After the nightmare in Turkey: Shagib Yehezkel landed in Israel./Yotam Ronan
The volume of furniture imports from Turkey to China is about half a billion shekels per year.
Will the negative sentiment in trade relations with those countries following the war lead to an increase in the volume of furniture purchases from local manufacturers and factories in Israel, or will the 'vacuum' that has been created be filled by an increase in the volume of imports from another country, such as Sweden?
"If six months ago, every day My factory has at least five Israelis in order to purchase furniture, sinks, showers, etc., so starting in the middle of October everything stopped.
Israelis don't come," says Lavala Shen Ming, a sales manager at a large showroom in the city of Guangzhou in China. His testimony is no different from that of other industry officials. All of them also tell of a sharp dive in the number of Israelis who have come to China since the beginning of the war, in order to to visit the giant shopping malls and import from there containers loaded with furniture.
The reason for this lies, first and foremost, in the suspension of regular air routes to China, but not only. The position of the Chinese government and its direct and indirect support for the countries of the 'axis of evil' also reduced the motivation to go on an extensive shopping trip in the country. Also The industrialists and the owners of the furniture factories in Turkey are experiencing the foot that the Israelis put on the brake pedal. According to the data of the Turkish Ministry of Transport, as of October 7, 701 ships sailed from Turkey to Israel, but according to knowledgeable sources, a significant proportion of them carried goods that were ordered before the war: "There are almost no New orders, certainly not of furniture.
The owner of a large store in Israel told me that many customers simply do not want Turkish goods," Rozman Rozger, a Turkish contact person whose job it is to connect Israeli importers with Turkish factory owners, tells us.
made a very dangerous economic move for both countries.
Erdogan/Reuters
Turkey and China are two key countries on the map of countries from which furniture is imported to Israel.
According to the latest report issued by the Central Bureau of Statistics, in 2022 furniture will be imported to Israel from China in the amount of 153 million dollars, and from Turkey in the amount of 89 million dollars (port prices, not sales prices to Israeli customers).
The working assumption is that the echoes of the political crisis will continue to affect the trade volumes between the countries for a considerable time.
Since the Turkish flotilla to Gaza in 2010, under the ship 'Hamarmara', relations between Israel and Turkey have known ups and downs, but the administration in Ankara spoke with two voices: on the one hand, President Erdoğan stepped in and took an opposing position towards Israel, but at the same time, the prosperous trade relations between the countries were maintained.
But a few days ago, something 'fell out': for the first time, Erdoğan carried out an action whose consequences are resonating in both countries, and not without reason - contrary to the anti-Israel statements, this is already a move with a real potential to harm trade relations: the decision to remove Israel from Ankara's list of export destination countries .
Regarding China: the data is confusing: according to the CBS data, the import of goods from China increased by 10% on an annual basis in the months of October - December 2023, following the increase of 10.6% in the months of July - September 2023. The basic premise is that these are goods, most of which were pre-ordered The war. "It is necessary to wait for the next report of the CBS, but it is likely that we will see a decrease in the scope, also because of the psychological and economic climate that prevails in Israel," explains economist Dor Navon.
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The big question that preoccupies all those involved in the furniture industry in Israel is whether the negative sentiment in trade relations with those countries will lead to an increase in the volume of furniture purchases from local manufacturers and factories, or whether the 'vacuum' created will be filled by an increase in the volume of imports from another country, such as Sweden
. December saw an impressive recovery in the volume of purchases of Israeli furniture brands by the local audience, compared to activity in November 2023," notes Ben Zion Adorem, chairman of the furniture branch of the Manufacturers' Association. According to him, "Israelis are voting with their feet because of national feelings.
We feel it in the stores.
You see in the corridors more people who want local goods."
At the same time, he notes that there is still an estimated gap of 20-30% in the scope of activity compared to the month of November 2022, but they expect that during this month and next month, a further increase will apply. Yossi Alkoubi, The president of the Association of Craftsmen believes that there will hopefully be a significant improvement towards Passover, but they also condition this on the fact that there will be no significant deterioration in the various combat arenas. Along
with the aforementioned, Ben Zion emphasizes that the assessment is that the significant increase in the scope of purchasing Israeli brands will apply mainly among the more established deciles, who are not price oriented, but looking for quality and designed furniture.
China and Turkey were no competition for attention.
Yara and Anat Eshkol/Tali Raz
Yara and Anat Eshkol, owners of the Israeli design brand collectie, which deals with the design and production of interior design and furniture products, also have their eyes on the coming months: "In any case, China and Turkey did not represent a real competition for the attention of those of the Israeli audience who are looking for unique designed and high-quality products, However, we definitely see more and more Israeli customers, who give the most significant weight to the patriotic aspect in the decision-making process."
Designer Eric Ben Simhon analyzes the reality in a different way and attributes the rise of quality Israeli furniture to the process of aligning with international premium brands: "I sell my furniture in England as well, so they have to meet strict standards, such as fire standards for sponges, etc. and of course In terms of quality and visibility."
In general, the Israeli furniture industry has recorded a consistent increase in the volume of sales in recent years.
According to the CBS data, its total volume in 2022 reached a peak - NIS 11.28 billion. The increase in the purchase of apartments that has occurred in recent years and the flourishing of the office market also affected the scope of furniture sales of local brands to the Israeli audience.
"Most members of the association combine their work, as usual routine, carpentry details, furniture, lighting, art and more made in the country," notes the Association of Academic Interior Designers in Israel. Nurit Correct - the chairperson of the association, also connects the war and the momentum for the purchase of Israeli products: "At this time, the days of the war, the demand for local production is increasing. The value side occupies an important place in the hearts of designers. There is identification and a desire to contribute to their livelihood. Every designer sees himself these days as part of the system that helps the local design industry."
"Even before the war, I preferred Israeli workshops, but now, even more so, and especially when small workshops," adds interior designer Karin Warsaw.
The demand for local production is increasing.
Correct bulb/Uri Karni
However, alongside the optimistic forecast and the positive scenario described above, we need to take a closer look at the reality faced by businesses in the field of furniture design in Israel.
An assessment carried out about seven years ago revealed that there are about 4,000 carpentry shops operating in Israel.
Today, their number is only 1,500.
The plunge in their number is not explained only by the increase in the volume of imports from China and Turkey, but by the many challenges the industry faces in Israel.
Yossi Alkoubi, president of the Federation of Craft and Industry, adds: "The Ministry of Economy must pick up the gauntlet immediately and formulate a basket of solutions for the industry. The small businesses that are included in it, in their current state, will not be able to enter the void created by the decrease, if applicable, in the volume of imports. To this end, An action plan is required."
According to him, first the state should make available to businesses loans at attractive interest rates, which will be used by them for the purpose of purchasing advanced machines.
"I'm talking to you about CNC machines, automatic sanders, automatic paint rooms, etc. One of the variables that significantly increases the overhead of manufacturing in Israel is the cost of hiring personnel. The cost of hiring a carpenter in Israel easily reaches 3 times, and compared to China - the gap jumps 10 times.
"Even if you opened the market and brought to Israel thousands of workers from abroad, the problem will not be solved, since the social legislation in Israel significantly increases the cost to the employer," notes CPA Yoram Shifer "Our
roots are deeply rooted in Israel and our choice to produce in Israel is a conscious choice out of patriotism and faith In local production, unfortunately, until now, the State of Israel has not seen fit to take actions to strengthen the resilience of the businesses in the industry," Yaara and Anat Eshkol point out. The solutions are in another field. For example, reducing the amount of property tax. "Reducing property tax is a move that can definitely be implemented and can To help businesses in the industry," Alkobi adds, "We established our workshop in the Golan, which is not dominated by factories and workshops, because the DNA of our products is Israeli and above all because we believe in strengthening the periphery by producing blue and white goods and employing workers under good and fair conditions.
The state needs to encourage business entrepreneurship in the region," add the Eshkol sisters.
"The Ministry of Economy must pick up the gauntlet."
Yossi Alkovi/Dani Shavit
In conclusion, the carpenter Dani Alon ties all the ends together: "There are great carpenters in Israel, great designers. The talent is endless. But it is not enough. We are fighting with one hand tied, especially these days, when many of the workers are not present. Some of them are recruited And some of them are Palestinians whose entry is prohibited. They should come to meet us, give growth grants, help us reduce production costs. That we can give a real fight."
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