Fedustria faces challenges and change as Belgian textile, wood and furniture sectors navigate 2024
On 23 April 2024, Fedustria, the Belgian federation representing the textile, wood, and furniture industries, will hold its annual general meeting. Ahead of this event, Fedustria released an update on the current business climate across its three core sectors and announced changes to its board leadership.
Karla Basselier, CEO of Fedustria, characterised the industry’s outlook as challenging, acknowledging that “the glory days are clearly behind us.” She highlighted significant headwinds including “high labour costs and especially the soaring energy prices, which particularly affect our country.” Nonetheless, she pointed to innovation as a key differentiator for companies navigating the difficult environment: “Companies that innovate are doing well and making a difference.”
In 2024, the Belgian textile sector generated a turnover of €5 billion, representing a marginal decline of 0.9% compared to 2023. The first half of the year saw a 2.1% decline in turnover relative to the same period in 2023, although a 3.1% recovery was noted in the third quarter before another downturn of 2.2% in the final quarter. Key product lines showed mixed performance: turnover in technical textiles and carpets remained stable, synthetic and artificial fibres and filament yarns experienced a 3.3% rise, while woven fabrics (-8.1%), finishing (-6.5%) and knitted fabrics (-7.2%) faced significant declines. Basselier recognised the sector’s difficulties but found cause for optimism in positive feedback from the Heimtextil fair in Frankfurt, a leading international trade event for textiles.
The furniture industry continued to face contraction for the second year running, with turnover dropping nearly 7% to just below €2 billion. Every quarter of 2024 underperformed relative to the previous year. Weaker demand, particularly in the construction sector, dampened results. Among product categories, office and shop furniture (-10.9%) and mattresses and bed bases (-12.4%) saw the steepest downturns, with living room furniture and kitchen furniture also posting decreases of 4.1% and 6.5% respectively. Basselier noted a positive signal from recent growth in the real estate market during the first quarter and remarked on the increasing presence of younger buyers under 30, which may bring fresh momentum to the furniture market.
By contrast, the wood-processing industry saw a 3.4% improvement in turnover for 2024, rebounding from a 12.3% decline in 2023. While turnover fell 2.3% in the first quarter and stabilised in the second (+0.9%), the third and fourth quarters showed marked recovery (+7.7% and +8.5% respectively). The growth was primarily driven by panel materials (+8.6%) and modest gains in packaging (+1.7%), while construction elements (-3.0%) and other wood processing (-6.5%) continued to decline. Basselier described this as a “small boost” for the wood division but emphasised the need to address regulatory and policy challenges, citing obstacles such as ineffective implementation of CITES regulations and the European Union Deforestation Regulation (EUDR).
The 2024 General Assembly will also mark a transition in Fedustria leadership. Jan Desmet, who has steered the federation through “turbulent waters,” will step down as chairman. He will be succeeded by Frank Veranneman, CEO of the online coating division within the Sioen Group. Basselier expressed confidence in Veranneman’s ability to fill the role effectively.
Frank Veranneman outlined his strategic priorities ahead of taking office. He urged that the European Union “should not be holier than the pope,” advocating for the enforcement of standards not only within the EU but also on external markets to combat the influx of non-compliant and potentially hazardous products. He called for stronger customs controls to address this issue.
Veranneman also stressed the necessity of a robust industrial policy in Belgium designed to restore competitive positioning, which he said has suffered from policy missteps, notably in energy management. High labour costs, including automatic wage indexation, are another concern he flagged, insisting on the importance of political dialogue to reverse this trend.
Energy costs remain a critical challenge: “One of the most important points is combating the exorbitant energy bill,” Veranneman stated, noting that Belgium faces a disadvantage not only relative to global competitors like the US and China but also compared to neighbouring countries. He advocated for mandatory compliance with energy standards and reductions in transmission and distribution tariffs.
Finally, Veranneman expressed support for federal and regional government commitments to reduce administrative burdens on industry.
Fedustria’s outlook is not solely focused on challenges. The federation participates in the “Flemish Acceleration” action plan, launched recently by the Flemish government in collaboration with major industry federations, including Fedustria. This initiative builds on the Future Pact for the Flemish industry and targets innovation stimulation, decarbonisation efforts, improved coordination of environmental policies, and talent development. Basselier called for urgent and effective implementation of these priorities.
As Fedustria enters a new leadership phase amid a complex economic landscape, innovation and regulatory engagement appear set to be key themes shaping how the federation supports its members across the textile, wood, and furniture sectors.