The approaching holiday season in Europe and the US has resulted in increased demand and orders for furniture from the city of Surakarta in Central Java, Indonesia. According to the Surakarta branch of the Indonesian Furniture Association (ASMINDO), improvement in orders began in October this year for deliveries to be made before December 2010. It is estimated that orders for the period from October to November 2010 increased by 20 per cent over the period from January to September 2010. In the past, some fifty furniture manufacturers in Surakarta shipped an average of four hundred containers of furniture to the EU and US annually. Sri Mulyani, the major furniture manufacturer in Surakarta noted that orders for desks and tables are also coming from Australia and Italy. Orders have been increasing since September this year.

 The US market for residential furniture weakened at the end of summer, and the latest survey results by consulting firm Smith Leonard confirm this trend. While this is not surprising given the negative economic news in the US, furniture manufacturers hope that the decline will not continue into next year. A positive sign is that in December the Furniture Buying Index remained steady from November when it was at its highest 2010 level. The Furniture Buying Index is compiled each month by America's Research Group from interviews with 5,000-8,000 consumers across the country.

New order for residential furniture declined in September according to the Smith Leonard survey of manufacturers and distributors. This was the first time this year that orders declined compared to 2009 (down 3 per cent from September 2009). Year-to-date, new orders are still 6 per cent above 2009. Furniture shipments on the other hand were up by 6 per cent compared to September 2009 (up 8 per cent year-to-date). The increase in shipments may be related to imported products rather than US-manufactured furniture, according to Smith Leonard. Furniture inventories continued increasing, likely because retail sales tapered off in late summer. Inventories were 18 per cent higher than in September last year.

 The Indonesian Supervisory Commission on Business Competition (KPPU) has urged the Indonesian federal government to revise the regulation on trade and export of rattan. According to KPPU, the supply of rattan had exceeded demand in the domestic market, thus hurting the livelihood of local rattan suppliers.

The Indonesian Rattan Businessmen Association (APRI) added that domestic consumption of rattan stands at about 40,000 tons per year, while production has reached 696,000 tons per year. Moreover, rattan processing in the country has declined over the few years, further weakening its demand.

The Ministry of Trade Indonesia had enforced the regulation on trade and export of rattan on 11 August 2009. The regulation outlines the export ban of several species of rattan as well as limits the export volume of semi-processed rattan to 35,000 tons. Furthermore, the regulation also requires that rattan producers and suppliers must obtain letters of approval from the local rattan industry declaring that they have met and satisfied the requirements of the local rattan market.

According to the APRI, the exports of rattan in excess of actual domestic production of finished rattan products should be facilitated. In addition, the requirement of a letter of approval is open to abuses and should be issued by governmental authorities instead of local industry bodies.

Indonesia exported a total of US$138 million worth of rattan products in 2010, down 21.5 percent from US$168 million recorded in 2009. Indonesia accounts for 82 percent of the world’s total rattan production and there are 300 rattan species found across the country.

 Buyers of sawnwood and furniture are increasingly looking for certified wood and products. As a result, there has been an increasing interest among exporters to obtain certification for their products.

According to an analyst, since locally produced and imported logs are subject to strict rules by the Forestry Department, it will not be difficult to conform to certification requirements.

However, the general feeling in the trade is that certification will benefit producers in developed countries as it blocks imports of cheaper products from developing countries and thereby, creates demand for domestic timbers in developed countries.

 Buyers of sawnwood and furniture are increasingly looking for certified wood and products. As a result, there has been an increasing interest among exporters to obtain certification for their products.

According to an analyst, since locally produced and imported logs are subject to strict rules by the Forestry Department, it will not be difficult to conform to certification requirements.

However, the general feeling in the trade is that certification will benefit producers in developed countries as it blocks imports of cheaper products from developing countries and thereby, creates demand for domestic timbers in developed countries.

 The furniture industry in the state of Mato Grosso do Sul is optimistic about the 2011 market prospects, forecasting a 10 percent growth. According to Sindimad/MS (Union of Furniture, Carpentry, Sawmills, Forest Products of Mato Grosso do Sul), the year 2010 was very difficult for the furniture industry, but this did not affect the projections for 2011.

Sindimad suggests that in 2011 the furniture sector should focus on implying innovative methods in production such as medium density particleboard (MDP). The furniture industry in Mato Grosso do Sul comprises 666 companies employing 2,800 workers.

The furniture industry in Bento Gonçalves of Rio Grande do Sul recorded a strong performance in domestic and export markets in 2010. According to the Department of Finance of Rio Grande do Sul, total turnover of the furniture sector was BRL2.05 billion, a 17 percent increase compared to 2009.

The value of exports by the Bento Gonçalves furniture industry rose to 10.5 percent over 2009, while the statewide growth in Rio Grande do Sul was 5.5 percent. For 2011, the forecast is to extend growth from 10 percent to 15 percent.

According to the Union of Bento Gonçalves Furniture Industries (Sindmóveis), the challenge of the furniture sector in 2011 is in design. The Union aims at increasing recognition of Bento Gonçalves furniture in the domestic and international markets.

China is the largest wooden furniture producing and exporting country, with the main export destinations being Europe, the US and Japan. Due to the global economic crisis, China’s exports of wooden furniture declined in 2008 but recovered in 2009. According to the statistics, the period from January to November 2010 showed robust growth in China’s wooden furniture trade.

The value of wooden furniture imports in China amounted US$244 million from January to November 2010, a significant jump of 17 percent compared to the same period in 2009. Even so, China exported much more wooden furniture (excluding wooden framed seats) valued at US$9,447 million year-to-date November 2010, which is 42 percent higher than in the same period in 2009.

The US market for residential furniture weakened in the last quarter of 2010. The Furniture Buying Index went up by one point in January 2011 to 73, which is a good sign for post-Christmas spending, but the index remains below the benchmark of 80. The Furniture Buying Index is compiled each month by America's Research Group with interviews from 5,000-8,000 consumers across the country.

Furniture/Today projects US furniture and bedding sales to grow 4.8 percent in 2011 to US$86.5 billion. This compares with a 2.9 percent gain in 2010 and an 8.1 percent decline in 2009. The recovery from the recession is expected to remain slow, and it will be a while before market demand returns to the high levels seen last time in 2007.

According to the Smith Leonard survey of manufacturers and distributors new orders for residential furniture increased by 3 percent from October 2010 to November 2010. As compared to November 2009, it had declined by 5 percent in November 2010. The year-to-date gain in new orders was 4 percent above 2009. Furniture exports in November 2010 were up by 1 percent, compared to October and 7 percent above year-to-date 2009. The increase in exports may be related to imported products rather than US-manufactured furniture. Furniture inventories remained higher than in November 2009 (+18 percent), but dropped by 3 percent from the previous month. This indicates that companies are readjusting after retail sales tapered off in late summer.

 Dining furniture accounted for 12 percent of total furniture industry sales in the US in 2010, according to Furniture/Today Market Research. Americans spent an estimated US$9.6 billion on dining furniture in 2010, an increase of 2 percent from 2009. Formal dining sets accounted for US$5.6 billion and casual dining for US$4 billion. A typical dining furniture set is a table and six chairs. The preferred styles are contemporary, except at high price points (US$5,000 or more for a set) where most consumers prefer traditional styles, according to the Furniture/Today Case Goods Style Survey 2010. The survey also found that consumers prefer cleaner styles and solid wood table extensions.