Furniture Industry In Mirpur Case Study
They attributed this to these main causes: 1. Political Instability/Economic Downturn 2. Seasonal Demand 3. Condition of Real Estate Business
1. Political Instability/Economic Downturn: The effect of political instability on the economy is directly affecting the furniture industry. The downturn of the economy has led to people having less disposable income and in turn being unable to create demand for the furniture. This has been cited as the primary reason by the entrepreneurs for the low sales of the industry as a whole. 2. Seasonal Demand: Demand for furniture is highest during winter during which most of the weddings take place. Adding to that, the heat of summer has restricted many customers from visiting the shops. 3. Condition of Real Estate Business: There is a simple relationship between the number of apartments bought and the demand for furniture.
Factors affecting company
All of these companies are affected by the factors that affect the industry as a whole. Beside these, the furniture companies are faring differently from each other based on other factor, as told by the entrepreneurs …show more content…
The furniture comes in separate parts and it only needs to be assembled to be ready for sale. However, problem lies with those producers who produce furniture domestically. In order to attain optimum productive efficiency, the technology of the manufacturing sector in this industry has to be improved. Most furniture manufacturers lack adequate knowledge about technology and still follow the traditional methods of furniture manufacturing as they are not aware of the modern methods. Surface finishing, an important aspect of quality, is done using traditional hand polish techniques over modern technology based methods. High volume production machineries are not used by the Bangladeshi micro and small-scale producers namely Planner machine, Molder machine, Panel & Band Saw machine, Mortiser, Sanding machine, Boring machine, Router, Grinding machine, Lathe, Edge bending machine etc. This is often a result of lack of capital and lack in awareness in available technology. This has an adverse impact on quality as well as the