MAPPING VALUE STREAM AND POLICY FOR FURNITURE MAKING INDUSTRIES

Abstract

Exports are an important element in the economic growth and development in a country. Other products are traded in the international market in the form of agricultural products, textiles, machinery, and chemicals, to the highly advanced military equipment. Furniture can be described as a personalized product that is fundamental in homes, offices, hotels and other environments. In 2018, China had the largest share in the global furniture export market with a total sale amount of 28 billion dollars that is approximately 31.5% of the total furniture export. After China came Germany (9%), Italy (8.8%), Poland (6%), Vietnam (5.2%), the United States (3.4) in their respective shares of the world furniture export market that year. In 2018, the furniture exports of Pakistan were only 0.01% of the total furniture export market in the world. Some of the major challenges faced in this sector in Pakistan are; old technology in manufacturing, lead time, high cost of production and lack of government policies aimed at exploring and diversification of markets. Although the country has skilled craftsmen and other developments such as CPEC are underway, the country lacks advanced machinery and other relevant training programs. Moreover, the supply chain analysis and mapping of the furniture industry in terms of value chain is notably lacking. This research primarily aims to develop value chain mapping for the furniture industry along with appropriate mapping tools for analysis. The findings will contribute to establishing a value chain framework for Pakistan's furniture industry, which, when implemented, should result in increased exports, reduced imports, and enhanced overall revenue generation for the country.