03-A1 ANALYSIS OF COMPANIES vs SCENARIO RELATED TO THE FURNITURE SECTOR

INTRODUCTION The objective of the point O3-A1 is to analyze the characterization of companies of the furniture sector (for each country) to understand what they have to do to answer the future Scenario needs. The information related to the companies charachteristics for each country has been collected through a Survey. The survey allowed to compile a SWOT table. This part of the project is a fundamental step to define the emerging Furniture New European Skills 2020. 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

FROM 3 to 1 POSSIBLE SCENARIO for furniture sector Retail Brand Scenario Low Consumption Scenario Smart solutions Scenario FROM 3 to 1 POSSIBLE SCENARIO for furniture sector FUNES FURNITURE INDUSTRY SCENARIO A. Population and society Ageing of the population; Difficulties creating young households; Stagnation in consumption of furniture; Purchase of furniture based on lowest price. B. Raw material and production High inflation for the increased costs of raw materials; High competitiveness of countries with low production costs. C. Products, trends for living, environment and technologies Generalization of alternative and renewable materials; House with sustainable technology, furniture components; Interactive technology; Flexibility and advanced lifestyles; Predominant environmental aspects of health and wellness D. Consumer interaction behaviour Innovative consumer that can act as leader and designer of his own furniture; Purchase furniture through multiple channels. Stores aimed at the generation of experiences. Use of information and communication technologies 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

FUNES FURNITURE INDUSTRY SCENARIO SWOT ANALYSIS The information related to the EU companies features has been collected into a SWOT table which leads to the identification, through the analysis, of the position in which the companies are located compared to the FUNES Furniture Scenario. FUNES FURNITURE INDUSTRY SCENARIO 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

STRENGTHS POSITIVE ASPECTS CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance COMPETITIVENESS THROUGH DIFFERENTIATION  >>>>>>>> ✔   5 COMPETITIVENESS THROUGH COSTS STRONG TRADITION IN WOOD AND FURNITURE INDUSTRY 6 WORKERS WITH LARGE EXPERIENCE – LEARNING BY DOING TECHNOLOGICAL MODERNIZATION (CAD, CNC) QUALITY OF THE PRODUCT LUXURY FURNITURE (NICHE MARKET) FURNITURE “FOR LIFE” (BUYING FURNITURE TO LAST AS MUCH YEARS AS POSSIBLE) 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

Other STRENGTHS POSITIVE ASPECTS CONTROLLED BY COMPANIES Research and development as the growth factor (leading EU investment in R&D). Eco-issues already part of the entrepreneurial culture (sustainability certifications). High level of customization. Habit to deal with new markets (Russia, Arabia, China). Research and development. Ecology (in general) of products (furniture) and technological processes. Increase in the on-line sales importance. Established, high position on international markets. Incorporation of add value. Product design. Quality managements systems. COSMOB ENAIP ITD AIDIMA/FEVAMA 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

WEAKNESSES NEGATIVE ASPECTS CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance FEEBLE STRATEGIC MANAGEMENT >>>>>    ✔ 4 LACK OF INTERNAL SKILLS FOR A SUSTAINABLE DECISION PROCESS (SUBCONTRACTING, INVESTMENT ON EQUIPMENT, …) DESIGN OF NEW AND INNOVATIVE PRODUCTS MANAGEMENT TRAINING NEEDS 5 HUMAN RESOURCE STRATEGY (PLANNING, RECRUITMENT, TRAINING…) JOB DESIGN (SPECIALIZATION, POLYVALENCE, ERGONOMICS, INCENTIVE SYSTEMS…) LOW EDUCATION OF WORKERS  >>>>> WORKERS FROM PRODUCTION NEAR RETIREMENT AGE LACK OF COMPETENCES TO WORK WITH NEW AND DIFFERENT MATERIALS (POLYMERS, GLASSES, STONES, COMPOSITE, …) 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

WEAKNESSES NEGATIVE ASPECTS CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance RATIONALIZATION OF PRODUCTIVE COSTS  >>>>>> ✔   4 FULFILMENT OF DELIVERY DEADLINES COSTS OF TRANSPORTATION (VOLUME AND WEIGHT) MARKETING PLAN INEXISTENT OR FEEBLE >>>>>>  DELIVERY AND ASSEMBLY SERVICE DEPENDENCY ON THE DISTRIBUITION CHANELS INEXISTENCE OF COOPERATION NETWORKS FOR DISTRIBUTION AFTER SALES SERVICE INEXISTENT OR FEEBLE RESEARCH & DEVELOPMENT 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

Other WEAKNESSES NEGATIVE ASPECTS CONTROLLED BY COMPANIES Impossibility to reduce costs. Unpredictability connected to the generational turnover within the entrepreneur family. Worsening age structure of employees (ageing of employees). Weak cooperation between the producers and the R&D sphere. “No name products”. Lack of brand and image. Lack of cooperation between companies (Closed-innovation). Lack of technical salesmen. Small size of firms. Fear of export and internationalization. Lack of marketing. Null management of design. Mass production. Lack of flexibility in the production (of products). Lack of qualification of the workers. Lack of Brand image. Lack of business cooperation. Company size. Export difficulties. ENAIP ITD AIDIMA FEVAMA 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

OPPORTUNITIES POSITIVE ASPECTS NOT CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance EXISTENCE OF A LOCAL PRODUCTIVE SYSTEM (many small companies in the region, complementing each other, namely through subcontracting)  >>>>>>>> ✔ 5 IMPROVING BUSINESS COOPERATION (DISTRIBUTION, MARKETING, …)   >>>>>>>>   4 SUSTAINABLE INTERNATIONALIZATION 6 AVAILABILITY OF PLANNING AND MANAGEMENT TOOLS QUALITY MANAGEMENT SYSTEMS RAISING OF ECO-EFFICIENCY USE OF NEW RAW-MATERIALS MEDIUM NATIONAL SALARY OF QUALIFIED WORKERS (comparing portugal with other european countries) TAILORED VOCATIONAL TRAINING (in terms of contents and number of hours) 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

OPPORTUNITIES POSITIVE ASPECTS NOT CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance MORE DEMANDING CLIENTS (ECO-CONSUMPTION, CUSTOMIZATION)   >>>>>>>> ✔ 6 INCREASING OF ONLINE SALES CONTROLLING OF DISTRIBUTION CHANNELS   BEING ALERT FOR WHAT IS NEW IN DESIGN AND PRODUCTION TECHNOLOGIES (MAKING COSTS/BENEFITS ANALYSES) FLEXIBLE AND INTELLIGENT HOMES, HOTELS, RESTAURANTS AND OTHER “LIVING SPACES” 5 FLEXIBLE LIFESTYLES (PEOPLE LIVING ALONE, SECOND FAMILIES) 4 GERIATRIC FURNITURE EQUIPMENT FOR PUBLIC SPACES (GARDENS, SQUARES, MARKETS, …) 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

OTHER OPPORTUNITIES POSITIVE ASPECTS NOT CONTROLLED BY COMPANIES Digital prototyping for a fastest industrialization at a low cost (fablabs). Domotics (home automation) technoligical furniture. There is not a big pressure from the low costs markets, because the target of the sector is different. Italy industry is developing a more aware and widespread perception of the opportunity to sell. Italy itself as a brand and as a lifestyle (especially in certain sectors such as food, fashion and furniture). New trends in design and production technologies – new tools of the cost/benefits analyses. Economic prosperity in the country, Europe and in the world, as well as a favourable exchange rate of PLN/€. Development of the industries supplying materials and components for the furniture industry (sawmilling industry and wood-base panel industry). Development of construction as the main creator of the demand for furniture. Popularisation of the networking concept (clusters, technology platforms etc.) Increased mobility of prospect employees. Medium national salary of qualified workers (comparing Poland with other European countries). Eco-design. Design for All (people elderly, disabled...). Design management. Smart cities. Diversification. Improve flexibility. Customization. Design for all (adapted furniture) Improve flexibility, diversification Design management (ecodesign, ...) COSMOB ENAIP ITD AIDIMA FEVAMA 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

THREATS NEGATIVE ASPECTS NOT CONTROLLED BY COMPANIES COSMOB ENAIP ITD CFPIMM AIDIMA FEVAMA Relevance COUNTRIES WITH LOW COSTS PRODUCTION (asian and eastern european countries)   >>>>>>>> ✔   5 COMPANIES LOCATED OUT OF INDUSTRIAL PARKS INCREASING COSTS OF RAW MATERIALS INCREASING OF THE PRODUCTION COSTS (energy, equipment, …) 6 DIFFICULTIES IN APPLYING LEGISLATION (environmental, commercial, …) LOW PURCHASING POWER OF FAMILIES MOBILITY DIFFICULTIES OF WORKERS (they all want to be near their homes)  >>>>>>>>  ✔ 4 INCREASING OF EMIGRATION OF YOUNG QUALIFIED WORKERS FURNITURE INDUSTRY IS NOT ATTRACTIVE FOR QUALIFIED WORKERS (namely young people) 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

OTHER THREATS NEGATIVE ASPECTS NOT CONTROLLED BY COMPANIES Stagnation in consumption. Reduction of the number of people who can afford high quality furniture. Difficulties in the integration of immigrant in the production network. High cost of salaries compared to other areas in which lower-quality companies can produce their furniture. Decreased demand from the main trade partners (in particular Germany). Spanish furniture industry is not attractive for qualified workers, namely young people. Lack of skilled workers in the area of manufacturing. There are no studies for the sector. Lack of funding by the poor image of the sector, pigeonholed and related to the construction/building sector. ENAIP ITD AIDIMA/FEVAMA 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

SWOT TABLE 16/09/2015 03-A1 ANALYSIS OF COMPANIES VS SCENARIO STRONG TRADITION IN WOOD AND FURNITURE INDUSTRY FEEBLE STRATEGIC MANAGEMENT WORKERS WITH LARGE EXPERIENCE MANAGEMENT TRAINING NEEDS TECHNOLOGICAL MODERNIZATION HUMAN RESOURCE STRATEGY QUALITY OF THE PRODUCT LOW EDUCATION OF WORKERS COMPETITIVENESS THROUGH DIFFERENTIATION LACK OF COMPETENCES TO WORK WITH NEW MATERIALS LUXURY FURNITURE RATIONALIZATION OF PRODUCTIVE COSTS MARKETING PLAN INEXISTENT OR FEEBLE EXISTENCE OF A LOCAL PRODUCTIVE SYSTEM IMPROVING BUSINESS COOPERATION DEPENDENCY ON THE DISTRIBUTION CHANNELS SUSTAINABLE INTERNATIONALIZATION RESEARCH & DEVELOPMENT AVAILABILITY OF PLANNING AND MANAGEMENT TOOLS QUALITY MANAGEMENT SYSTEMS COUNTRIES WITH LOW COSTS PRODUCTION RAISING OF ECO-EFFICIENCY USE OF NEW RAW-MATERIALS INCREASING COSTS OF RAW MATERIALS MORE DEMANDING CLIENT INCREASING OF THE PRODUCTION COSTS INCREASING OF ONLINE SALES MOBILITY DIFFICULTIES OF WORKERS FLEXIBLE AND INTELLIGENT “LIVING SPACES” FLEXIBLE LIFESTYLES GERIATRIC FURNITURE EQUIPMENT FOR PUBLIC SPACES 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

SWOT ANALYSIS PER PARTNER 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

CONCLUSIONS The FUNES Scenario 2020 has been developed and linked to the companies features through a SWOT analysis. The characterization analysis aimed to understand which features are related to companies of the EU furniture sector and which we must strengthen to better meet the Scenario needs. KEYWORDS: Tradition, quality and technology as Competitiveness through differentiation Lack of education and training, rationalization of costs and R&D New trends in consumer behaviour, flexible lifestyle and living spaces, internationalization and eco-efficiency. Increasing costs and emerging countries with low costs production 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

SUGGESTIONS Try to go further into details. Now that the main features have been highlighted we could try to make them even more projected in the furniture industry in order to fully grasp the shades; as it was done for the opportunities that are much more specific and related to the wood and furniture industry. To go deeply into details we could answer to the following questions: How can we make the best use of strenghts to take opportunities? How can we pay attention to the weaknesses to avoid the risks? What risks are negligible considering the strenghts? And which opportunities might escape if the weaknesses are not remedied? 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015

“AND IN TODAY, ALREADY WALKS TOMORROW” Samuel Taylor Coleridge 03-A1 ANALYSIS OF COMPANIES VS SCENARIO 16/09/2015