Posted November 16, 2018
Manufacturers in Rio Grande do Sul account for most of the wooden furniture production in Brazil. Between January to August 2018 furniture manufacturers in the State of Rio Grande do Sul exported mainly to the United States and Uruguay (15% each) and the United Kingdom (14%), as ITTO reported.
In August there was a 26% increase in furniture exports from Rio Grande do Sul State compared to the previous month. The value of these exports was $17.8 million according to IEMI - Market Intelligence Institute.
The president of the Furniture Industry Association of Rio Grande do Sul (MOVERGS) has said his association is pleased to see the increase in foreign currency earnings which is a result of manufacturers beating the competition in international markets.
But, there are challenges. As the currency weakens manufacturing inputs such as imported components used in the manufacture of furniture become more expensive and planning production and pricing becomes a nightmare if exchange rates are volatile.