There are about 2,300 business entities specialised in the wood processing and timber trade, which, according to a report from the Croatian Chamber of Commerce (HGK), is facing more and more challenges times.

The developments in this sector are not promising, according to the HGK data, which shows a decline in the turnover and revenues of the biggest companies in that sector in 2023.

The fall of revenues and turnover ranges between 5% and 55%.

Furthermore, orders and business contracts for 2024 have also fallen and business plans seem uncertain.

Producers also say that they are exposed to pressure to reduce their prices.

All that affects the cash flow of the companies concerned, and it is not easy for them to keep the current levels of employment.

According to the data presented in the report, approximately 30,000 are hired by this sector.

In 2023, the wood processing and timber sector’s exports of timber and furniture were worth €1.4 billion, dropping by 15% or by €253 million from 2022.

Last year, the imports in this segment totalled €1.1 billion, a rise of 3%.

Most of these goods were imported from Bosnia and Herzegovina, Austria, Italy, Germany and Slovenia.