AMMAN
— Jordan's woodworking and furniture sector is grappling with a lack of
protection against foreign imports, which have reached significant levels
despite the competitiveness of local products in terms of quality and prices,
according to the
Jordan Chamber of Industry (JCI).
اضافة اعلان
According
to a report carried by the Jordan News Agency, Petra, foreign products make up
43 percent of the country's
furniture and woodworking market, posing a major
challenge to the competitiveness of the national product both locally and
regionally.
Potential for growth in foreign markets
Woodworking
and furniture manufacturing are vital industrial sectors in Jordan, closely
linked to the construction and urban sectors. Their products are utilized in
restaurants, hotels, schools, hospitals, and various
economic activities.
The
sector, known for its high productivity and skilled labor, employs 8,500
workers, with the majority being Jordanians, constituting over 90 percent of
the total workforce. There are 2,140 establishments spread across the Kingdom,
with an investment volume of nearly JD300 million.
In
terms of productivity, the sector is recognized as one of the leading
industries, characterized by high added value and skilled labor with artistic
and creative abilities. It contributes around JD321 million to the total
industrial production in Jordan, with an added value accounting for 40 percent
of the total production.
Exports
from the
woodworking and furniture sector reached approximately JD34 million in
2022, contributing 0.45 percent to the Kingdom's total industrial exports. The
sector's products reached more than 70 countries worldwide, encompassing over
60 different product types.
Among
the top importers of Jordanian furniture products, Saudi Arabia ranked as the
largest, accounting for 31.7 percent, followed by Iraq with 13 percent of the
sector's total exports.
Challenges faced
The
report emphasized that the woodworking and furniture sector is predominantly
composed of craft-based establishments, with over 95 percent falling into this
category. Skilled labor plays a crucial role, characterized by high skills,
precision, and creativity, contributing to the sector's excellence and enhanced
competitiveness in local and international markets.
The furniture
industry in Jordan has grown from small workshops to large-scale production
facilities that cater to a significant portion of the local market's needs and
export markets. It is also interconnected with other sectors, providing a rich
environment for investment and entrepreneurship. Additionally, the sector
utilizes high-quality wood and raw materials, enabling Jordanian products to
enter the export market.
However,
the sector faces various challenges, including issues with importing raw
materials, insufficient resources to support the production process, and high
production costs, particularly energy expenses, which account for 60 percent of
the sector's total production volume.
Other
challenges include the absence of financing programs and incentives
specifically targeting the sector, as well as the lack of advanced marketing
and promotion programs and systems. These factors significantly limit the
product's access to international markets, alongside complexities related to
registration and multiple regulatory authorities.
Potential for growth in foreign markets
Despite
these challenges, the report also identified untapped export opportunities for
the sector, estimating their value at around $31 million in various countries
worldwide.
North
America, in particular, has emerged as a promising market for Jordan's
woodworking and furniture sector, offering clear export opportunities. The
demand for high-quality and distinctive furniture designs in North America
presents a significant avenue for Jordanian exporters to capitalize on.
To
effectively penetrate foreign markets, the report recommends that Jordanian
furniture manufacturers explore partnerships and collaborations with local
distributors and retailers. Establishing strong networks and distribution
channels will facilitate the introduction of Jordanian products to a broader
customer base.
Additionally,
the report emphasizes the importance of participation in trade exhibitions and
specialized fairs focused on furniture and interior design. These platforms can
showcase the sector's capabilities and attract potential buyers.
Addressing
the challenge of high production costs is crucial. The report suggests
exploring renewable energy options and implementing energy-efficient practices
to reduce costs and enhance the sector's competitiveness in the global market.
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