The furniture industry in Brazil faces many challenges such as high transaction costs, high inflation, high labour taxes and high logistics costs. An additional problem faced by the industry is skilled labour. Even when sales dip seasonally companies are reluctant to lay off their employees because they are highly skilled and it is difficult to find skilled and qualified manpower.
The furniture sector believes that there will be a seasonal increase in orders starting this month because the retail sector starts ordering furniture in anticipation of the end of year increase in demand. Normally a 1% or 2% rise in sales can be expected but the recent easing of credit restrictions could lift sales.