SAFCOL FORESTRY INDUSTRIALISATION CONFERENCE 4TH - 5TH OCTOBER 2017 Timber furniture manufacturing as an industry to promote development and growth of the industry, for the development of SMME’s and the value chain PENWELL LUNGA CHAIRMAN-SAFI

AGENDA Background – SAFI Furniture value chain Socio economic drivers for investment Barriers to industry growth Industry and government strategic plan Conclusion

COMPANY PROFILE Business Labour Government SAFI is a joint initiative of industry, labour and government. Shares common interest of promoting development and growth of the South African Furniture Industry.

SAFI OBJECTIVES Provide market intelligence information. Facilitate support services. Penetrate domestic and international market. Facilitate supply chain optimisation. Promote effective manufacturing and design.

FORESTRY RESOURCES AND DOWNSTREAM LINKAGES Woodlands Natural Forest Plantation Forests Wood Furniture Non – Timber Forest Products Conservation / Recreation Wood Products Pulp & Paper Source: Pogue T.E, 2008

FURNITURE VALUE CHAIN Foreign retailers Construction Foreign wholesalers Foreign retailers Consumer Construction Plastic, Metals, Paint, adhesives Forestry Sawmills Furniture Machinery & other technology Retail, Mining etc Domestic wholesalers Domestic retailers Consumer Source: Kaplinsky and Morris, 2006

SOCIO-ECONOMIC DRIVERS FOR INVESTMENT Potential to play an important role in promoting growth and alleviating poverty. Traditionally labour intensive and includes local craft based firms and large volume producers. Has the second lowest cost per employee. Suited for small scale production, which can support rural economies.

BARRIERS TO INDUSTRY GROWTH High concentration of the retail sector. Declining competiveness.

VS FURNITURE RETAIL VS MANUFACTURING SECTOR Source: Erasmus, 2004: 70 Source: DTI, 2008

DECLINING COMPETIVENESS Lack of investment in technology to drive innovation and productivity Shortage of both design and technological skills Lack of research and development to support a global industry

INDUSTRY AND GOVERNMENT STRATEGIC PLAN Furniture design programme Furniture manufacturing hub Market access programme Furniture skills development programme

FURNITURE MARKET ACCESS PROGRAMME Furniture designation School, office and bed and mattress was designated in 2012 Development of public furniture guideline Strategic partnership with retailers Supplier development programme in partnership with the dti National Pavilions and Trade missions 2017 – furniture companies participated in Mozambique, Zambia, Zimbabwe and Ghana More focused missions in the future Development of compulsory standards School furniture compulsory standards Office furniture

IMPROVING THE FURNITURE COMPETITIVENESS Information dissemination Establish and operate a sector information desk Competitiveness improvement programmes Facilitating access to markets Local market development – retail and government Regional (SADC) market development Facilitating access to finance

FURNITURE DESIGN PROGRAMME Furniture design competition 4th competition – theme storage Attract designers in the furniture sector Competition for professionals, students and developing designers Furniture design qualification The dti in involved the development of the qualification with the view to promote skills in the sector Future design workshops

FURNITURE SKILLS DEVELOPMENT PROGRAMME Learnerships A work based learning programme Assists learners to gain the necessary skills and workplace experience. Skills programs Recognition of prior learning Work Integrated learning Assists in providing career development, linking students with industry for relevant experience.

THE END THANK YOU Western Cape 75 Harrington Street Cape Town 8001 F: +27 864 438 028  E: safi.info@furniture.org.za Gauteng Office 305 3rd Floor North cliff Atrium 189 Beyer's Nude Drive 2195 T: +27 11 888 0655 F: +27 864 438 028 E:safi.gp@furniture.org.za THANK YOU