From Septmber 10th 13th 2024 a special edition of DREMA connected professionals of the wood and furniture sector in Poznań. The largest event in Poland that caters to the sector of woodworking machines and tools as well as components for the furniture industry in Poland showed the latest technological solutions and brought the industry together to jointly discuss possible development directions. Among the exhibitor booths there was also the one from Fordaq, where Agnieszka Puzio and Alex Wysocki welcomed Fordaq members as well as visitors who showed interest in the network or the latest software solutions.
Agnieszka Puzio - who is Fordaq’s local Business Development Manager and has been representing Fordaq already in previous editions - gave a brief background to the latest developments in the Polish fair landscape:
In the past we had three fairs at the same time: DREMA (machines and tools), FURNICA (components for furniture industry) and SOFAB (textiles for upholstery furniture). But since the pandemic (2020), when the number of exhibitors drastically went down, the fairs were integrated under DREMA. Since then, the main group of exhibitors are companies offering machines and tools. DREMA is one of the few trade fairs worldwide that continued to be held regularly during the pandemic without any interruptions. Currently, DREMA is the largest meeting point for furniture manufacturers in Central and Eastern Europe.
DREMA over the years
DREMA first took place in 1978 and already enjoyed great interest at the time. Initially, the event was held every two years showcasing offerings exclusively from Polish exhibitors. In 1994, due to the dynamic growth and immense potential of the woodworking industry in Poland, it was decided to change the format to an annual event.
A significant increase in interest occurred in the 1990s, when the full opening of the Polish market became possible. In recent years, DREMA has expanded its themes to include tools, materials, and components designed for the production of furniture.
40th edition brought even more exhibitors
This edition - the 40th - was larger than last year, both in terms of exhibition area and number of exhibitors. DREMA officially confirmed almost 400 companies and brand names from 17 countries. It was a welcomed contradiction to the initial companies' expectations that the fair would be exceptionally small this year, because of the economic situation.
During DREMA this year companies presented innovative solutions and technologies of tomorrow for the woodworking, wood-furniture and lumber industries. There were many companies with foreign capital, with their representatives on the Polish market. A considerable part of the exhibition was dedicated to woodworking, hand tools and power tools. This is a treat not only for professionals, but also for DIY enthusiasts, visible among visitors.
Massive conference and podium programme
The programme during DREMA included more than 20 events: conferences and panel discussions on the current market situation and the automation and mechanization of production processes. There also KOOPDREW Wood Industry Congress was held. This international conference organized by the Polish Economic Chamber of Wood Industry discussed opportunities and threats for the forest-wood sector in the coming years.
The Polish Chamber of Commerce of Furniture Manufacturers (OIGPM) also prepared the 6th Meeting of Women Associated with the Furniture Industry. Among the new events was the 1st edition of the Young Technologists Forum, aimed at future specialists and teaching staff.
DREMA 2024 took place in challenging times for the industry
Agnieszka Puzio - who is very familiar with the Polish industry and market - summarized the current circumstances as well as the specific situation of wood industry companies in the Polish market. She saw how the challenges posed by the economic crisis and the monetary policy decisions that followed it negatively affected the sales performance of Polish companies. Shortages of specialized labour and the continuous increase in production costs drastically lowered the mood of representatives of the wood industry.
Poland’s wood sector has been experiencing a market slump and a decline in sales for several years. Recently, the situation has even become dramatic. In early January this year, the Ministry of Climate and Environment decided to temporarily place ten forest areas under strict protection. What’s more, the ministry is working on a systemic solution that will include more areas subject to halting or limiting timber harvesting. Losses will be huge, wood industry companies are likely go bankrupt if government limits logging by 20%. The State Forests, despite clear requests from the industry resulting from the deep economic crisis, are not responding in any way to these appeals.
High inflation in recent years (close to 20%), high energy prices, raising the minimum salaries, increasing corporate taxation, limiting timber harvesting, high wood prices, drastically increased production costs. Poland’s wood industry lost competitiveness. Additionally, the economic situation in Poland and in other countries caused a drop in orders.
A variety of worries cause decisions in accordance
Many companies confirmed during the meetings on fairs, that the sale dropped down this year even 40% to 70%. The wood prices in Poland are higher than in other European countries, so many companies focus their sale only on the domestic market. Many companies on the eastern border are refraining from investing due to fears of the war. Polish companies are also afraid of opening borders with Belarus, because Polish producers would be crushed by much lower prices from competitors from the East.
Due to all circumstances, some companies cut expenses, focus on domestic or existing clients, reduce production in order to not sell below production costs. Some of them even try to wait for better times and freeze their activity. There is also a number of bigger companies, which are starting to think about new marketing actions. They hire professional agencies to do rebranding or marketing. As long as the order books were filled, the awareness of marketing among companies was low. In these tough times a lot of them realized the need to use advancing marketing tools to reach out to targeted clients.
What will happen to the wood and furniture industry in Poland?
The future of the wood and furniture industry will depend on many factors, including changing consumer expectations, advancing technological innovations and regulatory regulations. Companies that are flexible and ready to adapt to changing market conditions will have a better chance of success. Today, key trends are noticeable, such as increased awareness of sustainability, growing interest in ecology, and the rapid development of technology, especially automation and artificial intelligence.
Rising prices of raw materials and problems with their availability, very high inflation and uncertainty related to the attack on Ukraine are among the main challenges that entrepreneurs face these days. The wood and furniture industry, are the most important branches of the Polish economy. Discussions with the government are expected in order to save the industry.
Fordaq’s experience at DREMA
Fordaq-CMO Alex Wysocki depicted the overall experience at DREMA as very productive: "It was great to see so many of our more than 8000 Polish members as well as those from other countries exhibiting there. And of course it was a great opportunity to check in what timber business managers are looking for, expecially their expectations of suppliers of equipment. Despite all the current open questions and challenges I think Polish timber companies have great potential to act even more internationally. Likewise DREMA has a great potential to become the main international exhibition in the region - not only for furniture but for the wood industry in general."
The next edition of DREMA, which will take place from 9 to 12 September 2025.