On December 10, 2024, the Ukrainian Association of Furniture Manufacturers participated in the international conference “The Current State of Master’s Programs in the Forestry Profile in Ukrainian Universities and Industry Needs.” UAFM Board Member Oksana Donska delivered a presentation.

We pay significant attention to overcoming the challenges faced by the furniture industry due to the ongoing war with Russia. A key strategy in this process is enhancing workforce skills through strategic partnerships with educational institutions. In 2024, UAFM launched the “Furniture Maker’s School” initiative, which graduated 295 students. This initiative focuses on developing essential skills such as furniture design, production automation, and professional knowledge in furniture manufacturing.

The partnership between UAFM and educational institutions plays a crucial role in addressing the shortage of skilled labor, which currently amounts to 30–40%. Adapted training programs meet the needs of the furniture sector, equipping new employees with the necessary competencies for successful work. This approach not only improves workforce skills but also stimulates innovation and industry growth. Due to a lack of workers, manufacturers are forced to automate processes or reduce production volumes. Automation allows efficiency to be maintained even with reduced staff. For example, one of the major exporters of wooden furniture reduced its workforce from 326 employees in 2022 to 230 by early 2024 but managed to increase revenue by 10% through production automation.

Given the low purchasing power in Ukraine, which significantly lags behind European countries ($59 in industry turnover per capita compared to, for instance, $2,800 in Denmark*), exports are becoming critically important for the furniture industry.

Ukrainian manufacturers are actively operating in international markets: in the first 11 months of 2024, furniture exports exceeded the annual figures for 2023, reaching $843 million compared to $787 million for 12 months in 2023. According to UAFM surveys, 60% of furniture manufacturers now have export experience, and 7% of enterprises direct 80–100% of their products to export markets.

An important fact is that 19%** of the industry is accounted for by the top 10 factories, including companies that supply products to global giants such as IKEA, JYSK, XXLutz, and others. This highlights the high potential of Ukrainian furniture manufacturers in the international market.

“Analyzing the state of the furniture industry before the full-scale invasion, its current condition, and the desired future, it is worth noting that we previously had cheap labor, low electricity tariffs, access to affordable timber, and served as a logistics hub with 360-degree delivery directions. Now, with a severe labor shortage, limited timber resources due to landmines, and the prospect of inspections under EUDR regulations, we must change our industry development strategy,” said Oksana Donska. “We need to focus on production automation, the development of furniture design, and increasing added value, moving from mass-market production to complex technologies in custom furniture projects.”

An engaging discussion took place with Doctor of Technical Sciences, Professor Orest Kiyko, who raised questions about the prospects for small business development in the industry and the relevance of green rebuilding of Ukraine (environmentally sustainable rebuilding).

Speaking about shifts in focus for training programs, in addition to actively promoting professions needed by the industry, we need to strengthen:

• knowledge of production automation,
• knowledge of materials science, expanding the range of materials that can be used in furniture manufacturing (e.g., flax, hemp, fruit trees, etc.),
• skills in implementing technologies for creating new furniture items.

The presentation featured works by UAFM members: Cassone Workshop, Bassa, Tentoni, and 100% Interior.

Our efforts are aimed at developing the industry through enhanced educational initiatives, innovations, and export activities. Knowledge of a wide range of materials, the implementation of cutting-edge technologies in furniture design, and the development of high-value-added products lay the foundation for sustainable industry growth. Thanks to such strategic initiatives, the Ukrainian furniture industry is strengthening its position both in the national and global markets.

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* Data from https://www.statista.com/outlook/cmo/furniture/
** Information from https://opendatabot.ua/