Wooden and FurnitureSector
The Wooden and Furniture sector is one of the most important industrial sectors in Jordan in terms of its contribution to the overall economic activity and employment. It is one of the most promising sectors experiencing exceptional growth and great opportunities for investment. The growth of this sector is greatly linked with the growth of the Construction Sector and urban activity, as its products are used in the equipment of restaurants, hotels, schools, hospitals and many other economic activities.
The Wood and Furniture sector is the third largest industrial sector in terms of the number of establishments, the most of which are craft facilities that amount to about 97% of the sector's total establishments. Such entities rely heavily on skilled labor allowing many job opportunities; thus contributing to addressing the problem of unemployment in Jordan as this sector is ranked fourth in terms of the number of workers in craft facilities at the level of other industrial sectors. Workers in the sector are characterized by competency, precision and artistic activity which led to the excellence of the sector besides raising its competiveness in both domestic and foreign markets.
Furniture industry in Jordan started in the form of small workshops which played an important role in the production of handmade furniture. Currently, furniture industry in Jordan includes a large industrial scale operating facilities in terms of production, in order to meet the local and foreign markets' needs of products like kitchen and office furniture, home, schools, hospitals and hotels furniture.
Jordanian furniture manufactures keep pace of designs and trends in target markets as they handle the task of developing new designs and methods that satisfy the changing tastes of their customers. Most of these facilities have already got the ISO 9000 certificate and other required quality certificates, in addition to the use of the latest technology and modern equipment to meet the international quality standards.
The Wooden and Furniture sector includes the following sub-sectors:
- Wood panels, veneer and plywood and plastics.
- Wooden building products, carpentry, including doors, windows, wooden frames and decoration works.
- Wooden molds.
- Wooden hand toolsand structures.
- Wooden handicrafts.
- Cork products, straw and plaiting.
- Kitchens.
- Furniture of all kinds (home, offices, restaurants, schools, hospitals and laboratories).
- Mattresses.
- Ceramic pots, tableware and ornamental statues and other ceramic products.
Jordanian furniture is distinguished by the use of the finest types of woods and raw materials in the production processes, such as beech and pine as well as a wide variety of wood imported from Africa, Asia and South America. This has contributed to the production of high quality products leading to exporting Jordanian furniture as Jordan exports to eight major markets most of which are centered in the Arab Gulf countries and Iraq.
Number and Volume of Establishments:
The total number of establishments operating in the Wooden and Furniture industrial sector registered in the three chambers of industry (Amman, Zarqa and Irbid) in the year 2014 has amounted to 2881, compared to their number in the year 2013 which reached 2845, registeringa 1.3% growth. The difference in both industrial and craft facilities operating in the sector is shown in table (1).
Table (1): Number of Establishments in the Wood and Furniture Industry
Sector in (2013 – 2014)
Local Chambers / Industrial Establisments / Craft Establishments / Total2013 / 2014 / Growth / 2013 / 2014 / Growth / 2013 / 2014 / Growth
Amman / 78 / 60 / -23% / 1548 / 1654 / 7% / 1626 / 1714 / 5.1%
Zarqa / 14 / 15 / 7% / 920 / 948 / 3% / 934 / 963 / 3.1%
Irbid / 2 / 5 / 150% / 283 / 199 / -30% / 285 / 204 / -28%
Total / 94 / 80 / -15% / 2751 / 2801 / 2% / 2845 / 2881 / 1.3%
Figure (1) demonstrates the number of craft and industrial enterprises registered in industry chambers and geographical distribution in 2013 – 2014.
Figure (1): Number of Establishments Operating in the Wood and Furniture Industry Sector According to Geographic Distribution (2013 – 2014)
Registered Capitals:
Capital of establishments operating in the sector has mounted to about 61 million Jordanian Dinars in the year 2014, compared to a nearly 71 million Jordanian Dinars in the year 2013, recording a 14% deficit.
Table (2): Total Registered Capitals for Establishments Operating in the Wood and Furniture Industry Sector in 2013 – 2014 (Million Dinars)
Local Chambers / Industrial Establisments / Craft Establishments / Total2013 / 2014 / Growth / 2013 / 2014 / Growth / 2013 / 2014 / Growth
Amman / 41 / 30.6 / -25% / 23 / 24 / 4.3% / 64 / 54.6 / -15%
Zarqa / 23 / 24 / 4.3% / 27 / 3 / 11% / 5 / 54 / 8%
Irbid / 0.1 / 0.2 / 100% / 12 / 12 / 0% / 13 / 14 / 7.7%
Total / 44 / 33 / -25% / 27 / 28 / 3.7% / 71 / 61 / -14%
Figure (2) shows the total registered capital of each entity of industrial and craft enterprises registered in the three chambers of industry in 2014-2013
Figure (2): Total Capital of the Craft and Industrial Establishments in 2013-2014 According to Chamber of Industry (Million Dinars)
Number of Workers:
The total number of workers in the establishments operating in the sector that are registered in the three chambers of industry (Amman, Zarqa, Irbid) has amounted to 10,267 workers in the year 2014 , compared to their number in the year 2013 which reached 10,268 workers. The difference in both industrial and craft facilities operating in the sector is shown in table (3).
Table (3): Number of Workers at Establishments Operating in the Wood and Furniture Industry Sector in (2013 – 2014)
Local Chambers / Industrial Establisments / Craft Establishments / Total2013 / 2014 / Growth / 2013 / 2014 / Growth / 2013 / 2014 / Growth
Amman / 3926 / 3715 / -5% / 4034 / 4298 / 7% / 7960 / 8013 / 0.7%
Zarqa / 168 / 178 / 6% / 1602 / 1646 / 3% / 1770 / 1824 / 3%
Irbid / 22 / 50 / 127% / 516 / 380 / -26% / 538 / 430 / -20%
Total / 4116 / 3943 / -4% / 6152 / 6324 / 3% / 10268 / 10267 / 0%
Figure (3): Number of workers at Craft and Industrial Establishments and Their Distribution According to Industry Chambers in (2013 – 2014)
Exports:
According to the certificates of origin issued by the local chambers of industry, the total Wooden and Furniture sector’s exports have declined from about 56 million Jordanian Dinars in the year 2013 to around 54 million Jordanian Dinars in the year 2014, recording a 4% decline as illustrated in table (4).
Table (4): The Wood and Furniture Industry Sector Total
Exports Values (Million Dinars)
Local Chambers / Industrial and Craft Establishments2013 / 2014 / Growth
Amman / 55 / 53 / -4%
Zarqa / 1 / 1 / 0
Irbid / 0.05 / 0 / -100%
Total / 56 / 54 / -4%
Figure (4): Industrial Exports Distributed by Chamber of Industry in (2013 – 2014)
In terms of the nature of the exported products, wooden furniture exports account for the highest percentage, followed by garden furniture, wooden doors, windows and kitchens respectively. It is worth mentioning that the largest Arab markets to receive the sector's exports are Yemen, Saudi Arabia and Qatar in a row. Export markets also include non-Arab countries, such as the United States and Austria respectively. The ratio of wood and furniture exports is 1.1%of the total industrial exports of all sectors.