Panel and decorative industry reports better come back than it was anticipated, in July 2020. The plywood and laminate industry witnessed above 60% production whereas the order book noted almost double the order. The industry was struggling with lack of workforce hence could feed half of the demand in July month. Although the market reports reflected around 40 to 45% sales recovery compared to pre-covid levels, of March this year. The wholesalers’ segment explained that demand is coming from the pending projects and ongoing sites, has been more than expected that has been the reason behind order booked at factories.
The wholesale and trade segment also expressed better than expected payment recovery from retailer side. Compiling numbers the outstanding amounts are reduced and payments are surprisingly smooth and faster. The new trend and anonymously agreed fact that without payment materials will not be delivered in present times, is helping the recovery pace during July month. The consumers have also been paying instantly against delivery’s that has helped the markets to recover faster hence the stock points have been able to place forward their demands to factories.
The furniture makers have also been buying against instant payment and asking for cash discount that has helped the markets to recover faster reports ply reporter team from Delhi, Bangalore and Hyderabad markets. The OEM and furniture manufacturing segment in South India has been reportedly recovering well due to pending orders from upper middleclass clients and work from home’ related relocating demands. The already delivered apartments by builders are also adding to kitchen and wardrobe orders by new home owners that helped to gain some pace for material sellers, says the retailers’ market survey.
The demand from rural areas and smaller towns has been a great support for the industry and trade because the local carpenters and furniture manufacturers have not been completely absent and many of them have remained at work, because covid impact in smaller towns was not at all visible during June-July. The machine-based furniture makers operation picked up pace during June and July that helped to create demand for materials, according to the Ply Reporter findings.
The inventory revels in Plywood and laminate markets have reported a drop of 30% compared to pre covered levels. An average laminate seller used to keep 10,000 sheets of a brand is now holding up not more than 6000 to 7000 sheets. Similarly a plywood wholesaler usually stocking more than 20 trucks, is now holding up and operating with merely 8 to 10 trucks means next two months are still going to be a better than expected lift up in the industries. In MDF and particle board category the scenario is different because it is largely a commodity segment that demands larger stocks that is why MDF manufacturers reported a better response during July month, reveals survey
In July, the payment receipts reported to be tapering down following heavy rains and stoppage of work at sites. But with the opening of lockdown and relaxation in business operations and improved transport movement, Businesses and Industries are certainly going to recover faster than anticipated even during August and September. If leading brands and pioneer players in plywood are to be believed, by Deepavali in October, the industry and trade will be able to reach 2/3rd of the business turnover off recovered levels that was previously expected to reach half.