4. Due to the uncertain epidemiological situation, the well-known furniture fair “MEBLE POLSKA” and the fair “HOME DECOR”, scheduled for February, will be held in Poznan from 16 to 19 May.

“We were fully prepared to organize a fair in February with the highest security measures. In mid-January, buyers from 50 countries registered their participation in the Poznan furniture and interior design fairs, but later some retailers announced a significant reduction in the number of their representatives or even a complete refusal to participate in this event, “said Józef Šiška. director of MEBLE POLSKA, the reason for moving the fairs.

5. Three years ago, a Swede who captured the world without a single shot died – Ingvar Kamprad, the creator of “IKEA”. He was not only enterprising but also a wise man, as evidenced by a number of his statements, some of which relate directly to the furniture business, we recall now.

“The word ‘impossible’ should be permanently removed from the furniture lexicon.”

“I am very annoyed by our status as the best furniture company in the world. But no: there is still room to grow, we have not reached the ideal.

“It’s very easy to design a $ 1,000 table. But the same for $ 50 – difficult.

“Fear of mistakes is the basis of bureaucracy and the enemy of development.”

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