Leaders of the European wood flooring industry said recently that 2012 will "be a challenging year" as the continent's economic crisis continues to dog recovery.
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Leaders of the European wood flooring industry said recently that 2012 will "be a challenging year" as the continent's economic crisis continues to dog recovery.
The Board of Directors of the European Federation of the Parquet Industry reached that consensus during a meeting in Brussels on April 13 (in Europe, "parquet" means "wood flooring"). As a result of the meeting, "an increasingly polarized picture" emerged, with Central European and Nordic countries "performing predominantly well" while countries in Southern Europe underperform.
Here is a country-by-country breakdown, as reported in a press release from the federation:
- Austria: 2011 was a good year and 2012 started in a stable way. The country continues to have a very low unemployment rate and the private sector performs well. Government debt is problematic with little money for investments.
- Belgium: No spectacular changes on the parquet market at the start of 2012. General economic picture improving on account of growing GDP; slightly decreasing unemployment rate and declining budget deficit.
- Denmark: The market remained flat to slightly down.
- Finland: Slightly positive market.
- France: The first quarter of 2012 showed a flat picture; many companies face uncertainties. New buildings are decreasing; 80 percent of the market is in renovation. People are predominantly uncertain and show a lack of confidence.
- Germany: Parquet sales in 2012's first quarter rose slightly, especially wide planks. The economy in the first quarter of 2012 was positive. The construction sector performs well with an increase in building and housing permits of 20% in 2011. Overall, customers and wholesalers show some confidence.
- Italy: The parquet market was more or less stable in 2011; however, the recap of Q4 2011 and Q1 2012 is clearly negative. The current economic situation is pretty difficult; probably the worst period since the beginning of the crisis. Many companies face or envisage permanent closures and/or stiff cuts in their working force. If the financial situation does not improve, it will remain difficult to lend money. Psychological problems and lack of confidence impede economic activity.
- Netherlands: The market is going down and remains uncertain. Activities and exports are following the same negative trend. Overall, the economy is not in good shape. Norway: The parquet market is growing in excess of 10 percent. Building market rose by 19 percent in January and February.
- Sweden: The market remained fairly flat in the first quarter after sound progress last year. Competition is picking up, especially in retail as a result of a well functioning market. The Swedish Crown remains strong.