2022 is heading towards a record year for the company, which is the largest furniture manufacturer in the Nordics. But now the trend is about to turn. – In the last two years, there has been full pressure here. At most, over 1,200 stressless armchairs go out every day. Today we are at approximately 900 a day, says Roger Lunde, CEO of Ekornes. Must adapt the production pace Lower demand means that Ekornes is now reducing production by 20 per cent for a period to come. They also introduce four-day weeks in parts of production. Roger Lunde, CEO of Ekornes, hopes they will emerge stronger from this situation. Photo: Øyvind Berge Sæbjørnsen / news The reason for this is a result of inflation, high energy prices, the dry summer in Europe and not least the ripple effects of the war in Ukraine, says Lunde. – We have had a record turnover in the last two years. And now we see, mainly in Europe, that demand is falling. So then we have to put in immediate measures and adjust the production pace, says the CEO. Ekornes is, among other things, behind the world-renowned Stressless chair. Lunde says that the brand is still strong in the world, and therefore believes that they will be able to have it a little easier than many other smaller players in the future. – The concern is there During the corona pandemic, the company experienced an unparalleled sales boom, because many used the time to renovate. The chief trustee in Ekornes in Sykkylven, Edvard Lie, says that the employees had expected that there would be a decline after the pandemic. However, they were not prepared that it would come so quickly. – It is of course stupid that we don’t have enough to do. But in this situation we are in now, it is okay that we switch to a four-day week. He says that there is concern among the employees about the fluctuations that are now being seen. – It’s not just that we have less to do. That is what is happening in the world, with rising prices and everything like that. The concern is there, but we can only hope that it picks up again. Edvard Lie, chief shop steward at Ekornes, says that the rapid decline came as a surprise to the employees. Photo: Øyvind Berge Sæbjørnsen / news – Dropping off buying furniture Also other furniture manufacturers in Sunnmøre that Sunnmørsposten have spoken to say that orders have started to dry up. Ola Honningdal Grytten, professor of economics at the Norwegian School of Economics, believes that what Ekornes is experiencing is natural. Photo: Marit Hommedal / NTB Economics professor Ola Honningdal Grytten says that the most important reason why things are going badly for the furniture industry, among others, is the war in Ukraine, which has led to a rising price level. – And then furniture is one of the first products people find easy to buy, so that demand falls. He believes that this situation will lead to those who produce such goods experiencing a marked drop in sales. – Furniture manufacturers and others who produce slightly expensive products, they will struggle. Many of us will experience reduced purchasing power, and thus less purchases of furniture and the like. Therefore, what Ekornes experiences is natural. Here they make the famous chair Stressless in the factory in Sykkylven. Photo: Alf-Jørgen Tyssing / news – Extremely survivable But the economics professor still has full faith that things will work out for the furniture giant. – The furniture industry in Sunnmøre has proven to be extremely survivable, like the rest of business life in Sunnmøre, and this will go well. There will be a few years of losses, but they have a bit to go on, says Honningdal Grytten. And CEO Lunde has also taken that attitude with him into this era. – We are using this crisis to position ourselves even better, and then we will come out of it stronger, says Roger Lunde.
ttn-69
People cannot afford to buy furniture – production must be cut
