Egyptian Woodworks Monograph

The Industrial Modernisation Centre - IMC The Chamber of Woodworking Industries - CWI
Egyptian Woodworks Monograph
Prepared by:
Arab African Centre for Marketing & Consultancy Services AAC
October 2003
The opinions, figures and estimates set forth in this document are the responsibility of the author and should not necessarily be considered as reflecting the views or carrying the endorsement of the Industrial Modernisation Centre. Mention of firm names or commercial products does not imply endorsement of the Industrial Modernisation Centre. Material in this document may be freely quoted or reprinted, but acknowledgement is requested. This document has not been formally edited.
Executive Summary
A) Background Information
Perhaps one of the largest obstacles inhibiting the growth of the Egyptian furniture and woodworks sector is the lack of updated accurate and comprehensive data on the sector. Furthermore, available data is not accessible to the different groups involved in the industry and its related sub sectors. In this context, the "Woodworks Monograph" project was formulated by the Industrial Modernisation Centre (IMC) in response to the request made by the Chamber of Woodworking Industries. The scope of the assignment involved conducting the following tasks by the consultant (Arab African Centre for Marketing and Consultancy Services AAC) under the supervision of IMC and the Chamber of Woodworking Industries (CWI): 1) The compilation of all available information and data on the furniture and woodworking industry in Egypt during the past 5 years as well as attempting to resolve the existing inconsistencies within collected data. 2) The contribution to the improvement of the availability and accessibility of the information about the woodworks sector by identifying information gaps and offering suggestions on how such information may be obtained.
B) Methodology
Given the size and complexity of the furniture and woodworks sector, the methodology developed by the project team to achieve the above mentioned objectives involved conducting research on the sector including: A) Primary Research: the collection of first hand information through meetings and interviews with representatives of over 40 government authorities and information providers B) Desk Research: All secondary data sources that are relevant to the scope of the study were collected and investigated. This information included all published data from official authorities and NGOs, relevant studies and reports conducted by other organizations, information available on the Internet and finally the information available at AAC C) Analysis: The information gathered through this research process was assembled in a tabular format to facilitate information retrieval and utilization. Furthermore the compiled data was analyzed and inconsistencies within the gathered information and information gathering techniques were identified. Finally, the project team came up with recommendations for the improvement of information gathering and processing techniques as well as means of filling the information gaps about the furniture and woodworks sector.
Woodworks Monograph AAC
C) Summary of Findings Number of Entities

According to statistics gathered from the General Organization for Industrialization GOFI, the total number of furniture and woodworks factories provided is 2503, with Damietta having the largest number of factories at 565, followed by Sharkeya at 515, Cairo at 481, and Giza at 156. Data obtained from the Industrial Registry on the other hand indicate that the total number of furniture and woodworks factories is 1910, of which 515 are situated in Sharkeya, 506 established in Damietta and 285 in Cairo. It is worth pointing out however, that both these sources only include in their statistics "industrial" entities that comply with the Ministry of Industry's definition for industrial establishments. It follows that workshops and small factories that do not abide with this categorization are excluded from the above mentioned statistics. Data obtained from the Commercial Registry indicates that the total number of companies producing furniture and woodworks final commodities is 54,097. Furthermore, the total numbers of furniture and woodworks wholesalers and retailers registered at the commercial registry are 8,012 and 37,017 respectively. The number of factories producing intermediate products (feeding industries) is 8213. It follows that the total number of furniture and woodworks entities registered at the commercial registry is 107,339. According to the Ministry of Local Development, the total number of workshops registered with furniture and woodworks cooperatives is 89,612. Damietta has the highest concentration of workshops 23,082, followed by Cairo 14,163, followed by Dakahleya- 6,973 then Giza 6,656. An overall analysis of the data presented by different sources brings to light discrepancies in the data collection and information gathering process, ranging from incoherent methodologies to inconsistencies within the gathered data. Despite gaps and inconsistencies in the information gathered, certain assertions can be made about the furniture and woodworks industry in Egypt. Such include the following: 1. Cairo, Damietta, and Sharkeya are the centers of furniture and woodworks activity in Egypt 2. In terms of number of entities, furniture and woodworks activity is primarily dominated by micro, small and medium sized enterprises M/SMEs, however an investigation of production capacity is necessary in order to identify the market shares of large producers vis--vis M/SMEs. 3. Furniture and woodworks activity is primarily run by the private sector. Estimation of the Aggregate Number of Furniture and Woodworks Entities in Egypt Based on the foregoing analysis of the statistics obtained from the various government organizations, it has been observed that: 1- There is no single source of information in Egypt that provides comprehensive statistics regarding the total number of furniture and woodworks industrial establishments 2- The statistics obtained from the different organizations are overlapping and inconsistent; making it impossible to come up with an accurate figure for the total number of entities operating in the sector Woodworks Monograph AAC 2
Calculation of the Total Number of Registered and Unregistered Furniture and Woodworking Entities
Source Industrial Entities - Commercial Registry Difference Between Commercial Registry Statistics & Ministry of Local Development Statistics - Industrial Entities Wholesalers - Commercial Registry Retailers - Commercial Registry Total No. of Entities 60,465
31,881 8,012 38,017 138,375
Based on the calculation presented above, the total number of furniture and woodworks entities registered with the Egyptian government is estimated to be 138,375. It is widely known however; that the sector is dominated by informal entities that are not registered with any of the government organizations mentioned in this report. According to Economist Dr. Heba Handousa, the informal sector represents 77% of the non-agricultural private sector in Egypt. Given that the furniture and woodworks sector is highly dominated by informal activity, it is believed that the informal sector represents at least 40% of the activities undertaken by the industry i.e. 55,350 entities. Based on this assumption, the total number of furniture and woodworks entities would reach 193,725. It is worth noting however that these estimations are indicative and that in order to reach a more accurate figure that serves as an accurate representation of the size of the sector, extensive research that involves conducting extensive field research is required. Calculations of the Value of Investment in the Furniture and Woodworks Sector Value of Investment for Registered Factories and Workshops Interviews with members of the Chamber of Woodworking and other key figures in the sector has revealed that in order to operate, the smallest woodworks workshop requires more or less an invested capital of L.E. 5,000. It follows that the total value of investment within the woodworking industry would at least be L.E. 691 million (L.E. 5,000 x 138,375). It is worth noting however, that a considerable number of furniture and woodworking entities operate on a large and sophisticated scale that necessitate investments worth over L.E 10 million. According to members of the Chamber of Woodworks, there are at least 100 factories operating on such a scale. Taking this into consideration would increase investments by L.E. 1 Billion (L.E. 10 million x 100 factories). The estimated value of investment would thus be L.E. 1,691 million.
Imports
Egyptian imports of wood and wood products HS 1992 (Code # 44) as reported by the Egyptian government, have increased from US$ 606,400,000 in 1999 to US$617,000,000 in 2000. This trend however was dramatically reversed in 2001 when imports decreased by 7.5% due to poor economic conditions. This was followed by another decline of 4% in 2002. Egypt's main sources of wood inputs are in descending order, Russia, Finland, Sweden, Romania and Indonesia. A comparison between Egyptian and Foreign Sources of Statistics for Imports of Raw Wood and Wood Products (HS1996 Code # 44) presented a shared general trend of Egyptian imports over the years, (increase in Woodworks Monograph AAC 3
imports in 2000, and a decline in 2001). However there is a large disparity in the figures, the numbers provided by the Ministry of Foreign Trade - MOFT being much larger than those presented by United States Statistics Division - UNSTATS. This discrepancy is partly a result of the fact that upon the inspection of the imported product, the Customs Authority usually modifies the prices (adjustment for under invoicing). Furthermore, the Egyptian Customs Authority does not abide with the international coding and documentation systems developed by the United Nations, which also results in a discrepancy in statistics. Egyptian imports of Wooden Furniture as presented by the Ministry of Foreign Trade (MOFT) from 1999- 2002 have generally been on the rise (US$ 6.1 million in 1999, US$ 9 million in 2002) with a decrease in 2001. In general the largest percentage of imports fell within the Other Wooden Furniture Category (US$3.3 million in 1999, US5.3 million in 2000, US$4.9 million in 2001 and US$6.6 million in 2002). The second largest category of wood furniture imports is office furniture to be followed by bedroom furniture then kitchen furniture. Total Egyptian imports of Furniture, lighting, signs, prefabricated buildings (HS1992 Code # 94) obtained from Egyptian sources revealed a decline in total imports during 1999 and 2000 followed by an exceptional increase in 2001 and a small increase in 2002. Noticeable increases were found in the categories of 'wooden furniture' and 'office furniture'. Foreign statistics on the other hand revealed that imports of this product group have undergone a general decline with the 1999 being the only exception. The main sources of imports are the European Union, Europe (other) and North AmericaNAFTA. While the overall trend appears to be the same, there are large statistics disparities between the two sources of information with the Foreign Statistics (UNSTATS) being much higher than those of CAPMAS and MOFT.
Exports
According to the Ministry of Foreign Trade (MOFT) Egyptian exports of wood and wood products (HS 1996 Code 44) have gone through several fluctuations over the period 1998-2001. Exports decreased from US$ 3.8 million in 1998 to US 2.4 million in 1999 to reach US$ 3.6 million in 2000 and US$ 5.8 million in 2001. The data obtained from the United Nations Statistics Division covering Egyptian exports of the abovementioned product group also indicated that overall, exports have declined throughout the period, from US$ 4.5 million in 1999 to US 4.2 million in 2000 and US$ 3.2 million in 2001. The greatest amount of Egyptian exports according to both sources is received by the European Union followed by the Arab region and Asia. Data obtained from MOFT on Egyptian exports of Furniture, lighting, signs, and prefabricated buildings (HS 1996 Code 94) revealed that exports have witnessed an overall increase between 1998 and 2002. Total exports increased from US$ 18.31 million in 1998 to US$ 19.25 million in 1999. This was followed by a decline to US$ 18.65 million in 2000 followed by a further decline to US$ 16.5 million in 2001. In 2002 however, total exports witnessed a significant increase to US$ 21.62 million. The largest amounts went to Arab countries followed by the European Union and North America NAFTA. According to the United Nations Statistics Division Egyptian exports of the abovementioned product group have increased from US$ 49 million in 1998 to US$ 58 million in 2001. Observations on Imports and Exports Statistics A general examination of the statistics gathered on imports and exports reveals the following: 1- The system used by the Customs and Tax Authorities and CAPMAS are unreliable, raising questions regarding the accuracy of the data being published. The Customs Authority does not abide with the international coding, classification and documentation systems developed the United Nations. As a consequence, statistics forwarded to the CAPMAS tend to be lacking in Woodworks Monograph AAC 4
terms of reliability, making statistics published by government authorities are inaccurate and unrepresentative of actual trade flows. 2- A comparison between Egyptian and International statistics on Egyptian trade in wood and wood products (HS 1996 code 44) and furniture and prefabricated buildings (HS 1996 code 94) has indeed revealed great discrepancies with foreign statistics usually presenting Egyptian imports and exports to be much higher than the statistics provided by Egyptian authorities. These discrepancies could also be a result of one or a combination of the following factors: a. Under invoicing by exporters and importers b. Inaccurate documentation by the government authorities 3- Furthermore, a comparison between the figures reported for the money value of exported wooden furniture and the quantity exported are unreasonable. For example, the export value of wooden furniture (HS Code 9403600000) was US$6.2 million in 1999. This value corresponded to exported quantity of 4,224 ton. It follows, that on average, the price of 1 ton of wooden furniture exports is US$ 1,467. This figure is very low not only when the costs of inputs and production are considered but also when a comparison is made with the prices of wooden furniture products sold in both the local and international market. The same phenomenon can be depicted with other kinds of furniture as well. This discrepancy between the quantity of exports and the money value can be explained by the fact that to evade payment of custom duties, most exporters do not report the actual value of their exports. According to the Chamber of Woodworks, the real value of exports is sometimes 10 times as high as the reported value.
Labor
Number of Registered Workers According to the General Organization for Industrialization GOFI, the total number of workers in the sector is 34,765, with Cairo (14,881 workers) having the largest number followed by Giza (4,637 workers) and Alexandria (3,375 workers). According to data obtained from the Industrial Registry, the total number is 10,094 workers of which the number of workers employed by furniture factories (code 3321) is 6,571, almost two times as large as the number of workers in factories registered as woodworks producers (code 3311) which amounted to 3,523. Furthermore, Sharkeya has the largest number of workers in both categories totaling 6,412 workers. Cairo, which ranks second, has a total number of workers of 3,211. Damietta on the other hand has a total of 1600 workers. A possible explanation for the discrepancies in the data presented above is that GOFI's statistics are based on a field survey conducted in 2003. The industrial registry database on the other hand only includes the number of workers declared by the factories during their application for a registration with the industrial registry. It can therefore be concluded that the data obtained from GOFI is more comprehensive than that provided by the Industrial Registry. The total number of workers employed by workshops registered with furniture and woodworks cooperatives is 204,052. The hierarchy of governerates in descending order is Damietta (56,174 workers), Cairo (32,448 workers), Giza (14,928 workers) followed by Dakahleya (14,499 workers), Alexandria (11,607 workers), Gharbeya (10,630 workers) and Sharkeya (10,387 workers). As with the number of entities, the available statistics covering number of workers employed by the furniture and woodworks sector can not serve as an actual representation of the labor force available to the sector. In this context, the following calculation has been made to come up with an indicative figure that would guide policy makers and businessmen in their planning and business development activities. Woodworks Monograph AAC 5
Estimation for the Total Number of Workers in the Furniture and Woodworks Industry Interviews with owners of factories and workshops have revealed that on average each woodworks factory or workshop requires at least 5 workers in order to operate effectively. Furthermore, there is a considerable number of medium sized and large factories that employ larger numbers of workers (15 to over 100 employees). Based on the calculation made by the project team, the total number of furniture and woodworks entities was estimated to be 193,725. It therefore follows that the number of labor employed by the sector is at least 968,625 (number of entities x 5 workers). Graduates from Industrial Schools and Vocational Training Centres Data provided by the Ministry of Education indicated that the total number of graduates from industrial school related to furniture and woodworking increased from 90,959 in 1998 to 92,476 in 1999 and 94,072 in 2000. This was followed by a decrease to 91,786 in 2001 to be followed by a significant increase to 95,289 in 2002. According to the Ministry of Local Development, the overall number of vocational training centres' graduates with training in carpentry and furniture (5,989) is much larger than the number for trainees in inlaying and finishing (858). Furthermore, the total number of trainees has generally been declining with few fluctuations in the middle. In total, the number of trainees declined from 350 in 1995-1996 to 209 in 2002-2003. The number of graduates from the faculty of Applied Arts Interior Design and Furniture Section also declined from 360 graduates in 1999-2000 to 155 in 2002-2003.
Value of Taxes charged on the Furniture & Woodworks Sector

According to the Ministry of Finance, the total value of taxes paid by the sector increased gradually from L.E. 39 million in 98/99 to reach L.E. 54 million in 2002/2003. The total amount of taxes paid by the wood furniture industry is higher than that paid by other furniture sub sectors. In 1998-1999 the total amount paid the wood furniture was L.E. 23 million while taxes paid by furniture (other) amounted to L.E. 16 million. The same trend prevails over the designated period with the wood furniture sub sector paying L.E. 32 million in 2002-2003 and the furniture (other) sub sector paying L.E. 22 million. Furthermore, the total number of furniture and woodworks tax payers are 108,825 entities while the estimated number of furniture and woodworks producers and traders is at least 193,725 (as indicated in section 2.13.2 of this report). It follows that 56% (if not less) of the sector bears the tax burden of the whole sector.
Government and Household Consumption

According to the Ministry of Planning, during fiscal years 2000-2001 and 2001-2002, local production of wood furniture and wood works represented 98% of total consumption (imports represent less than 2%). Household consumption represents the largest market segment totaling L.E. 1,550 million in 2000-2001 and L.E. 1,756 million in 2001-2002. Household expenditure on wood furniture and woodworks is expected to rise even further in 2002-2003 and 2003-2004 to reach L.E. 1,851 million and L.E. 1947 million respectively. The second largest market segment is Intermediate Agents amounting to L.E. 236.7 million in 2000-2001 and L.E. 270 million in 2001-2002. It is forecasted that the value devoted to intermediaries will rise to L.E. 313.3 million and L.E. 329.5 million in 2002-2003 and 2003-2004 respectively. Government expenditure has also increased; from L.E. 30 million in 2000-2001 to L.E. 35.1 million in 2001-2002.
Estimates for the Value of Tourist Industry's Consumption

Estimates of the value of furniture and woodworks consumption by the tourism industry indicate that during the year 2002 and 2003 the total value of expenditure on hotel furnishing and refurbishment was around L.E. 1.2 Billion of which L.E. 612 million was allocated to furnishing Woodworks Monograph AAC 6
newly established rooms and L.E. 598 million was spent on refurbishment of existing rooms. It is worth pointing out that statistics covering the tourism industry's consumption of furniture were not available. The project team has therefore come up with the above mentioned estimates based on the capacity of hotels operating in Egypt.
International Industry for Furniture

World furniture production is estimated to be worth around US$180 billion a year. Around 60% of worlds furniture production takes place in just seven industrialized countries: the US, Germany, Italy, France, the UK, Japan and Canada. The European Union produces an estimated $65 billion a year, while the United States is the biggest single producer with around $45 billion output. Italy, Germany and Japan are trailing with amounts almost equal to $17-18 billion. France, the UK and Canada all record output levels between $5-7 billion. Furniture production in emerging countries currently amounts to only 21% of the world total value. However, there are three countries (China, Mexico and Poland) where production is increasing rapidly thanks to recent investments in new plants especially designed and built for exports. The leading importers of furniture are the United States, Germany, France, the United Kingdom, Japan and Canada. The major exporters are Italy, Canada, Germany, China, the United States, Poland and France.
Conclusions & Recommendations

The process of collecting, analyzing, and distributing data and statistics by information and statistics agencies, associations, and government departments is conducted through traditional techniques (using manual files systems, storing cabinets etc.). We are thus still very far away from using a paper-less form of information collection and distribution. It is worth noting that according to recent estimation, January 2003, 90% of total statistics and information are produced by the government and government affiliated associations and agencies. Presidential resolution no. 2915 issued in 1964 is still the main resolution that governs data and statistics collection and publication. This resolution stipulates that the only legally recognized source of statistics is the Central Agency for Public Mobilization and Statistics CAPMAS. It follows that no ministry or governmental department, public or private sector can issue or distribute any data without previous consent from CAPMAS. This resolution imposes very high degrees of restriction and hinders the development of data and statistics collection and distribution process in Egypt. Against this background and in an attempt to improve the availability and reliability of data, the National Democratic Party Policies Secertariat appointed a team of experts who are currently studying the means and methods of modifying existing laws and regulation. The outcome of this will be compiled into a draft to be presented to parliament in the next session as part of the new Freedom of Information Act. An approval of this draft will hopefully bring forth more accurate and comprehensive data especially with regards to taxes, customs, licenses, information from the Commercial Registry the Investment Authority, the Ministry of International Cooperation etc. The development of more accurate and comprehensive data will place Egypt in a position where it is able to make sound decisions with regards to all aspects of society. Discussions with key figures in the information sector including H.E. Dr. Ehab Elwy the Head of the Central Agency for Public Mobilization and Statistics - CAPMAS, Dr. Raafat Radwan, the Head of the Information and Decision Support Centre IDCS and Dr. Mostafa M. Mostafa, Consultant at the National Institute for Planning revealed that there is a general awareness of the importance of conducting sectoral studies based on the compilation of first hand information. These officials however confirmed that this study undertaken by the IMC and the Chamber of Woodworks is Woodworks Monograph AAC 7
the first initiative of its kind not only on the level of the furniture and woodworks sector but on the level of the Egyptian industry as whole. It should therefore serve as pilot project to be replicated in other major industrial sectors. In this context, the project team proposes the development of a strategy for collecting and compiling data on the furniture and woodworks industry that is based on the joint vision of the governmental bodies, representatives from the private sectors and NGOs. Such a strategy necessitates the establishment of a committee that includes experts from the tax and customs authorities, finance and monetary sectors, as well as industrialists and business associations etc. It is perceived that this strategy would result in the formulation and implementation of a pilot project for the furniture and woodworks sector that introduces state of the art data collection and sharing techniques. Such an initiative should eventually be applied on the level of the industrial sector as a whole. The development of any industrial sector requires the implementation of a set of information related activities to assist it in becoming more competitive in the local and international market. In other words, the compilation and processing of general information should serve as a first stage to be followed by the development and implementation of a comprehensive prioritized research plan. Areas requiring further investigation and research include the production capacity of the sector, the used furniture market, the ship building industry, the impact of demographic patterns on furniture and woodworks consumption, feeding industries etc.
Table of Contents
1. Introduction 1.1 Background Information 1.2 The Assignment 1.3 The Assignment Objectives 1.4 Methodology 2. Entities 2.1 Main sources of Information 2.2 Summary of Findings 2.3 Furniture and woodworks entities registered at the Industrial Registry 2.4 Furniture and woodworks entities according to the Industrial Map 2.5 Woodworking & furniture manufacturing entities according to the General Organization for Industrialization (GOFI) 2.6 Comparison between data obtained from the Industrial Map and The General Organization for Industrialization (GOFI) 2.7 Comparison between number of entities registered at the Industrial Registry and the General Organization for Industrialization (GOFI) 2.8 Number of furniture and woodworks factories, workshops and traders according to the Commercial Registry. 2.9 Furniture and woodworks feeding industries. 2.10 Workshops registered with furniture and woodworks cooperatives. 2.11 Number of Industrial Entities: Comparison between Commercial Registry Statistics and Ministry of Local Development Statistics 2.12 Factories affiliated to the National Organization for Military Production & the Arab Organization for Industrialization. 2.13 Estimation of the Aggregate Number of Furniture and Woodworks Entities in Egypt. 3. Imports and Exports 3.1 Main sources of information 3.2 Summary of findings 3.3 Imports 3.3.1 Imports of wood and wood products HS 1992 Code # 44 3.3.2 Egyptian imports of furniture, HS 1992 # Code 44 3.3.3 Egyptian imports of intermediate products (feeding industries) 3.4 Exports 3.4.1 Exports of wood, wood products, wood charcoal HS 1992 # 44 3.4.2 Egyptian exports of furniture, lightings, signs, prefabricated buildings (HS 1996 Code # 44) 3.4.3 Furniture and woodworks entities benefiting from the drawback system 3.5 Observations and Recommendations 4. Labor 4.1 Main sources of information 4.2 Summary of Findings 4.3 The number of workers in the furniture and woodworks industry Woodworks Monograph AAC 11 12 13 14 14 17 17 17 20 24 26 27 29 31 41 43 46 48 49
51 52 52 58 58 74 87
93 93 106 120 121 122 122 124 9
4.3.1 Workers in the furniture and woodworks industrial entities- GOFI 4.3.2 Workers in the furniture and woodworks industrial entities- Industrial Registry 4.3.3 Comparison between the figures for labor provided by GOFI and the Industrial Registry 4.3.4 Number of workers registered with furniture and woodworks cooperatives Ministry of Local Development. 4.3.5 Furniture and woodworking entities and workers registered at Ministry Of Insurance and Social Securities. 4.3.6 Estimation of the Total Number of Workers Employed by the Sector 4.4 Number of skilled workers and graduates with training of relevance to the furniture and wood works industry 5. Customs and Taxes 5.1 Main sources of information 5.2 Summary of Findings 5.3 Customs, duties, sales tax, service fees paid by importers of wood and wood products and furniture. 5.4 General Taxes 6. Consumption 6.1 Main sources of information 6.2 Summary of Findings 6.3 Local consumption of furniture and woodworks 6.4 Tourism capacity and consumption of woodworks and furniture 6.5 General overview of the International Furniture Market 7. Conclusion and Recommendation 8. Annex 1: List of Abbreviations 9. Annex 2: List of Tables 10. Annex 3: List of Egyptian Exporters of Wooden Furniture 11. Annex 4: List of Exporters Utilizing the Draw Back System 12. Annex 5: Forest products terminology
124 125 127 128 129 130 131
139 140 140 142 148 150 151 151 152 154 158 183 185 186 190 196 199
10
1. Introduction
11
1. Introduction
This report, compiled by the Arab African Centre for Marketing and Consultancy services is representative of one of the preliminary efforts to create a comprehensive and updated source of information on the Woodworks sector in Egypt. This report is presented to the Industrial Modernisation Centre and the Chamber of Woodworks as fulfillment of the information requested in the terms of reference stipulated in the contract # DGIB/EGY/B7-4100/97/0733 initiated by IMC.
1.1.
Background Information
Perhaps one of the largest obstacles inhibiting the growth of the Egyptian furniture and woodworks sector is the lack of updated, accurate and comprehensive data on the sector. Furthermore, available data is not accessible to the different groups involved in the industry and its related sub sectors. This problem can be broken down to three distinct but interrelated issues that need to be dealt with, including: 1. Existing data is unreliable, dated, and inconsistent. 2. Existing data is largely inaccessible to those involved in the sector. 3. Information gaps on the sector are too large, rendering most projects groundless in their research base. A. Reliability of Existing Data The primary source of industry-level statistics is the Central Agency for Public Mobilization and Statistics - CAPMAS. This information often times needs to be supplemented by industry data from other government organizations such as the Ministry of Industry and Technological Development MITD and its affiliated organizations, the Ministry of Foreign Trade MOFT, local government authorities in the governorates, non government organizations such as chambers, federations and NGOs. Information is also made available by international development agencies such as the UNIDO. Problematic Data Gathering Methodology in Egypt The unreliability of existing data in Egypt is the direct result of a lacking system of coherent information gathering. While different governmental and non-governmental organizations collect and produce data on the sector, they do so with different classifications, thus resulting in a situation where categories of gathered information from different sources overlap and are ultimately not subject to comparison. Secondly a very large percentage of groups involved in the woodworks sector in Egypt are not officially registered at the competent government authorities and are thus not taken into account in national reports and statistics. The predicted size of the informal sector is so large as to render existing data unreliable and not representative of the actual size and scope of activities of the furniture and woodworks sector. The lack of reliable information about the existing competition, available resources both technical and human, input markets, the regulatory and policy environment etc. has in turn been a major obstacle towards the development and expansion of the sector as it makes it difficult for both local and international investors to make sound decisions. Finally, existing information is dated and does not take into account the changes of a rapidly globalizing and technologically advancing world.
B. Inaccessibility of Existing Data The inaccessibility of information in Egypt exists on a twofold level: 1) Information in the form of statistics and reports on the sector are produced by very few organizations, mostly governmental that do not make the information easily accessible. Woodworks Monograph AAC 12
2) There is a lack of networking between the various groups involved in producing information on the sector and its related industries. The lack of a networking mechanism between government authorities and information centres: The absence of a cooperation mechanism in information gathering and sharing among the various government and non-government authorities poses a large obstacle to the realization and implementation of coherent projects in the sector. The problem of networking exists on two levels that are largely related and reinforce each other. Firstly, the bureaucratic procedures of data collection from various governmental organizations are often tedious, time consuming, complex and costly. This largely limits the ability of those involved in the sector in making well informed decisions about their business strategies since producers and traders do not have the time or financial resources required to obtain updated information. It is also important to note that often times, information related to the sector are classified and are therefore inaccessible to the private sector. Secondly non-governmental organizations and the private sector tend to rely on their own sources of information on the sector and do not share their information with others. C. Information gaps on the sector are too large, rendering most projects groundless in their research base. The overall result of the above mentioned factors is the existence of wide information gaps as well as the lack of a coherent understanding and presentation of the furniture and woodworks sector. For example, the information about the woodworks market for inputs, different sub-sectors, and service providers as well as human and technical resources is largely unavailable. The existence of such information gaps also raises the question of how this problem could be tackled as it brings to light the deficiencies in information gathering techniques and unmasks the tantamount importance of coming up with a mechanism that penetrates the informal sector.
1.2.
The Assignment
In light of the foregoing situation analysis, it became clear that a rapid, radical and extensive restructuring of the information gathering and compilation process employed by the furniture and woodworks industry is required in order to enable the sector to survive and succeed both in the local and international market. In this context, this assignment which aims at gathering the highly fragmented statistics and data published about the sector during the past 5 years was formulated by the Industrial Modernisation Centre (IMC) in response to the request made by the Chamber for Furniture and Woodworks. The terms of the contract stipulated that the consultant (Arab African Centre for Marketing and Consultancy Services AAC) is to conduct the assignment under the supervision of IMC and the Chamber of Woodworks Industries (CWI).
13
1.3.
Assignment Objectives
This assignment has been formulated with the following main objectives: 1) The compilation of all available information and data on the Egyptian furniture and woodworking industry produced during the past 5 years as well as attempting to resolve the existing inconsistencies within collected data. 2) The contribution to the improvement of the availability and accessibility of information covering the woodworks sector by identifying information gaps and offering suggestions on how such information may be obtained. The output of this assignment is to be compiled in a way that would facilitate its utilization by: Local and foreign investors manufacturers, traders and distributors in their decision making process Government officials in their planning and strategy development process Industrial Development Organizations including IMC that will be enabled to formulate and implement assistance programs that are in line with the needs of the industry
1.4.
Methodology
Given the size and complexity of the industrial sector, the methodology developed by the project team to achieve the above mentioned objectives involved conducting research on the furniture and woodworks industry that includes both primary and secondary research as well as analysis: b) Primary Research: The primary research undertaken involved the collection of first hand information through meetings and interviews with representatives of government authorities and information providers including the following: Mr. Mohammed Abdel Gawad, the Commercial Registry Dr. Fawzy Al-Refaii, the Academy for Scientific Research The Arab Labor Organization Mr. Taha Al-Shazly, the Wood Products Council Mrs. Aisha Abdel Hady, Labor Representative /Egyptian Parliament Gen. Mo'men Mekheimar, Head of the Trade Information Center Dr. Mahmoud Eissa, Head of the General Authority for Standardization Dr. Ali Abdel Nabi Mahmoud, the General Authority for Industrial Supervision Mr. Sayed Taha, the Construction and Woodworking Labor Union Gen. Mohamed Al Banaa, Head of the General Authority for Monitoring Exports and Imports The International Trade Point The Ministry of Insurance and Social Affairs Chem. Mohamed Helal, Head of the Agency of Production Sufficiency Dr. Hussein Omran, First Under-Secretary, Ministry of Foreign Trade Dr. Hany Al-Nazer, The National Research Institute General Eng. Abdel-Moneim Al Shabkashi, Head of the General Authority for Governmental Services Mr. Mohamed Haroun, Ministry of Local Development Woodworks Monograph AAC 14
Dr. Eng. Mohamed Abdel-Sallam El Husseiny, First Under-Secretary, Ministry of Manpower and Emigration Dr. Rafaat Radwan, Head of the Information and Decision Support Center (IDSC Gen. Ehab Elwy, Head of the Central Authority for Public Mobilization and Statistics CAPMAS Mr. Ahmed Waly, Head of Wood and Woodworking Chamber Damietta Dr. Ismael Awaad, Head of Furniture Department, Faculty of Applied Arts Eng. Samia Zaki First undersecretary, General Authority for Industrialization Information Center Dr. Mostafa Ahmed Mostafa, National Planning Institute Dr. Bahaa El Din El Rayes, First Under-Secretary, Ministry of Industry and Technological Development Eng. Abbas Zaki, Temporary Head of the Chamber of Commerce Mr. Mohamed Abdel- Reheem, First Under-Secretary/ General Association for Investment and Free-trade Zones Mr. Mohammed Al Sebai, Chairman of the Co-operative Productive Union
c) Desk Research: All secondary data sources that are relevant to the scope of the study were collected and investigated. This information included all published data from: Official authorities such as: the Central Agency for Public Mobilization and Statistics, Relevant Ministries, Customs Department, Chamber of Commerce and Industry, and Embassies The information database available at AAC Available data on the Internet Relevant studies and reports conducted by other organizations d) Analysis: The information gathered through this research process was assembled in a tabular format to facilitate information retrieval and utilization. Furthermore the compiled data was analyzed and inconsistencies within the gathered information and information gathering techniques were identified. Finally, the project team came up with recommendations for the improvement of information gathering and processing techniques as well as means of filling the information gaps about the furniture and woodworks sector.
15
2. Entities
16
2. Entities
2.1. Main Sources of Information:
The material gathered on the Furniture and Woodworking entities (factories and traders) was accumulated from a variety of sources including the following: The Industrial Registry Database The Commercial Registry Database The Information and Decision Support Centre Database The Central Agency for Public Mobilization and Statistics The General Organization for Industrialization The Ministry of Local Development Data has also been requested from other organizations that for a variety of reasons were unable to provide the required information. Such organizations include: The Chamber of Woodworks in Damietta The Civil Registry
2.2. Summary of Findings

The section on entities presents data on the numbers of registered factories and workshops involved in the furniture and woodworks industry as well as the numbers of cooperatives and their geographic distribution, numbers of retailers and wholesalers. Information tackling each of the above mentioned components of the industry are presented separately. Furthermore, a comparison is made between data that follows a similar categorization in order to illustrate the inconsistencies from one source of information to another. An overall analysis of the data obtained brings to light discrepancies in the data collection and information gathering process, ranging from incoherent methodologies to inconsistencies within the gathered data. Despite gaps and inconsistencies in the information gathered, certain assertions can be made about the furniture and woodworks industry in Egypt. Such include the following: 1. Cairo, Damietta, and Sharkeya are the centers of furniture and woodworks activity in Egypt 2. In terms of number of entities, furniture and woodworks activity is primarily dominated by SMEs, however an investigation of production capacity is necessary in order to identify the market shares of large producers vs. SMEs. 3. Furniture and woodworks activity is primarily run by the private sector. The Industrial Map and GOFI According to information obtained from both the Industrial map and the General Organization for Industrialization GOFI, Cairo, Damietta and Sharkeya appear as being the main centers of furniture and woodworks production with some disparities in the figures given. The Industrial Map classified information according to the size of entities, namely factories that employ more than 10 workers and factories that employ less than 10 workers. Based on this classification, Cairo emerged as having the largest number of factories (614), followed by Dammietta (527 factories) and Sharkeya (432 factories), El Monofeya (167 factories), Asuit (165 factories) and Gharbeya (106 factories). The GOFI study on the other hand presents Damieta as having the largest number of factories at 565, followed by Sharkeya at 515, Cairo at 481, and Giza at 156. The total number of factories presented by the Industrial Map is 2,465 while the total number of factories provided by the GOFI is 2,503. It is important to note that regardless of the different data gathering methodologies and the number Woodworks Monograph AAC 17
disparities, it is obvious that Cairo, Damieta, and Sharkeya are the centers of furniture and woodworks industry and that the sector is dominated primarily by SMEs. The Industrial Registry Data obtained from the Industrial Registry also confirmed the above-mentioned trends however there were large number discrepancies between the sources in terms of the total number of entities. According to GOFI, the total number of furniture and woodworks factories is 2,501 while the number of factories obtained from the Industrial Registry is 1910, a difference of 599 (24%). Furthermore, the hierarchy of governorates in terms of number of entities in descending order according to GOFI is Damietta (565), Sharkeya (515) and Cairo (461), the Industrial Registry on the other hand presents Sharkeya (510) as having the largest number of entities followed by Damietta (506) and Cairo (285). Such number disparities should not exist since both sources are affiliates of the Ministry of Industry and presumably follow the same definition and classification of industrial entities. The Commercial Registry The data provided by the Commercial Registry also confirms the above-mentioned trends. According to the Commercial Registry, Cairo has the largest number of factories with capital more than L.E 50,000. Dammietta, however has the largest number of factories with capital less than L.E 50,000. The information revealed that there is a total of 54,097 companies producing furniture and woodworks final commodities, of which the production of wooden home furniture has the largest number of listed producers. The total number of furniture and woodworks wholesalers registered at the commercial registry is 8,012 of which 324 entities have invested capital worth more than L.E. 50,000 and 7688 have invested capital worth less than L.E. 50,000. The total number of furniture and woodworks retailers is 38,017, of which 783 have invested capital of more than L.E. 50,000 and 37234 with invested capital of less than L.E. 50,000. The Commercial Registry which was the only source that provided information on the furniture and woodworks feeding industries, revealed that there are a total of 8213 registered companies engaged in the production of intermediate products for the furniture and woodworks industry. It is worth noting however that this number does not reflect the actual size of this market segment since a large percentage of the furniture and woodworks producers of intermediate commodities are unregistered micro-enterprises that are therefore not accounted for in the Commercial Registry data base. Entities Registered with Furniture and Woodworks Cooperatives Information on the number of cooperatives and workshops registered with furniture and woodworks cooperatives reveals that Damietta has the highest concentration of workshops 23,082, followed by Cairo 14,163, followed by Dakahleya- 6,973 then Giza 6,656. Military Production of Furniture and Woodworks Information on factories affiliated to the National Organization for Military Production and the Arab Organization for Industrialization revealed that Factory No. 54 had the highest value of production at L.E. 2,700,000 and employed 122 workers. The Motor Company's has the second highest value of production, employing 170 workers and producing furniture and woodworks commodities worth L.E. 1,965,000. The third highest value of production in this category is L.E. 1,250,000 by the Aviation Company which employs 135 workers. Estimation of the Aggregate Number of Furniture and Woodworks Entities in Egypt Based on the foregoing analysis of the statistics on entities obtained from the various government organizations, it has been observed that: Woodworks Monograph AAC 18
1- There is no single source of information in Egypt that provides comprehensive statistics regarding the total number of furniture and woodworks industrial establishments 2- The statistics obtained from the different organizations are overlapping and inconsistent; making it impossible to come up with an accurate figure for the total number of entities operating in the sector Calculation of the Total Number of Woodworks and Furniture Entities
31,881 8,012 38,017 138,375
Difference Between Commercial Registry Statistics & Ministry of Local Development Statistics = Number of entities registered at woodworks cooperatives Number of entities registered at the Commercial Registry Calculation of the Total Number of Registered and Unregistered Furniture and Woodworking Entities Based on the calculation presented above, the total number of furniture and woodworks entities registered with the Egyptian government is estimated to be 138,375. It is widely known however, that the sector is dominated by informal entities that are not registered with any of the government organizations mentioned in this report. According to Economist Dr. Heba Handousa, the informal sector represents 77% of the non-agricultural private sector in Egypt1. Given that the furniture and woodworks sector is highly dominated by informal activity, it is believed that the informal furniture and wood works sector represents at least 40% of the activities undertaken by the industry i.e. 55,350 entities. Based on this assumption, the total number of furniture and woodworks entities would reach 193,725. It is worth noting however that these estimations are indicative and that in order to reach a more accurate figure that serves as an accurate representation of the size of the sector, extensive research is required. Calculations of the Value of Investment in the Furniture and Woodworks Sector Value of Investment for Registered Factories and Workshops Interviews with members of the Chamber of Woodworking and other key figures in the sector has revealed that in order to operate, the smallest woodworks workshop requires more or less an invested capital of L.E. 5,000. It follows that the total value of investment within the woodworking industry would at least be L.E. 691 million. It is worth noting however, that a considerable number of furniture and woodworking entities operate on a large and sophisticated scale that necessitate investments worth over L.E 10 million. According to members of the Chamber of Woodworks, there are at least 100 factories operating on such a scale. Taking this into consideration would increase investments by L.E. 1 Billion (L.E. 10 million x 100 factories). The estimated value of investment would thus be L.E. 1,691 million.
Hebba Handousa "Employment, Budget Priorities and Microenterprises" The Egyptian Centre for Economic Studies, Working Paper No. 69 June 2002
1
19
2.3. Furniture and Woodworks Entities Registered at the Industrial Registry

2.3.1 Introduction: This section illustrates the methodology used in collecting data regarding the number of factories registered at the Industrial Registry, the collected data presented in tabular and chart format, as well as a brief statistical analysis of the information obtained. Data Collection Process In response to the request made, the Industrial Registry has provided the following: Woodworks factories (ISIC Code 3311) o Total number of factories classified according to geographic location o Detailed list of factories including names and contact information Furniture factories (ISIC Code 3321) o Total number of factories classified according to geographic location o Detailed list of factories including names and contact information Upholstery Factories (ISIC Code 3322) o List of factories including names and contact information It is worth noting that the following information has also been requested, however, it has been revealed that the way the Industrial Registry database has been developed does not allow for the retrieval of such information. The number of all registered factories serving as feeding industries to the furniture and woodworks number of factories registered over the period 1999 2003 (this information would have assisted the project team in determining the sector's rate of expansion)
2.3.2 General Analysis In August 2003 the total number of Egyptian furniture and woodworking factories registered at the Industrial Registry was 1910, of which 985 factories were registered as woodworking factories (ISIC Code 3311) and 925 (ISIC Code 3321) were registered as furniture factories. The geographic locations with the highest concentration of furniture and woodworking factories in descending order are Sharkeya (510) and Damietta (506). While Sharkeya has the largest number of woodworks factories (267) followed by Damietta (219), Cairo (124), Daqahleya (74) and Giza (68); Damietta has the largest number of furniture factories (287) followed by Sharkeya (243), Cairo (161), Assuit (49) and Daqahleya (35).
20
The following tables and charts contain detailed statistics about the furniture and woodworks factories and their geographic distribution.
Table 1: Furniture & Woodworks Factories Registered at the Industrial Registry

Woodworks Factories (ISIC Code 3311) Total Furniture & Woodworks Factories 510 506 285 109 99 93 66 42 41 36 30 18 13 12 50 1910
Governorate
Furniture Factories (ISIC Code 3321)
Sharkeya 267 243 Damietta 219 287 Cairo 124 161 Daqahleya 74 35 Giza 68 31 Assuit 44 49 Alexandria 42 24 Qalubeya 32 10 Sohag 7 34 El Menya 14 22 Gharbeya 20 10 Port Said 11 7 El Beheira 11 2 Ismailia 10 2 Other 48 2 Total 985 925 Source: Industrial Registry Database (August 2003)
Graph 1: Geographic Distribution of Furniture & Woodworks Factories Registered at the Industrial Registry
Qalubeya 2% Alexandria Assuit 3% 5% Giza 5% El Menya 2% Sohag 2% Port Said 1% Gharbeya 2% El Beheira 1% Ismailia 1% Other 3% Sharkeya 26%
Daqahleya 6% Cairo 15% Damietta 26%
21
Table 2 : Woodworks Factories (ISIC code: 3311) Registered at the Industrial Registry
Number of Entities Sharkeya 267 Damietta 219 Cairo 124 Giza 68 Alexandria 42 Dakahleya 74 Asuit 44 Port Said 11 Kalubeya 32 Gharbeya 20 Menya 14 Beheira 11 Ismailia 10 Red Sea 9 Kafr Al-Sheikh 8 Other 32 Total 985 Industrial Registry Database (August 2003) Governorate Percentage of total 27.11% 22.23% 12.59% 6.90% 4.26% 7.51% 4.47% 1.12% 3.25% 2.03% 1.42% 1.12% 1.02% 0.91% 0.81% 3.25% 100.00%
Graph 2: Geographic Distribution of woodworks Factories (ISIC code: 3311) Registered at the Industrial Registry
Gharbeya 2% Kalubeya Port Said 3% 1% Asuit 4% Dakahleya 8% Beheira Red Sea Kafr Al-Sheikh 1% Ismailia 1% 1% Other 1% 3% Menya 1% Sharkeya 28%
Alexandria 4%
Giza 7% Cairo 13%
Damietta 22%
22
Table 3 : Furniture Factories (ISIC code: 3321) Registered at the Industrial Registry
Number of Entities Damietta 287 Sharkeya 243 Cairo 161 Assuit 49 Daqahleya 35 Sohag 34 Giza 31 Alexandria 24 El Minya 22 Kalubeya 10 Gharbeya 10 Port Said 7 Other 12 Total 925 Industrial Registry Database (August 2003) Governorate
Percentage of total 31.03% 26.27% 17.41% 5.30% 3.78% 3.68% 3.35% 2.59% 2.38% 1.08% 1.08% 0.76% 1.30% 100.00%
Graph 3 : Geographic Distribution of Furniture Factories (ISIC code: 3321) Registered at the Industrial Registry
Gharbeya Port Said Kalubeya 1% 1% El Minya Alexandria Other 1% 2% 3% 1% Giza 3%
Sohag 4% Daqahleya 4% Assuit 5%
Damietta 32%
Cairo 17%
Sharkeya 26%
23
2.4. Furniture and Woodworks Entities according to the Industrial Map

2.4.1 Introduction: The Industrial Map is the output of a survey conducted by the General Organization for Industrialization and the Information Decision Support Centre in 2001. The survey which covered all of the main industrial sectors including furniture and woodworking is compiled in a CD that includes general statistics about each sector as well as the details and contact information of industrial companies. 2.4.2 General Analysis The following table which provides the geographic distribution of factories differentiated according to the number of workers employed reveals that the total number of factories employing less than 10 workers (1955 factories) is almost 4 times larger than the number of factories employing more than 10 workers (501 factories). Furthermore, Cairo (614 factories), Dammietta (527 factories) and Sharkeya (432 factories) are the centers of furniture and woodworks production followed by Al Monofeya (167 factories), Asuit (165 factories) and Gharbeya (106 factories). Table 4 : Woodworks and Furniture Manufacturing entities Listed at the Industrial Map
Factories with less than 10 workers (SMEs) Factories with more than 10 workers 182 46 70 21 21 11 33 30 36 14 6 4 7 2 2 16 501
Governorate
% of SMEs
Total
Cairo 432 70% Dammietta 481 91% Sharkeya 362 84% Al Monofeya 146 87% Asuit 144 87% Al Gharbeya 95 90% Giza 64 66% Qalubeya 28 48% Alexandria 17 32% Dakahleya 36 72% Menya 39 87% Aswan 20 83% Port Said 16 70% Kafr El Sheikh 17 89% Red Sea 14 88% Other 31 66% 80% Total 1955 Source: Industrial Map (IDSC & GOFI)
614 527 432 167 165 106 97 58 53 50 45 24 23 19 16 47 2456
24
Graph 4 : Geographic Distribution of Total Woodworks and Furniture Manufacturers listed at the Industrial Map
700 600 500 400 300 200 100 0
Al Monofeya Al Gharbeya Giza Dammietta Port Said Kafr El Sheikh Cairo Sharkeya Menya Asw an Qalubeya Alexandria Dakahleya Red Sea Asuit Other
Industrial Map (IDSC & GOFI)
2.4.3 Comparison between Woodworks & Furniture Manufacturers with less and more than 10 workers According to the Industrial Map, Cairo (182 factories) has the largest number of furniture and woodworks factories with more than 10 workers, followed by Sharkeya (70 factories) Dammietta (46 factories) and Giza (33 factories). On the other hand, Dammietta (481 factories) has the largest number of furniture and woodworks factories and workshops employing less than 10 workers followed by Cairo (432 factories), Sharkeya (362) El Monofeya (146) and Assuit (144).
Graph 5: Comparison between Woodworks & Furniture Manufacturers withLess and More than 10
500 450 400 350 300 250 200 150 100 50 0
Giza
Dammietta
Port Said
Menya
Asw an
Kafr El Sheikh
Al Monofeya
Al Gharbeya
Sharkeya
Qalubeya
Alexandria
Dakahleya
Red Sea
Cairo
Asuit
Factories w ith less than 10 w orkers (SMEs)
Factories w ith more than 10 w orkers
Other
25
2.5 Woodworking & Wood Furniture Manufacturing entities according to the General Organization for Industrialization GOFI
In 2003, GOFI conducted a survey with the aim of updating the information presented in the Industrial Map. The following table presents some of the results of this initiative namely the number of manufacturers of furniture and woodworks classified by geographic locations. Table 5: Woodworking and Furniture factories Registered at GOFI
Governorate Damietta Sharkeya Cairo Giza Dakahleya Alexandria Gharbeya Kalubeya Beheira Monofeya Port Said Kafr AlSheikh Ismailia Suez Other Total No. of Entities Registered at GOFI 565 515 461 156 134 108 93 79 30 29 29 19 15 6 264 2503
Graph 6: Furniture & Woodworking Factories Registered at GOFI

600 500
Number of Entities
400 300 200 100 0

Damietta Sharkeya Cairo Giza Dakahleya Alexandria Gharbeya Kalubeya Beheira Monofeya Port Said Kafr Al-Sheikh Ismailia Suez Other
26
2.6 Comparison between data obtained from the Industrial Map and the General Organization for Industrialization - GOFI
2.6.1 Introduction: This section compares the figures provided by the Industrial Map (2001), on the number of furniture and woodworks entities with the figures provided by the GOFI/MITD (2003), in order to deduce a general trend on the furniture and woodworks industry. The following table and chart illustrate the disparities in the numbers obtained from the abovementioned sources of information. 2.6.2 General Analysis According to the statistics provided by the Industrial Map, Cairo had the largest number of factories (614), followed by Damietta (527), Sharkeya (432), and El Monofeya (167). The data obtained from GOFI presents Damieta as having the largest number of factories at 565, followed by Sharkeya at 515, Cairo at 481, and Giza at 156. The total number of factories presented by the Industrial Map is 2465 and the total number of factories provided by the MITD is 2503. Table 6: Discrepancies between data obtained from the Industrial Map and GOFI on the total number of furniture and woodworks factories
Governorate Cairo Alexandria Port Said Suez Damietta Dakahleya Sharkeya Kalubeya Kafr AlSheikh Gharbeya Monofeya Beheira Ismailia Giza Beni Sweif Al Fayoum Menya Asuit Sohag Qena Aswan Red Sea the New Valley Matrouh North Sinai Total Industrial Map 614 53 23 5 527 50 432 58 19 106 167 2 6 97 8 6 45 165 6 8 24 16 2 4 13 2456 GOFI 461 108 29 6 565 134 515 79 19 93 29 30 15 156 11 6 44 102 47 10 24 9 1 1 10 2504 Discrepancies 153 -55 -6 -1 -38 -84 -83 -21 0 13 138 -28 -9 -59 -3 0 1 63 -41 -2 0 7 1 3 3 -48
27
Graph 7: Discrepancies between no. of entities registered at the Industrial Map & GOFI
700 600 500 400 300 200 100 0
Ca iro Da mie tta Sh ark ey a Mo no fey a As u it Gh arb ey a Giz a Al exa nd ria Ka lu b ey a Da kah ley a Me ny a As wa n Po r tS Ka aid fr A l Re dS ea No rth Sin ai Ot h er
Industrial Map
GOFI
2.6.3 Observations Based on the information presented above, it has been observed that: If the data presented above is taken as being reflective of the furniture and woodworks industry, it would appear that the hierarchy of furniture and woodworks centers has changed over the past two years. In 2001, Cairo appeared to be the center with 614 factories, followed by Damietta with 527 factories, Sharkeya with 432 factories. In 2003 the number of reported factories in Dammietta was 565 factories, Sharkeya - 515 factories, Cairo - 461 factories, Giza - 156 factories and Alexandria 108 factories. It follows that according to the MITD survey Dammietta is currently the new center of furniture and woodworks production. El Monofeya has been dropped out of the hierarchy and is replaced by Cairo. Furthermore, Giza witnessed tremendous growth in the number of factories from 97 factories in 2001, to 156 factories in 2003. A similar increase occurred in Alexandria where the number of factories increased from 53 in 2001 to 108 in 2003. The statistics presented above also point to a general increase in the number of factories in all the governorates with the exception of Cairo and Gharbeya, that witnessed a decrease of 153 and 13 factories respectively. This decrease could be attributed to the following reasons: Some of the factories may have closed down. A large proportion of unregistered factories may have been overlooked in 2003
It is important to note however that even though there is an overall increase in the number of factories between 2001 and 2003, one can not determine whether the sector is growing or not for the following reasons: The information provided does not specify the yearly size of the sector It is difficult to identify a trend over such a short time span (a period of 2 years). The increase of factories from 2001-2003 does not directly imply an increase in the sector since these factories may have been overlooked in the first survey. 28
Sh
2.7 Comparison between no. of entities registered at the Industrial Registry & the General Organization for Industrialization
2.7.1 Introduction: The following table and charts compare statistics obtained from the General Organization for Industrialization (GOFI) with those obtained from the Industrial Registry. 2.7.2 General analysis: Given that both these organizations are affiliates of the Ministry of Industry and since they both follow similar methodologies in classifying entities, there should have been little discrepancies in the statistics obtained. However, a review of the data revealed that according to GOFI, the total number of furniture and woodworks factories is 2501 while the number of factories obtained from the Industrial Registry is 1910, a difference of 599. Furthermore, the hierarchy of governorates in terms of number of entities in descending order according to GOFI is Damietta , Sharkeya and Cairo, the Industrial Registry on the other hand presents Sharkeya as having the largest number of entities followed by Damietta and Cairo. GOFI data indicates that Damietta has 565 factories while the data obtained from the industrial registry indicates that it has 506 factories, a difference of 59 factories. The discrepancy in Cairo is even larger, as the number obtained from GOFI was 461 while the number obtained from the industrial registry was 285, a difference of 176. Table 7: Discrepancies between data obtained from the Industrial Registry and GOFI
No. of Entities Registered at the GOFI 515 565 461 134 156 102 108 79 47 44 93 29 30 15 123 2501 No. of Entities Registered at the Industrial Registry 510 506 285 109 99 93 66 42 41 36 30 18 13 12 50 1910
Governorate
Difference 5 59 176 25 57 9 42 37 6 8 63 11 17 3 73 591
Sharkeya Damietta Cairo Daqahleya Giza Assuit Alexandria Qalubeya Sohag El Menya Gharbeya Port Said El Beheira Ismailia Other Total
29
Graph 8 : Discrepancies between no. of entities registered at GOFI and the Industrial Registery
600
500
400
300
200
100
0
ar ke ya Da mi e tt a Ca iro Da qa hl e ya As su it an dr ia Qa l ub ey a So ha g El Me ny a Gh a rb ey a Po rt Sa id El Be he ira Ism a il ia Ot he r Ale x Gi za
No. of Entities Registered at the GOFI
Sh
No. of Entities Registered at the Industrial Registry
2.7.3 Observations Based on the information presented above, it has been observed that the discrepancy between the figures provided by GOFI and the Industrial Registry is very large. Such disparities could be a result of the following factors: The GOFI survey which indicates a larger number of factories on both the aggregate level and governorate level may have taken factories that are not registered with the Industrial Registry into account.
The consequences of such disparities with respects to this component of the assignment are the following: a) The number disparity between the two sources alters the hierarchy of furniture and woodworks centers. According to the Industrial Registry, Sharkeya has the largest number of factories, to be followed by Damietta, Cairo then Dakahleya. According to GOFI, Damieta has the largest number of factories followed by Sharkeya, Cairo then Giza. This discrepancy demonstrates that we cannot calculate the size of the furniture and woodworks industry, nor can we specifically pin-point the size of activity within each governorate. b) The only trend that can be deduced is that Damietta, Sharkeya, and Cairo emerge as having the largest identified number of factories working within them.
30
2.8 Number of Furniture and Woodworks Factories, Workshops and Traders According to the Commercial Registry
2.8.1 Introduction This section provides an illustration of the methodology used in collecting data regarding the number of factories registered at the Commercial Registry, brief statistical analysis of the information obtained, as well as the collected data presented in tabular and chart form. Data Collection Process The information presented below has been obtained from the Information and Decision Support Centre database (IDSC) which includes information about the total number of manufacturers and traders registered until the end of the year 2002. This information includes: The number of furniture and woodworks manufacturers classified by geographic location The number of furniture and woodworks manufacturers classified by product The number of retailers and wholesalers classified by geographic location The number of entities producing intermediate products (feeding industries) classified by product
Furthermore, a list of industrial factories producing furniture and woodworks products including the names of owners and contact information has been obtained. 2.8.2 General Analysis Manufacturers According to the Commercial Registry database, Damietta emerges as having the largest total number of manufacturers 13097, followed by Cairo at 8402, Dakahleya at 4350, and Alexandria at 4182. It is important to note that in Dammietta 13077 of the manufacturers have a reported invested capital of less than L.E. 50,000 and only 20 companies have investments worth more than L.E. 50,000. In Cairo on the other hand, 252 of the registered factories have capital investments worth more than L.E. 50,000 and 8150 companies have capital investment worth less than L.E. 50,000. This discrepancy in number indicates that while Dammietta has a larger number of producers on the aggregate level, Cairo hosts a larger number of producers with declared invested capital worth more than L.E. 50,000. Furthermore, a considerable percentage of the activity of the furniture and woodworks industry takes place on a small and micro-level. It is important to note however, that in order to come up with the actual contribution of SMEs versus larger scale factories, statistics regarding the production capacity of each of these sectors is necessary. Unfortunately such data and especially the total production of SMEs is lacking.
31
2.8.3 Factories Registered at the Commercial Registry The following table illustrates the geographic distribution of furniture and woodworks producers categorized by geographic location. The statistics differentiate between entities with capital more than L.E. 50,000 and capital less than L.E. 50,000. An analysis of the statistics reveals that Damietta emerges as having the largest total number of entities 13097, followed by Cairo at 8402, Dakahleya at 4350, and Alexandria at 4182. It also shows that there is a large difference in the total number within each category, with the category "entities with capital less than L.E. 50,000" having a much larger total number of entities than the category "entities with capital more than L.E. 50,000". Table 8: Furniture and woodworks factories registered at the commercial registery (With capital > 50,000 L.E. and capital < 50,000)
Governorate Aswan Asiout Alexandria Ismailia Red Sea Beheira Giza Dakahleya Suez Sharkeya Gharbeya Fayoum Cairo Qaloubeya Monofeya Menya New Valley Beni Sweif Port Said South Sinai Damietta Sohag North Sinai Qena Kafr El Sheikh Matrouh Total Number of factories with Capital > 50,000 L.E. 20 42 121 19 2 11 183 37 5 80 25 2 252 39 48 16 3 1 9 1 20 30 1 8 11 2 988 Number of factories with Capital < 50,000 L.E. 796 2026 4061 514 212 1257 2100 4313 892 3507 4619 1072 8150 1887 2412 1757 300 996 595 27 13077 2002 185 1484 1089 147 59477 Total 816 2068 4182 533 214 1268 2283 4350 897 3587 4644 1074 8402 1926 2460 1773 303 997 604 28 13097 2032 186 1492 1100 149 60465
Graph 9 : Geographic Distribution of Furniture and Woodworking factories and workshops registered at the commercial registry
Kafr El Sheikh 2% Matrouh 0% Aswan Qena 1% 2% Alexandria 7% Ismailia 1% Red Sea 0% Beheira 2% Giza 4% Dakahleya 7% Suez 1% Sharkeya 6%
Damietta 22%
Sohag 3%
Asiout 3%
Port Said 1% Beni Sweif 2% New Valley 1% Menya 3% Monofeya 4% Qaloubeya 3% Cairo 14% Fayoum 2%
Gharbeya 8%
32
2.8.3.1 Factories and Workshops with Capital Larger than L.E. 50,000 According to the Commercial Registry Database, Cairo (252 companies) emerges as having the largest number of factories with investments of more than L.E. 50,000, followed by Giza (183 companies), Alexandria (121 companies) and Sharkeya (80 companies). This category is broken down into Investment Companies with Cairo having 48, to be followed by Giza 41, then Assuit at 25. Similarly, Cairo had the largest number of private sector companies 203, to be followed by Giza at 142, and Alexandria at 106. Table 9: Furniture and Woodworking Factories (Capital >50,000) Registered at the Commercial Registry
Governorate Cairo Giza Alexandria Sharkeya Monofeya Asiout Qaloubeya Dakahleya Sohag Gharbeya Damietta Aswan Ismailia Menya Beheira Kafr El Sheikh Port Said Other Total Investment Company 48 41 15 22 7 25 3 1 2 3 3 9 3 2 6 6 196 Private 203 142 106 58 41 17 36 36 28 25 17 20 16 7 8 9 3 19 791 Public 1 Total 252 183 121 80 48 42 39 37 30 25 20 20 19 16 11 11 9 25 988
Graph 10: Geographic Distribution of factories with capital > L.E. 50,000 registered at the commercial registry
Gharbeya 3% Sohag 3%
Dam ietta 2%
Ism ailia 2% As wan 2%
Kafr El Sheikh Port Said Menya Beheira 1% 1% 2% 1% Other 3%
Cairo 26%
Dakahleya 4% Qaloubeya 4% Asiout 4% Monofeya 5% Sharkeya 8% Giza 19% Alexandria 12%
33
2.8.3.2 Factories and Workshops with Capital Less than L.E. 50,000 Within the category of entities with invested capital less than L.E 50,000, Damietta has the largest total number of entities (13,077), followed by Cairo 8,150, Gharbeya 4,619, and Dakahleya 4,313. While Damietta has the largest number of private entities estimated at 13,065, followed by Cairo at 8,089, Gharbeya (4,606), then Alexandria at 4,045; Cairo has the largest number of investment companies 59, followed by Giza 25, Alexandria 15 and Gharbeya 13. According to the Commercial Registry Database, Cairo, Gharbeya, and Ismalia are the only three governorates that have cooperative societies (one in each). Furthermore, Dakahleya emerges as having the largest number of multinationals (2 factories), followed equally by each of Alexandria, Port Said, Cairo, and Damietta that include one multinational each. It is important to note that the total number of cooperatives reported appears to be unrealistically small, suggesting that there might be central cooperatives and other affiliates in some governorates that are not registered with the Commercial Registry. Table 10: Furniture and woodworking factories (Capital <50,000) registered at the Commercial Registry
Furniture and Woodworking factories and workshops (Capital < 50,000 L.E.) Cooperative Private Multinational Total Governorate Investment Societies 11 13065 1 13077 Damietta 59 1 8089 1 8150 Cairo 8 4303 2 4313 Dakahleya 13 4606 4619 Gharbeya 15 4045 1 4061 Alexandria 12 3495 3507 Sharkeya 9 2403 2412 Monofeya 25 2075 2100 Giza 8 2018 2026 Asiout 2 1755 1757 Menya 7 1477 1484 Qena 7 1995 2002 Sohag 9 1 1877 1887 Qaloubeya 1 1256 1257 Beheira Kafr El Sheikh Fayoum Beni Sweif Suez Aswan Other Total 4 11 2 6 1 10 220 1085 1061 994 886 795 1968 59248 1089 1072 996 892 796 1980 59477
1 3
Graph 11: Geographic Distribution of factories with capital < L.E. 50,000 registered at the commercial registry
Kaf r E l SheikhFayoum 2% 2% Beheira 2% Qaloubeya 3% Sohag 3% Qena 2% Menya 3% A siout 3% Giza 4% Monof eya Sharkeya 4% 6% Gharbeya 8% Dakahleya 7% Beni Sw eif 2% Suez 1% A sw an Other 1% 3%
Damietta 22%
Cairo 14%
A lexandria 7%
34
2.8.4. Furniture and Woodworks Companies Classified by Product According to the Commercial Registry, there is a total of 54,097 companies producing furniture and woodworks final commodities, (producers of intermediate commodities are not included in the following table) of which the production of wooden home furniture has the largest number of listed producers, a total of 13,730 companies, followed by carpentry workshops, 11,541, wood and woodworking activities, 10,767 wood cutting, sawing and sanding 3,492 and furniture finishing 3,483. It is worth noting that to avoid duplication; each company is registered once under its main area of production. In other words, companies registered under the production of wooden home furniture could be engaged in the manufacturing of other products as well. Another problem with the numbers is that the terminology used in classifying companies is ambiguous making it difficult to determine the scope of work of companies. Table 11: Furniture & Woodworks Entities classified by Product
Category Activity Investment Company
99 42 36 7 6 4 28 28 24 2 17 3 4 5 5 34 1
Cooperative Societies
2
Private
13628 11496 10729 3485 3477 3003 1113 989 790 800 570 571 565 235 125 177
Multinational
3 1 1
Public
Total
13730 11541
Wooden home furniture Carpentry workshops Wood and woodworking activities Wood cutting, sawing and sanding Furniture finishing Un-mechanized carpentry workshops Wooden doors and windows manufacturing Wood and woodworking activities Furniture parts manufacturing Wood sawing for production of wood blocks Wood and wooden furniture manufacturing other activities Glass photo frames manufacturing Wooden photo frames manufacturing Wooden chairs manufacturing Other wood and woodworking activities Furniture and fixtures Ship building and maintenance Wooden kitchen furniture Bamboo furniture Wood carving products Wooden baskets, boxes and utensils Broomsticks and floor coverings Wood and cork products Wooden kitchen equipment Floating hotels Boats, ferries, yachts and sailboats building and maintenance Furniture mending, renovation and restoration Furniture and fixtures for schools Mechanized melamine production School equipment Wooden shoe frames Umbrellas and walking sticks Wooden flooring manufacturing
10767 3492 3483 3008 1141 1018 814 802 587 574 569 240 235 211 196
144 145 111
151 145 111 108 105 102 87
2 5
106 97 87
85 1 4 79 75 80 79 70 59 2 52 59 54 53 5 47 52
35
Category Activity Investment Company Cooperative Societies Private

37
Multinational
Public
Total
37 37
Coffin manufacturing Carriage, push-carts and hand carts Furniture and fixtures for buildings and houses Wooden clothes hangers manufacturing Music instruments Pencils Medical and surgical tables - Hospital furniture Other 1 1
35 27
36 28 29 15 7 159
152
Total Source: Commercial Registry
379
53006
54097
Observations: An examination of the data presented above reveals that in general, the number of entities registered within each product category tends to be small in comparison to the overall size of the market (demand and consumption) as well as the growth trends of the industrial sector as a whole. For example: The figure for entities producing furniture and fixtures for schools (79 entities) is far too small to satisfy local market needs. The number of factories producing furniture fixtures for buildings and houses (36 entities) is too small to satisfy the construction sector. The number of factories involved in the production of medical and surgical tables hospital furniture (7 entities) is far too small to satisfy both public and private hospital requirements. These low figures can be a result of a combination of the following factors: 1- A significant proportion of entities do not register with the commercial registry 2- The actual number of entities might actually be small in comparison to the market segment they cater for
Graph 12: Distribution of furniture and woodworking entities registered at the commercial registry by product
1% 1% 1% 1% 2% 2% >1% 1% 25%
2% 6%
6%
6% 20%
Wooden home furniture Wood and w oodw orking activities Furniture finishing Wooden doors and w indow s manufacturing Furniture parts manufacturing Wood and w ooden furniture manufacturing - other activities Wooden photo frames manufacturing Other w ood and w oodw orking activities Ship building and maintainance Bamboo furniture Wooden baskets, boxes and utensils Wood and cork products Floating hotels Boats, ferries, yachts and sailboats building and maintainnce Furniture and fixtures for schools Other
21%
Carpentry w orkshops Wood cutting, saw ing and sanding Un-mechanized carpentry w orkshops Wood and w oodw orking activities Wood saw ing for production of w ood blocks Glass photo frames manufacturing Wooden chairs manufacturing Furniture and fixtures Wooden kitchen furniture Wood carving products Broomsticks and floor coverings Wooden kitchen equipment Furniture mending, renovation and restoration Mechanized milamine production
36
2.8.5 Furniture and Woodworking Wholesalers and Retailers Classified by Geographic Location 2.8.5.1 Furniture and Woodworking Wholesalers classified by geographic location
The total number of furniture and woodworks wholesalers registered at the Commercial Registry is 8,012 of which 324 entities have invested capital worth more than L.E. 50,000 and 7688 have invested capital worth less than L.E. 50,000. Cairo has the largest number of entities (1,373) followed by Alexandria (949), Qena (645), Dakahleya (559), Gharbeya (526), Giza (449) and (Damietta (440). The concentration of SMEs varies from one geographic location to another, however, in general, the number of wholesalers with invested capital worth more than L.E. 50,000 is less than 10%. Table 12: Furniture and Woodworking Wholesalers registered at the Commercial Registry
(Capital > 50,000 L.E.) Governorate Aswan Asiout Alexandria Ismailia Red Sea Beheira Giza Dakahleya Suez Sharkeya Gharbeya Fayoum Cairo Qaloubeya Monofeya Menya New Valley Beni Sweif Port Said South Sinai Damietta Sohag Investment 1 5 Private 8 8 44 9 1 3 53 20 14 15 1 58 20 5 1 2 2 8 9 Multinational Total 8 9 49 9 1 3 67 21 15 15 1 66 20 9 1 2 4 8 9 1 1 1 Investment 1 (Capital < 50,000 L.E.) Cooperative Private Public Societies 143 256 900 96 24 214 377 538 107 418 1 510 216 1301 283 248 200 11 102 85 1 5 431 319 Total 144 256 900 98 24 214 382 538 110 418 511 226 1307 284 248 200 11 103 87 6 432 320 Grand Total Wholesalers 152 265 949 107 25 217 449 559 110 433 526 227 1373 304 257 201 13 103 91 6 440 329
14
5 3
8 4
10 6 1
1 2
North Sinai Qena Kafr El Sheikh Matrouh Total
(Capital > 50,000 L.E.) 2 2 3 35 288 1
2 2 3 324
36
(Capital < 50,000 L.E.) 51 640 162 12 1 7649
1 2
51 643 163 12 7688
53 645 166 12 8012
Graph 13: Geographic Distribution of Furniture and Woodworking Wholesalers registered at the commercial registry
Kafr El Sheikh North Sinai Qena 2% 8% Sohag 1% 4% Aswan 2%
Damietta 5% Port Said 1% Beni Sweif 1% Menya 3%
Asiout 3%
Alexandria 12% Ismailia 1% Beheira 3% Giza 6% Dakahleya 7%
Monofeya 3% Qaloubeya 4%
Suez 1% Cairo 17% Fayoum 3% Gharbeya 7% Sharkeya 5%
38
2.8.5.2 Furniture and Woodworking Retailers Classified by Geographic Location

The total number of furniture and woodworks retailers is 38,017, of which 783 have invested capital of more than L.E. 50,000 and 37234 with invested capital of less than L.E. 50,000. Cairo has the largest number of retailers (7899) followed by Dammietta (7899), Alexandria (4169), Gharbeya (2443) and Dakahleya (2442). It is important to note that as with the case of wholesalers, regardless of the geographic location, the majority of retailers are privately owned. Furthermore, the percentage of SMEs is over 90%.
Table 13: Furniture and Woodworking Retailers registered at the commercial registry
Governorate Aswan Asiout Alexandria Ismailia Red Sea Beheira Giza Dakahleya Suez Sharkeya Gharbeya Fayoum Cairo Qaloubeya Monofeya Menya New Valley Beni Sweif Port Said South Sinai Damietta Sohag North Sinai Qena
Kafr El Sheikh
Investment 4 6
Matrouh Total
30
(Capital > 50,000 L.E.) Cooperative Private Public Societies 16 6 123 12 1 11 1 155 23 4 23 21 2 239 1 23 11 8 1 3 13 1 21 23 2 3 5 1 1 751 1
Total 16 10 129 12 1 11 163 23 4 25 21 2 249 23 11 9 1 3 13 1 22 23 2 3 5 1 783
Investment 5 6 22 3 5 12 3 6 4 11 3 54 8 2 3 4 1 13 2 1 3 4 2 177
Private 447 1427 4016 573 108 1111 1841 2413 830 1820 2411 838 7590 1188 926 780 99 792 716 22 4451 958 226 656 719 82 37040
(Capital < 50,000 L.E.) MultinatTotal Public ional 452 2 1435 2 4040 576 108 1116 1853 3 2419 836 1 1825 2422 841 6 7650 1196 928 783 99 796 1 718 22 4464 960 2 229 659 723 84 12 3 37234
Total Retailers 468 1445 4169 588 109 1127 2016 2442 840 1850 2443 843 7899 1219 939 792 100 799 731 23 4486 983 231 662 728 85 38017
39
Graph 14: Geographic Distribution of Furniture and Woodworking Retailers registered at the commercial registry
Kafr El Sheikh North Sinai 2% Aswan 1% Qena 1% Sohag Damietta 2% 3% 12% Port Said 2% Beni Sweif 2% Menya 2% Monofeya 2% Qaloubeya 3% Cairo 21% Fayoum 2% Gharbeya 6%
Asiout 4%
Alexandria 11% Ismailia 2% Beheira 3%
Giza 5% Dakahleya 6% Suez Sharkeya 2% 5%
40
2.9 Furniture and Woodworks Feeding Industries

According to the Commercial Registry database, there are a total of 8213 companies engaged in the production of intermediate products for the furniture and woodworks industry. Out of this total number, 5681 companies are engaged in various forms of upholstery activities, 698 produce paints and varnishes and 512 are engaged in furniture gilding. Furthermore there are 123 producing woodworking machinery, 126 producing accessories and fixtures and 126 companies producing adhesives and glues. It is worth noting however, that a large percentage of the furniture and woodworks feeding industry are unregistered micro-enterprises that are not accounted for in the commercial registry data base. It follows that the numbers presented above do not provide an accurate representation of the sector. Table: 14 Furniture & Woodworks Feeding Industries
Activity Upholstery Furniture Upholstering Car seats upholstering Paints and varnishes Upholstery Other Activities Furniture Gilding Mattresses and cushions upholstering Spinning and weaving equipment Nails Plywood and straw manufacturing Woodworking machinery Shoes and Floors varnishes Veneer wood manufacturing Adhesives Pasting materials other than adhesives Door locks Abrasives Sponge mattresses Furniture and fixtures other than metal and upholstery Doors and other Hinges Pressed and particle board manufacturing Total Number of Entities 1687 2452 1089 597 93 512 453 258 221 139 123 89 69 68 58 50 48 41
38 36 26
41
Activity Door Knobs Furniture packaging and packing Glues Furniture and metal polishers Panel board manufacturing Total
Total Number of Entities 18 14 13 12 9 8213
Graph 15: Distribution of Wood and woodworking Feeding entities registered at the commercial registry classified by product
1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%
1% 2% 3% 3%
21%
6%
6% 7% 13% 30%
Upholstery Car seats upholstering Furniture Gilding Spinning and weaving equipment Plywood and straw manufacturing Upholstery - other activities Veneer wood manufacturing Pasting materials other than adhesives Abrasives Furniture and fixtures other than metal and upholstery Pressed and particle board manufacturing Furniture packaging and packing Furniture and metal polishers
Furniture Upholstering Paints and varnishes Mattresses and cushions upholstering Nails Woodworking machinery Shoes and Floors varnishes Adhesives Door locks Sponge mattresses Doors and other Hinges Door Knobs Glues Panel board manufacturing
Observations: An examination of the data presented above reveals that in general, the number of entities registered within each product category tends to be small in comparison to the overall size of the market (demand and consumption) as well as the growth trends of the industrial sector as a whole. For example: the number of factories involved in car seats upholstering is very small compared to automobile production as a whole. The number of factories producing mattresses, and cushions upholstering are very few compared to the increasing size of the population. These low figures can be a result of a combination of the following factors: 1- A significant proportion of entities do not register with the commercial registry 2- The actual number of entities might actually be small in comparison to the market segment they cater for
42
2.10 Workshops Registered with Furniture & Woodworks Cooperatives

The following table presents figures on the number of workshops registered with cooperatives in all governorates according to the Ministry of local development. The data provided, reveals that the total number of workshops is 89,612. Damietta has the highest concentration of workshops 23,082, followed by Cairo 14,163, followed by Dakahleya- 6,973 then Giza 6,656. It is important to note the large difference in the number of workshops between Damietta and Cairo (difference of 8919 workshops). Such data enables us to locate and map woodworking and furniture activities as well as to geographically place and identify the size of the entities involved in the sector. Table 15: Numbers of Workshops registered in Furniture & Woodworks Cooperatives
Governorate Cairo Alexandria Port Said Suez Dammieta Dakahleya Sharkeya Qalubeya Kafr El Sheikh Gharbeya El Monofeya El Beheira Ismalia Giza Beni Sueif Fayoum Menya Assuit Sohag Qena Aswan Luxor Red Sea New Valley Matrouh North Sinai Sothern Sinai Total Source: Ministry of Local Development No. of Workshops 14163 5600 469 730 23082 6973 4812 3887 1783 4599 2705 3174 728 6656 880 2073 1933 1360 1399 1107 655 347 119 105 104 151 18 89612
43
Graph 16:
No. of Furniture & Woodworks Workshops registered with the Cooperative Socieities
Port Said; 469 Ismalia; 728 Suez; 730 Beni Sueif ; 880 Assuit; 1360 Sohag; 1399 Kaf r El Sheikh; 1783 Fayoum; 2073 Menya; 1933 El Monof eya; 2705 El Beheira; 3174 Qena; 1107
Asw an; 655
Luxor; 347 North Sinai; 151 New Valley; 105 Red Sea; 119 Sothern Sinai; 18 Matrouh; 104 Dammieta; 23082
Alexandria; 5600
Qalubeya; 3887 Cairo; 14163
Gharbeya; 4599
Sharkeya; 4812
Giza; 6656
Dakahleya; 6973
2.10.1 Number of Furniture Cooperatives per Governorate The following table presents figures obtained from the Ministry of Local Development on the number of furniture cooperatives per governorate. According to this data, the highest concentration of cooperatives is located in Giza (5), followed by Cairo (4) and Kafr El Sheikh (4), followed by Dakahleya (3), then Damietta (2). The remaining listed governorates have one cooperative each. It is interesting to note that despite the fact that Damietta has the largest number of workshops registered with cooperatives as illustrated in table 15, it only has two cooperative societies within it. Table 16: Number of Furniture Cooperatives/ Governorate
Governorate Cairo Giza Alexandria Monofeya Gharbeya Kafr El Sheikh Dammieta Dakahleya North Sinai Port Said Ismalia Suez Sharkeya Fayoum Menya Assuit Sohag Total No. Cooperative Societies 4 5 1 1 1 4 2 3 1 1 1 1 1 1 1 1 1 30
44
Graph 17:
Furniture Cooperatives Societies per Governerate
Assuit; 1 Menya; 1 Fayoum; 1 Sohag; 1 Sharkeya; 1 Suez; 1 Ismalia; 1 Giza; 5 Cairo; 4
Port Said; 1 North Sinai; 1 Dakahleya; 3 Dammieta; 2 Kafr El Sheikh; 4 Alexandria; 1 Monof eya; 1 Gharbeya; 1
Observations on the Number of Cooperatives and Entities Registered with them: An examination of the data collected from the Ministry of Local Development on the number of cooperatives and entities registered with them reveals the following: The number of workshops registered in cooperative societies is very large when compared to the number of cooperatives. For example, in Damietta there are only two cooperatives catering for 23,082 workshops. In Cairo on the other hand there are 4 cooperatives catering for 14,163 workshops. A similar trend can be detected with regards to all the other major governorates. When we compare these figures with the table 10 provided by the Commercial Registry, large disparities become apparent. According to table 10 on Furniture and Woodworking factories (capital less than L.E 50,000 and capital more than L.E 50,000) the total number of cooperatives is three, with one in each of Damietta, Cairo, and one in the category of other. Such discrepancies between sources illustrates that further research is needed on this particular aspect of entities. It is important to note that the cooperative law and its regulations are currently under discussion by the Shaab council for amendments requested by the various parties working in this field.
45
2.11 Number of Industrial Entities: Comparison between Commercial Registry Statistics and Ministry of Local Development Statistics
A comparison between the data provided by the Commercial Registry and the Ministry of Local Development on the number of entities (factories and workshops) reveals huge discrepancies in the number of industrial entities both on the aggregate level and the level of each governorate. According to the Ministry of Local Development, the total number of workshops is 89,612 while the number of factories and workshops registered at the Commercial Registry is 60,465; a difference of 31,881. A possible explanation for this discrepancy is that while a considerable number of entities registered at the Commercial Registry are also registered with furniture and woodworks cooperatives; not all entities are registered with both organizations.
Table 17: Comparison Between Statistics on Workshops obtained from the Commercial Registry and the Ministry of Local Development No. of Workshops Ministry of Local Development 23082 14163 6973 6656 5600 4812 4599 3887 3174 2705 2073 1933 1783 1399 1360 1107 880 730 728 655 469 347 151 119 105 104 18 89612 No. of Factories & Workshops Commercial Registry 13097 8402 4350 2283 4182 3587 4644 1926 1268 2460 1074 1773 1100 2032 2068 1492 997 897 533 816 604 186 214 303 149 28 60465
Governorate Dammieta Cairo Dakahleya Giza Alexandria Sharkeya Gharbeya Qalubeya El Beheira El Monofeya Fayoum Menya Kafr El Sheikh Sohag Assuit Qena Beni Sueif Suez Ismalia Aswan Port Said Luxor North Sinai Red Sea New Valley Matrouh Sothern Sinai Total
Difference 9985 5761 2623 4373 1418 1225 1961 1906 245 999 160 683
195
347
31881
46
An Examination of the figures received from the Ministry of Local Development and the Commercial Registry reveals great discrepancies. In most cases, the figure provided by the Ministry of local Development is larger than that provided by the Commercial Registry. For example, the number of workshops registered with furniture and woodworks cooperatives in Dammietta, Cairo and Dakhahleya are 23,082, 14,163 and 6,973 respectively. The number of entities registered at the commercial registry is 13,097 for Dammietta, 8,402 for Cairo and 4,350 in Dakahleya. The same phenomenon prevails in most of the other governorates as well. Graph 18:
Comparison Between Statistics on Entities (Commercial Registry Vs. Cooperatives)
25000
20000
No. of Entities
15000
10000
5000
Dammieta
Cairo
No. of Workshops Ministry of Local Development
Dakahleya
Giza
Alexandria
Sharkeya
Gharbeya
Qalubeya
El Beheira
El Monofeya
Fayoum
Menya
No. of Factories & Workshops - Commercial Registry
Kafr El Sheikh
Sohag
Assuit
Qena
Beni Sueif
Suez
Ismalia
Asw an
Port Said
Luxor
North Sinai
Red Sea
New Valley
Matrouh
Sothern Sinai
47
2.12 Factories affiliated to the National Organization for Military Production & the Arab Organization for Industrialization.
There are five affiliates of the National Organization of Military Production and the Arab Organization for Industrialization engaged in the production of furniture and woodworks. During the fiscal year 2002-2003, Factory No. 54 had the highest value of production at L.E. 2,700,000 and employed 122 workers. It is worth pointing out that Factory No. 54 has entered into an agreement with the Ministry of Managerial Development and the Ministry of Local Development for the manufacturing of Kiosks. In 2002, 15 Kiosks with the value of L.E. 241,200 have been manufactured. In 2003, 196 kiosks with the value of L.E. 3,156,000 have been manufactured. To date, total sales of this project were 330 kiosks with the value of L.E. 5,314,000. The Motor Company's which has the second highest value of production, employed 170 workers and produced furniture and woodworks commodities worth L.E. 1,965,000 during 2002-2003. The third highest value of production in this category was L.E. 1,250,000 by the Aviation Company which employs 135 workers. Figures for Sakr and Kader companies on the other hand were L.E. 810,000; 70 employees and L.E. 595,000; 45 employees respectively. Table 18: Military Production of Furniture & Woodworks, Fiscal Year 2002-2003 Name of Company Planned Production 1,250,000 750,000 2,000,000 600,000 Actual Production 1,155,000 810,000 1,965,000 595,000 2,700,000 Sales Number of Employees 135 70 170 45 122
Value in L.E
Graph 19: Military Production of Furniture & Woodworks 3,000,000 2,500,000
Aviation Company Sakr Company Motor Company Kader Company Factory No. 54
996,000 760,000 1,905,000 605,000
Value in L.E.
2,000,000 1,500,000 1,000,000 500,000 0

Av y an mp Co ion iat ny pa om rC de Ka ry c to Fa y an mp Co tor Mo y an mp Co kr Sa
4 .5 No
48
2.13 Estimation of the Aggregate Woodworks Entities in Egypt.
Number
of
Furniture
and
2.13.1 Calculation of the Total Number of Woodworks and Furniture Entities Registered with the Egyptian Government Based on the foregoing analysis of the statistics obtained from the various government organizations, it has been observed that: 1. There is no single source of information in Egypt that provides comprehensive statistics regarding the total number of furniture and woodworks industrial establishments 2. The statistics obtained from the different organizations namely the Ministry of Industry, the Commercial Registry, the Central Agency for Public Mobilization and Statistics and the Ministry of Local Development are overlapping and inconsistent; making it impossible to come up with an accurate figure for the total number of entities operating in the sector 3. The most comprehensive figures were provided by the Commercial Registry and the Ministry of Local Development. However, adding up the figures would result in duplication in numbers since a considerable number of workshops registered with furniture and woodworks cooperatives (Ministry of Local Development) are also registered with the Commercial Registry. In this context, the following calculation is made to come up with an indicative estimation of the total number of entities operating in the sector. Table 19: Calculation of the Total Number of Woodworks and Furniture Entities
31,881 8,012 38,017 138,375
It is worth pointing out that: 1- Statistics provided by the Ministry of Industry have not been used in calculating the total number of entities based on the fact that most of these entities are also registered at the Commercial Registry. Including them would thus result in duplication of numbers. 2- The difference between the number of entities registered at the furniture and woodworks cooperatives and the number of entities registered at the Commercial Registry has been arrived at using the following formula: Difference = Number of entities registered at woodworks cooperatives Number of entities registered at the Commercial Registry
49
2.13.2 Calculation of the Total Number of Registered and Unregistered Furniture and Woodworking Entities Based on the calculation presented in the previous page, the total number of furniture and woodworks entities registered with the Egyptian government is estimated to be 138,375. It is widely known however, that the sector is dominated by informal entities that are not registered with any of the government organizations mentioned in this report. It is therefore perceived that the actual total number of entities is much larger. According to Economist Dr. Heba Handousa, the informal sector represents 77% of the non-agricultural private sector in Egypt2. Given that the furniture and woodworks sector is highly dominated by informal activity, it is believed that the informal furniture and wood works sector represents at least 40% of the activities undertaken by the industry i.e. 55,350 entities. Based on this assumption, the total number of furniture and woodworks entities would reach 193,725 (138,375 registered entities + 55,350 unregistered entities). It is worth noting however that these estimations are indicative and that in order to reach a more accurate figure that serves as an accurate representation of the size of the sector, extensive research is required. 2.13.3 Calculations of the Value of Investment in the Furniture and Woodworks Sector Value of Investment for Registered Factories and Workshops Interviews with members of the Chamber of Woodworking and other key figures in the sector has revealed that in order to operate, the smallest woodworks workshop requires more or less an invested capital of at L.E. 5,000. It follows that the total value of investment within the woodworking industry would at least be L.E. 691 million. Total number of registered entities x minimum capital investment = value of investment 138,375 entities x L.E. 5,000 = L.E. 691 million It is worth noting however, that a considerable number of furniture and woodworking entities operate on a large and sophisticated scale that necessitate investments worth over L.E 10 million. According to members of the Chamber of Woodworks, there are at least 100 factories operating on such a scale. Taking this into consideration would increase investments by L.E. 1 Billion (L.E. 10 million x 100 factories). The estimated value of investment would thus be L.E. 1,691 million.
Value of investment for total number of registered entities + Value of investment for largest 100 factories
L.E. 691 million + L.E. 1,000 million = L.E. 1,691 million Value of investment for unregistered workshops Based on the estimations presented earlier, the size of the informal furniture and woodworks sector is 55,350 entities. Given that the minimum capital requirements to operate within the sector were estimated at L.E. 5,000, the value of investment within the informal sector would be L.E. 277 million. Estimated Number of Informal Entities x Minimum Capital Required for Operation 55,350 entities x L.E. 5,000 = L.E. 277 million It would thus be safe to presume that the total value of investment in the furniture and woodworks sector is at least L.E. 2 Billion if not more.
Estimates of Investment for Registered Entities + Estimates of Investment for Unregistered Entities L.E. 1, 691 million + L.E. 277 million = LE. 1, 968 million
Hebba Handousa "Employment, Budget Priorities and Microenterprises" The Egyptian Centre for Economic Studies, Working Paper No. 69 June 2002
2
50
3. Imports & Exports
51
3. Imports and Exports of Wood, Wood Products and Furniture 3.1 Main Sources of Information:
The material gathered on the imports and exports of wood, wood products and furniture were accumulated from a variety of sources including the following: The Central Agency for Public Mobilization and Statistics CAPMAS The Ministry of Foreign Trade MOFT The International Trade Point ITP The International Trade Centre ITC The United Nations Statistics Division UNSTATS The Kompass It is worth noting that: Information provided by MOFT and ITP have originally been obtained from CAPMAS, making it ultimately the sole Egyptian source of statistics covering imports and exports. Statistics covering imports and exports from a "foreign perspective" have been primarily obtained from the United Nations Statistics Division UNSTATS website which lists the flow of trade in commodities as reported by each of the UN member states.
3.2Summary of Findings
3.2.1 Imports Data on the Egyptian imports of furniture and woodworks collected from the above mentioned organizations was divided into three main categories namely Egyptian Imports of Wood and Wood Products HS 1996 (Code # 44),Egyptian Imports of Furniture, HS1996 (Code# 94) and Egyptian Imports of intermediary products. Egyptian Imports of Wood & Wood Products (HS 1996 Code 44) as Reported by Egyptian Organizations Egyptian Imports of wood as reported by the Egyptian government, have increased from US$ 606,400,000 in 1999 to US$ 617,000,000 in 2000. This trend however was dramatically reversed in 2001 when imports decreased by 7.5% due to poor economic conditions. This was followed by a 4% decline in 2002. The data obtained reveals that Egypt's main sources of wood inputs in descending order are, Russia, Finland, Sweden, Romania and Indonesia. It is worth noting that while a general trend may be deduced from the given data, this trend hides discrepancies between the different types of raw wood. Within this general trend there have been some increases in the importation of certain products over the years such as veneer ply sheets, fiberboard, and panel board. The increase in importation of certain products versus the decrease in others may be attributed to the following: The scarcity of wood and the deteriorating exchange rate has lead to a considerable increase in prices, resulting in decreased importation and consequently decreased consumption of natural wood. Although the demand for artificial wood is still considerably low, the increase in the prices of natural wood, and changes in consumer tastes have increased the demand for this category.
Egyptian Imports of Wood & Wood Products (HS 1996 Code 44) as Reported by the United Nations Statistics Division Egyptian Imports of Raw Wood and Wood Products (HS1996 Code # 44) as Reported by Foreign Sources revealed that there has been a general decline in total imports between 1999 and 52
2002 (with only the year 2000 witnessing an increase). The data obtained presented Europe (both EU and Non EU as being the main source of Egyptian imports followed by Asia then the Arab countries. Comparison between Egyptian and Foreign Data A Comparison between Egyptian and Foreign Sources of Statistics for Imports of Raw Wood and Wood Products (HS1996 Code # 44) presented a shared general trend of Egyptian imports over the years, (increase in imports in 2000, and a decline in 2001). However there is a large disparity in the figures, the numbers provided by the MOFT being much larger than those presented by UNSTATS. Egyptian Imports of Furniture, HS1996 Code# 94 Egyptian Imports of Wooden Furniture Egyptian Statistics Data on Egyptian Imports of Wooden Furniture as presented by the Ministry of Foreign Trade (MOFT) revealed that from 1999- 2002, Egyptian imports of wooden furniture have generally been on the rise (US$ 6.1 million in 1999, US$ 9 million in 2002) with a decrease in 2001. In general the largest percentage of imports fell within the Other Wooden Furniture Category (US$3.3 million in 1999, US5.3 million in 2000, US$4.9 million in 2001 and US$6.6 million in 2002). The data also reveals that the second largest category of wood furniture imports is office furniture to be followed bedroom furniture then kitchen furniture. Data on Egyptian Imports of Wooden Furniture obtained from the CAPMAS and ITP also revealed that the period from 1999 to 2002 witnessed an overall increase in imports, with the years 2001 witnessing a slight decline. Egypt's main sources of imports as shown by the data are Italy and the United States. Egyptian Imports of Furniture, Lighting, Signs and Prefabricated Buildings, HS1992 Code# 94 Egyptian Statistics Total Egyptian imports of Furniture, lighting, signs, prefabricated buildings (HS1992 Code # 94) obtained from Egyptian sources revealed a decline in total imports during 1999 and 2000 followed by an exceptional increase in 2001 and a small increase in 2002. Noticeable increases were found in the categories of 'wooden furniture and office furniture', 'Chandeliers and Other lighting Fixtures' and of 'Prefabricated buildings and Other Materials. Comparison between Egyptian and Foreign Data The comparison between the Egyptian statistics and the foreign statistic on Egyptian imports of Furniture, HS1996 Code # 94 revealed that these sources are similar in terms of the general trend they provide. Overall, according to both sources, there has been a decline in the amounts imported, with the year 2000 witnessing the only increase in imports. Also according to both sources, the main sources of imports are the European Union, Europe (other) and North America- NAFTA. While the overall trend appears to be the same, there are large number disparities between the two sources of information with the Foreign Statistics (UNSTATS) being much higher than those of CAPMAS and MOFT. Data about Egyptian imports of intermediate products including paints, adhesives, abrasives, nails etc are also provided
53
3.2.2 Exports The data included in this report on the Egyptian exports of furniture and woodworks is divided into two main categories mainly Egyptian exports of Wood and Wood Products HS 1996 (Code # 44) and Egyptian exports of Furniture, Lighting, Signs and Prefabricated Buildings HS1996 (Code# 94). Egyptian Exports of Wood and Wood Products (HS 1996 Code 44) Classified by Region as reported by the Egyptian Government An analysis of the data reveals that overall, Egyptian exports of wood, wood products and charcoal have gone through several fluctuations over the designated period; decreasing from US$ 3.8 million in 1998 to US$ 2.4 million in 1999. This decline was followed by an increase to US$ 3.6 million in 2000 and US$ 5.8 in 2001. Total exports decreased again in 2002 to reach US$ 3.3 million. A comparison of the values of 1998 and 2002 reveal an overall decline of 11%. Egyptian Exports of Wood, Wood Products (HS 1996 Code 44) Classified by Region as reported by the Egyptian Government In 1998 the Arab Region (US$ 1.61 million) was the larges export market for wood and wood products followed by Asia (US$ 0.97 million) and the EU (US$0.6 million). In 1999, the Arab Region (US$1.29 million) was again the largest market followed by the EU (US$0.44 million), Asia (US$.09 million) and North America (US$ 0.08 million). In 2000, the Arab Region (US$ 1.29 million) was the largest market followed by the EU (US$1.38 million) and Asia (US$ 0.22 million). The trend was changed in 2001 where North America imported the highest value (US $ 2.08 million) followed by the EU (US$ 1.61 million) and the Arab Region (US$ 1.61 million). In 2002, the Arab Region regained its position as the largest export market (US$ 2.4 million) followed by the EU (US$ 0.51 million) and North America (US$ 0.04 million). Egyptian Exports of Raw wood and Wood products (HS1996 Code # 44) as Reported by the United Nations Statistics Division (UNSTATS) The data obtained from the United Nations Statistics Division covering Egyptian exports of raw wood and wood products by region and by country indicated that overall, exports have declined throughout the period, with total exports in 1999 amounting to $ 4,494, 557, declining to $ 4,232,796 in 2000 and $ 3,158,473 in 2001. The data reveals that the greatest amount of Egyptian exports is received by the European Union (US$ 1.9 million in 1999, US$ 1.2 million in 2000 and US$ 1.1 million in 2001) and the Arab region (US$ 1.3 million in 1999, US$ 1.6 million in 2000 and US$ 1.1 million in 2001). Asia is also an important market for Egyptian wood and wood products, with total exports of US$ 0.8 million in 1999, US$ 0.6 million in 2000 and US$ 0.3 million in 2002. Comparison between Egyptian and Foreign Sources of Statistics for Exports of Raw Wood and Wood Products (HS1996 Code # 44) According to both the Ministry of Foreign trade and the United Nations Statistics Division, Egyptian exports of wood, and wood products have declined between 1999 and 2001, however the figures from both sources display large discrepancies with respects to their presentation of the decline. Statistics obtained from the Ministry of Foreign Trade indicate that exports increased from US$ 2.4 million in 1999 to reach US$ 3.6 million in 2000. This was followed by an increase to US$ 5.8 million in 2001. The United Nations Statistics Division on the other hand indicated that exports decreased from US$4.5 million in 1999 to US$ 4.2 million in 2000 and US$ 3.158 million in 2001. Such discrepancies could be a result of several factors including the fact that the statistics obtained from MOFT were more comprehensive in terms of the countries reported. On the other hand, UNSTATS 54
data included only countries that hold a membership at the United Nations. In this context, an analysis on a region and country level is necessary to come up with a more reliable analysis. Egyptian Exports of Furniture Lighting, Signs, Prefabricated Buildings (HS 1996 Code# 94) Egyptian Exports of Wooden Furniture Classified by Product The data obtained from the CAPMAS and ITP on Egyptian exports of wooden furniture reveals that during the period of 1999-2002 there has been an overall increase in total exports from US$ 15.1 million in 1999 to US$ 18.4 million in 2002. It is worth noting however that there was a decline in exports in the year 2000 (US$ 14.3 million) and 2001 (US$ 12.8 million). An examination of the exportation patterns of specific products reveals that exports of both Office furniture and 'Bedroom Furniture' increased steadily over the designated period. The category of 'Wood furniture Other' on the other hand dropped significantly over the period. Egyptian Exports of Wooden Furniture Classified by country It has been observed that Saudi Arabia and the United States are among Egypt's main export markets. It is worth noting however that export patterns have been different for both countries over the designated period. While exports to Saudi Arabia have witnessed an overall increase, exports to the United States have generally declined over the period. Egyptian Exports of Furniture Lighting, Signs, Prefabricated Buildings classified by Region (HS 1996 Code # 94) Egyptian Statistics The data on Egyptian exports of Furniture, lighting, signs, and prefabricated buildings revealed that exports have witnessed an overall increase between 1998 and 2002. Total exports increased from US$ 18.31 million in 1998 US$ 19.25 million in 1999. This was followed by a decline to US$ 18.65 million in 2000 followed by a further decline to US$ 16.5 million in 2001. In 2002 however, total exports witnessed a significant increase to US$ 21.62 million in 2002. The largest amounts are exported went to Arab countries followed by the European Union and North America NAFTA. Egyptian Exports of Furniture Lighting, Signs, Prefabricated Buildings classified by Region Foreign Statistics According to the United Nations Statistics Division website, Egyptian exports of Furniture, lighting, signs and prefabricated building (HS 1996 Code # 94) have increased between 1998 and 2001. In 1998 total exports amounted to $ 48,925,823, this was followed by an increase in 1999 to $ 56,758,604, followed by an increase in 2000 to $ 57,266,055, followed by a slight decline in 2001 to $ 56,357,316. Comparison between Egyptian and Foreign Sources of Statistics for Exports of Furniture Lighting, Signs, Prefabricated Buildings (HS1996 Code # 94) A comparison of the data provided by the Ministry of Foreign Trade and the United Nations Statistics Division on Egyptian exports of Furniture, Lighting, Signs and Prefabricated Buildings reveals large discrepancies between the sources not only in terms of the figure provided for each region, but also in terms of the general pattern of exportation as a whole. UNSTATS statistics for total exports are higher than those provided by MOFT by 210 % in 1999, 107% in 2000 and 242% in 2001.
55
3.2.3 Observations & Recommendations Observations Having gone through a process of information gathering, it has been realized that: 1- While the Ministry of Foreign Trade issues publications tackling the Egyptian trade flows on both the aggregate and commodity level, statistics are obtained from the Central Agency for Public Mobilization and Statistics 2- The data published by CAMPAS covering trade flows is initially obtained from the General Tax Authority Ministry of Finance A general examination of the statistics gathered on imports and exports reveals the following: 1- The system used by the Customs and Tax Authorities and CAPMAS are unreliable, raising questions regarding the accuracy of the data being published. The Customs Authority does not abide with the international coding and classification system while documenting trade flows. As a consequence, statistics forwarded to the CAPMAS tend to be lacking in terms of reliability, making statistics published by government authorities inaccurate and unrepresentative of actual trade flows. 2- A comparison between Egyptian and International sources statistics on Egyptian trade in wood and wood products (HS 1996 code 44) and furniture and prefabricated buildings (HS 1996 code 94) has indeed revealed great discrepancies with foreign statistics usually presenting Egyptian imports and exports to be much higher than the statistics provided by Egyptian authorities. These discrepancies could also be a result of one or a combination of the following factors: a. Under invoicing by exporters and importers b. Price adjustments at the customs authorities of importing countries which result in number discrepancies with the official statistics produced by the exporting countries c. Inaccurate documentation by the government authorities 3- A comparison between the figures reported for the money value of exported wooden furniture and the quantity exported revealed that statistics are unreasonable. For example, the export value of wooden furniture (HS Code 9403600000) was US$6.2 million in 1999. This value corresponded to exported quantity of 4,224 ton. It follows, that on average, the price of 1 ton of wooden furniture exports is US$ 1,467. This figure is very low when compared to the input prices and cost of production. The same phenomenon can be depicted with other kinds of furniture as well. This discrepancy between the quantity of exports and the money value can be explained by the fact that to evade payment of custom duties, most exporters do not report the actual value of their exports. According to the Chamber of Woodworks, the real value of exports is sometimes 10 times as high as the reported value.
Recommendations Measures should be taken by the Egyptian government to improve the process of information gathering and processing. This in turn entails the following: 1- the development of a documentation system at the customs and tax authority that is in line with international standards and practices formulated by the United Nations 2- the provision of technical and financial support to the CAPMAS in order to upgrade the information gathering and processing techniques that are currently being utilized
56
3.3 Imports
57
3.3. Imports
3.3.1 Imports of Wood and Wood Products HS 1996 Code # 44 A. Egyptian Imports of Wood and Wood Products classified by Product, HS1996 Code # 44 The statistics presented below which illustrate Egypt's imports of wood and wood products over the period 1998-2002 have been obtained from the Ministry of Foreign Trade Information Department (MOFT). It is worth noting however that statistics following the same classification have also been obtained from the International Trade Point (ITP) and CAPMAS. With the exception of a few minor discrepancies, the data obtained from the above-mentioned organizations was consistent. The general trend for the importation of wood and wood products for the period 1998-2002, reveals an overall decline in imports. Coniferous Lumber: Imports of Coniferous Lumber declined from US$443.3 million in 1998 to US$369.3 million in 1999. This was followed by an increase to US$ 388 million in 2000, which was followed by steady declines to US$ 321.6 million and US$ 311 million in 2001 and 2002 respectively. Overall the amount of imports of Coniferous lumber in 2002 were lower by 30% when compared to 1998. Beech Lumber: There was also a decline in the imported Beech lumber lengthwise chipped from US$ 91.66 million in 1998 to US$ 80.35 million in 1999, followed by a steady increase in 2000 and 2001 to US$80.35 million and US$88.2 million respectively. This increase was followed by a decline to US$ 83 million in 2002. Overall the amount of imports were lower in 2002 by 9.5% when compared to 1998. Plywood: With regards to plywood, there was a decline from US$74.18 million in 1998 to US$54.5 in 1999, followed by a steady increase in imports to US$63.16 million, US$72 million and US$75.31 million in 2000, 2001 and 2002 respectively. However, the increase in imports in 2002 is minimal (1.5%) when compared to 1998. Veneer Ply sheets: There was a decline in the imported veneer ply sheets from US$14.07 million in 1998 to US$ 12.22 million in 1999, followed by a further decline to US 12.08 million in 2000, and an increase to US$17.15 million and US$ 20.31 million in 2001 and 2002 respectively. Overall there has been an increase in the imports of this category of wood with the amount of imports in 2002 being 44.4% higher than the amount imported in 1998. Coniferous Logs & Poles: Imports of logs and poles, witnessed an increase in the value of imports from US$30.52 million in 1998 to US$ 31.99 million in 1999, followed by steady declines to US$ 25.17 million, US$18.17 million and US$ 17.52 million in 2000, 2001, and 2002 respectively. Overall there has been a decline of 42.6% in the value of imports in 2002 when compared to those of 1998. Fiberboard: With regards to Fiberboard, there was a slight decline from US$2.47 million in 1998 to US$ 2.44 million in 1999, followed by a steady increase to US$8.21 million, US$8.93 million and US$ 10.96 million in 2000, 2001 and 2002 respectively. Overall, this category witnessed significant increase in the value of imports over the designated period. Oak: Imports of Oak lumber witnessed an increase from US$10.78 million in 1998 to US$ 15.05 million in 1999, followed by a decline to US$9.55 million and US$ 7.33 million in 2000 and 2001. This decline was followed by an increase to US$8.7 million in 2002. However, there is an overall
58
decline in the imports of this category of wood, when the amount imported in 1998 is compared to the amount imported in 2002. Panels: The importation of panel board witnessed a similar trend i.e. an increase in imports from US$ 4.84 million in 1998 to US$ 6.53 million in 1999, followed by a decline to US$4.67 million in 2000, followed by an increase to US$8.47 million in 2001, followed by a decline to US$ 6.07 million in 2002. However, there is an overall increase in the value of imports by 135% when comparing the statistics of 2002 versus those of 1998. Main Trends: The two following main trends can be depicted from the information presented below: Natural sources of wood such as oak and lumber remain the most highly demanded sources of wood inputs for the Egyptian furniture and woodworks industry The scarcity of wood and deteriorating exchange rate has lead to a considerable increase in prices resulting in decreased importation and consequently decreased consumption of natural wood. Although the demand for artificial wood is still considerably low, the increase in the prices of natural wood and changes in consumer tastes have increased the demand for this category.
Table 20: Egyptian Imports of wood, wood products, wood, classified by Product, HS1996 Code # 44
Code Product Name Lumber, coniferous (softwood) thickness < 6 mm Beech lumber, lengthwise chipped, thickness > 6mm Plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, not conifer or tropical Veneer, ply sheet, not conifer or tropical, <6 mm thick Logs, poles, coniferous not treated or painted, squared Fiberboard of a density exceeding 0.5 g/cm3 but not exceeding 0.8 g/cm3; Not mechanically worked or surface covered Oak lumber, lengthwise chipped, thickness > 6mm Panels with at least one outer ply of nonconiferous wood 98 99 2000 2001 2002
4407100000
443.40
369.32
388.05
321.56
311.23
4407920000
91.66
80.35
83.20
88.00
82.97
4412190000
74.18
54.45
63.16
72.02
75.31
4408909000
14.07
12.22
12.08
17.15
20.31
4403201000
30.52
31.99
25.14
18.17
17.52
4411210000
2.47
2.44
8.21
8.93
10.96
4407910000
10.78
15.05
9.55
7.33
8.70
4412290000 Other Total/US$ Total/ton
4.84 35.03 706.95 2,096,572
6.53 32.15 604.50 5,037
4.67 23.09 617.15 5,9176
8.47 23.53 565.16 69,384
6.07 16.44 549.51 76,354
Source: MOFT
59
Graph 20:
Egyptian Imports of Wood, Wood products & Charcoal (HS 1996 Code 44)
450.00 400.00 350.00
Value in US$ 000
300.00 250.00 200.00 150.00 100.00 50.00 0.00 98

4407100000
99
4412190000
2000
4408909000
2001
4403201000
2002
4407910000
4407920000
4411210000
4412290000
Other
60
Egyptian imports of wood classified by country as reported by the Egyptian Government Total imports of Wood inputs have increased from US$ 606,400,000 in 1999 to US$617,000,000 in 2000. This trend has been reversed where due to negative economic conditions imports decreased by 7.5% to US$ 571,100,000 in 2001 and 4% to US$ 549,500,000 in 2002. It is worth noting however that this general trend hides discrepancies between the different types of raw wood. For example, while imports of lengthwise chipped wood, conifer lumber and oak witnessed a decrease, imports of beech wood remained steady. In addition although imports of fiberboard represent only a small percentage of total imports, it has witnessed a steady increase especially in 2001 and 2002. Furthermore, statistics indicate that Russia is the only country witnessing a steady increase in the total amounts of wood exports to Egypt. Egypt's main sources of wood inputs in descending order are, Russia, Finland, Sweden, Romania and Indonesia. The following table illustrates Egypt's imports of various types of wood over the period 1999-2002 categorized by country of origin. Table 21: Egyptian Imports of Each type of raw wood classified by country (US$ 000,000)
Type of wood Country Russia Year 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 Lengthwise chipped wood 87.3 102.2 99.3 115 104 98.4 86.7 75.5 133.9 118.1 90.3 74 33.8 36.7 18 17.2 0.4 0 0 0 0 1.3 0 0 0 0.1 0.6 1.5 4 11 10 18 Beech wood 1.6 0.5 2.3 0.3 0.8 0.1 0.9 0.3 0.4 0 0.9 0 41 55.1 54.6 51.5 2.5 0.1 0.1 0 0 0 0.8 0 3.2 6.6 8 15.4 0 0 0.2 0 Plywood 17.4 21.6 27.6 29.2 0.4 0.2 0.1 0.1 0 0 0 0 4.8 8.2 5.1 4.2 26.9 26.3 25.5 18.3 1.4 2 11.2 21.6 0 0 0 0 0 0 0 0 Conifer lumber squared & unsquared 0.1 0 0 0.5 19.4 17.3 12.6 12.7 2.5 1.3 3 1.4 6.7 3.2 0.2 0 0 0 0 0 0 0 0 0 0 0 0 0.1 0.4 0.2 0.4 2 Ply sheets (Not tropical) 0.1 0 0 0 0 0.1 0 0 0.1 0 0 0 0.7 0 0 0 0.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oak 0.5 0.1 0 0.2 0.6 0.2 0 0 0 0 0 0 3.9 0.5 0.6 0.6 0.1 0 0 0 0 0 0 0 2 1.8 2.5 4.2 0 0 0 0 Fiberboard (worked & not worked) 0.7 1.2 1.9 2.2 0 0 0 0 0.7 0 0.2 0.1 0.1 0.1 0.8 3 1.9 0 2.5 0.3 0.7 0 1 0.2 0 0 0.1 0.1 0 0 0 0 Other 2.6 0.7 0.9 0.6 0.4 0.2 0 0 0 2 0 0.5 2.1 2.1 1.4 0.3 6.6 7.2 7.5 6 0.1 0 0.2 0.2 0.1 0 0 0 0 0 0.4 0 Total 110.3 126.3 132 148 125.6 116.5 100.3 88.6 137.6 121.4 94.4 76 93.1 105.9 80.7 76.8 39 33.6 35.6 24.6 2.2 3.3 13.2 22 5.3 8.5 11.2 21.3 4.4 11.2 11 20
Finland
Sweden
Romania
Indonesia
Malaysia
Croatia
Estonia
61
Type of wood 1999 2000 USA 2001 2002 1999 Bosnia 2000 and 2001 Herzegovina 2002 1999 2000 Turkey 2001 2002 1999 2000 Spain 2001 2002 1999 Czech 2000 Republic 2001 2002 1999 2000 Other 2001 2002 1999 2000 Total 2001 2002
Lengthwise chipped wood 0.8 2.7 2.7 1 1 0 0 0 0.1 0 0.1 0.1 0 0 0 0 0 6.4 0.5 3.4 13.9 11.7 21.5 6.3 379.2 388.6 329.7 312
Beech wood 0 0.2 0 0 11 10 9.8 6.5 0.4 0.1 0 0 0.7 0 0 0.2 1.1 1.2 0.2 1 17 9.3 10.8 8.8 79.7 83.2 88.6 84
Plywood 0 0.3 0 0 0 0 0.1 0 0.1 0.1 0 0 0.3 0.1 0 0 0 0 0 0 3.4 3.5 6.1 3.3 54.7 62.3 75.7 76.7
Conifer lumber squared & unsquared 0.3 0 0 0 0 0 0.1 0 0 0 0 0 0 0 0 0 0 0 0 0.3 4.7 3.1 2.8 2.9 34.1 25.1 19.1 19.9
Ply sheets (Not tropical) 2.1 3.5 4.1 5.3 0 0 0 0 0.7 1.6 5.7 6.3 2.4 3 3 2.4 0 0 0 0 5.3 3.9 4.7 6.3 12 12.1 17.5 20.3
Oak 6.5 4.1 2.4 1.5 0.6 1 0.3 0.2 0 0 0 0 0 0 0 0 0 0.3 0 0.5 1 1.6 1.6 1.5 15.2 9.6 7.4 8.7
Fiberboard (worked & not worked) 0 0.2 0 0.2 0 0 0 0 0 0 1.1 0 0.2 0.1 2 3 0 0 0 0 0 0 2.9 4.6 4.3 1.6 12.5 13.7
Other 1.5 1.6 0.7 0.3 0.4 0 0 0.3 0.1 0.2 0.1 0 1.8 2.5 0 0 0 0.1 0.1 0 11.5 18 9.3 6 27.2 34.6 20.6 14.2
Total 11.2 12.6 9.9 8.3 13 11 10.3 7 1.4 2 7 6.4 5.4 5.7 5 5.6 1.1 8 0.8 5.2 56.8 51.1 59.7 39.7 606.4 617.1 571.1 549.5
Source: General Organization for Industrialization- GOFI
Graph 21:
Total Egyptian Imports of Raw Wood
700
600
500
US$000,000
400
300
200
100
1999
Lengthw ise chipped w ood
Conif er lumber squared and unsquared
Fiberboard (w orked & not w orked)
2000
Beech w ood
Ply sheets (Not tropical)
Other
2001
Plyw ood
Oak
Total
2002
62
B. 1 Egyptian Imports of Lengthwise Chipped Wood According to Egyptian statistics, in 1999 Egypt imported the bulk of its length-wise chipped wood from Sweden (US$133,900,000), to be followed by Finland (US$104,000,000), followed by Russia (US$87,300,000), then by Romania at (US$33,800,000). For the year 2000, the hierarchy of countries changed with Sweden remaining the highest source (US$118,100,000), to be followed by Russian (US$102,200,000), Finland (US$984,000,000) and Romania (US$3,800,000). For the year the 2001, Egypt imported the greatest amount from Russia (US$9,300,000) followed by Sweden (US$90,300,000), Finland (US$86,700,000) and Romania at (US$18,000,000). In 2002, the bulk of imports came again from Russia at (US$115,000,000), followed by Finland (US$75,500,000), Sweden at US$74,000,000 then by Romania at US$17,200,000. It follows that Egypt's main sources of lengthwise chipped wood are primarily Russia, Sweden, Finland, and Romania; with Finland and Sweden alternating their positions from one year to another. Graph 22:
Imports of Lenghtwise Chipped Wood from Main Trading Partners
400 350
Value in US$ 000,000
300 250 200 150 100 50 0

1999 2000 2001 2002
Russia
Finland
Sweden
Romania
Estonia
USA
Total
63
B.2 Egyptian Imports of Beachwood In 1999, the greatest amount of Beachwood imports was from Romania at US$41,000,000, followed by Bosnia and Herzegovina at US$11,000,000, followed by Croatia at US$ 3,200,000, Indonesia at (US$2,500,000) then by Russia at US$ 800,000. For the year 2000, the greatest amount of imports was from Romania at US$55,100,000, followed by Bosnia and Herzegovina at US$10,000,000, Croatia at US$6,600,000. In 2001, the greatest amount of Beech wood was imported from Romania at US$51,500,000, followed by Croatia at US$15,400,000, followed by Bosnia and Herzegovina at US$9,800,000. It follows that Egypt's main source of beech wood is Romania to be followed by Croatia and Bosnia and Herzegovina. Furthermore importation of beech wood over the period 19992002 has been fairly consistent with a slight increase of US$3,500,000 million between 1999 and 2000, another increase of US$5,400,000 between 2000 and 2001, and a decrease of US$4,600,000 between 2001 and 2002. Graph 23:
Imports of Beech Wood - Main Trading Countries

90 80 70
Value US$000,000
60 50 40 30 20 10 0 1999
Romania Croatia
2000
2001
Bosnia and Herzegovina Russia
2002
Total
64
B.3 Egyptian Imports of Plywood In 1999, the greatest amount of Plywood imports was from Indonesia at US$26,900,000, to be followed by Russia at US$17,400,000, Romania at US$4,800,000, then Malaysia at US$1,400,000. For the year 2000, the greatest amount of imports was from Indonesia at US$26,300,000, followed by Russia at US$21,600,000, Romania at US$8,200,000, then Malaysia at US$2,000,000. For the year 2001, the greatest amount of imports was from Russia, US$27,600,000 and Indonesia at US$25,500,000. In 2002, the largest amount was imported again from Russia followed by Malaysia and Indonesia. These statistics indicate that the demand for plywood has generally been rising over the past few years. Graph 24:
Egyptian Imports of Plywood - Main Trading Partners

80 70 60
Value US$000,000
50 40 30 20 10 0 1999 Russia 2000 Romania Indonesia 2001 Malaysia Total 2002
65
B.4 Comparison between Statistics Provided by MOFT & the General Organization for Military Production GOFI on Egyptian Imports of Wood and Wood Products- HS 1996 Code 44 An examination of the statistics covering Egyptian imports of wood and wood products provided by the Ministry of Foreign Trade and GOFI revealed some discrepancies in the values. For example, the value of total imports provided by the Ministry of Foreign Trade (table 20) in million dollars were 604.4, 617.1, 565.2 and 549.5 in 1999, 2000, 2001 and 2002 respectively. According to GOFI, on the other hand, the figures were 606.4 in 1999, 617.1 in 2000, 571.1 in 2001 and 549.5 in 2002. Table 22: Egyptian Imports of Wood, Wood Products, Wood Charchoal - HS 1996 Code 44 (MOFT Vs. CAPMAS)
Year 1999 2000 2001 2002 Value in US$ 000,000 GOFI 606.4 617.1 571.1 549.5 MOFT 604.5 617.15 565.1 549.5
Graph 25:
Comparison between MOFT & GOFI Statistics covering Egyptian of Imports of Wood (HS 1996 Code 44)
620 600 580 560 540 520 500 1999 2000 MOFT GOFI 2001 2002
66
B. Egyptian Imports of Raw Wood and Wood Products Classified by region (HS1996 Code # 44) as Reported by Foreign Sources The statistics presented in table 23 have been obtained from the United Nations Statistics Division website which includes data covering the flows of commodity trade as reported by each UN member. The reported exports of wood and wood products of each of these countries have been compiled according to region to facilitate its analysis. An examination of the data has revealed the following overall trends: 1. There has been a general decline in total imports between 1999 and 2002 (with only the year 2000 witnessing an increase). 2. The main source of Egyptian imports is Europe (both EU and Non EU countries) followed by Asia. Some Important Figures: Imports from the EU have witnessed a slight decline from US$ 154.4 million in 1999 to US$147 million in 2000 followed by an increase to US$154.3 million in 2001. Given that the statistics of all EU countries for 2002 are not yet available, it is difficult to come up with a general trend for that year. However, taking the reported countries as an indicator, it would appear that the general trend has been a slight increase in Egyptian imports from some countries such as Austria were imports increased from US$ 198,804 in 2001 to US$ 258,359 in 2002 and France were imports increased from US$2,150,053 in 2001 to 2,788,988 in 2002. There was also a decline in the imports from some major trading partners including Finland where imports decreased from US$67,549,168 in 2001 to US$61,008,536 in 2002. Imports from Sweden decreased from US$67,549,168 in 2001 to US$ 61,008,536 in 2002 and imports from the United Kingdom declined from US$1,075,703 to US$677,646 between 2001 and 2002. Main Trading Partners: The main EU exporters of wood and wood products to Egypt throughout the years are Finland, Estonia, Spain, Latvia and Sweden. It is important to note that while these countries witnessed a steady decline in their exports to Egypt, this decline, is somewhat compensated by an increase in imports from other countries such as France, Greece and Portugal. The year 2000 witnessed a considerable increase in imports from European countries (non-EU); from US$ 141,776,533 in 1999 to US$158,181,287 in 2000. This increase was followed by a steady decline to US$147,550,559 in 2001. Regional trends cannot be deduced for 2002 due to unavailability of statistics for Romania and Russia which are among the most important trading partners in this region. Egypt's total imports from Asia (excluding Arab countries) witnessed an increase from US$ 38,270,299 in 1999 to US$ 44,938,399 in 2000, to be followed by a mild decline to US$ 42,349,267 in 2001. A regional trend for the year 2002 can not be derived due to lack of information on a considerable number of countries. Egypt's main sources of imports from this region are China, Indonesia, and Malaysia. Imports from North America and Latin America have witnessed a similar trend i.e. an increase in 2000 followed a decrease in 2001 and 2002. Egypt's imports of wood and wood products from Arab
67
countries and Africa represent a very small percentage of total imports. The main sources of imports from these regions are Lebanon, Zambia and Gabon. Table 23: Egyptian Imports of Raw wood and wood products Classified by Country (HS1996 Code # 44) UNSTATS Region
European Union Austria Belgium Czech republic Denmark Estonia Finland France Germany Greece Hungary Italy Latvia Netherlands Poland Portugal Slovakia Spain Sweden United Kingdom Europe(Other) Belarus Bulagaria Croatia Norway Romania Russia Switzerland Macedonia Turkey Asia (excluding Arab countries) China Georgia Hong Kong India Indonesia Iran Israel Japan Malaysia Philippines
1999
154,366,849 364,803 2,716,068 77,544 48,828 8,962,539 105,998,952 1,662,572 4,037,780 657,121 118,200 5,525,381 7,919,868 375,058 0 109,187 5,194 8,580,003 6,633,322 574,429 141,776,533 0 411,877 5,553,153 74,331 45,365,000 88,537,296 202,697 137,578 1,494,601 38,270,299 1,237,159 48,212 235,607 50,725 32,501,304 48,490 25,000 21,509 3,907,259 NA
2000
147,319,861 44,709 1,996,001 60,354 2,636 10,680,692 92,790,848 1,743,096 3,626,279 1,031,674 1,116,000 8,059,617 14,541,258 218,511 314,000 1,816,409 0 8,111,157 4, 769,175 1,166,620 158,181,287 67,500 320,943 6,210,860 0 63,122,000 86,912,072 360,964 106,054 1,080,894 44,938,399 1,950,497 0 145,697 9,483 34,096,428 28,913 21,000 0 8,542,732 18,550
2001
154,308,239 198,804 1,886,436 115,446 0 7,235,817 67,549,168 2,156,053 4,931,455 351,478 436,000 4,645,102 12,321,515 164,796 94,000 206,280 564 4,749,070 46,190,552 1,075,703 147,550,559 1,219,700 NA 6,213,313 23,896 56,194,000 79,322,064 177,014 123,740 4,276,832 42,349,267 807,178 0 200,361 97,219 28,828,124 18,619 0 49,014 12,309,777 3,823
2002
133,877,124 258,359 NA 70,999 22,662 9,276,300 61,008,536 2,778,988 NA NA NA 4,015,866 10,790,788 NA 0 NA 0 NA 44,976,980 677,646 12,583,888 257,799 NA 7,407,663 482,964 NA NA 151,591 NA 4,283,871 58,361 NA NA 0 NA NA NA 0 0 NA NA
Region
1999
2000
2001
2002 68
Korea Singapore Sri Lanka Thailand Arab Countries Jordan Lebanon North America NAFTA Canada Mexico USA Africa (excluding Arab countries) Gabon Tanzania Zambia Latin America Argentina Bolivia Brazil Chile Colombia Australia
44,231 17,612 72,654 60,537 16,132 2,115 14,017 10,294,756 1,567,269 110,623 8,616,864 138,285 132,581 3,708 1,996 6,422,925 0 530,950 3,207,287 2,684,688 0 3,142
33,679 36,536 NA 54,884 872,018 4,557 867,461 12,148,838 644,637 1,573 11,502,628 109,053 0 16,054 92,999 8,991,048 6,050 875,871 2,269,010 5,840,117 0 0
631 0 20,077 14,444 101,810 4,000 97,810 7,653,019 634,768 514 7,017,737 35,377 NA 1,213 34,164 6,501,774 1,169 484,551 1,583,338 4,428,119 4,597 11,275
NA 58,361 NA NA 0 NA NA 6,990,096 281,839 NA 6,708,257 5,683 NA NA 5,683 0 NA NA NA NA 0
Total in US $
351,288,921
372,560,504 358,511,320
Source: United Nations Statistics Division
Graph 26:
Egyptian Imports of Wood, Wood Products & Charcoal (HS1996 Code#44) - UNSTATS
160,000,000 140,000,000 120,000,000 100,000,000
US$
80,000,000 60,000,000 40,000,000 20,000,000 0
99
European Union
2000
Europe (Other)
2001
Asia (excluding Arab countries)
Arab Countries
North America - NAFTA
Africa (excluding Arab countries)
Latin America
Australia
69
D. Comparison between Egyptian and Foreign Sources of Statistics for Imports of Raw Wood and Wood Products (HS1996 Code # 44) This section compares between the statistics provided by Egyptian Ministry of Foreign Trade and the data obtained from the United Nations Statistics Division (UNSTATS) website for the period 19992001. While the general trend of Egyptian imports over the years is the same for the two sources (increase in imports in 2000, and a decline in 2001), there is a large disparity in the values, the numbers provided by the MOFT being much larger than those presented by UNSTATS. According to the UN Statistics Division website total Egyptian imports were US$ 344.7 million in 1999, US$ 372.6 million in 2000 and US$ 215.8 million in 2001. Egyptian statistics on the other hand indicate that imports totaled US$ 604.5 million, US$ 601.2 million and US$565.2 million in 1999, 2000 and 2001 respectively. It is important to note however, that while Egyptian statistics were reported on both regional and country basis; foreign statistics were reported only on a country basis. In this context, the project team compiled the foreign statistics into regions which opened a margin of error given that a disparity in classification might have taken place. Furthermore, while the statistics provided by Egyptian sources covered the period 1998-2002 comprehensively, a considerable number of foreign countries especially Arab and African countries did not report there imports for the years 2001 and 2002. It follows that a relatively accurate comparison can be made for years 1999 and 2000. However, for the years 2001 and 2002 only general trends can be derived. Taking the above mentioned factors into consideration, the following general trends can be depicted: The sources of imports in descending order according to both sources is the European Union, followed Europe (Other), Asia (excluding Arab countries), Arab countries, North America NAFTA, Latin America & Other, and finally Africa (excluding the Arab countries) There are discrepancies between values of imports reported by Egyptian sources of information and the values reported by Egypt's main trading partners. Table 24: Egyptian imports of raw wood and wood products by region, HS1996 Code # 44 - UNSTATS & MOFT
Region European Union Europe - Other Asia (excluding Arab countries) Arab Countries North America - NAFTA Africa (excluding Arab countries) Latin America & Other Total in US$ 000,000 147.734 141.777 38.270 0.016 10.295 0.138 6.426 344.656 99 UNSTATS MOFT 282.440 45.670 0.240 15.920 250.470 1.050 8.690 604.480 2000 UNSTATS 147.320 158.181 44.938 0.872 12.149 0.109 8.991 372.561 MOFT 260.290 41.870 1.010 15.290 288.830 1.790 8.070 617.150 2001 UNSTATS 108.118 147.551 42.349 0.102 7.653 0.035 6.513 312.321 MOFT 215.750 61.050 1.480 10.650 261.140 1.380 13.710 565.160
70
Graph 27:
Egyptian Total Imports of wood, articles of wood and wood charcoal - UNSTATS & MOFT
700
Value US$ 000,000
600 500 400 300 200 100 0 99 2000 2001
Year
UNSTATS
MOFT
71
E. Comparison of Imports from Major Trading Partners The following table and charts illustrate the import values for wood and wood products (HS 1996 Code 44) from Egypt's major trading partners as provided by the Ministry of Foreign Trade and the United Nations Statistics Division. A comparison of these statistics reveals great discrepancies in the values even on a country by country basis. For instance, imports of wood from Finland as reported by Egypt are US$ 125.6 million in 1999, US116.5 million in 2000, US$ 100.3 million in 2001 and US$ 88.6 million in 2002. Egyptian imports as reported by Finland on the other hand are US$ 106 million in 1999, US$93 million in 2000, US$ 67.5 million in 2001 and US$ 61 million in 2002. Imports from Russia were 110.3 in 1999, 126.3 in 2000 and 132 in 2001 according to Egyptian statistics. According to United Nations statistics (as reported by Russia), the figures were US$88.5 million, US$87million, US$79 million in 1999, 2000 and 2001 respectively. Such discrepancies could be attributed to one or more of the following scenarios: Under invoicing by foreign exporters (which is usually done upon the request of the Egyptian importers in an attempt to reduce the custom duties paid in Egypt). The Egyptian authorities on other hand take corrective measures through actual product appraisal. The resulting outcome would be discrepancies between the statistics issued by Egyptian authorities and country of product origin Unfair product valuation and over pricing by Egyptian customs authority in order to increase the amount of taxes being paid by Egyptian importers. This would result in discrepancies between Egyptian statistics that are based on product appraisal and foreign statistics that are based on the invoice issued by the exporter. Over invoicing by the Egyptian importers, who in order to increase the amount of money refunded received through the Draw Back System report an increased value of their imports. Table 25: Imports of Wood & Wood Products from Major Trading Partners
Country Russia Year 1999 2000 2001 1999 Finland 2000 2001 1999 Sweden 2000 2001 1999 Romania 2000 2001 1999 2000 2001 Egyptian Statistics 110.3 126.3 132 125.6 116.5 100.3 137.6 121.4 94.4 93.1 105.9 80.7 11.2 12.6 9.9 UNSTATS 88.5 86.9 79.3 106 92.8 67.5 6.6 4.8 46.1 45.4 63.1 56.2 8.1 11.5 7
USA
72
Graph 28: Imports of Wood & Wood Products (HS 1996 Code 44) from Finland
150
Value US$ 000,000
100 50 0 1999 2000

Egyptian Statistics
2001
UNSTATS
Graph 29: Imports of Wood & Wood Products (HS1996 Code 44) from Romania 150
Value US$000,000
100 50 0
1999
2000
2001
Egyptian Statistics
UNSTATS
Graph 30: Egyptian Imports of Wood & Wood Products (HS 1996 Code 44) from Russia
150
Value US$ 000,000
100 50 0 1999 2000 2001
Egyptian Statistics
UNSTATS
73
3.3.2 Egyptian Imports of Furniture, HS1992 Code# 94 A. Egyptian Imports of Wooden Furniture Classified by Product (US$ 000,000) Egyptian Sources This section provides statistics covering Egyptian imports of wooden furniture namely office furniture, kitchen furniture, bedroom furniture and wood furniture (other). According to Egyptian statistics, during the period 1999- 2002, Egyptian imports of wooden furniture have generally been on the rise (US$ 6.1 million; 2379tons in 1999, US$ 9 million; 3783 ton in 2002) with a decrease in 2001 in terms of the money value but not in terms of quantity. In general the largest percentage of imports falls within the 'Other Wooden Furniture' Category (US$3.3 million; 1339 ton in 1999, US5.3 million; 2027 ton in 2000, US$4.9 million; 1977 ton in 2001 and US$6.6 million; 2583 ton in 2002). The data also reveals that the second largest category of wood furniture imports is office furniture to be followed by bedroom furniture and kitchen furniture. It is worth noting that the fact that the largest category "Other Wooden Furniture" is ambiguous makes it difficult to deduce changes in the demand for different products over the designated period. Table 26: Egyptian Imports of Wooden Furniture Classified by Product
Product Code Product Name 1999 3.3 1.7 0.4 0.7 6.1 1339 528 N/A 512 2379 5.3 1.7 0.5 0.8 8.3 2000 2027 777 N/A 342 3146 4.9 1.8 0.4 0.6 7.7 Year 2001 1977 983 N/A 411 3371 6.6 1.4 0.5 0.5 9 2002 2583 877 N/A 323 3783
Wooden Furniture 9403600000 (Other) 9403300000 Office Furniture 9403400000 Kitchen Furniture 9403500000 Bedroom Furniture Total Imports Source: CAPMAS & International Trade Point
Graph 31:
Egyptian Imports of Wood Furniture Classified by Product Group (US$ 000,000)
9 8 7 6 5 4 3 2 1 0 1999 2000 2001 2002 2003 (Q1)
Value in US$000,000
Year
Wooden Furniture (Miscellaneous)
Office Furniture
Kitchen Furniture
Bedroom Furniture
Total
74
B. Egyptian Imports of Wooden Furniture Classified by country of origin The data presented in the following table reveals that the period from 1999 to 2002 witnessed an overall increase in imports, with the years 2001 witnessing a slight decline. The main sources of imports are Italy and the United States. Imports from Italy witnessed a steady decline over the years (from 1.8 in 1999 to 1.2 in 2002) despite the overall growth of imports. Imports from the United States remained relatively consistent over the designated period. China on the other hand has been witnessing a steady increase (from 0.2 in 1999 to 1.2 in 2002). Imports from Germany are also increasing (from 0.4 in 1999 to 0.9 in 2002). Table 27: Egyptian Imports of Wooden Furniture Classified by country of origin (US$ 000,000)
Country
China Spain Turkey Malaysia Italy USA Indonesia Germany European Union United Arab Emirates Philippines North Vietnam Taiwan Australia United Kingdom France Norway Canada Thailand Pakistan Saudi Arabia Lebanon India Israel Netherlands South Korea Syria Kuwait Sweden Belgium Hong Kong Qatar Oman Mexico New Zealand Tunisia Czech Republic Total Total Imports
Year 1999
0.2 0.7 0 0.1 1.8 1.2 0.3 0.4 0 0.2 0 0 0.2 0 0.1 0.1 0 0.3 0 0.1 0.1 0 0 0 0 0 0 0 0 0.1 0 0 0 0 0 0 0 5.9 6.1
2000
0.4 0.7 0.2 0.4 1.5 1.2 0.3 0.7 0.2 0.2 0.2 0 0.6 0 0.4 0.2 0 0 0.1 0.1 0.1 0.3 0 0 0 0.1 0 0 0.2 0.1 0 0 0 0 0 0 0 8.2 8.3
2001
0.7 0.5 0.1 0.4 1 1.2 0.6 0.4 0.2 0.1 0.2 0.1 0.4 0 0.1 0.1 0 0.1 0 0.1 0.1 0.4 0.1 0 0.1 0.1 0.1 0 0 0 0 0 0.1 0 0 0.1 0 7.4 7.7
2002
1.2 0.3 0.2 0.7 1.2 1 0.3 0.9 0.4 0.5 0.1 0 0 0 0.1 0.5 0 0 0.1 0 0.1 0.1 0 0 0.1 0 0.1 0 0.5 0.1 0.1 0 0 0 0 0 0.1 8.7 9
2003 (Q1)
0.3 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.2 1.3
Source: CAPMAS & International Trade Point
75
C. Egyptian imports of Furniture, lighting, signs, prefabricated buildings (HS1992 Code # 94) Egyptian Statistics Egyptian imports of Furniture, lighting, signs, prefabricated buildings Classified by Product General Trend: The data presented in the following table covers Egyptian imports of furniture, lightings, signs and prefabricated building over the period 1998 to 2002. In general, there has been a decline in the value of total imports from US$ 59.54 million in 1998 to US$51.09 million in 2002; a decline of 14%. It is worth noting however that this trend hides fluctuations, since imports increased from US$ 57.63 million in 1999 to US$ 61.74 million in 2000 followed by a significant decline to US$46.96 million in 2000. Wooden Furniture (Other): Imports of Wooden Furniture (other) increased from US$ 3.03 million in 1998 to US$ 3.27 and US$5.3 million in 1999 and 2000 respectively. This was followed by a slight decline to US$ 4.94 million in 2001 and an increase to US$ 6.58 million in 2002. In general, imports of this category increased by US$3.55 million i.e. 117 % between 1998 and 2002. Table 28: Egyptian imports of Furniture, lighting, signs, prefabricated buildings (HS1992 Code #94) classified by Product Egyptian Statistics
Product Code 9405400000 9403600000 9503200000 9401909000 9402900000
Product Name Other electric lamps and lighting fittings Other wooden furniture Other metal furniture (other than office furniture) Seats parts Medical, dental, surgical & veterinary furniture Chandeliers and other lighting fixtures and equipment for theatre stages and studios Prefabricated buildings of other materials Furniture parts
1998 7.37 3.03 3.29 4.58 8.33
1999 8.06 3.27 3.36 2.77 5.79
2000 7.24 5.3 7.88 3.42 4.34
2001 6.37 4.94 4.09 4.03 2.49
2002 7.14 6.58 5.85 3.55 3.45
9405101000
2.48
1.88
1.53
2.83
2.83
9406009000 9403900000 Other Total

Source: MOFT
0.69 1.32 28.45 59.54
2.33 2.59 27.58 57.63
1.16 1.35 29.52 61.74
1.9 1.41 18.9 46.96
2.09 1.99 17.61 51.09
76
Graph 32:
Egyptian Imports of Furniture, Lightings, signs, Prefabricated Buildings (HS 1996 Code 94)
30
Value US$000,000
25 20 15 10 5 0 98 99 9403600000 9406009000 2000 9503200000 9403900000 2001 9401909000 Other 2002 9402900000
9405400000 9405101000
Metal Furniture: Imports of Metal Furniture (other than office furniture) increased from US$ 3.29 million in 1998 to US$ 3.36 and US$7.88 million in 1999 and 2000 respectively. This was followed by a decrease to US$ 4.09 million in 2001 and an increase to US$ 5.85 million in 2002. Overall, imports increased by US$ 2.56 million; 78% between 1998 and 2002. Seat Parts: Imports of seat parts decreased from US$ 4.58 million in 1998 to US$ 2.77 million in 1999, followed by an increase to US$ 3.42 million and US$ 4.03 million in 2000 and 2001 respectively. This was followed by a decrease to US$ 3.55 million in 2002. Overall, imports of seat parts decreased by 22.5 % between 1998 and 2002.
Egyptian Imports of Furniture, Lightings, Signs, Prefabricated Buildings classified by Country The data presented in the following table presents total Egyptian imports of Furniture, Lightings, Signs, Prefabricated Buildings (HS 1996 Code 94) classified by country of Origin. It is worth noting that the information obtained from CAPMAS presented the value of imports in Egyptian L.E. To maintain consistency and in order to facilitate the analysis and comparison process, the values were converted by the project team into US$ using the exchange rates presented below. Table 29: Imports of Furniture & Prefabricated Buildings (HS 1996 Code 94)
Country Afghanistan Air Shipment Albania Algeria Argentine Australia Austria 1999 10,292 2000 10,896 11,548 5,120 6,813 62,162 619,787 2001 578 9,573 3,883 61,773 300,922 2002 13,427 9,184
4,476 1,395 107,276
365,749 92,441
77
Country Azerbaijan Bahrain Belgium Bosnia & Herzegovina Brazil Bulgaria Cambodia Canada Central Africa Chile China Costa Rica Croatia Cyprus Czech Republic Denmark El Salvador EU Finland France Germany Gibraltar Greece Holland Hong Kong Hungary India Indonesia Iran Iraq Ireland Israel Italy Japan Jordan Kenya Kuwait Lebanon Lithuania Malaysia Malta Marine Shipment Mexico Morocco Nepal New Zealand Norway Oman Pakistan
1999
569,506 80,437 72,676 409,326
2000 24,077 19,632 357,526 362,771 39,778 64,946 971 7,590,667 6,457 87,617 151,619 156,023 1,639 359,763 79,232 3,436,439 8,835,335 1,661 121,008 298,837 89,843 151,263 138,888 726,374 62,100 8,952 28,281 7,710,334 380,483 104,252 84,553 455,391 923,320 990 26,534 10,452 41,475 28,747 10,367 97,836
2001
2002 19,648 344,915 330,533 16,452 810 32,260
312,834 182 111,783 7,098 107,651 21,850 7,434,279
7,686,511
9,399,112
68,529 20,038 367,956 316,355 506,275 3,296,656 10,590,669 315,658 754,497 480,111 79,931 67,127 550,692 20,375 10,639 68,527 9,168,154 230,699 62,329 46,936 85,169 370,376 1,040 8,140 345
24,366 362,472 146,390 984,310 244,247 1,372,420 6,804,187 62,892 193,910 342,983 70,566 531,127 1,023,964 32,422 36,859 5,380,340 278,453 198,722 53,479 454,011 867,753 2,154 49,587 23,490 3,331 6,692 106,276 109,906 52,799
26,469 105,476 178,868 2,516,816 62,483 3,953,625 9,585,569 249,027 473,630 125,798 86,031 136,821 592,396 2,290 33,076 37,366 4,983,435 138,856 121,310 615 67,376 522,637 3,588 1,003,468
1,354 18,209 5,610 17,069 5,095 15,932
342 59,226
78
Country Palestine Philippines Poland Portugal Qatar Romania Russian Saudi Arabia Singapore Slovakia Slovenia South Africa South Korea Spain Sri lanka Sudan Sweden Switzerland Syria Taiwan Tanzania Thailand Tunisia Turkey U.S.A UAE Ukraine United Kingdom Uruguay Vanuatu Vietnam Yemen Zambia Zimbabwe Total US$ Exchange rate: 1999 2000 2001 2002
1999 8,512 24,408 88,127 4,711 60,482 1,372 7,704 820,022 117,775 6,511 1,017,982 1,579,555 2,511,298 3,030 388,830 246,088 14,890 1,574,000 223,209 15,645 1,095,431 7,039,134 534,645 2,587,333
2000 375,954 152,796 19,942 20,675 5,162 8,544 781,738 23,527 38,601 583 1,771,723 1,287,414 2,753,518
2001 297,962 78,489 12,566 2,793 21,826 23,089 730,762 6,216 153 341,939 2,044,746 2,941,512 5,497 3,507 135,492 267,836 88,791 1,673,107 125,168 108,760 907,196 6,525,803 301,537 1,834,212
2002 168,338 281,427 29,421 23,230 181 471 390,138 12,227 40,201 31,625 1,119,111 2,802,924 3,004 2,934 602,601 301,359 77,409 1,007,217 172,827 22,115 886,657 5,225,212 744,010 1,320 1,384,740 1,241 56,654
429,054 429,542 8,645 1,827,020 26,127 132,379 2,957 913,716 13,316,090 1,116,903 1,845,805
3,349
40,318
138,081 15,485 4,778
9,373 56,462,731 1 US $ = L.E. 3.40803 L.E. 3.4837 L.E. 3.9825 L.E. 4.52 61,121,494 46,817,262 51,092,788
79
D. Egyptian Imports of Furniture, Lighting, Signs, Prefabricated buildings (HS1996 Code #94) Classified by Product Foreign Statistics General Analysis: The statistics presented in the table 30 which present the total imports of furniture, lighting, signs, prefabricated buildings obtained from the United Nations Statistics Division reveal that total Egyptian imports of this product group have undergone a general decline from US$104.2 million in 1998 to US$ 87.6 million in 2002 with the year 1999 being the only exception when imports increased to reach US$ 124 million. It is worth pointing out that while the table provides figures for specific countries, the general analysis of the data will be done on a regional level. The EU: Imports from European Union, witnessed an increase from US$57.4 million in 1998 to US$ 61.7 million in 1999, followed by a gradual decrease to US$ 58 and US$ 36 million in 2000 and 2001 respectively. The overall decline in imports from this region is of considerable significance especially when comparing the value for 1998 to those of 2001. The main sources of imports in descending order are Italy, Germany, France and Spain. European Countries (non-EU): Egypt's imports from "other" European countries witnessed a decline from US$5.2 million in 1998 to US$ 3.3 million in 1999 imported, an increase to US$ 6.6 million in 2000, followed by a severe decline to US$ 1.1 million in 2001. The overall decline in imports from this region is massive when the value for 1998 is compared to that of 2001. The main sources of imports from this region are Russia, Turkey, Norway and Switzerland Asia: For the category Asia (excluding Arab countries), the year 1999 witnessed a slight increase to US$ 9.22 million from the US$ 9.21 million of the previous year. This was followed by a considerable increase to US$ 11.7 million and US$ 13.4 million in 2000 and 2001 respectively. A general increase in the imports from this area can be depicted when the data for 1998 are compared with those of 2001. The main sources of imports from this region are China, Japan, Malaysia and the Republic of Korea. Arab Countries: Imports from Arab countries, witnessed a sharp decline from US$ 1.5 million in 1998 to US$0.5 million in 1999, followed by a significant increase to US$ 4.7 million in 2000, followed by a decline to US$ 3 million in 2001.The main sources of imports for this region are Saudi Arabia, Jordan and Lebanon. NAFTA: As for the North America- NAFTA region, the year 1999 witnessed a sharp increase to US$ 48.1 million when compared to the US$ 29.3 million of 1998. This was followed by a sharp decline to US$ 18.4 million in 2000 and an increase to US$ 30.1 in 2001. The USA is the major source of imports in this region followed by Mexico and Canada.
80
Table 30: Egyptian Imports of Furniture, Lighting, Signs, Prefabricated Buildings Classified by Country ( HS1996 Code # 94) UNSTATS
Region
European Union
Austria Belgium Cyprus Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Poland Portugal Slovakia Slovenia Spain Sweden United Kingdom
98
57,417,674 572,045 744,571 39,663 145,370 411,575 606,798 5,608,161 19,538,000 120,073 1,000 101,383 20,309,226 12,579 58,000 48,230 149,758 192,453 5,057,133 3,695,430 6,226 5,148,272 0 51,580 62,572 3,779,363 0 259,144 995,613 9,214,080 5,003,539 94,656 112,095 12,875 50,000 1,183,433 372,383 289,876 953,802 1,116,055 0 25,366
99
61,672,260 454,840 684,051 275,248 84,648 474,217 559,108 9,798,393 14,641,395 0 9,000 25,800 18,525,772 54,937 0 3,826 6,129 0 10,429,694 219,655 5,425,547 3,344,635 6,800 102,969 141,541 156,647 1,000 915,856 2,019,822 9,222,020 4,791,086 32,559 648,210 15,893 58,000 1,312,147 1,286,048 203,046 411,521 197,404 770 265,336
2000
57,983,343 532,384 293,226 147,239 124,786 322,670 314,036 7,052,470 13,204,099 111,152 163,000 9,700 22,874,936 5,689 95,000 29,426 11,660 13,102 5,941,294 722,854 6,014,620 6,592,371 889 64,659 2,941,991 1,198,713 2,000 743,519 1,640,600 11,655,989 7,266,360 62,302 997,421 61,554 54,000 825,317 1,750,192 252,580 0 223,164 0 163,099
2001
36,026,346 452,277 539,038 97,601 427,992 393,101 338,397 3,839,351 8,150,163 309,930 0 32,595 12,697,913 0 178,000 0 0 5,318,303 111,169 3,140,516 1,809,879 0 0 135,831 38,201 1,000 675,392 959,455 13,370,766 8,318,803 13,851 1,205,878 0 17,000 1,070,084 924,290 364,856 0 1,138,906 0 317,098
2002
20,907,722 270,616 0 0 360,912 338,929 122,127 5,088,840 0 0 0 0 12,367,171 0 113,000 0 2,360 0 0 403,355 1,840,412 370,719 4,398 0 0 0 12,000 354,321
Europe (Other)
Belarus Bulgaria Norway Russian Federation Romania Switzerland Turkey

China India Indonesia Iran Israel Japan Malaysia Philipinnes Republic of Korea Singapore Sri lanka Thailand
392,196 0 0 0 0 25,000 294,695 0 0 0 72,501 0 0
81
Region
Arab Countries
Algeria Jordan Lebanon Morocco Oman Saudi Arabia
98
1,497,383 0 130,215 106,254 0 10,663 1,250,251 29,303,287 455,3 91,909 29,211,378 5,129 0 5,129 77,501 69,709 7,792 2,452 2,452
99
548,416 0 161,275 367,733 18,321 1,087 3, 320,411 48,058,425 636,449 0 47,421,976 575 575 0 121,366 119,551 1,815 141,434 141,434 123,657,547
2000
4,664,346 5,378 170,599 748,445 1,342 171,702 3,566,880 18,433,439 487,707 23,428 17,922,304 5,829 0 5,829 793,147 792,200 947 27,824 27,824 104,820,634
2001
2,974,384 0 266,732 718,601 91,653 265,015 1,632,383 30,082,527 63,576 44,699 29,974,252 0 0 0 128,479 127,687 792 280,703 280,703 87,647,468
2002
0 0 0 0 0 0 0 18,951,693 127,625 0 18,824,068 0 0 0 0 0 0 0 0 40,622,330

Canada Mexico United States

Gabon Kenya
Latin America
Brazil Chile
Other
Australia
Total in US $
104,163,161
Graph 33: Egyptian Imports of Furniture, Lighting, Signs, Prefabricated Buildings

70,000,000 60,000,000 50,000,000
US$
40,000,000 30,000,000 20,000,000 10,000,000 0 98 European Union Asia (excluding Arab countries) North America - NAFTA Latin America 99 2000 Europe - Other Arab Countries Africa (excluding Arab countries) Other 2001
82
E. Comparison between Egyptian and Foreign Sources of Statistics for Imports of Furniture, Lighting, Signs, Prefabricated Buildings (HS1996 Code # 94) E.1 Accuracy of Data The data provided in the table below presents a comparison between the statistics obtained from Egyptian sources (MOFT, ITP and CAPMAS) for imports of furniture, lighting, signs and prefabricated buildings (HS1996 Code # 94) with those obtained from the UN Statistics division website. The analysis which covers the period 1999 to 2001 compares between the values of imports by the main geographic regions. It is worth noting however that while Egyptian statistics were reported on a regional basis, the foreign statistics were reported on a country basis. In this context, the project team compiled the foreign statistics into regions which opened a margin of error given that a disparity in classification might have taken place. Furthermore, while the statistics provided by Egyptian sources covered the period 1998-2002 comprehensively, a considerable number of foreign countries especially Arab and African countries did not report to the United Nations their exports for the years 2001 and 2002. It follows that a relatively accurate comparison can be made for years 1999 and 2000. However, for the years 2001 and 2002 only general trends can be derived. Taking the above mentioned factors into consideration, the following observations are derived: Overall, according to both sources, there has been a decline in the amounts imported, with the year 2000 witnessing the only increase in imports. The main source of imports are the European Union, Europe (other) and North AmericaNAFTA E.2 Comparison between Egyptian and Foreign Sources of Statistics Despite the fact that the values obtained from the UN Statistics Division (UNSTATS) are not as comprehensive as those obtained from Egyptian sources, the aggregate value of imports reported by Egypt is still much lower than that reported by foreign countries. The values obtained from the UNSTATS were larger by about US$66 million in 1999, by US$106 million in 2000 and by US$ 40 million in 2001. A possible explanation for this discrepancy could be a result of inaccurate data collection and reporting by the Egyptian authorities. This discrepancy could also be a result of a process of under-invoicing through which importers do not report the real values of their imports in order to reduce the amounts of taxes paid. Table 31: Comparison between Egyptian s Statistics (MOFT) and Foreign Statistics (UNSTATS) for Total Imports of Furniture, lighting, signs, prefabricated buildings (HS1996 Code # 94)
Region European Union Europe Other Asia (excluding Arab countries) Arab Countries North America NAFTA Africa (excluding Arab countries) Latin America & Other Total in US $ 000,000 99 UNSTATS 61.6700 3.3400 9.7700 0.5500 48.0600 0.0006 0.2600 123.6506 MOFT 31.82 0.28 14.45 1.68 7.6 1.04 0.76 57.63 2000 UNSTATS 57.9800 69.5900 16.3000 4.6600 18.4300 0.0058 0.8180 167.7838 MOFT 27 0.57 14.82 2.58 13.53 1.84 1.4 61.74 36.0300 1.8100 16.3500 2.9700 30.0100 0.0000 0.4200 87.59 2001 UNSTATS MOFT 19.92 0.58 15.72 2.12 6.65 0.38 1.58 46.95
83
Graph 34:
Egyptian Total Imports of Furniture, lighting, signs, prefabricated buildings Classified by country ( HS1992 Code # 94) UNSTATS & MOFT
180.0000 160.0000
Value US$ 000,000
140.0000 120.0000 100.0000 80.0000 60.0000 40.0000 20.0000 0.0000 99 2000 2001
Year
UNSTATS
MOFT
84
E.3 Comparison between Egyptian and Foreign Sources for Imports of Furniture, lighting, signs, prefabricated buildings (HS1996 Code # 94) by Region E. 3.1 the EU & North America Imports from the European Union witnessed a steady decline in 2000 and 2001 according to both Egyptian and foreign sources. Imports from North American -NAFTA, witnessed a decline in 2000 according to UNSTATS, but an increase according to MOFT. The year 2001 witnessed an increase in imports according to UNSTATS, and a decline according to MOFT. It is worth noting that for both regions, there is a great discrepancy between the figures obtained, with the United Nations Statistics Division reporting values that are much higher. The difference for the EU was US$30 million in 1999, US$30 million in 2000 and US$16 million in 20001. For the NAFTA, the difference between UNSTATS statistics and Egyptian statistics was US$41 million in 1999, US$ 5 million in 2000 and US$23 million in 2001. Graph 35:
Comparison of Egyptian Imports of Furniture, Lighting, Signs & Prefabricated Buildings from the EU
70.0000 60.0000
Value in US$
50.0000 40.0000 30.0000 20.0000 10.0000 0.0000 98 99 2000 2001
UNSTATS
MOFT
Graph 36:
Comparison of Egyptian Imports of Furniture, Lightings, Signs & Prefabricated Buildings from NAFTA
50.0000 40.0000
Value US$
30.0000 20.0000 10.0000 0.0000 98 99 2000 2001
UNSTATS
MOFT
85
E. 3.2 Asia and Arab Countries The volume of imports from Asia (excluding Arab countries) witnessed an increase in 2000 and 2002 according to both sources. Imports from Arab countries on the other hand witnessed an increase in 2000 followed by a decrease in 2001 according to both sources. It is worth noting however that given that various Asian and Arab countries did not report their imports to the UN Statistics division a comparison of the values of imports on a regional level with those obtained from Egyptian sources is not possible. Graph 37:
Comparison of Egyptian Imports of Furniture, Lightings, Signs & Prefabricated Buildings from Asia
20.00 15.00 10.00 5.00 0.00 98 99
UNSTATS
Value US$
2000
MOFT
2001
Graph 38:
Comparison of Imports of Furniture, Lightings, Signs, Prefabricated Buildings from Arab Countries
5.00
Value US$ 000,000
4.00 3.00 2.00 1.00 0.00 98 99

UNSTATS
2000
MOFT
2001
86
3.3.3 Egyptian Imports of Intermediate Products (Feeding Industries) A. Egyptian Imports of Paints Classified by Product (US$ 000,000) The data provided in the following table covers Egyptian imports of paints over the period 1999 to the first quarter of 2003. There is an overall decline in the total amounts imported over the years, with 2002 being the only exception witnessing a small increase in imports. Imports of paints have decreased from US$23.15 million in 1999 to US$17.78 million in 2000. A further decline occurred in 2001 where imports reached its lowest at US$15.73 million followed by a slight increase to US$16.18 million in 2002. The highest value of imports goes to Paints and other based on synthetic polymers/chemically modified natural polymers dissolved in a non-aqueous medium (HS1996 Code # 32082090) followed by Varnishes including lacquers based on synthetic polymers/chemically modified natural polymers dissolved in a non-aqueous medium (HS1996 Code # 32082090). Table 32: Egyptian Imports of Paints
Product Code 3210 Product Name Paints and varnishes nes, water pigments for leather Paints and lacquers based on polyesters dispersed or dissolved in a non-aqueous medium Paints and sloutions based on polyesters dispersed or dissolved in a non-aqueous medium Varnished based on acrylic/vinyl polymers dispersed or dissolved in a non-aqueous medium Paints and solutions based on acrylic/vinyl polymers dispersed or dissolved in a non-aqueous medium Paints and other based on synthetic polymers/chemically modified natural polymers dispersed or dissolved in a non-aqueous medium Varnishes including lacquers based on synthetic polymers/chemically modified natural polymers dispersed or dissolved in a non-aqueous medium 1999 0.48 2000 0.93 Year 2001 2002 0.76 0.76 2003 (Q1) N/A
32081010
0.3
0.3
0.7
0.4
0.1
32081090
0.2
0.2
0.3
0.5
32082010
0.1
0.1
0.1
32082090
0.2
0.2
0.3
0.3
32089090
18.2
12.6
10.5
11.8
2.4
32089010
2.5
1.7
1.6
0.3
87
Product Code
Product Name Paints based on synthetic polymers/chemically modified natural polymers other than acrylic/vinyl polymers, dispersed or dissolved in an aqueous medium Varnishes and lacquers based on synthetic polymers/chemically modified natural polymers other than acrylic/vinyl polymers, dispersed or dissolved in an aqueous medium Paints based on acrylic/vinyl polymers dispersed or dissolved in an aqueous medium
1999
2000
Year 2001 2002
2003 (Q1)
32099020
0.4
0.5
0.5
0.9
0.1
32099010
0.2
0.1
0.1
32091020
0.2
0.1
0.2
Varnishes based on acrylic/vinyl polymers 32091010 dispersed or dissolved in an aqueous medium Polishes, creams etc. for 34052 maintenance of woodwork Polishes etc. for coachwork, 34053 except metal polishes Total Source: CAPMAS & International Trade Point
0.2
0.8
0.2
0.1
0.1 0.17 23.15
0.29 0.16 17.78
0.22 0.25 15.73
0.22
N/A 0.21
16.18
3.21
Graph 39:
Imports of Paints - Main Products
20 18 16 14
Value in US$000,000
12 10 8 6 4 2 0 1999 2000 2001 2002
3210
32081010
32081090
32082010
32082090
32089090
32089010
32099020
32099010
32091020
32091010
34052
34053
88
B. Egyptian Imports of Glues and Adhesives Total Egyptian imports of Glues and Adhesives have declined from US$ 4 million in 1999 to US$3 million in 2000 and US$ 2 million in 2001 to rise again to reach US$3 million in 2002. When measured in terms of both quantity and money value, imports of Albumins, albuminates and other albumin derivatives (HS1996 Code 3503) are the highest followed by Gelatin & derivatives, isinglass, glues (animal) nes (HS1996 Code 3501) and Gelatin & derivatives, isinglass, glues (animal) nes (HS1996 Code 3502). Table 33: Egyptian Imports of Glues and Adhesives
1999 2000 2001 2002
Code 3501
Product Group Gelatin & derivatives, isinglass, glues (animal) nes Casein, caseinates & casein derivatives, casein glues Albumins, albuminates and other albumin derivatives Total
QTY 474
Value $ 0.23
QTY 265
Value $ 0.98
QTY 207
Value $ 0.95
QTY 333
Value $ 1.09
3502
0.00
0.01
27
0.06
44
0.11
3503
669
3.38
454
2.01
375
1.24
386
1.37
1143
724
609
763
Source: MOFT Quantity in tons Value in US$
Graph 40:
Egyptian Imports of Glues & Adhesives
3.50 3.00 2.50
Value in US$
2.00 1.50 1.00 0.50 0.00 1999 2000 2001 2002
3501
3502
3503
89
C. Imports of Tools & Machinery Imports of tools and machinery have declined consistently from US$7.68 million in 1999 to US$ 6.93 million in 2000, US$6.2 million in 2001 and US$ 5.68 million in 2002. In general the highest value was for the imports of Machine tools for wood, cork, bone, hard plastics, etc (HS 1996 Code# 8465) which was US$3.03 million in 1999, US$2.69 million in 2000, US$ 1.2 million in 2001 and US$ 1.59 in 2002. The second largest value was for the imports of Tools for pressing, stamping or punching followed by Tools for Milling. Table 34: Imports of Tools & Machinery
1999 Code 82073 82074 82075 82076 82077 8465 Product Group Tools for pressing, stamping or punching Tools for tapping or threading Tools for drilling, other than for rock drilling Tools for boring or broaching Tools for milling Machine tools for wood, cork, bone, hard plastics, etc Total QTY 239 35 120 20 4 1626* Value $ 2.34 0.68 1.28 0.26 0.09 3.03 7.68 QTY 284 40 76 31 2 1338* 2000 Value $ 2.35 0.56 0.69 0.54 0.10 2.69 6.93 QTY 174 69 248 11 36 706^ 2001 Value $ 2.24 0.50 1.61 0.19 0.39 1.27 6.20 QTY 166 25 208 3 24 3903^ 2002 Value $ 1.96 0.39 1.41 0.06 0.27 1.59 5.68
Graph 41:
Imports of Tools & Machinery
3.50 3.00
2.50 2.00 1.50 1.00 0.50 0.00 1999

82073
82074
2000
82075
2001
82076
82077
2002
8465
90
D. Egyptian Imports of Nails The value of Egyptian imports of nails has in general decreased from US$ 37.14 million in 1999 to US$ 29.23 million in 2002, with an exceptional increase of the quantity imported during 2001 which totaled the amount of US$ 57.51 million. It is worth noting that the highest value of imports both in terms of quantity and money value is of the product category Screws, bolts, nuts, rivets, washers, etc- iron, steel (HS 1996 Code # 7318). Imports of this category totaled 11,478 ton, US$ 36.33 million in 1999, 14,301 ton, US$35.81 million in 2000, 32,071 ton, US$ 56.99 million in 2001 and 17,427 ton, US$28.67 million in 2002. Table 35: Egyptian Imports of Nails
Code Product Group Nails, staples, etc, iron/steel, not office stationary Screws, bolts, nuts, rivets, washers, etc, iron, steel Copper nails, screws, bolts, pins, washers, etc Totals 1999 Qty Value $ 2000 Qty Value $ 2001 Qty Value $ Qty 2002 Value $
7317
479
0.57
677
0.65
491
0.38
445
0.40
7318
11478
36.33
14301
35.81
32071
56.99
17427
28.67
7415
50 12007
0.25 37.14
51 15029
0.40 36.86
15 32577
0.14 57.51
34031 51903
0.16 29.23
Graph 42:
Egyptian Imports of Nails

60.00 50.00 40.00 30.00 20.00 10.00 0.00 1999 2000 7317 7318 2001 7415 2002
Value in US$ 000.000
91
3.4 Exports
92
3.4. Exports 3.4.1 Exports of Wood, and Wood Products HS 1996 Code # 44 A. Egyptian Exports of Wood and Wood Products Classified by Region as reported by the Egyptian Government The following table presents data obtained from the Ministry of Foreign trade on Egyptian exports of wood and wood products classified by country and region during the period of 1998 to 2002. An analysis of the data reveals that overall, Egyptian exports of this product have gone through several fluctuations over the designated period; decreasing from US$ 3.8 million in 1998 to US$ 2.4 million in 1999. This decline was followed by an increase to US$ 3.6 million in 2000 and US$ 5.8 in 2001. Total exports decreased again in 2002 to reach US$ 3.3 million. A comparison of the values of 1998 and 2002 reveal an overall decline of 11%.
Table 36: Egyptian Exports of Wood, Wood Products & Charcoal HS 1996 Code 44 Classified by Country
Country Ethiopia Spain Australia Israel Argentine Bahrain Brazil Portugal Libya Tunisia Algeria Sudan Iraq Syria Lebanon Yemen Denmark Sweden Philippines Germany Malaysia Jordan Morocco Saudi Arabia United Kingdom Norway Austria India U.S.A Japan 1998 2199.8 991.2 965713.3 4159.3 1999 2022.0 20617.4 87558.1 18142.3 2000 1054.91288 1482.2 1287.13724 202089.158 944.9723 700.978844 919667.308 8852.08256 95672.4173 25880.5293 79337.7731 55832.3047 5591.75589 98.4585355 106.495967 66427.6488 586.732497 130213.853 4988.94853 163493.699 1117465.91 1163.4182 16189.9704 49944.025 202871.6 6333.7 2001 2002 511.1 8002.0 3190.0 15262.2 5475.0 5520.6 150.0 974903.8 155343.8 202424.6 18558.6 20492.9 239662.2 12588.1 300.0 4000.0
602312.8 14405.7 43612.6 5595.6 13203.2 5686.3 24024.1 30722.4 14078.8 678.4 174900.5 71497.9 12436.5 495125.3 434.0 199.5 798.1 43879.0 399.1
509571.0 23078.6 54465.1 5630.9
35863.0 399.6
1092644.3 13983.4 92652.4 25184.9 840.2 35250.7 9073.4 4020.6 1295.2 77834.8 53424.5 7029.8 185064.4 1938.5 476.1 2160147.6
82328.3 98101.2 2013.2 347515.8 12095.1
37573.7 193535.4 8985.4 478500.7 126770.8 350.0 42734.7 2205.1
81583.9 3559.6
93
Country Greece Uganda Italy Belgium Tanzania Taiwan Turkey China South Africa Rwanda Russia Macedonia Djibouti U.A.E Kuwait Romania Switzerland Sri Lanka Chile Oman Ghana France Palestine Cyprus Qatar Canada South Korea Colombia Kenya Malta Mauritius Nigeria New Zealand Hong Kong Holland Total Exchange rate: 1999 2000 2001 2002
1998 321456.1 56501.0 21260.7
1999 300806.6 159.6 10330.4 15711.0
2000 126825.502
2001 104454.0 6696.0 871920.4 2259.9 5591.5
2002 275616.6 17708.0 10898.5
5924.7352
576.6 2193.6 997.6
83.6 25556.9 400.2
417.659385 984.585355 74136.1196 3670.3 64589.3 9166.6 24763.1 14999.9 372.6 9785.3 104.5 4428.9 502690.5 12205.1 192634.0 261.1 3256.0 13495.6 42338.7 19205.1 390.0
77275.1 56109.8 12394.3
33353.9 85239.4 301.9
21151.3621 56195.4244 389.528375
1823.9 2236.5 153107.2 492155.3 3845.0 1990.6 63619.1 442745.3 12619.7
689.209748 2977.58131 2953.75606 24083.3022 253614.261 10167.9249 5033.1544 159.887476
4473.9 18275.7 3226.1 289228.3 9677.2
33919.3 600.0 7136.7 146.7 2000.0 6323.9 3,776,512.824 I US$ = L.E. 3.40803 L.E. 3.4837 L.E. 3.9825 L.E. 4.52 200.1 13889.0 2,400,668.6 31564.4286 3,565,352.07 7107.6 5,809,249 7571.7 3,275,002 9115.9 493.153831
94
B. Egyptian Exports of Wood and Wood Products HS 1996 Code 44 Classified by Region The data presented in the following table which have been obtained from the Ministry of Foreign Trade on Egyptian exports of wood and wood products reveal that in 1998 the Arab Region (US$ 1.61 million) was the larges export market followed by Asia (US$ 0.97 million) and the EU (US$0.6 million). In 1999, the Arab Region (US$1.29 million) was again the largest market followed by the EU (US$0.44 million), Asia (US$.09 million) and North America (US$ 0.08 million). In 2000, the Arab Region (US$ 1.29 million) was the largest market followed by the EU (US$1.38 million) and Asia (US$ 0.22 million). The trend changed in 2001 where North America imported the highest value (US $ 2.08 million) followed by the EU (US$ 1.61 million) and the Arab Region (US$ 1.61 million). In 2002, the Arab Region regained its position as the largest export market (US$ 2.4 million) followed by the EU (US$ 0.51 million) and North America (US$ 0.04 million).
Table 37: Egyptian Exports of Wood, Wood Products HS 1996 Code 44 Classified by Region
Region
European Union Asia (excluding Arab countries) Arab Countries North America - NAFTA Eastern Europe Africa (excluding Arab countries) Latin America Other Total in US $
Source: MOFT
98
0.6
99
0.44
2000
1.38
2001
1.61
2002
0.51
0.97 1.61 0.04 0 0 0.03 0.52 3.77
0.09 1.29 0.08 0 0.03 0 0.47 2.4
0.22 1.59 0.06 0.08 0.01 0 0.25 3.59
0.19 1.6 2.08 0.07 0.01 0.03 0.2 5.79
0.02 2.4 0.04 0 0 0.01 0.3 3.28
Exports to the Arab Region As mentioned above, the Arab Region is one of the most important export markets for Egyptian wood and wood products. Exports to this region decreased from US$ 1.6 million in 1998 to US$ 1.29 million in 1999 to gradually increase to reach US$ 1.59 million, US$ 1.6 million and US$ 2.4 million in 2000, 2001 and 2002 respectively. From within this region Libya and Saudi Arabia are among the largest importers. Exports to Libya decreased from US$ 0.6 million in 1998 to US $0.5 million in 1999. This was followed by significant increases to US$ 0.9 million in 2000 and US$ 1.1 million in 2001. In 2002 exports to Libya fell again to reach US$ 1 million. Exports to Saudi Arabia decreased from US$ 0.5 million in 1998 to US$ 0.4 million in 1999, US$ 0.2 million in 2001. In 2002 exports increased again to reach US$ 0.5 million.
95
Graph 43:
Egyptian Exports of Wood, Wood Products & Charcoal
2.5
1.5
0.5
0 98
European Union
99
2000
Eastern Europe
2001
2002
Arab Countries
Latin America
Other
Source: MOFT
Exports to the EU Egyptian exports of Wood and Wood products to the European Union declined from US$ 0.6 million in 1998 to US$ 0.44 million in 1999, increased in 2000 (US$ 1.38 million) and 2001 (US$ 1.61 million), and declined again in 2002 (US $0.51 million). Exports to this region thus declined overall when we compare the amount exported in 1998 to the amount exported in 2002; (US$ 0.6 million vs. US$ 0.51 million). Within this region, Cyprus, Greece, and the United Kingdom are among the main importers. Egyptian exports to Cyprus in 1999 amounted to $ 442,745; this was followed by a decline in 2000 to $ 253,614, followed by a further decline in 2001 to $ 192,634. Exports to Greece in 1999 amounted to $ 3,000,806, followed by a decline in 2000 ($ 126,825), followed by a further decline in 2001 ($ 104,454). Exports to the United Kingdom in 1999 amounted to $ 12,095, this was followed by an increase in 2000 ($ 1,117,466), followed by a significant decline in 2001 ($ 1,938). Overall exports to the three countries declined over the designated period. Exports to Asia Exports to Asia (excluding Arab countries) declined over the designated period. Total exports decreased from US$ 0.97 million in 1998 to US$ 0.09 million in 1999, this was followed by an increase in 2000 (US$0.22 million), followed by a sharp decline in 2001 (US$ 0.19 million) and 2002 (US$ 0.02 million). Exports to North America Exports to North America - NAFTA fluctuated over the designated period, with the same amount of exports in 1998 and 2002. In 1999, exports to the NAFTA countries fell to US$0.08 million, this was followed by another decline in 2000 (US$0.06 million), followed by a considerable increase in 2001 (US$ 2.08), and finally a significant decline in 2002 (0.04). From within this region, the United States and Canada are the main importers of Egyptian wood products. In 1998 and 1999, the amount exported to the US was reported to be US$ 43,879 and US$ 81,583 respectively, this was followed by a decline in 2000 ($49,944), followed considerable increase in 2001 ($ 2,160,148). 96
C. Egyptian Exports of Wood and Wood products (HS1996 Code # 44) United Nations Statistics Division (UNSTATS) The data presented in the following table which was obtained from the United Nations Statistics Division illustrates figures for Egyptian exports of raw wood and wood products by region and by country during the period 1999 to 2002. Overall exports have declined throughout the period, with total exports in 1999 amounting to $ 4,494, 557, declining to $ 4,232,796 in 2000 and $ 3,158,473 in 2001. The data reveals that the greatest amount of Egyptian exports is received by the European Union (US$ 1.9 million in 1999, US$ 1.2 million in 2000 and US$ 1.1 million in 2001) and the Arab region (US$ 1.3 million in 1999, US$ 1.6 million in 2000 and US$ 1.1 million in 2001). Asia is also an important market for Egyptian wood and wood products, with total exports of US$ 0.8 million in 1999, US$ 0.6 million in 2000 and US$ 0.3 million in 2002. Table 38: Egyptian Exports of Raw wood and Wood products UNSTATS
Region
European Union
Austria Belgium Cyprus Czech Republic Denmark France Germany Greece Netherlands Ireland Italy Malta Portugal Spain Sweden United Kingdom
1999 1,947,585 22,064 47,757 716,703 1,106 11,336 55,833 57,697 655,716 226,612 0 38,892 11,716 1,272 3,298 1,571 96,012 8,445 950 1,257 6,238 0 792,913 53,508 204,405 535,000 1,334,048 30,752 N/A 49,321
2000 1,175,965 7,696 51,725 431,448 0 n/a 65,239 27,759 222,838 245,325 1,689 14,173 1,347 8,110 13,574 3,053 81,989 12,081 0 3,510 5,589 2,982 604,988 13,000 44,988 547,000 1,603,056 51,088 N/A 72,810
2001 1,083,222 1,413 98,649 385,533 0 n/a 60,008 29,550 283,331 87,770 N/A 111,343 N/A 0 14,640 1,843 9,142 20,788 696 3,482 13,162 3,448 348,528 1,503 1,025 346,000 1,043,826 N/A 16,919 98,731
2002 9,069 N/A N/A 0 N/A 81,144 N/A N/A 2,533 N/A 21,926 N/A N/A N/A 1,648 88,989 920 N/A 15,688 2,533
Europe(Other)
Norway Russian Federation Switzerland Turkey

China Hong Kong Israel
N/A 37,243 296,000 N/A N/A N/A
Arab Countries
Algeria Bahrain Jordan
97
Region
Kuwait Lebanon Libya Morrocco Oman Qatar Saudi Arabia Sudan Tunisia United Arab Emirates
1999 N/A 287,199 N/A 10,046 7,890 N/A 771,040 N/A 177,800 N/A 390,806 56,256 4,280 330,270 1,938 1,036 902 14,570 2,316 N/A 12,254 0 4,252 4,494,557
2000 N/A 85,214 N/A 17,140 20,149 N/A 1,199,800 N/A 156,855 N/A 795,252 77,994 10,379 706,879 8,622 8,011 611 10,026 6,050 1,582 951 1,443 22,806 4,232,796
2001 N/A 13,708 N/A 20,128 20,674 17,893 650,264 14,901 190,608 N/A 633,654 43,576 514 589,564 1,217 0 1,217 1,169 1,169 2L385 N/A 0 26,069 3,158,473
2002 N/A N/A N/A N/A N/A N/A N/A N/A N/A 76,641 N/A N/A 3,449

Canada Mexico USA

Kenya South Africa
0 N/A 0 N/A N/A N/A N/A N/A 637,783
Latin America
Argentina Brazil Columbia Ecuador Other
Total in US $
Exports to the EU According to the data presented in table 38, the European Union witnessed an overall steady decline over the designated period. In 1999 the amount exported totaled $ 1,947,585, this was followed by a decline in 2000 ($1,175,965), followed by a further decline in 2001 ($ 1,083,222). An analysis of the figures for the EU for 2002 is not possible given the lack of statistics on some major trading partners including Germany and Cyprus. Within the European Union, Cyprus, Greece, the Netherlands and United Kingdom import the largest amounts. Exports to Cyprus in 1999 amounted to $ 716,703, this was followed by a sharp decline in 2000 to $ 431,448, followed by a further decline in 2001 ($ 385,533). Exports to Greece in 1999 amounted to $ 655,716, this was followed by a sharp decline in 2000 ($ 222,838), followed by an increase in 2001 ($283,331). Exports to the Netherlands in 1999 amounted to $ 226,612, followed by an increase in 2000 ($245,325), followed by a significant decline in 2001 ($87,770). Exports to the United Kingdom in 1999 amounted to $ 96,012, followed by a decline in 2000 ($ 81,989), followed by a further decline to $9,142. It is worth noting however that exports to the UK increased significantly in 2002 to reach $88,989. Overall, exports to the EU witnessed a decline of 44.4% between 1999 and 2001. 98
Graph 44:
Egyptian Exports of Wood, Wood Products, Charcoal UNSTATS
2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 99 2000 2001
Year
European Union Asia (excluding Arab countries) North America - NAFTA Latin America Europe - Other Arab Countries Africa (excluding Arab countries) Other
Exports to Other European Countries The region 'Europe Other' on the other hand witnessed an overall increase in its amount of Egyptian imports from $8,445 in 1999 to $12,081 in the year 2000 which was followed by a sharp increase in 2001 ($ 20,788). When the figures given for 2001 are compared with those of 1999, an increase of 144% is detected in the total value of exports. Within this region, Switzerland is the country receiving the bulk of Egyptian wood products at $6,238 in 1999, $5,589 in 2000, $ 13,162 in 2001, $15,688 in 2002. Exports to Asia Egyptian exports of Wood products to Asia declined steadily throughout the designated period. In 1999 the amount exported was reported to have been $ 792,913, decreasing in 2000 to $ 604,988, further declining in 2001 to $348,528. Within this region Hong Kong and Israel receive the bulk of Egyptian exports. Egyptian exports to Hong Kong amounted to $ 204,405 in 1999, followed by dramatic declines in 2000 ($ 44,988) and 2001 ($1,025), followed by an increase in 2002 to $ 37,243. Despite the increase in 2002, exports to Hong Kong declined considerably over the period. Exports to Israel in 1999 amounted to $ 535,000, followed by an increase in 2000 ($ 547,000), followed by a sharp decline in 2001 ($ 346,000), and followed by a further decline in 2002 (296,000).
99
Exports to the Arab Region Exports to the Arab countries, witnessed an overall decline over the designated period. The total amount exported in 1999 amounted to $ 1,334,048, this was followed by an increase in 2000 ($ 1,603,056), followed by a decline in 2001 ($ 1,043,826). Within this region, Saudi Arabia, Tunisia, and Lebanon are the main importers of Egyptian wood products. Amounts exported to Saudi Arabia in 1999 were reported at $ 771,040, this was followed by a sharp decline in 2000 ($1,199,800), followed by a further decline in 2001 ($ 650,264). The amount exported to Tunisia in 1999 amounted to $ 177,800, this was followed by a decline in 2000 ($ 156,855), followed by a sharp increase in 2001 ($ 190,608). The amount exported to Lebanon amounted to $ 287,199 in 1999; this was followed by a sharp decrease to $ 85,214 in 2000, followed by a further decline in 2001 to 13,708. Exports to North America Exports to North America NAFTA declined over the designated period, the amount of exports in 1999 amounting to $ 390,806, this was followed by a significant rise in exports in 2000 ($ 795,252) which was followed by a decline in 2001 ($ 633,654). Within this region, the United States and Canada are the main importers of Egyptian wood products. Exports to the United States amounting to $ 330,270 in 1999, followed by a sharp increase in 2000 ($706,879), followed by a decline in 2001 (589,564), followed by a drastic decline in 2002 ($ 3,449). Exports to Canada amounted to $ 56,256 in 1999, this was followed by an increase in 2000 ($ 77,994), followed by a sharp decline in 2001 ($ 43,576). Exports to Africa Exports to Africa (excluding Arab countries) declined over the designated period. The amount exported in 1999 amounted $ 1,938, this was followed by a sharp rise in exports in 2000 ($ 8,622), followed by a significant decline in 2001 ($ 1,217). Within this region South Africa and Kenya appear to be the main reported importers of wood products. Exports to Kenya in 1999 were reported to be $ 1,036, this was followed by an increase in 2000 ($ 8,011); the years 2001 and 20002 were reported to not have any amounts of wood products being exported. Exports to South Africa amounted to $ 902 in 1999, this was followed by a decline in 2000 ($ 611), followed by an increase in 2001 ($ 1,217). Exports to Latin America Exports to Latin America declined steadily over the designated period. Total exports to the region were reported to be $ 14,570 in 1999, this was followed by a decline in 2000 ($ 10,026), followed by a sharp decline in 2001 ($1,169). Within this region Argentina and Brazil are the main receivers of exports of Egyptian wood products. Exports to Argentina amounted to $ 2,316 in 1999, this was followed by a considerable increase in 2000 ($ 6,050), followed by sharp decrease in 2001 ($ 1,169). Exports to Brazil were not available for the year 1999, exports in 2000 amounted to $ 1,582, this was followed by a sharp increase in 2001 ($ 2,385).
100
D. Comparison between Egyptian and Foreign Sources of Statistics for Exports of Wood and Wood Products (HS1996 Code # 44)
According to both the Ministry of Foreign trade and the United Nations Statistics Division, Egyptian exports of wood, and wood products have declined between 1999 and 2001, however the figures from both sources display large discrepancies with respects to their presentation of the decline. Statistics obtained from the Ministry of Foreign Trade indicate that exports increased from USS 2.4 million in 1999 to reach US$ 3.6 million in 2000 and US$ 5.8 million in 2001. The United Nations Statistics Division on the other hand indicated that exports decreased from US$4.5 million in 1999 to US$ 4.2 million in 2000 and US$ 3.158 million in 2001. Such discrepancies could be a result of several factors including the fact that the statistics obtained from MOFT were more comprehensive in terms of the countries reported. On the other hand, UNSTATS data included only countries that hold a membership at the United Nations. Furthermore, some of the countries included did not report their statistics for the year 2001. In this context, an analysis on a regional and country level is necessary to come up with a more reliable analysis.
Table 39: Egyptian Exports of Wood by Region, HS1996 Code # 44 UNSTATS & MOFT (US$ 000,000)
Region European Union Europe - Other Asia Arab Countries North America NAFTA Africa Latin America & Other Total 1.948 0.008 0.793 1.334 0.391 0.002 0.019 4.495 99 UNSTATS MOFT 0.440 0.000 0.090 1.290 0.080 0.030 0.470 2.400 2000 UNSTATS 1.176 0.012 0.605 1.603 0.795 0.009 0.033 4.233 MOFT 1.380 0.080 0.220 1.590 0.060 0.010 0.250 3.590 2001 UNSTATS 1.083 0.021 0.349 1.044 0.634 0.001 0.027 3.158 MOFT 1.610 0.070 0.190 1.600 2.080 0.010 0.230 5.790
Graph 45:
Exports of Wood, Wood Products & Charcoal (HS 1996 Code 44) - Comparison UNSTATS Vs. MOFT
6.000
Value US$ 000
5.000 4.000 3.000 2.000 1.000 0.000 99 2000

UNSTATS
MOFT
2001
101
Exports to the EU Looking at the data provided for each region separately, larger discrepancies can be seen with regards to increases and declines in exports from year to year. According to both sources, exports to the European Union declined over the designated period, and this can be seen when we compare the amount exported in 1999 versus the amount exported in 2001. However within the overall decline there are discrepancies between both sources, according to the MOFT, exports to the European Union were US$ 0.44 million in 1999 while the UNSTATS reported total exports at US$ 1.98. In 2000 MOFT reported exports to the EU at US$1.38 million while the UNSTATS reported them at US$ 1.176 million. In 2001 the discrepancy became even larger with MOFT reporting US$ 1.6 million and the UNSTATS reporting US$ 1.1 million. Graph 46:
Egyptian Exports of Wood & Wood Products to the EU - Comparison UNSTATS Vs. MOFT
2.000
Value US$ 000
1.500 1.000 0.500 0.000 99 2000 UNSTATS MOFT 2001
Comparison of Statistics for Main EU Trading Partners Statistics for Cyprus, Greece and the UK reveal that the values for Egyptian exports of wood and wood products as reported by these countries are much higher than the figures provided by Egyptian authorities. Table 40: Comparison of Statistics for Main EU Trading Partners
1999 2000 UNSTATS 431,448 222,838 81,989 MOFT 253,614 126,825 117 2001 UNSTATS 385,533 283,331 9,142 MOFT 192,634 104,454 1,938
Country
Cyprus Greece United Kingdom
UNSTATS 716,703 655,716 96,012
MOFT 442,745 300,806 12,095
102
Graph 47:
Comparison: Exports of Wood & Wood Products to a Selected EU Markets

800,000 700,000 600,000 Value US$ 500,000 400,000 300,000 200,000 100,000 0 UNSTATS 1999 Cyprus Greece MOFT UNSTATS 2000 United Kingdom MOFT UNSTATS 2001 MOFT
According to the Egyptian Ministry of Foreign Trade MOFT exports to Cyprus in 1999, amounted to $ 442,741, this was followed by a decline in 2000 to $ 253,614, followed by a further decline in 2001 ($ 192,634). According to UNSTATS, exports to Cyprus amounted to $ 716,703 in 1999, $ 431,448 in 2000, and $ 385,533 in 2001. Exports to Greece also show inconsistencies, according to the MOFT, Exports to Greece in 1999 amounted to $ 655,716, this was followed by a sharp decline in 2000 ($ 222,838), followed by an increase in 2001 $ 283,331. UNSTATS reveal that exports to Greece in 1999 amounted $ 655,716, this was followed by a sharp decline in 2000 ($ 222,838), followed by an increase in 2001 ($283,331). Both sources present the same trends in exportation however with large number disparities. According to MOFT, the UK imported wood and wood products with the values of US $ 12,095, US$ 81,989 and US$ 1,938 in 1999, 2000 and 2001 respectively. The UNSTATS on the other hand reported the following figures, US$ 96,012 in 1999, US$ 81,989 and US$ 9,142 in 2001.
103
Comparison of Statistics for the Arab Region A comparison of the aggregate figures provided by the UNSTATS and MOFT for the Arab region reveals little discrepancies during 1999 and 2000, with the values of the UNSTATS being slightly higher i.e. US$ 1.33 million and US$ 1.6 million as compared to MOFT's US$ 1.29 million and US$ 1.59 million. This trend is reversed in 2001 where the UNSTATS reports the value of Egyptian Exports at US$ 1 million and MOFT reports US$ 1.6 million. It is important to note however that some Arab countries including Libya which is one of Egypt's main importers of wood and wood products are not included in the UNSTATS figures. If the figures were accounted for in the UNSTATS values, a distinctive discrepancy would be revealed with the UNSTAT aggregates becoming much higher than those provided by the MOFT. Graph 48:
Egyptian Exports of Wood & Wood Products to Arab Countries - Comparison UNSTAT Vs. MOFT
1.800 1.600 1.400 1.200 1.000 0.800 0.600 0.400 0.200 0.000 99 2000
UNSTATS
MOFT
Value US$ 000
2001
Comparison of Statistics for Selected Arab Countries The following table and chart presents a comparison of UNSTATS and MOFT reported export values for selected Arab countries namely Saudi Arabia, Lebanon and Tunisia. An examination of these figures reveals that there are great discrepancies between the values with the UNSTATS numbers being much higher than those provided by the MOFT. For Saudi Arabia, in 1999, UNSTATS reported Egyptian exports of wood and wood products at US$ 771,040 while the MOFT reported exports at US$ 347,516. In 2000, UNSTATS figures were US$ 1,199,800 and MOFT reported only US$ 163,494. Figures for 2001 were US$ 650,264 according to UNSTATS and US$ 185,064 according to the MOFT. Similar discrepancies can be depicted for Lebanon and Tunisia as well, with the UNSTATS reporting values that are much higher than those reported by MOFT. Table 41: Comparison of Statistics for Selected Arab Countries
1999 UNSTATS 771,040 287,199 177,800 2000 UNSTATS 1,199,800 85,214 156,855 2001 UNSTATS 650,264 13,708 190,608
Country
Saudi Arabia Lebanon Tunisia
MOFT 347,516 35,836 23,078
MOFT 163,494 55,832 8,852
MOFT 185,064 9,073 13,983
104
Graph 49:
Comparison of Egyptian Exports of Wood & Wood Products to Selected Arab Markets
1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 UNSTATS 1999
Saudi Arabia
Value US$
MOFT
UNSTATS 2000
Lebanon
MOFT
UNSTATS 2001
MOFT
Tunisia
Comparison of Statistics for the NAFTA Within the NAFTA region, the USA is the only country that imports Egyptian wood and wood products with significant values. A comparison of the figures provided by the UNSTATS and MOFT reveals huge disparities with the UNSTATS reporting higher values (US$ 706,879 in 1999 and US$ 589,564 in 2000 as compared to US$ 81,584 and US$ 49,944 as reported by the MOFT). In 2001 this trend has changed with the UNSTATS reporting only US$ 3,449 and the MOFT reporting US$ 49,944. Table 42: Comparison of Statistics for the NAFTA Country
USA Canada Mexico 1999 UNSTATS 706,879 77,994 10,379 MOFT 81,584 0 N/A 2000 UNSTATS 589,564 43,576 514 MOFT 49,944 5,033 N/A 2001 UNSTATS 3,449 N/A N/A MOFT 2,160,147 N/A N/A
Graph 50:
Comparison of Statistics for Egyptian Exports of Wood & Wood Products to the USA
2,500,000 2,000,000
Value US$
1,500,000 1,000,000 500,000 0 1999

UNSTATS
2000
MOFT
2001
105
3.4.2 Egyptian Exports of Furniture Lightings, Signs, Prefabricated Buildings (HS 1996 Code# 94) A. Egyptian Exports of Wooden Furniture Classified by Product The following table presents data obtained from the CAPMAS and ITP on Egyptian exports of wooden furniture classified by product. The data reveals that during the period of 1999-2002 there has been an overall increase in total exports from US$ 15.1 million in 1999 to US$ 18.4 million in 2002. It is worth noting however that there was a decline in exports in the year 2000 (US$ 14.3 million) and 2001 (US$ 12.8 million). Table 43: Egyptian Exports of Wooden Furniture Classified by Product
Product Code 1999 Product Name Wooden Furniture (Other) Office Furniture Bedroom Furniture Total
Value: US$ 000,000 Quantity: ton Source: CAPMAS & International Trade Point
2000 QTY 4224 4 6851 Value US$ 4.5 0.2 9.6 14.3 QTY 3887 33 7782
2001 Value US$ 1.9 0.2 10.7 12.8 QTY 1497 27 9445
2002 Value US$ 1.9 0.4 16.1 18.4 QTY 1681 348 13701
Value US$ 6.2 0.01 8.9 15.11
9403600000 9403300000 9403500000
A comparison between the reported money value of exported wooden furniture and the quantity exported reveals that the figures are unreasonable. For example, the export value of wooden furniture (HS Code 9403600000) was US$6.2 million in 1999. This value corresponded to exported quantity of 4,224 ton. It follows, that on average, the price of 1 ton of wooden furniture exports is US$ 1,467. This number is very low especially when the cost of production is considered. The same phenomenon can be depicted with other kinds of furniture as well. This discrepancy between the quantity of exports and the money value can be explained by the fact that to evade payment of custom duties, most exporters do not report the actual value of their exports. According to the Chamber of Woodworks, the real value of exports is sometimes 10 times as high as the reported value. An examination of the exportation patterns of specific products reveals that exports of both 'Office furniture' and 'Bedroom furniture' increased steadily over the designated period. Total exports of office furniture increased from US$0.01 million; 4 ton in 1999, to US$ 0.2 million; 33 ton in 2000. In 2001, although exports remained at US$ 0.2 million in terms of money value, the quantity exported decreased to 27 ton. This was followed by an increase to US$ 0.4 million; 348 ton in 2002. Exports of Bedroom furniture on the other hand were estimated at US$8.9 million; 6851 ton in 1999, followed by an increase in 2000 to US$9.6 million; 7,782 ton, followed by another increase in 2001 and 2002 to US$10.7million; 9445 ton and US$ 16.1 million; 13,701 ton respectively. The category of 'Wood furniture Other on the other hand dropped significantly over the period, from US$ 6.2 million; 4224 ton in 1999, to US$ 4.5 million in 2000; 3887 ton, to US$1.9 million; 1497 ton in 2001 US$ US$ 1.9 million, 1681 ton in 2002.It is important to note that the ambiguous presentation of this category makes it difficult to observe the changes in exports with regards to specific sub-categories over time.
106
Graph 51:
Egyptian Exports of Wood Furniture 20
Value US$ 000,000
15 10 5 0 1999 2000 2001 2002
Wooden Furniture (Other)
Office Furniture
Bedroom Furniture
B. Egyptian Exports of Wooden Furniture Classified by country The following table which presents data obtained from CAPMAS and ITP on Egyptian exports of wooden furniture classified according to country of destination reveals that Saudi Arabia and the United States are among Egypt's main export markets. It is worth noting however that export patterns have been different for both countries over the designated period. Exports to Saudi Arabia declined from US$ 2.2 million in 1999 to US$ 1.9 million in 2000, increased to US$ 2.2 million in 2001 and US$ 4.2 million in 2002. Overall there was an increase in the value of exports to Saudi Arabia. Exports to the United States on the other hand decreased from US$ 4.1 million in 1999 to US$ 3.7 million in 2000, followed by another decrease to US$ 3.3 million in 2001. This was followed by an increase to US$ 3.8 million in 2002. A comparison of the figures provided for 1999 and 2002 therefore reveals that exports to the United States have generally declined over the period. Figures provided for Italy show that there has been an increase from US$ 1.2 million in 1999 to US$ 1.7 million in 2000 that was followed by a decline to US$ 1 million in 2001 and an increase to US$ 1.3 million in 2002. A comparison of the values for 1999 and 2002 reveal a slight increase of exports over the designated period. Table 44: Egyptian Exports of Wooden Furniture Classified by country
Country Saudi Arabia USA Italy France Belgium Lebanon United Arab Emirates Canada Australia Kuwait Netherlands Turkey Spain Greece United Kingdom Sudan 1999 2.2 4.1 1.2 0.8 0.2 0.3 0.6 0.2 0.2 0.4 0.3 0.1 0.3 0.3 0.3 0.1 2000 1.9 3.7 1.7 0.7 0.3 0.2 0.5 0.4 0.2 0.5 0.3 0 0.3 0.3 0.4 0.1 2001 2.2 3.3 1 0.9 0.3 0.2 0.6 0.3 0.2 0.3 0.3 0 0.3 0.3 0.3 0.1 2002 4.2 3.8 1.3 1.6 0.7 0.7 0.6 0.5 0.2 0.8 0.3 0 0.6 0.4 0.3 0
107
Country Morrocco Libya Palestine Finland European Union Algeria Bahrain Malta South Africa Germany Tunisia Qatar Yemen Jordan Oman Cyprus Israel Hungary Ireland Austria Angola Total Exports
1999 0.1 1 0.3 0 0 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0 0 0.1 0.1 0.2 0 0 0 0 15
2000 0.1 0.5 0.3 0 0 0.1 0 0.1 0 0.1 0.1 0.2 0 0.1 0.1 0.1 0.1 0 0.1 0 0 14.3
2001 0.1 0.3 0 0 0 0.1 0 0 0 0.1 0.1 0.2 0.1 0.2 0.1 0 0.1 0.1 0.2 0.1 0 12.9
2002 0.2 0.3 0 0.2 0 0.1 0.1 0 0 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0 0 0 0.2 18.4
Source: CAPMAS & Trade International Point
108
C. Egyptian exports of Furniture, Lighting, Signs, Prefabricated Buildings Classified by region (HS 1996 Code # 94) Egyptian Statistics The following table presents data obtained from the Ministry of Foreign Trade on Egyptian exports of furniture, lighting, signs, and prefabricated buildings classified by region. The data reveals that exports have witnessed an overall increase between 1998 and 2002. Total exports increased from US$ 18.31 million in 1998 US$ 19.25 million in 1999. This was followed by a decline to US$ 18.65 million in 2000 followed by a further decline to US$ 16.5 million in 2001. In 2002 however, total exports witnessed a significant increase to US$ 21.62 million. Table 45: Egyptian Exports of Furniture classified by Region HS1996 Code # 94 - Egyptian Statistics Region
European Union Asia (excluding Arab countries) Arab Countries North America - NAFTA Eastern Europe Africa (excluding Arab countries) Latin America Other Total in US $ Source: MOFT
98
4.92 0.34 8.03 3.69 0.43 0.35 0.03 0.52 18.31
99
4.62 0.47 8.65 4.64 0.12 0.3 0.12 0.33 19.25
2000
5.25 0.49 7.55 4.34 0.05 0.55 0.1 0.32 18.65
2001
4.43 0.37 7.2 3.78 0.22 0.19 0.05 0.26 16.5
2002
6.02 0.52 9.57 4.45 0.13 0.49 0.03 0.41 21.62
The largest amounts of this product group are exported to Arab countries followed by the European Union and North America NAFTA. Exports to the Arab countries were reported to increase from US$8.03 million in 1998 to US$8.65 million in 1999, followed by a decline to US$ 7.55 million in 2000 and US$ 7.2 million in 2001. This was followed by a significant increase to US$ 9.57 million in 2002. Exports to the European Union amounted to US$4.92 million in 1998; this was followed by a decline in 1999 to reach US$ 4.62 million, followed by an increase in 2000 to US$ 5.25 million, followed by a decline in 2001 to US$4.43 million, followed by a considerable increase to US$ 6.02 million in 2002. Exports to North America NAFTA amounted to US$ 3.69 million in 1998, increased to US$ 4.64 million in 1999, declined in 2000 to US$ 4.34 million and US$ 3.78 million in 2001. This was followed by an increase to US$ 4.45 million in 2002. Graph 52:
Egyptian Exports of Furniture, Lighting, signs & prefabricates buildings 10
Value US$ 000,000
8 6 4 2 0 98 99 2000 2001 2002
European Union Arab Countries Eastern Europe Latin America
Asia (excluding Arab countries) North America - NAFTA Africa (excluding Arab countries)
109
D. Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Buildings Categorized by Country Egyptian Statistics The following table which presents the values of Egyptian exports of Furniture, Lighting, Signs and Prefabricated buildings has been obtained from the Ministry of Foreign Trade. It is worth pointing out that values were provided in Egyptian L.E. and have been converted into US$ using the exchange rates presented at the end of table 46 to facilitate the analysis process. An examination of the figures reveals that the USA and Saudi Arabia are Egypt's largest export markets for furniture, lighting and prefabricated buildings. Exports to the US totaled US$ 3.5 million, US$ 4.3 million, US$ 3.8 million, US$ 3.5 million and US$ 3.9 million in 1998, 1999, 2001, 2001 and 2002 respectively. Exports to Saudi Arabia increased from US$ 2.7 million in 1998 to US$ 3.4 million in 1999. This was followed by a decrease to US$ 2.8 million in 2000 and significant increases to US$ 3.7 million in 2001 and US$ 4.8 million in 2002. Exports to Italy and UAE are also of considerable significance. In 1998 exports to Italy and UAE were US$1.7 million and US$ 2 million respectively. In 1999 exports to Italy remained the same while exports to the UAE decreased to US$ 0.8 million. In 2000, exports to both countries witnessed an increase with Italy receiving exports totaling US$ 2.1 million and UAE receiving US$0.9 million. The trend was reversed in 2001 with exports to Italy declining to reach US$ 1.1 million and exports to the UAE declining to US$0.86 million. In 2002 exports to Italy picked up slightly to reach US$1.3 million while exports to the UAE continued declining; reaching US$0.77 million. Table 46: Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Buildings
Country Albania Algeria Angola Argentine Armenia Australia Austria Azerbaijan Bahrain Bangladesh Belgium Brazil Brunei Bulgaria Burundi Cameron Canada Chad Chile China Colombia Congo Cote D'Ivoir Croatia 1998 79,639 18,450 4,865 173,392 53,712 4,000 465,166 255,332 26,779 2,000 1,300 251,049 4,107 1,007 318 588 1,350 71,301 5,580 1999 33,579 220,838 2000 1,004 93,916 31,568 502 186,722 26,568 332 97,177 5,744 333,211 34,938 1,185 43,125 57,581 465,686 652 698 5,979 498 14,302 500 301 412 532 186 3,311 300 21,772 3,000 2001 138,135 13,147 5,662 189,332 82,617 78,691 337,018 14,891 7,016 10,446 932 3,609 300,807 1,721 2002 128,642 192,736 6,248 1,085 214,263 7,602 5,000 97,280 811,563 11,545 27,140 2,904 3,000 3,219 504,244
180,702 26,192 391,178 225,270 44,329 1,594 1,525 257,883
110
Cuba Country Cyprus Czech Republic Dagestan Democratic Congo Denmark Djibouti Dominica Eritrea Estonia Ethiopia EU Finland France Gabon Genie Georgia Germany Ghana Gibraltar Greece Holland Hong Kong Hungary India Indonesia Iran Iraq Ireland Israel Italy Japan Jordan Kazakhstan Kenya Kuwait Lebanon Liberia Libya Lithuania Malaysia Mali Malta Mauritania Mauritius Mexico Monaco 1998 149,127 3,031 1999 110,447 1,121 2000 126,404 2001 26,877 12,639
11,520 2002 111,001 250 300 2,084 77,475 8,520 27,080 4,482 2,455 1,812 120 36,635 2,025 766,419 7,310 2,220 5,935 156,035 3,139 405,196 606,672 9,173 16,556 600 1,913 8,532 28,649 986,890 599 12,305 5,162 112,515 12,849 344,054 442,282 2,920 5,284 13,949 4,789 20,058 174,905 1,738,042 3,929 123,250 7,495 36,891 512,202 472,184 1,116,607 5,518 72,891 598 65,652 2,992 27,240 823,998 16,998 15,704 117,568 80,293 341,790 506,426 46,982 967,730 7,421 4,063 9,872 147,221 4,437 8,442 171,495 1,673,074 1,186 8,773 13,836 172,150 3,368 413,525 439,662 252,853 40,718 2,591 43,591 11,950 149,783 1,372,313 8,980 235,848 20,363 1,074,200 713,481 535,570 9,562 7,550 46,675 150,544 3,110 1,468 64,498 1,198 11,000 14,679 2,795 1,206 20,821 6,300
38,198 193,107 1,707,933 18,456 74,083 5,706 559,366 409,582 351,635 30,282 294 70,370 2,600
2,445 12,511 93,685 20,380 99,386 174,690 2,099,613 5,976 266,656 14,292 16,433 521,213 275,254 7,870 526,011 7,611 3,703 53,824 34,190 34,701 57,135
300,083 440,575 23,936 133,984 279 4,391 861 220,500 67,891 1,182,167 2,393 332,992
502,803 231,889 559 398,226 3,840 46,792 110,282 26,491
111
Morocco Country Mozambique New Zealand Nigeria Norway Oman Palestine Panama Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Senegal Serbia Singapore Slovakia Slovenia South Africa South Korea Spain Sri Leon Sudan Sweden Switzerland Syria Taiwan Tanzania Thailand Tobago Tunisia Turkey UAE Uganda UK Ukraine Uruguay USA Uzbekistan Yemen Yugoslavia Zimbabwe Total Exchange rate: 1999 2000 2001
103,664 1998
124,349 1999
109,219 2000
108,984 2001 2,199 5,525 1,084 627 127,180 53,835 60,102 186 223,909 2,397 29,698 3,688,654 1,040 587 326 33,244 174,537 358,012 199,801 1,567 17,577 62,452 522 7,439 864 133,680 21,081 859,554 1,025 386,076 1,944 3,449,138 115,849 21,166 16,612,409
184,934 2002
11,091 91,920 18,031 217,844 60,375 17,000 16,552 1,740 531,772 56,095 290,634 2,688,335 2,406 1,501 360 109,949 22,678 266,149 65,992 29,552 42,559 42,441 22,600 26,994 7,930 318,048 14,633 1,991,195 1,864 572,355 23,520 3,453,772 10,438 87,461 2,800 18,362,070 I US$ = L.E. 3.40803 L.E. 3.4837 L.E. 3.9825
10,005 19,204 9,034 105,420 536,919 2,144 36,670 141 4,141 414,149 43,757 8,634 3,359,082 19,507 6,878 22,822 9,754 129,613 35,224 286,643 126,977 44,771 5,066 28,352 20,103 9,966 229,316 135,309 766,441 31,379 334,576 2,591 3,977 4,319,166 115,238 692 15,053 19,256,346
1,793 31,426 2,139 129,058 363,386 5,003 52,333 3,664 318,627 896 12,698 2,774,956 12,900 88,833
14,145 30,099 154,782 26,485 19,652 2,500 12,588 300,857 8,079 18,652 4,800,475 1,100 1,429 1,722 19,879 27,401 8,750 598,293 144,543 2,145 10,798 15,110 24,744 5,600 3,000 1,549 104,466 14,344 771,374 310,792
187,484 1,461 279,791 4,889 562,028 62,904 5,681 17,944 36,084 7,675
205,374 6,523 939,750 398,676
3,772,819 214,458 8,358 18,454,163
3,943,784 236,986 4,200 21,622,712
112
2002
L.E. 4.52
E. Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Buildings Classified by Region Foreign Statistics The following table which presents Egyptian exports of furniture, lighting, signs and prefabricated building (HS 1996 Code # 94) from a foreign perspective has been compiled from the United Nations Statistics Division database which includes information about the flows of trade between UN member states. An examination of the data reveals that total exports have increased between 1998 and 2001. In 1998 total exports amounted to $ 48,925,823, this was followed by an increase in 1999 to $ 56,758,604, followed by an increase in 2000 to $ 57,266,055, followed by a slight decline in 2001 to $ 56,357,316. It is worth noting that a trend for total exports in 2002 can not be detected due to the fact that a considerable number of countries did not report their trade statistics for that year. Table 47: Egyptian Exports of Furniture (HS1996 Code # 94)
Region
European Union
Austria Belgium Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Malta Netherlands Portugal Slovenia Spain Sweden United Kingdom
1998 17,755,268 244,225 2,703,176 161,974 116,844 82,523 17,121 2,165,602 743,000 893,804 25,000 34,857 4,289,444 33,059 1,819,165 67,461 12,650 2,440,822 58,030 1,846,511 169,834 25,588 3,444 641 37,444 3,000 1,793 28,287 9,183 60,454 761,114 96,254 10,270
1999 19,450,740 228,231 2,870,007 65,306 204,512 0 20,818 1,628,754 1,485,522 848,404 10,000 3,641 5,230,452 74,819 2,231,364 40,902 8,461 2,970,098 107,782 1,421,667 1,234,939 1,079,767 615 10,491 16,118 4,000 879 47,389 0 75,680 1,157,774 0 32,835
2000 19,585,464 296,279 2,401,514 247,470 170,404 835 145,217 2,203,388 1,086,101 567,781 0 98,314 5,003,180 15,301 2,838,612 41,262 13,152 3,281,266 115,163 1,060,225 184,532 0 36,606 885 1,132 1,000 0 116,431 0 28,478 1,662,801 82,395 7,223
2001 19,754,815 532,384 2,449,728 316,211 106,825 0 21,529 2,833,888 1,470,402 462,179 26,000 83,214 4,498,410 16,525 1,954,317 45,074 8,367 3,420,431 4,463 1,504,868 109,965 0 0 0 12,178 4,000 30,723 32,210 0 30,854 1,684,469 37,220 55,227
2002
474,354 60,683 39,259 3,423,835
4,014,986
1,697,345 166,187 20,464
Europe(Other)
Albania Croatia Iceland Norway Romania Russia Switzerland Macedonia Turkey
43,701 102,022 748,006

China India
113
Indonesia Israel
0 166,000
5,002 375,000 1999 0 36,369 56,380 35,899 589,736 26,553 5,411,535 12,280 N/A 0 1,704,549 146,995 138024 N/A 3,320,441 89,246 28,422,449 1,745,309 40,126 26,637,014 257,127 53,534 17,914 26,337 135,129 8,496 15,717 194,450 38,157 0 149,009 1,815 1,299 4,170 629,590 591,359 38,231
4,454 401,000 2000 8,568 65,410 108,077 50,447 935,227 0 5,552,713 64,601 95,330 8,568 1,475,349 181,024 16,515 N/A 3,566,880 144,446 29,305,619 1,743,996 108,463 27,453,160 306,805 64,871 37,832 33,516 165,100 3,117 2,369 116,136 0 0 98,071 947 16,449 669 551,985 522,532 29,453
0 272,000 2001 30,549 17,636 471,125 16,675 662,698 121,339 7,719,797 N/A 220,888 30,549 1,957,904 218,562 292,265 894,825 4,010,793 94,011 25,593,026 1,584,766 79,420 23,928,840 876,816 0 399,875 335,467 51,052 79,888 10,534 178,406 12,907 0 159,780 792 2,375 2,552 440,022 380,489 59,533
83,000 2002 24,495
Region
Japan Malaysia Philippines Korea Singapore Thailand
1998 42,737 30,360 54,269 19,013 322,588 19,623 5,308,894 15,388 N/A 42,737 1,430,520 150,121 252939 N/A 3,238,640 178,549 24,131,708 1,445,365 19,577 22,666,766 159,108 1,826 1,178 29,389 94,676 15,529 16,510 300,309 28,964 34,136 214,195 7,792 13,409 1,813 339,588 296,279 43,309
640,511 0
Arab Countries
Algeria Bahrain Jordan Lebanon Morocco Oman Qatar Saudi Arabia Tunisia

Canada Mexico United States
23,527,587 1,721,387 21,806,200 390,763

Kenya Mauritius Senegal South Africa Tanzania Uganda
390,763
Latin America
Argentina Bolivia Brazil Chile Colombia Ecuador
Australia
Australia New Zealand
Total in US $
48,925,823
56,758,604 57,266,055 56,357,316 34,543,005
114
Graph 53:
Egyptian Exports of Furniture (HS1996 Code # 94)
US$ 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 98
European Union Asia (excluding Arab countries) North America - NAFTA Latin America Total in US $
99
2000
2001
Europe - Other Arab Countries Africa (excluding Arab countries) Other
As can be depicted from the graph presented above, the largest amount of exports goes to the European Union followed by North America- NAFTA followed by Arab countries. Exports to the EU Exports to the European Union witnessed a steady increase from $ 17,755,268 in 1998 to $ 19,450,740 in 1999, $ 19,585,464 in 2000 and US$ 19,754,815 in 2001. Within the EU, the countries receiving the largest amounts of Egyptian exports were Italy and Spain. Exports to Italy declined overall throughout the period. An annual examination reveals that exports increased from $ 4,289,444 in 1998 $ 5,230,452 in 1999. This was followed by a decline to $ 5,003,180 in 2000, $ 498,410 in 2001 and $ $ 4,014,986 in 2002. Exports to Spain on the other hand, increased throughout the period, in 1998 exports amounted to $ 2,440,822, this was followed by an increase in 1999 to $ 2,970, 098, followed by a considerable increase in 2000 to $ 3,281,266, followed by a further increase in 2001 to $ 3,420,431. Exports to North America NAFTA Exports to North America NAFTA amounted to $ 24,131,708 in 1998, this was followed by an increase in 1999 to $ 28,422, 448, followed by another increase in 2000 to 29,305,619, followed by a decrease in 2001 to $ 25,593,026, followed by a further decline in 2002 to $ 23,527,587. Within this region, the largest amount of exports goes to the United States. In 1998, exports to the US amounted to $ 22,666,766; this was followed by an increase in 1999 to $ 26,637,014, followed by another increase in 2000 to $ 27,453,160, followed by a considerable decline in 2001 and 2002 to $ 23,928,840 and $ 21,806,200 respectively. Exports to Arab countries Exports to Arab countries amounted to $ 5,308,894 in 1998; this was followed by considerable increases to $ 5,411,535, $5,552,713, followed $ 7,719,797 in 1999, 2000 and 2001 respectively. Within this region the largest amount of exports goes to Saudi Arabia. Overall, amounts of exports to Saudi Arabia have increased throughout the period. In 1998, exports amounted to $ 3,238,640; this was followed by an increase in 1999 to $ 3,320,441, followed by another increase in 2000 to $ 3,566,880. In 2001 exports to Saudi Arabia went further up to reach $ 4,010,793. 115
F. Comparison between Egyptian and Foreign Sources of Statistics for Exports of Furniture, Lighting, Signs, Prefabricated Buildings (HS1996 Code # 94) The following table presents a comparison between the data provided by the Ministry of Foreign Trade and the United Nations Statistics Division on Egyptian exports of Furniture, Lighting, Signs and Prefabricated Buildings classified by Region. The comparison reveals large discrepancies between the sources not only in terms of the figures provided for each region, but also in terms of the general pattern of exportation as a whole. UNSTATS statistics for total exports are higher than those provided by MOFT by 210 % in 1999, 107% in 2000 and 242% in 2001. Table 48: Comparison between Egyptian and Foreign Sources of Statistics for Exports of Furniture, lightings, signs & prefabricated buildings (HS1996 Code # 94) Region
European Union Europe - Other Asia (excluding Arab countries) Arab Countries North America NAFTA Africa (excluding Arab countries) Latin America & Other
1999
UNSTATS 19.451 1.419 1.158 5.412 28.422 0.257 0.824 56.943 MOFT 4.62 0.12 0.47 8.65 4.64 0.3 0.12 18.920
2000
UNSTATS 19.585 0.294 1.662 5.552 29.306 0.307 0.668 57.374 MOFT 5.25 0.05 0.49 7.55 4.34 0.55 0.1 18.330
2001
UNSTATS 17.755 0.276 1.684 7.719 25.593 0.877 0.618 54.522 MOFT 4.43 0.22 0.37 7.2 3.78 0.19 0.05 16.240
Total
Graph 54: Comparison of Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Buildings (HS 1996 Code 94) - UNSTATS Vs. MOFT
60
Value US$ 000,000
50 40 30 20 10 0 99
UNSTATS
2000
MOFT
2001
Comparison on a Regional & By Country Level 116
Exports to the EU Large number disparities can be observed in the figures provided by both sources for amounts of exports to the European Union throughout the designated period. In 1999, amounts exports to the EU according to the UNSTATS amounted to US$ 19,451,000, this was followed by an increase in 2000 to US$ 19,585,000 followed a decline in 2001 to US$ $ 17,755,000. Exports to the EU according to the MOFT on the other hand, were much lower, in 1999 exports amounted to $ 4,620,000, this was followed an increase in 2000 to $ 5,250,000, followed by a decrease in 2001 to $ 4,430,000. Graph 55:
Comparison of Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Buildings (HS 1996 Code 94) to the EU - UNSTATS Vs. MOFT
20
Value US$ 000,000
15 10 5 0
99 2000
UNSTATS
MOFT
2001
Exports to NAFTA According to the UNSTATS, exports to North America NAFTA amounted to $28,422,000 in 1999, $ 29,306,000 in 2000 and $ 25,593,000 2001. Exports to North America according to the MOFT on the other hand were US$4,640,000, US$ 4,340,000 and US$ 3,780,000 in 1999, 2000 and 2001 respectively. Graph 56:
Comparison of Exports of Furniture, Lighting, Signs, Prefabricated Building to NAFTA - UNSTATS Vs. MOFT
30
Value US$ 000,000
20 10 0 99 2000
UNSTATS
2001
MOFT
117
Exports to the Arab countries

Exports to the Arab countries on the other hand illustrate a different trend, with the statistics provided by MOFT being much higher. This can be explained however by the fact that several Arab countries did not report their trade flows to the UN. Such countries include some of Egypt's main export markets for furniture including Libya, Sudan, Bahrain and UAE. in 1999 according to UNSTATS exports amounted to $ 5,412,000 this was followed by an increase in 2000 to$ 5,552,000, followed by an increase in 2001 to 7,719,000. Exports to the Arab countries according to the MOFT in 1999 amounted to $ 8,650,000, this was followed by an decline in 2000 to $ 7,550,000, followed by a further decline in 2001 to $ 7,200,000.
Graph 57: Statistics for Egyptian Exports of Furniture, Prefabricated Buildings (HS 1996 Code 94) to the Arab Region - UNSTATS Vs. MOFT
10
Value US$000,000
5 0 99
UNSTATS
2000
MOFT
2001
An examination of the values provided by the abovementioned sources on a by country basis reveals a different trend with the values provided by the UNSTATS being considerably higher than those provided by MOFT. For Example, according to the UNSTATS, Egyptian exports to Lebanon were US$1.4 million, US$ 1.7 million, US$ 1.5 million and US$ 2 million in 1998, 1999, 2000 and 2001 respectively. The statistics provided by MOFT on the other hand reported US$0.5 million in 1998, US$ 0.5 million in 1999, US$0.3 million in 2000 and US$ 0.2 million in 2001. A similar trend can be observed for Saudi Arabia.
Table 49: Comparison of Egyptian Exports Statistics for Furniture, Lighting, Signs & Prefabricated Building to Lebanon & Saudi Arabia
1998 Country Lebanon Saudi Arabia UNSTATS 1,430,520 3,238,640 MOFT 409,582 2,688,335 1999 UNSTATS 1,704,549 3,320,441 MOFT 472,184 3,359,082 2000 UNSTATS 1,475,349 3,566,880 MOFT 275,254 2,774,956 2001 UNSTATS 1,957,904 4,010,793 MOFT 231,889 3,688,654
Graph 58: Comparison of Exports Statistics for Furniture & Pre fabricate d Buildings to Sele cte d Arab Countries UNSTATS Vs. M OFT
Value US$
4,000,000 3,000,000 2,000,000 1,000,000
MOFT
MOFT
MOFT
UNSTATS
UNSTATS
UNSTATS
1998
1999
2000
Lebanon
Saudi Arabia
UNSTATS
2001
MOFT
118
3.5 Observations & Recommendations
119
3.5 Observations & Recommendations Observations Having gone through a process of information gathering, it has been realized that: 1- While the Ministry of Foreign Trade issues publications tackling the Egyptian trade flows on both the aggregate and commodity level, statistics are originally obtained from the Central Agency for Public Mobilization and Statistics CAPMAS which is the only agency officially responsible for compiling and publishing statistics and data in Egypt. 2- The data published by CAMPAS covering trade flows is initially obtained from the General Tax Authority Ministry of Finance A general examination of the statistics gathered on imports and exports reveals the following: 1- The system used by the Customs and Tax Authorities and CAPMAS are unreliable, raising questions regarding the accuracy of the data being published. As a matter of fact, in his book titled "Information Technology in Egypt"3 Dr. Gamal El Ghetas raised the issue of international coding and classification. Dr. Ghetas claims that the Egyptian Customs and Tax Authority do not abide with the international coding and classification system developed by the United Nationswhile documenting trade flows. As a consequence, statistics forwarded to the CAPMAS for the sake of processing and publishing tends to be lacking in terms of reliability, making statistics published by government authorities inaccurate and unrepresentative of actual trade flows (Ghetas, 173). 2- A comparison between Egyptian and International sources statistics on Egyptian trade in wood and wood products (HS 1996 code 44) and furniture and prefabricated buildings (HS 1996 code 94) has indeed revealed great discrepancies with foreign statistics usually presenting Egyptian imports and exports to be much higher than the statistics provided by Egyptian authorities. These discrepancies could also be a result of one or a combination of the following factors: a. Under invoicing by exporters and importers b. Price adjustments at the customs authorities of importing countries which result in number discrepancies with the official statistics produced by the exporting countries c. Inaccurate documentation by the government authorities
Recommendations Measures should be taken by the Egyptian government to improve the process of information gathering and processing. This in turn entails the following: 1- the development of a documentation system at the customs and tax authority that is in line with international standards and practices formulated by the United Nations 2- the provision of technical and financial support to the CAPMAS in order to enable them to upgrade the information gathering and processing techniques being utilized.
El Ghetas, Gamal, "Information Technology in Egypt" Dar El Sherouk, 2003
120
4. Labor
121
4.1 Main Sources of Information

Information covering the labor force has been obtained from the following organizations: The Ministry of Industry and Technological Development The Ministry of Local Development The Ministry of Education The Ministry of Higher Education The Ministry of Insurance and Social Securities
4.2 Summary of Findings

Workers in the Furniture and Woodworks Industrial entities the Ministry of Industry and Technological Development According to the General Organization for Industrialization GOFI, the total number of workers in the sector is 34,765, with Cairo (14,881 workers) having the largest number followed by Giza (4,637 workers) and Alexandria (3,375 workers). According to data obtained from the Industrial Registry on the total number of workers in the furniture and woodworking industries, is 10,094 workers of which the total number of workers employed by furniture factories (code 3321) is 6,571, almost two times as large as the number of workers in factories registered as woodworks producers (code 3311) which amounted to 3,523. Furthermore, Sharkeya has the largest number of workers in both categories totaling 6,412 workers. Cairo, which ranks second, has a total number of workers of 3,211. Damietta on the other hand has a total of 1600 workers. A comparison between the data reveals very large disparities between the numbers, with the figures obtained from GOFI appearing to be much larger than those provided by the Industrial Registry. Figures provided for Cairo and Alexandria are good examples for these discrepancies. GOFI reported 14,881 workers in Cairo while the Industrial Registry reported 3,211, revealing a difference of 11,670 workers. The numbers provided for Alexandria by GOFI is 3,375 workers while the Industrial Registry reported 948 workers; a difference of 2427 workers between the two sources. These inconsistencies may be attributed to the fact that GOFI's statistics are based on a field survey conducted early this year. The Industrial Registry database on the other hand includes the number of workers declared by the factories during their application for a registration with the industrial registry. It is not clear whether the Industrial Registry undertakes a regular process of updating statistics concerning entities that are already registered. It can therefore be concluded that the data obtained from GOFI is more comprehensive than that provided by the Industrial Registry. Workers registered with Furniture and &Woodworks Cooperatives Ministry of Local Development Statistics The total number of workers employed by workshops operating in Egypt is 204,052. The hierarchy in terms of the size of labor employed within each governorates in descending order is Damietta (56,174 workers), Cairo (32,448 workers), Giza (14,928 workers) followed by Dakahleya (14,499 workers), Alexandria (11,607 workers), Gharbeya (10,630 workers) and Sharkeya (10,387 workers).
122
Estimation for the Total Number of Workers in the Furniture and Woodworks Industry Interviews with owners of factories and workshops have revealed that on average each woodworks factory or workshop requires at least 5 workers in order to operate effectively. Furthermore, there is a considerable number of medium sized and large factories that employ larger numbers of workers (15 to over 100 employees). Based on the calculation made by the project team, the total number of furniture and woodworks entities was estimated to be 193,725. It therefore follows that the number of labor employed by the sector is at least 968,625 (number of entities x 5 workers).
Graduates of Industrial Schools affiliated to the Ministry of Education The total number of graduates from industrial schools of relevance to the furniture and woodworks industry increased from 90,959 in 1998 to 92,476 in 1999 and 94,072 in 2000. This was followed by a decrease to 91,786 in 2001 to be followed by a significant increase to 95,289 in 2002. Trainees in Vocational Training Centers Overall the number of trainees in carpentry and furniture (5,989) is much larger than the number for trainees in inlaying and finishing (858). Furthermore, the total number of trainees has been generally declining with few fluctuations in the middle. In total, the number of trainees declined from 350 in 1995-1996 to 320 in 1996-1997. This was followed by a dramatic decline to 15 trainees 1997-1998. The year 1998-1999 saw an increase in the total number of trainees to 257, followed by a decline in 1999-2000 to 248, followed by steady declines onwards until 2002 (2000-2001 231 trainees, 2001-2002 195 trainees). The year 2002-2003 saw a slight increase to 209 trainees. Graduates of the faculty of Applied Arts Interior Design and Furniture Section The total number of graduates from the Interior Design and Furniture Section declined from 360 in 1999-2000 and 2000 2001 to 260 in 2001-2002 and 155 in 2002-2003. The number of graduates is expected to decline even more to reach 75 in 2003-2004. The decrease in the number of graduates is partly a result of changes in the education policy (the cancellation of grade 6 in primary school during the 1980s which lead to an overall increase in the number of secondary school and university graduates during the late 1990s and early 2000s.
123
4.3 The Number of Workers in the Furniture and Woodworks Industry 4.3.1 Workers in the Furniture and Woodworks Industrial Entities the General Organization for Industrialization - GOFI The following table presents information obtained from the General Organization for Industrialization (GOFI) on the number of workers in the furniture and woodworks industrial sector classified by geographic location. The data reveals that the total number of workers in the sector is 34,765, with Cairo (14,881 workers) having the largest number followed by Giza (4,637 workers) and Alexandria (3,375 workers). While this information provides an overall idea of the size of the labor force in terms of the number of workers employed by industrial establishments, it can not be used effectively for measuring the growth rate since the year in which the workers were registered in is not available. Table 50: Number of Workers Classified by Geographic Location - GOFI
Governorate Cairo Giza Alexandria Sharkeya Damietta Qaloubeya Gharbeya Dakahleya Other Total Source: GOFI Number of workers 14881 4637 3375 3295 2342 1806 1615 463 2351 34765 % of Total 0.43 0.13 0.10 0.09 0.07 0.05 0.05 0.01 0.07 1.00
Graph 59:
Geographic Distribution of Workers in the Furniture & Woodworks Industrial Entities
35000
34765
30000
Number of workers
25000
20000
15000
14881
10000
5000
4637
3375
3295
2342
1806
1615 463
2351
0
Sh ark ey a Ca iro Gh arb ey a Da mie tta A le xa nd ria Qa lou be ya Da kah ley Oth er To tal Giz a a
Governorate
124
4.3.2 The Number of Workers in the Furniture and Woodworks Industrial Entities the Industrial Registry The following table presents data obtained from the Industrial Registry on the number of workers in the furniture and woodworking industries. The data is divided into categories namely workers employed by woodworks companies code 3311 and workers employed by furniture companies code 3321. The total number for both categories (10,094 workers) is very low, especially when the size of the sector in terms of number of entities and production capacity are considered. This number however could be explained by the fact, that for various reasons, most factories are reluctant to declare the actual number of employees. Table 51: The Number of Workers in the Furniture and Woodworks Industrial entities Registered at Industrial Registry
Governorate Sharkeya Cairo Damietta Giza Alexandria Qaloubeya Dakahleya Port Said Kafr Al-Sheikh Gharbeya Monofeya Beheira Ismailia Beni Seuif Fayoum Menia Asiout Sohag Qena Aswan Red Sea North Sinai Total Industry Code 3311 817 675 679 475 479 144 229 84 31 294 3 26 104 7 13 39 142 22 19 19 19 20 3523 3321 5595 2536 921 1113 469 696 94 68 2 241 3 74 17 15 66 154 93 2 6412 3211 1600 1588 948 840 323 152 33 535 6 100 121 7 28 105 296 115 21 19 19 27 10094 Total
7 6571
An examination of the data also reveals that the total number of workers employed by furniture factories (code 3321) is 6571, almost two times as large as the number of workers in factories registered as woodworks producers (code 3311) which amounted for 3523. Furthermore, Sharkeya has the largest number of workers in both categories totaling 6,412 workers of which 5,595 are employed by furniture factories (code 3321) and 817 are employed by woodworks factories (code 3311). Cairo, which ranks second, has a total number of workers of 3211 of which 2,536 are employed by furniture firms and 675 are 125
employed by woodworks firms. Damietta on the other hand has a total of 1600 workers of which 921 are employed by furniture factories and 679 employed by woodworks factories. Graph 60:
Geographic Distribution of Woodworking industries Labour (Industry Code: 3311 & 3321) - Industrial Registry
8000 7000
Number of workers
6000 5000 4000 3000 2000 1000 0

Ca iro Da mie tta Giz a A le x an dria Qa lou bey a Da kah ley Por a t Ka f r A Said l Gh arb Sh ey a Mo nof ey a Be hei ra Is m ailia Be ni S euif Fay oum Me nia As iou t So hag Qe na As wa n Re dS ea No rth Sin ai Sh ark ey a
Governorate
3311
3321
126
4.3.3 Comparison between the Figures for Labor Provided by GOFI and the Industrial Registry The table below presents a comparison between the information obtained from the General Organization for Industrialization (GOFI) and the Industrial Registry for the total number of workers in the furniture and woodworking industries within each governorate. Table 52: Comparison between the Figures for Labor GOFI vs. the Industrial Registry
Governorate Cairo Giza Alexandria Sharkeya Damietta Qaloubeya Gharbeya Dakahleya Other Total GOFI 14881 4637 3375 3295 2342 1806 1615 463 2351 34765 Industrial Registry 3211 1588 948 6412 1600 840 535 323 1049 16506 Discrepancies 11670 3049 2427 -3117 742 966 1080 140 1302 18259
A comparison between the data reveals very large disparities between the numbers, with the figures obtained from GOFI appearing to be much larger than those provided by the Industrial Registry. Examples are the figures given for Cairo and Alexandria. GOFI reported 14,881 workers in Cairo, while the Industrial Registry reported 3,211, revealing a difference of 11,670 workers. The number provided for Alexandria by GOFI is 3,375 workers while the Industrial Registry reported 948 workers; are difference of 2427 workers. These discrepancies may be attributed to the fact that GOFI's statistics are based on a field survey conducted during the first quarter of 2003. The Industrial Registry database on the other hand includes the number of workers declared by the factories during their application for a registration with the industrial registry. It is not clear whether the Industrial Registry undertakes a regular process for updating the statistics concerning entities that are already registered. It can therefore be concluded that the data obtained from GOFI is more comprehensive than that provided by the Industrial Registry. Graph 61:
Discrepancies between size of labour force between GOFI and the Industrial Registry
35000 30000 25000 20000 15000 10000 5000 0
Number of workers
Gi za Al ex an dr ia Sh ar ke ya Da mi et ta Qa lou be ya Gh ar be ya Da ka hle ya
Ca iro
Governorate
GOFI
Industrial Registry
Ot he r
To tal
127
4.3.4 Number of Workers registered with Furniture and &Woodworks Cooperatives Ministry of Local Development Statistics The table presented below presents the numbers of workers registered at the furniture and woodworks workshops that are registered with the furniture and woodworks cooperatives Ministry of Local Development. An examination of the information reveals that the total number of workers employed by workshops operating in Egypt is 204,052. Furthermore, the hierarchy in terms of the number of labor employed within each governorate in descending order is Damietta (56,174 workers), Cairo (32,448 workers), Giza (14,928 workers) followed by Dakahleya (14,499 workers), Alexandria (11,607 workers), Gharbeya (10,630 workers) and Sharkeya (10,387 workers). Table 53: Number of Workers Registered with Furniture & Woodworks Cooperatives
Governorate Dammieta Cairo Giza Dakahleya Alexandria Gharbeya Sharkeya Qalubeya El Beheira El Monofeya Fayoum Kafr El Sheikh Menya Sohag Assuit Qena Beni Sueif Ismalia Aswan Suez Other Total Source: Ministry of Local Development No. of Workers 56,174 32,448 14,928 14,499 11,607 10,630 10,387 9,364 7,113 6,291 5,119 4,499 4,215 3,071 2,773 2,401 1,728 1,412 1,356 1,140 2,897 204,052
Graph 62:
Number of Workers Registered with Furniture & Woodworks Cooperatives
A ssuit; 2,773 Kaf r E l Sheikh; 4,499 Fayoum; 5,119 E l Monof eya; 6,291 Beni Sueif ; 1,728 Asw an; 1,356 Suez; 1,140 Qena; 2,401 Sohag; 3,071 Other; 2,897 Ismalia; 1,412 Dammieta; 56,174
Menya; 4,215
E l Beheira; 7,113
Qalubeya; 9,364
Sharkeya; 10,387 Gharbeya; 10,630 Alexandria; 11,607 Dakahleya; 14,499 Giza; 14,928 Cairo; 32,448
128
4.3.5 Furniture and Woodworking Entities and Workers Registered at the Ministry of Insurance and Social Securities. The following table illustrates the number of furniture and woodworks companies that have applied for registration with the Ministry of Insurance and Social Affairs over the period 1998 2003. The table also shows the number of employees and workers applying for insurance and social securities. Table 54: No. of Furniture & Woodworks Entities and Workers Registered at the Ministry of Insurance & Social Securities
Year of Registry 1998 1999 2000 2001 2002 2003 No. of Entities 1443 1431 1235 1086 851 347 No. of Male Employees 2523 2467 1977 1714 1107 349 No. of Female employees 322 361 330 294 221 74 Total No. of Employees 2845 2828 2307 2008 1328 423
An examination of the data reveals that the total number of entities applying for registration with the Ministry of Insurance and Social Securities has been declining over the years; from 1,443 in 1998 to 1,431 in 1999, 1235 in 2000, 1,086 in 2001, 851 in 2002 and 347 in 2003. The same trend can be detected for the number of workers being registered. The total number fell from 2,845 in 1998 to 2,828 in 1999, 2,307 in 2000, 2,008 in 2001, 1,328 in 2002 and 423 in 2003. Furthermore, according to the data, on average each newly registered establishment employs 1.8 workers. This number is not a good representation of the actual size of furniture and woodworks establishments, the smallest of which usually require at least 3 workers to operate. The project team was also unable to obtain statistics for the total number of entities and registered workers. This is due to the fact that the data provided does not include the number of previously registered entities (before 1998) that are maintaining their registration with the Ministry of Insurance and Social Securities. Graph 63:
No. of Furniture & Woodworks Entities and Workers Registered at the Ministry of Insurance & Social Securities
3000 2500 2000
2845
2828 2307 2008
Number
1443
1500 1000 500 0 1998
1431
1235
1328 1086 851 347 423
1999
2000
2001
2002
2003
No. of Entities
Total No. of Employees
129
Estimation of the Total Number of Workers Employed in the Sector The figures presented in the foregoing pages illustrate the statistics available within the Egyptian governmental organizations regarding the number of registered workers employed by the furniture and wood works sector. As mentioned previously, the General Organization for Industrialization indicates that there are 34,765 workers employed by the 2,503 factories recognized by GOFI as industrial establishments. It thus follows, that on average, the number of employees declared by each factory is 14 employees and workers. Figures provided by the Ministry of Local Development indicate that there are 204,052 workers employed in the 89,612 workshops that are registered with furniture and woodworks cooperatives i.e. an average of 2 workers in each workshop. Table 55: Number of Workers Registered with GOFI and the Ministry of Local Development
Source GOFI Ministry of Local Development Entities 2,503 89,612 Labor 34,765 204,052 Labor/Entity 14 2
Interviews with owners of factories and workshops however have revealed that on average each woodworks factory requires at least 5 workers in order to operate effectively. Furthermore, there is a considerable number of medium sized and large factories that employ larger numbers of workers (15 to over 100 employees). Based on the calculation reached in section 2.13.2 on the number of woodworks and furniture entities, the total number of entities was estimated to be 193,725. It therefore follows that the number of labor employed by the sector is at least 968,625. Estimated Number of Entities x Minimum Number of Workers Required for Operation 193,725 entities x 5 workers = 968,625
130
4.4 Number of Skilled Workers and Graduates with Training of Relevance to the Furniture and Woodworks Industry 4.4.1 Number of Technical Schools classified by Geographic location- CAPMAS The data in the following table presents information obtained from the CAPMAS on the number of technical schools providing training in areas related to the furniture and woodworks industry classified by geographic location. Of these activities spinning and weaving have the largest number of schools (723 schools) followed by carpentry (256 schools), building & construction (155) and leather (41). The governorates with the largest total number of schools in descending order are Gharbeya (129 schools), Cairo (89 schools), Kafr El Sheikh (79 schools), Alexandria (79 schools) and Giza (58 schools). Table 56: Number of Technical Schools classified by Geographic location
School Governorate Gharbeya Sohag Cairo Asiout Beni Seuif Kafr Al-Sheikh Giza Beheira Dakahleya Sharkeya Monofeya Alexandria Menia Qaloubeya Ismailia North Sinai Damietta Fayoum Aswan Luxor The New Valley Port Said Suez Matrouh Red Sea South Sinai Qena Total Carpentry 31 21 20 18 17 16 13 12 11 11 11 10 10 8 6 6 5 4 4 4 4 3 3 3 2 2 1 256 Building and Construction 3 10 11 5 6 7 16 7 10 10 4 10 3 7 7 4 3 4 4 4 4 3 3 1 1 2 6 155 Spinning & Weaving 89 15 52 32 23 55 26 24 23 28 25 56 24 33 31 15 25 25 16 6 14 21 24 13 12 6 10 723 Leather 6 3 6 1 0 1 3 0 0 3 0 3 2 5 2 0 3 0 0 0 0 1 1 1 0 0 0 41
Source: CAPMAS
131
Graph 64:
No. Of Technical Schools for Woodworks and Furniture Related Activities

90 80 70 60
No. of Schools
50
40 30 20 10 0
The New Valley As iout Beni Seuif Luxor Port Said Suez Giza Kafr Al-Sheikh Dam ietta Sharkeya Gharbeya Monofeya Alexandria Qaloubeya Is m ailia North Sinai Matrouh Beheira As wan Sohag Menia Red Sea South Sinai Dakahleya Fayoum Qena Cairo
Carpentry Building and Construction Spinning and Weaving
Leather
The largest number of carpentry schools is found in Gharbeya (31), followed by Sohag (21), Cairo (20), Asiout (18) and Beni Seuif (17). The largest number of Spinning and Weaving schools is also Gharbeya which includes 89 schools, followed by Alexandria (56 schools), Kafr El Sheikh at (55 schools) and Cairo (52 schools). The largest number of building and construction Schools is found in Giza (16) and Cairo (11) followed by Damietta, Dakahelya, and Sohag each of which includes 10 schools. The number of schools providing training in the production of leather is much lower than the other specializations with Gharbeya and Cairo having the largest number of schools; 6 each, followed by Qaloubeya (5 schools), Sohag, Giza, Sharkeya, Alexandria and Damietta which include 3 schools each.
132
4.4.2Number of Graduates of Industrial Schools affiliated to the Ministry of Education The following table presents data obtained from the Ministry of Education on the number of graduates from industrial schools with specializations of relevance to the wood works and furniture sector. The data includes the number of graduates (both male and female) from the following specializations over the period 1997-2002: carpentry wood carving wood sawing inlaying and marquetry ornamenting electrical apparatus maintenance electronics and computers industrial electronics and control electronics engineering, and computer science An examination of the data reveals that the total number of graduates increased from 90,959 in 1998 to 92,476 in 1999 and 94,072 in 2000. This was followed by a decrease to 91,786 in 2001 to be followed by a significant increase to 95,289 in 2002. Table 57: Graduates from Industrial Schools of Relevance to the Furniture Industry
Year Specialization Furniture Carpentry Wood Carving Wood sawing Inlaying and Marquetry Ornamenting Electrical apparatus maintenance Electronics and computers Industrial electronics and control Electronics engineering Computer sciences Total Graduates (1997-1998) Furniture Carpentry Wood Carving Wood sawing Inlaying and Marquetry Ornamenting Electrical apparatus maintenance Electronics and computers Industrial electronics and control Electronics engineering Computer sciences Total Graduates (1998-1999) No. Male Graduates 11,488 411 201 210 13,825 22,444 4,515 238 515 330 54,177 11,035 389 208 182 13,517 23,523 5,045 209 398 250 54,756 No. Female Graduates 574 0 0 0 23,181 7,159 5,521 79 247 21 36,782 110 0 0 0 22,623 8,595 6,187 70 90 45 37,720 Total 12,062 411 201 210 37,006 29,603 10,036 317 762 351 90,959 11,145 389 208 182 36,140 32,118 11,232 279 488 295 92,476
1997 - 1998
1998 - 1999
133
Year Furniture Carpentry Wood Carving Wood sawing Inlaying and Marquetry Ornamenting Electrical apparatus maintenance Electronics and computers Industrial electronics and control Electronics engineering Computer sciences Furniture Carpentry Wood Carving Wood sawing Inlaying and Marquetry Ornamenting Electrical apparatus maintenance Electronics and computers Industrial electronics and control Electronics engineering Computer sciences Furniture Carpentry Wood Carving Wood sawing Inlaying and Marquetry Ornamenting Electrical apparatus maintenance Electronics and computers Industrial electronics and control Electronics engineering Computer sciences
Specialization 11,000 432 328 217 13,471 23,287 5,358 284 477 310 55,164 12,171 434 326 204 12,529 20,536 4,945 291 441 239 52,116 12,388 488 147 139 12,974 22,078 5,600 154 404 376 54,748 270,961
No. Male Graduates 195 0 451 0 23,190 8,630 5,695 469 159 119 38,908 246 0 0 0 24,252 8,383 6,378 285 63 63 39,670 89 0
No. Female Graduates 11,195 432 779 217 36,661 31,917 11,053 753 636 429 94,072 12,417 434 326 204 36,781 28,919 11,323 576 504 302 91,786 12,477 488 147 139 37,462 30,586 12,633 281 651 425 95,289 464,582
1999 - 2000
Total Graduates (1999-2000)
2000 - 2001
Total Graduates (2000-2001)
24,488 8,508 7,033 127 247 49 40,541 193,621
2001 - 2002
Total Graduates (2001-2002) Grand Total (98-2002) Source: Ministry of Education
Carpentry: According to the data, the overall number of graduates from the Carpentry section increased over the designated period with several fluctuations in the middle. The total number of graduates decreased from 12,062, in the year 1997-1998 to 11,145 in 1998-1999. This was followed by an increase in 1999-2000 up to 11,195 and 12, 417 in 2000-2001, followed by a further increase in 2001-2002 up to 12477. It is important to note that the number of male 134
graduates throughout the period was consistently larger than female graduates. In 1997-1998 the difference between male graduates and female graduates amounted to 10914. Graph 65:
Technical School Graduates

40,000 35,000 30,000
Number of Graduates
25,000 20,000 15,000 10,000 5,000 0 1997 - 1998 1998 - 1999 1999 - 2000 2000 - 2001 2001 - 2002 Furniture Carpentry Wood sawing Ornamenting Inlaying and Marquetry Wood Carving
Ornamenting The 'ornamenting' specialization witnessed an overall increase in the total number of graduates over the designated period. In the year 1997-1998, total number of graduates amounted to 37,006, with the number of female students being much larger than that of male students. This number decreased in 1998-1999 to 36,140, again with female graduates constituting the bulk of graduates. The year 1999-2000, 2000-2001 and 2001-2002 witnessed an increase in the number of graduates up to 36,661, 36,781 and 37, 462 respectively with the same gender pattern. Wood Carving: The number of graduates from the wood carving specialization on the other hand was a considerably less when compared to the figures provided for furniture carpentry. In the year 1997-1998, total graduates amounted to 411, (all male). This number decreased in 1998-1999 to 389 (all male). The year 1999-2000 witnessed an increase in the number of graduates up to 432 (all male), which was followed by another increase in 2000-2001 up to 434 students (all male), and another increase in 2001-2002 to 488 graduates (all male). Overall the total number of graduates increased over the designated period.
135
Wood Sawing The specialization 'wood sawing' graduates a total number of students that is even less than that of 'wood carving'. In the year 1997-1998, the total number of graduates was 201, (all male). This number increased in 1998-1999 to 208 (all male) followed by a considerable increase in 1999-2000 up to 779 graduates, with a noticeable rise in female graduates, from zero in 1998-1999 to 451 female graduates in 1999-2000.This was followed by a decline in 2000-2001 to 326 students (all male), and another decrease in 2001-2002 to 147 graduates (all male). Overall there was a considerable decline in the number of graduates when the figures for 1997-1998 are compared with those of 2001-2002. Inlaying & Marquetry The 'Inlaying and Marquetry' specialization also witnessed an overall decline in the total number of graduates over the designated period with fluctuations from one year to another. In 1997-1998, the total number of graduates amounted to 210, (all male). This number decreased in 1998-1999 to 182 (all male). The year 1999-2000 witnessed an increase up to 217 (all male), which was followed by a decrease in 2000-2001 to 204 students (all male), and another decline in 2001-2002 to 139 graduates (all male). Gender Pattern An examination of the data reveals that wood carving, wood sawing, and inlaying and marquetry are completely dominated by male graduates. Furthermore, while furniture and carpentry has a considerable number of female graduates, the number of females is less than the number of male graduates. The 'ornamenting' specialization appears to be only section dominated by female graduates.
136
4.4.3 Number of Trainees in Vocational Training Centers The following table presents data obtained from the Ministry of Local Development on the number of trainees on Carpentry and Furniture and Inlaying and Finishing during the period 1979 - 2003. Overall the number of trainees in carpentry and furniture (5,989) is much larger than the number for trainees in inlaying and finishing (858). Furthermore, the annual number of trainees has generally been declining with few fluctuations in the middle. In total, the number of trainees declined from 350 in 1995-1996 to 320 in 1996-1997 to 320. This was followed by a dramatic decline to 15 trainees in 1997-1998. The year 1998-1999 saw an increase in the total number of trainees to 257, this was followed by a decline in 1999-2000 to 248, followed by steady declines onwards until 2002 (2000-2001 231 trainees, 20012002 195 trainees). The year 2002-2003 saw a slight increase to 209.
Table 58: Number of Trainees in Vocational Training Centers Carpentry Furniture 4365 295 287 15 235 227 199 177 189 5989 & Inlaying & Finishig 657 55 33 22 21 32 18 20 858
Year 1979-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 Total Ministry of Local Development
Total 5022 350 320 15 257 248 231 195 209 6847
Graph 66:
Number of Vocational Training Graduates

350 300
No. of Graduates
55
33 22 21
250 200 150 100 50 0

15 295 287
32 18
20
235
227
199
177
189
95 96 97 98 99 00 01 02 96 97 98 99 00 01 02 03 19 -19 19 -19 19 -19 19 -19 19 -20 20 -20 20 -20 20 -20

Carpentry & Furniture Inlaying & Finishig
137
4.4.4 The faculty of Applied Arts Graduates Interior Design and Furniture Section The following table presents data obtained from the Ministry of Higher Education on the number of graduates from the faculty of Applied Arts- Interior design and Furniture Section. The data reveals that the total number of graduates declined from 360 graduates in 19992000 and 2000 2001 to 260 in 2001-2002 and 155 in 2002-2003. The number of graduates is expected to decline even more to reach 75 in 2003-2004. The decrease in the number of graduates is partly a result of changes in the education policy (the cancellation of grade 6 in primary school during the 1980s which lead to an overall increase in the number secondary school and university graduates during the late 1990s and early 2000s. Table 59: Graduates of the Faculty of Applied Arts - Interior Design and Furniture section No. of graduates 360 360 260 155 75 1210
Year 1999 - 2000 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004 Total
Source: Ministry of Higher Education
Graph 67:
The faculty of Applied Arts graduates - Interior Design and Furniture section
400 350
Number of graduates
300 250 200 150 100 50 0 1999 - 2000 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004
School Year
138
5. Customs & Taxes
139
5 Custom Duties and Sales Tax Paid by the Furniture & Woodworks Sector 5.1 Main Sources of Information:
Information covering custom duties and taxes imposed on the furniture and woodworks sector has been requested from the Ministry of Finance. This information included the following: 1- The value of sales tax paid by the sector over the period 1999-2003 2- The value of custom duties paid by the sector over the period 1999-2003 3- The total value of taxes paid by the sector over the period 1999-2003 In this context, the Ministry of Finance has provided statistics covering the total value of taxes paid by the sector. Information pertaining to the value of sales tax and custom duties however has not been provided. The project team has therefore estimated the value of custom duties and sales tax charged on the imports of wood, wood products and furniture. Calculations were based upon the percentage levied on imports as declared by the Egyptian Government.
5.2 Summary of Findings:

Custom Duties, Sales Tax and Service Fees Paid by Importers of Wood & Wood Products There are discrepancies between the values of custom duties and sales taxes charged on the different types of wood with importers of some kinds of wood such lumber, plywood and fiber board paying high tax rates while others such as importers of veneer ply sheets and logs pay low rates. According to estimates, the total value of customs paid on imports of wood and wood products was US$ 46.9 million in 1999, US$ 49.2 million in 2000, US$ 46 million in 2001 and US$ 44.8 million in 2002. The value of sales tax and service fees amounted to US$ 28.28 million in 1999, US$ 29.96 million in 2000, US$ 27.26 million in 2001 and US$ 26.29 million in 2002. Combined, these values amounted to US$75 million (8.2% of the value of imports) in 1999, US$79.18 million (8.3%) in 2000, US$ 73.31 million (8.5%) in 2001 and US$ 71.12 million (8.4 %) in 2002. Custom Duties, Sales Tax and Service Fees Paid on Imports of Furniture, Lighting, Signs and Prefabricated Buildings (HS 1996 Code 94) The total value of customs paid on imports of Furniture, Lightings, Signs and Prefabricated Buildings was US$ 11.32 million in 1999, US$ 12.69 million in 2000, US$ 10.1 million in 2001 and US$ 12.47 million in 2002. The value of sales tax and service fees amounted to US$ 0.3 million in 1999, US$ 0.99 million in 2000, US$ 0.34 million in 2001 and US$ 0.4 million in 2002. Combined, these values amounted to US$11.62 million (35.4% of the value of imports) in 1999, US$13.68 million (39%) in 2000, US$ 10.44 million (33.8%) in 2001 and US$ 12.87 million (35.9 %) in 2002. Most of the taxes paid on imports of this product group are in the form of custom duties. Sales tax and service fees charged are very low and in the case of several sub-categories including office furniture, kitchen furniture, bedroom furniture and other wood furniture amount to zero. 140
General Taxes: The Total Number of Tax Payers - Furniture & Woodworks Registered at the General Tax Authority There is a total number of 108, 825 furniture and woodworks producers registered at the General Tax Authority of which furniture producers (48,277 entities) represents the largest number of registered producers followed by furniture traders (16,734 entities), wood sawing and carving (16,279) entities followed by wood traders (15,244 entities) and producers of doors and windows (8,290). Value of General Taxes charged on the Furniture & Woodworks Sector The total value of taxes paid by the sector increased gradually from L.E. 39 million in 98/99 to reach L.E. 54 million in 2002/2003. The total amount of taxes paid by the wood furniture industry is higher than that paid by other furniture sub sectors. In 1998-1999 the total amount paid by the wood furniture was L.E. 23 million while taxes paid by furniture (other) amounted to L.E. 16 million. The same trend prevails over the designated period with the wood furniture sub sector paying L.E. 32 million in 2002-2003 and the furniture (other) sub sector paying L.E. 22 million. Furthermore, the total number of furniture and woodworks tax payers are 108,825 entities while the estimated number of furniture and woodworks producers and traders is at least 193,725 (as indicated in section 2.13.2 of this report). It follows that 56% (if not less) bears the tax burden of the whole sector.
141
5.3 Custom Duties, Sales Tax and Service Fees Paid by Importers of Wood & Wood Products and Furniture
The following tables present the values of custom duties and sales tax paid by importers of wood and wood products (HS 1996 Code 44) and furniture products (HS 1996 Code 94). It is worth pointing out that these figures which are a result of calculations carried out by the project team are based on the rates provided by the Egyptian Ministry of Finance. Furthermore, the calculations only included the product groups for which substantial amounts of imports were recorded by the Ministry of Foreign Trade. In other words, Product Groups classified as "Other" by Foreign Trade statistics are not accounted for. 5.3.1 Custom Duties, Sales Tax and Service Fees Paid by Importers of Wood & Wood Products (HS 1996 Code 44) The information provided in the following table presents the custom duties, sales tax and service fees paid by importers of wood and wood products over the period 1999-2002. An examination of the data reveals that there are discrepancies between the values charged on the different types of wood with importers of some kinds of wood such lumber, plywood and fiber board paying high tax rates while others such as importers of veneer ply sheets and logs pay low rates. The total value of customs paid on imports of wood and wood products was US$ 46.9 million in 1999, US$ 49.2 million in 2000, US$ 46 million in 2001 and US$ 44.8 million in 2002. The value of sales tax and service fees amounted to US$ 28.28 million in 1999, US$ 29.96 million in 2000, US$ 27.26 million in 2001 and US$ 26.29 million in 2002. Total taxes charged amounted to US$75 million (8.2% of the value of imports) in 1999, US$79.18 million (8.3%) in 2000, US$ 73.31 million (8.5%) in 2001 and US$ 71.12 million (8.4 %) in 2002.
Table 60: Custom Duties, Sales Tax and Service Fees Paid by Importers of Wood & Wood Products (US$ 000,000)
Product Name
4407100000 Lumber, coniferous (softwood) thickness < 6 mm
Category
Total Imports Customs Value (8%) Sales Tax (5%) Services Fees (0%) Total Imports Customs Value (8%) Sales Tax (10%) Services Fees (2%) Total Imports Customs Value (10%) Sales Tax (0%)
1999
369.32 29.55 18.47 0.00 80.35 6.43 8.04 1.61 54.45 5.45 0.00
2000
388.05 31.04 19.40 0.00 83.20 6.66 8.32 1.66 63.16 6.32 0.00
2001
321.56 25.72 16.08 0.00 88.00 7.04 8.80 1.76 72.02 7.20 0.00
2002
311.23 24.90 15.56 0.00 82.97 6.64 8.30 1.66 75.31 7.53 0.00
4407920000 Beech lumber, lengthwise chipped, thickness > 6mm 4412190000 Plywood consisting solely of sheets of wood, each ply not
142
exceeding 6 mm
Services Fees (0%) 0.00 0.00 0.00 0.00
Product Name
Category
Total Imports Customs Value (0%) Sales Tax (0%) Services Fees (0%) Total Imports Customs Value (5%) Sales Tax (0%) Services Fees (0%) Total Imports Customs Value (20%) Sales Tax (5%) Services Fees (2%) Total Imports Customs Value (8%) Sales Tax (0%) Services Fees (0%) Total Imports Customs Value (33%) Sales Tax (0%) Services Fees (0%)
1999
12.22 0.00 0.00 0.00 31.99 1.60 0.00 0.00 2.44 0.49 0.12 0.05 15.05 1.20 0.00 0.00 6.53 2.15 0.00 0.00 572.35 46.87 28.28 75.14
2000
12.08 0.00 0.00 0.00 25.14 1.26 0.00 0.00 8.21 1.64 0.41 0.16 9.55 0.76 0.00 0.00 4.67 1.54 0.00 0.00 594.06 49.22 29.96 79.18
2001
17.15 0.00 0.00 0.00 18.17 0.91 0.00 0.00 8.93 1.79 0.45 0.18 7.33 0.59 0.00 0.00 8.47 2.80 0.00 0.00 541.63 46.04 27.26 73.31
2002
20.31 0.00 0.00 0.00 17.52 0.88 0.00 0.00 10.96 2.19 0.55 0.22 8.70 0.70 0.00 0.00 6.07 2.00 0.00 0.00 533.07 44.83 26.29 71.12
4408909000 Veneer, ply sheet, not conifer or tropical, <6 mm thick
4403201000 Logs, poles, coniferous not treated or painted, squared 4411210000 Fiberboard of a density exceeding 0.5 g/cm3 but not exceeding 0.8 g/cm3; Not mechanically worked or surface covered 4407910000 Oak lumber, lengthwise chipped, thickness > 6mm 4412290000 Panels with at least one outer ply of nonconiferous wood
Total Value of Imports Total Customs Total Taxes and Service fees Grand Total
Coniferous Lumber The customs rate charged on imports of Coniferous Lumber is 8% amounting to US$ 29.55 million in 1999, US$ 31.04 million in 2000, US$ 25.72 million in 2001 and US$ 24.9 million in 2002. The sales tax charged (5% of total imports) totaled US$ 18.47 million in 1999, US$ 19.4 million in 2000, US$ 16.1 million in 2001 and US$ 15.56 million in 2002. No service fees are charged on the imports of coniferous lumber. Beech Wood Imports of Beech wood are charged a custom duty of 8% of total imports, which amounted to US$ 6.43 million in 1999, US$ 6.66 million in 2000, US$ 7.04 million in 2001 and US$ 6.64 million in 2002. The sales tax on the other hand is 10% amounting to US$ 8.04 million in 143
1999, US$ 8.32 million in 2000, US$ 8.8 million in 2001 and US$ 8.3 million in 2002. The service fees amounted to US$ 1.61 million in 1999, US$ 1.66 million in 2000, US$ 1.76 million in 2001 and US$ 1.66 million in 2002. Graph 68:
Value of Customs, Sales Tax & Service Charge on Wood & Wood Products (HS 1996 Code 44)
50 45 40 35 30 25 20 15 10 5 0 1999 Total Customs 2000 2001 2002
Value US$ 000,000
Total Taxes and Service fees
Veneer Ply sheets and Coniferous Logs While there are neither custom duties nor sales taxes charged on veneer ply sheets, the percentage of customs charged on Coniferous Logs and Poles is 5% amounting to US$1.6 million in 1999, US$ 1.26 million in 2000, US$ 0.91 million in 2001 and US$ 0.88 million in 2002. Fiberboard The percentage of custom duty paid by importers of fiberboard which is valued at 8% totaled US$ 0.49 million in 1999, US$ 1.64 million in 2000, US$ 1.79 million in 2001 and US$ 2.19 million in 2002. The sales tax and service fee on the other hand amounted to US$ 0.17 million in 1999, US$ 0.57 million in 2000, US$ 0.62 million in 2001 and US$ 0.77 million in 2002. Oak Lumber and Panel Board The 8% custom duty paid on Oak Lumber amounted to US$ 1.1 million, US$0.76 million, US$0.59 million and US$0.7 million in 1999, 2000, 2001 and 2002 respectively. It is worth noting that there are not sales tax and service fees charged on the imports of this category of wood. The custom duty paid on panel board is 33% of the value of imports. In 1999 customs amounted to US$ 2.15 million followed by US$1.54 million, US$2.8 million and US$2 million in 2000, 2001 and 2002 respectively.
144
5.3.2 Total Value of Custom Duties, Sales Tax and Service Fees Paid on Imports of Furniture, Lighting, Signs and Prefabricated Buildings (HS 1996 Code 94) The total value of customs paid on imports of Furniture, Lighting, Signs and Prefabricated Buildings was US$ 11.32 million in 1999, US$ 12.69 million in 2000, US$ 10.1 million in 2001 and US$ 12.47 million in 2002. The value of sales tax and service fees amounted to US$ 0.3 million in 1999, US$ 0.99 million in 2000, US$ 0.34 million in 2001 and US$ 0.4 million in 2002. Total taxes charged amounted to US$11.62 million (35.4% of the value of imports) in 1999, US$13.68 million (39%) in 2000, US$ 10.44 million (33.8%) in 2001 and US$ 12.87 million (35.9 %) in 2002. An examination of the figures presented in the following table reveals that most of the taxes paid on imports of this product group are in the form of custom duties. Sales tax and service fees charged are very low and in the case of several subcategories including office furniture, kitchen furniture, bedroom furniture and other wood furniture amount to zero. Table 61: Value of Custom Duties, Sales Tax and Service Fees Paid on Imports of Furniture, Lighting, Signs and Prefabricated Buildings (HS 1996 Code 94) Product Name Category 99 2000 2001 2002 8.06 7.24 6.37 7.14 Total Imports Customs Value 9405400000 3.224 2.896 2.548 2.856 Other electric lamps (40%) 0 0 0 0 and lighting fittings Sales Tax (0%) Services Fees 0 0 0 0 (0%) Total Imports Customs Value (40%) Sales Tax (0%) 9403300000 Office Services Fees Furniture (0%) Total Imports Customs Value (40%) Sales Tax (0%) 9403400000 Kitchen Services Fees Furniture (0%) Total Imports Customs Value (40%) Sales Tax (10%) Services Fees (3%) Total Imports Customs Value (40%) Sales Tax (0%) Services Fees(0%) 1.7 0.68 0 0 0.4 0.16 0 0 0.7 0.28 0.07 0.0084 3.27 1.308 0 0 1.7 0.68 0 0 0.5 0.2 0 0 0.8 0.32 0.08 0.0096 5.3 2.12 0 0 1.8 0.72 0 0 0.4 0.16 0 0 0.6 0.24 0.06 0.0072 4.94 1.976 0 0 1.4 0.56 0 0 0.5 0.2 0 0 0.5 0.2 0.05 0.006 6.58 2.632 0 0 145
9403500000 Bedroom Furniture 9403600000 Other wooden furniture
Product Name 9403200000 Other metal furniture (other than office furniture)
Category Total Imports Customs Value (40%) Sales Tax (0%) Services Fees (0%) Total Imports
99 3.36 1.344 0 0 2.77 1.108 0 0 5.79 1.158 0 0 1.88 0.094 0.188 0.0376 2.33 0.932 0 0 2.58 1.032 0 0 11.32 0.30 11.62
2000 7.88 3.152 0 0 3.42 1.368 0 0 4.34 0.868 0 0 1.53 0.0765 0.153 0.0306 1.16 0.464 0 0 1.36 0.544 0 0 12.69 0.99 13.68
2001 4.09 1.636 0 0 4.03 1.612 0 0 2.49 0.498 0 0 2.83 0.1415 0.283 0.0566 1.9 0.76 0 0 1.41 0.564 0 0 10.10 0.34 10.44
2002 5.85 2.34 0 0 3.55 1.42 0 0 3.45 0.69 0 0 2.83 0.1415 0.283 0.0566 2.09 0.836 0 0 1.99 0.796 0 0 12.47 0.40 12.87
9401909000 Seats parts
9402900000 Medical, dental, surgical & veterinary furniture 9405101000 Chandeliers and other lighting fixtures and equipment for theatre stages and studios 9406009000 Prefabricated buildings of other materials
Customs Value (40%) Sales Tax (0%) Services Fees (3%) Total Imports Customs Value (20%) Sales Tax (0%) Services Fees (0%) Total Imports Customs Value (5%) Sales Tax (10%) Services Fees (2%) Total Imports Customs Value (40%) Sales Tax (0%) Services Fees (0%) Total Imports
9403900000 Furniture parts
Customs Value (40%) Sales Tax (0%) Services Fees (0%) Total Customs Grand Total
Total Taxes and Service Fees
146
Graph 69:
Value of Custom Duties, Sales Tax & Service Charges Paid on Im ports of Furniture, Lighting, Signs & Prefabricated Buildings 14 12 10 8 6 4 2 0 99 2000 Total Customs 2001 2002
Value US$ 00,000
Total Taxes and Service Fees
Bedroom Furniture The 40% custom duties which is charged on the importation of bedroom furniture amounted to US$ 0.28 million in 1999, US$ 0.32 million in 2000, US$ 0.24 million in 2001 and US$ 0.2 million in 2002. The 10% sales tax amounted to US$ 0.07 million, US$0.08 million, US$ 0.06 million and US$ 0.05million in 1999, 2000, 2001 and 2002 respectively. Office Furniture The 40 % custom duty paid on the imports of wooden office furniture amounted to US$0.68 million in 1999, US$0.68 million in 2000, US$0.72million in 2001 and US$0.56million in 2002. Other Wooden Furniture and Furniture Parts Custom duties paid on imports of other wooden furniture totaled US$ 1.31 million in 1999, US$ 2.12 million in 2000, US$ 1.98 million in 2001 and US$ 2.63 million in 2002. The Customs charged on furniture parts on the other hand amounted to US$ 1.03 million, US$ 0.54 million, US$ 0.56 million and US$ 0.8 million in 1999, 2000, 2001 and 2002 respectively.
147
5.4 General Taxes

5.4.1 Total Number of Tax Payers - Furniture & Woodworks Registered at the General Tax Authority The following table presents the total number of furniture and woodworks entities registered at the General Tax Authority. An examination of the data reveals that there is a total number of 108, 825 furniture and woodworks producers registered at the General Tax Authority of which furniture producers (48,277 entities) represents the largest number of registered entities followed by furniture traders (16,734 entities), wood sawing and carving (16,279) entities followed by wood traders (15,244 entities) and producers of doors and windows (8,290). Table 62: Number of Tax Payers - Furniture & Woodworks Registered at the General Tax Authority Activity
Furniture traders Wood traders Wood sawing & Carving Producers of wooden boxes Furniture producers Producers of Doors & Windows Various Wood Manufacturers Total number of tax Payers
Number of Tax Payers 16,734 15,244 16,279 714 48,277 8,290 3,287 108,825
Graph 70:
Total Number of Tax Payers - Furniture & Woodworks
50000 45000
Number of Tax Payers
40000 35000 30000 25000 20000 15000 10000 5000 0

tra sa de Pr w rs od in g uc & er Ca s rv of in w g oo de n Fu bo Pr od rn xe itu uc s re te rs pr od of uc Do V er or ar s s io & us W W in oo do d w M s an uf ac tu re rs tra de rs Fu rn itu re
W oo d
W oo d
148
5.4.2 Value of General Taxes charged on the Furniture & Woodworks Sector The following table presents the total values of general taxes paid by furniture and woodworks producers over the period 1998 2003. An examination of the figures reveals that the total value of taxes paid by the sector increased gradually from L.E. 39 million in 98/99 to reach L.E. 54 million in 2002/2003. This increase could be a result of one or a combination of the following factors: 1- the total value of production has been expanding over the past 5 fiscal years 2- the amount of taxes collected by the Egyptian government has been rising Table 63: Total Value of General Taxes Paid by Furniture and Woodworks producers
Category wooden furniture furniture (other) Grand Total 98/99 23,103,771 16,313,054 39,416,825 99/2000 26,412,399 18,433,751 44,846,150 2000/2001 27,733,018 19,355,439 47,088,457 2001/2002 30,506,319 21,290,982 51,797,301 2002/2003 32,031,635 22,355,531 54,387,166
Graph 71:
Total Value of General Taxes Paid by the Furniture & Wood works Sector
35,000,000 30,000,000
Value in L.E
25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0
98/99
99/2000
w ooden furniture
2000/2001 2001/2002 2002/2003

furniture (other)
An examination of the values also reveals that the total amount of taxes paid by the wood furniture industry is higher than that paid by other furniture sub sectors. In 1998-1999 the total amount paid the wood furniture was L.E. 23 million while taxes paid by furniture (other) amounted to L.E. 16 million. The same trend prevails over the designated period with the wood furniture sub sector paying L.E. 32 million in 2002-2003 and the furniture (other) sub sector paying L.E. 22 million. Furthermore, the total number of furniture and woodworks tax payers are 108,825 entities while the estimated number of furniture and woodworks producers and traders is at least 193,725 (as indicated in section 2.13.2 of this report). It follows that 56% (if not less) of the sector bears the tax burden of the whole sector.
149
6. Consumption
150
6. Local Consumption 6.1 Main Sources of Information:

Statistics covering local consumption are divided into two main categories; namely: Household and Government Consumption: Information has been obtained from the Ministry of Planning Tourist Industry Consumption: Accurate statistics are lacking, the project team has therefore estimated consumption based on statistics obtained from the Ministry of Tourism on the number of hotels and rooms.
6.2 Summary of Findings

Government and Household Consumption During fiscal years 2000-2001 and 2001-2002, local production of wood furniture and wood works represented 98% of total resources (imports represent less than 2%). Household consumption represents the largest market segment totaling L.E. 1550 million in 2000-2001 and L.E. 1756 million in 2001-2002. Household expenditure on wood furniture and woodworks is expected to rise even further in 2002-2003 and 2003-2004 to reach L.E. 1851 million and L.E. 1947 million respectively. The second largest market segment is Intermediate Agents amounting to L.E. 236.7 million in 2000-2001 and L.E. 270 million in 2001-2002. It is forecasted that the value devoted to intermediaries will rise to L.E. 313.3 million and L.E. 329.5 million in 2002-2003 and 2003-2004 respectively. Government expenditure has risen from L.E. 30 million in 2000-2001 to L.E. 35.1 million in 2001-2002. Capacity of the Egyptian Tourism Sector The general trend has been an increase in the number of hotels and rooms over the designated period. It is worth noting however that there are differences among the various hotel ratings with some hotel categories expanding more than others. Furthermore, increases in the number of hotels do not necessarily indicate an increase in the capacity of the tourism sector as these increases are sometimes accompanied by decreases in the total number of rooms. Tourist Industry's Expenditure of Furniture and Woodworks During the year 2002 and 2003 the total value of expenditure on hotel furnishing and refurbishment is estimated to have been around L.E. 1.2 Billion of which L.E. 612 million was allocated to furnishing newly established rooms and L.E. 598 million was spent on refurbishment of existing rooms. International Industry for Furniture World furniture production is estimated to be worth around US$180 billion a year. Around 60% of worlds furniture production takes place in just seven industrialized countries: the US, Germany, Italy, France, the UK, Japan and Canada. The European Union produces an estimated $65 billion a year, while the United States is the biggest single producer with around $45 billion output. Italy, Germany and Japan are trailing with amounts almost equal to $17-18 billion. France, the UK and Canada all record output levels between $5-7 billion. Furniture production in emerging countries currently amounts to only 21% of the world total value. However, there are three countries (China, Mexico and Poland) where production is increasing rapidly thanks to recent investments in new plants especially designed and built for exports. 151
6.3. Local Consumption of Furniture and Wood Works Ministry of Planning The following table presents statistics on wooden furniture production and consumption patterns in Egypt over the period 2000-2002. The table also illustrates production and consumption as forecasted by the Egyptian Ministry of Planning during 2002-2003 and 20032004. Table 64: Egyptian Consumption of Wood Furniture & Woodworks Category 2000 - 2001 2001 - 2002 * 2002 - 2003 * 2003 - 2004 Production Local 2330 2610.3 2756.3 2911.9 Production Imports 41.9 41.7 39.7 29.1 Total Resources 2371.9 2652 2796 2941 Consumption Household 1550 1756 1851 1947 Government 30 35.1 36.2 38.1 Intermediaries 236.7 270 284.6 299.4 Exports 48.2 13.4 15 20 Investment 260 297.1 313.3 329.5 Inventory (Beginning of Period) 247 280 296 307 Total 2371.9 2651.6 2796.1 2941
* Provisional Statistics Source: Ministry of Planning
An examination of the statistics reveals that during fiscal years 2000-2001 and 2001-2002, local production of wood furniture and wood works represented 98% of total resources. It is anticipated that during 2002-2003 and 2003-2004 the same trend will prevail with imports representing less than 2%. Household and Intermediary Consumption Furthermore, Household consumption represents the largest market segment totaling L.E. 1550 million in 2000-2001 and L.E. 1756 million in 2001-2002. Household expenditure on wood furniture and woodworks is expected to rise even further in 2002-2003 and 2003-2004 to reach L.E. 1851 million and L.E. 1947 million respectively. The second largest market segment is Intermediate Agents amounting to L.E. 236.7 million in 2000-2001 and L.E. 270 million in 2001-2002. It is forecasted that the value devoted to intermediaries will rise to L.E. 313.3 million and L.E. 329.5 million in 2002-2003 and 2003-2004 respectively.
152
Graph 72:
Egyptian Consumption of Wood Furniture & Woodworks
2000 1800 1600 1550 1756 1947 1851
Value L.E. 000,000
1400 1200 1000 800 600 400 200 0 30 237 260 247 48 280 270 297 35 13 296 285 313 36 15 299 38 330 307
20
2000 - 2001 Household Intermediaries Investment
2001 - 2002
* 2002 - 2003 Government Exports
* 2003 - 2004
Inventory (Beginning of Period)
Exports and Government Consumption Exports fell from L.E. 48.2 million in 2000-2001 to L.E.13.4 million in 2001-2002. Forecasts indicate that this value will rise to reach L.E. 15 million and L.E. 20 million in 2002-2003 and 2003-2004 respectively. Government expenditure has risen from L.E. 30 million in 2000-2001 to L.E. 35.1 million in 2001-2002. Forecasts of the Egyptian Ministry of Planning indicate that government consumption will rise even further to reach L.E. 36.2 million and L.E. 38.1 million in 2002-2003 and 2003-2004.
153
6.4 Tourism Capacity and Consumption of Woodworks & Furniture 6.4.1 Capacity of the Egyptian Tourism Sector - CAPMAS The following table presents data obtained from CAPMAS on the total numbers of hotels and hotel rooms in Egypt during the period 1998 -2001 classified according to hotel rating. An examination of the figures reveals that the general trend has been an increase in the number of hotels and rooms over the designated period. It is worth noting however that there are differences among the various hotel ratings with some hotel categories expanding more than others. Furthermore, increases in the number of hotels do not necessarily indicate an increase in the capacity of the tourism sector as these increases are sometimes accompanied by decreases in the total number of rooms. Table 65: Total Number of Hotels and Resorts
1998-1999 Category 5 Stars 4 Stars 3 Stars 2 Stars 1 Star
Unclassified
1999-2000 Hotels 146 115 165 134 89 766 Rooms 26,832 17,571 14,056 6,737 2,893 18,673
Hotels 138 116 164 127 87 768
Rooms 24,147 16,052 14,576 6,068 2,852 19,841
2000-2001 No. of No. of Hotels Rooms 175 141 210 113 90 638 36,405 39,359 15,409 12,392 2,782 14,630
The number of 5 stars hotels has increased from 138 in 1998-1999 to 146 and 175 in 19992000 and 2000-2001 respectively. The number of rooms has also increased from 24,147 in 1998-1999 to 26,832 in 1999-2000 and 36,405 in 2000-2001. The number of 4 star hotels has also increased over the designated period with the exception of 1999-2000 when it fell to 115 from the total of 116 of the previous year. This was followed by an increase in 2000-2001 to 141. The number of rooms however grew steadily from 16,052 in 1998-1999 to 17,571 in 1999-2000 and 39,359 in 2000-2001. The number of three star hotels on the other hand increased steadily throughout the period from 164 hotels in 1998-1999 to 165 hotels in 19992000, and 210 in 2000-2001. The number of rooms however did not follow the same pattern, decreasing from 14,576 rooms in 1998-1999 to 14,056 in 1999-2000. This was followed by an increase to 15,409 rooms in 2000-2001. The number of 2 star hotels increased from 127 hotels in 1998-1999 to 134 hotels in 1999-2000. This was followed by a decline in the number to reach 113 hotels in 2000-2001. The number of hotel rooms grew steadily from 6,068 in 1998-1999 to reach 12,392 in 2000-2001. Graph 74:
Number of Rooms
40,000 35,000
No. of Rooms
30,000 25,000 20,000 15,000 10,000 5,000 0 1998-1999 1999-2000 2000-2001
5 Stars
4 Stars
3 Stars
2 Stars
154
6.4.2 Capacity of the Egyptian Tourism Sector Egyptian Hotels Association/ Ministry of Tourism The following table includes statistics obtained from the Ministry of Tourism covering the total number of hotels and hotel rooms in Egypt during 2001 and 2003. Table 66: Capacity of the Egyptian Tourism Sector Year 2001 Rating 5 Stars 4 Stars 3 Stars 2 Stars 1 Star Unclassified 5 Stars 4 Stars 3 Stars 2 Stars Unclassified Year 2003 Rooms 34,613 27,478 18,248 9,326 3,718 15,699 9,762 2,829 981 288 656
Units Rooms Units Hotels and Resorts 73 91 173 151 102 208 145 54 25 9 26 28,944 18,915 17,458 7,953 3,852 29,463 9,172 2,565 866 209 1,323 94 121 183 168 103 117 156 60 24 11 14
Floating Hotels
According to the Egyptian Hotels Association the total number of five stars establishments was 218 in 2001 of which 145 were classified as floating hotels and 73 were classified as hotels and resorts. In 2003 the total number rose up to 250 (94 hotels and resorts, 156 floating hotels). While the number of hotel and resort rooms increased from 28,944 in 2001 to 34,613 in 2003; the number of floating hotel rooms increased only from 9,172 to 9,762. The capacity of four stars hotels increased from 91 hotels and resorts; 18,915 rooms in 2001 to reach 121 hotels and resorts; 27,478 rooms in 2003. The number of four stars floating hotels also increased from 54 establishments; 2,565 rooms in 2001 to 60 establishments; 2,829 rooms in 2003. The number of three stars hotels and resorts also increased from 173 hotels; 17,458 rooms in 2001 to 183 hotels; 18,248 rooms in 2003. The number of three stars floating hotels on the other hand decreased from 25 in 2001 to 24 hotels in 2003. The number of rooms however, increased from 866 to 981 between 2001 and 2003. It is worth noting that according to the Egyptian Ministry of Planning, the total number of hotel rooms is forecasted to increase by 5000 rooms during the fiscal year 2003-2004. Furthermore, it is expected that by the year 2006-2007 the total number of rooms will reach 150,000.
155
6.4.3 Discrepancies between Statistics Obtained from CAPMAS and the Ministry of Tourism on the Number of Hotels and Rooms A comparison between the data obtained from the CAPMAS on the number of Hotels and Resorts with those obtained from the Ministry of Tourism reveal great differences with CAPMAS presenting higher figures. For example, the total number of 5 stars hotels according to CAPMAS totaled 175 establishments in 2001. According to the Ministry of Tourism on the other hand the total number for the same category was 73. The same trend can be depicted with regards to the total number of 4 stars and 3 stars hotels for which CAPMAS declared a total of 141 and 210 hotels while the Ministry of Tourism declared totals of 91 4 stars hotels and 173 three stars hotels. As for 2 Star hotels, the number of hotels provided by CAPMAS is less than that obtained from the Ministry of Tourism by 38 establishments. The number of rooms provided by CAPMAS on the other hand, is higher than that provided by the Ministry of Tourism by 4,439 rooms. Table 67: Discrepancies between Statistics Obtained from CAPMAS and the Ministry of Tourism on the Number of Hotels and Rooms
CAPMAS Hotel Rating 5 Stars 4 Stars 3 Stars 2 Stars 1 Star
Unclassified
Ministry of Tourism No. of Hotels No. of Rooms
Discrepancy No. of Hotels

102 50 37 -38 -12 430
No. of Hotels 175 141 210 113 90 638
No. of Rooms 36,405 39,359 15,409 12,392 2,782 14,630
No. of Rooms
7,461 20,444 -2,049 4,439 -1,070 -14,833
73 91 173 151 102 208
28,944 18,915 17,458 7,953 3,852 29,463
Graph 75:
Number of Hotel - Discripancy Between CAPMAS & Ministry Of Tourism
700 600 500 400 300 200 100 0
Number of Hotels
St
4 ar s
St
3 ar s
St
2 ar s
St
1 ar s
St
ar
Un c la ss
ifie d
CAPMAS
Ministry of Tourism
156
6.4.4 Tourism Sector's Expenditure of Furniture and Woodworks Given that hotels and resort's fall directly within the responsibility of the Ministry of Tourism, the following table relies on the statistics obtained from the Ministry (as opposed to the statistics provided by CAPMAS) in estimating the sector's expenditure on furniture and woodworks. Furthermore, figures covering the costs per room and percentage of rooms refurbished on a yearly basis have been derived from interviews with individuals working in the tourism sector. It is worth noting however that these figures provide indicative trends since the actual hotel consumption of wooden furniture as well as other materials varies greatly from one hotel to another; making it very difficult to calculate accurate figures for the sector. Taking the factors mentioned above into consideration, it would appear that during the year 2002 and 2003 the total value of expenditure on hotel furnishing and refurbishment was around L.E. 1.2 Billion of which L.E. 612 million was allocated to furnishing newly established rooms and L.E. 598 million was spent on refurbishment of existing rooms. Table 68: Hotels, Resorts and Floating Hotels (Year 2001- 2003 ) Hotel Rating
5 Stars 4 Stars 3 Stars 2 Stars 1 Star Unclassified Number of Rooms (2001) 28,944 18,915 17,458 7,953 3,852 29,463 Number of Rooms (2003) 34,613 27,478 18,248 9,326 3,718 15,699 Change in Number of Rooms 5,669 8,563 790 1,373 -134 -13,764 Cost per room 50,000 30,000 25,000 15,000 8,000 3,000 Total Cost (new rooms) 283,450,000 256,890,000 19,750,000 20,595,000 Refurbishment (% of Hotel Capacity) 289,440,000 85,117,500 43,645,000 11,929,500 21,571,200 61,872,300 513,575,500 73,376,000 7,695,000 1,299,000 167,200 1,323,000 83,860,200
Hotels & Resorts
Total Hotels and Resort's expenditure on Wooden Furniture 5 Stars 4 Stars 3 Stars 2 Stars Unclassified 9,172 2,565 866 209 1,323 9,762 2,829 981 288 656 Floating Hotels 590 40,000 264 20,000 115 15,000 79 8,000 -667 2,000
580,685,000 23,600,000 5,280,000 1,725,000 632,000
Total Floating Hotels' expenditure on Wooden Furniture
31,237,000
Grand Total
1,209,357,700
157
6.5 General Overview of the International Furniture market The following section presents information on the international market for furniture and woodworks with a special focus on the key import markets and their openness towards less developed countries. 6.5.1 World Production General Trends World Furniture Production World furniture production is estimated to be worth around US$180 billion a year. Around 60% of the worlds furniture production takes place in just seven industrialized countries: the US, Germany, Italy, France, the UK, Japan and Canada. The European Union produces an estimated $65 billion a year, while the United States is the biggest single producer with around $45 billion output. Italy, Germany and Japan are trailing with almost equal $17-18 billion production. France, the UK and Canada all record output levels between $5-7 billion. Furniture production in emerging countries currently amounts to only 21% of the value of world output. However, there are three countries (China, Mexico and Poland) where production is increasing rapidly due to recent investments in new plants especially designed and built for exports. The leading importers of furniture are the United States, Germany, France, the United Kingdom, Japan and Canada. The major exporters are Italy, Canada, Germany, China, the United States, Poland and France. During the 1995-2000 period there was a significant increase in the imports of the United States, and small increases in several European countries, Canada and Japan. The US has been the engine of international furniture trade in the last ten years. In spite of the recent slow down in the US market, demand for imported furniture by the American consumer has grown for reasons that remain largely valid at present: primarily the evolution of taste in the direction of modern European design, but also a special ability of foreign suppliers to provide products well suited to the changing fashion, at highly competitive prices. Italy remains the leading exporter, but the value of Italian furniture exports remained virtually constant in current dollars, while exports from Canada and from five emerging countries (China, Poland, Malaysia, Indonesia and Mexico) increased substantially. The major structural phenomenon of the past five years was the increased degree of openness of the markets (measured as the ratio between imports and consumption). This increase was particularly important in the United States. Forest Products Market Developments
North American sawn softwood markets were marked by the expiration of the United States Canada Softwood Lumber Agreement in March 2001. The agreement, which had been in existence since 1996, regulated Canadas exports to the United States and influenced prices. North American sawn softwood prices were near record lows in 2000, but they rebounded in early 2001 as the end of the agreement came closer. In the summer of 2001, Canadian exports, which are roughly one third of the United States consumption, have slowed as United States industry groups have initiated action to control the Canadian imports once again.
158
United States housing remains strong with 1.6 million houses built in 2000, of which over 90% are wood-framed, and the same levels are reported in 2001 and 2002, despite the slowdown in the North American economies and the recession in the United States manufacturing sector in 2001. Sawn hardwood consumption in 2000 and 2001 rose again throughout the UNECE region, to record levels in the United States and Europe, as demand for hardwood furniture, millwork and mouldings came from new housing construction and remodeling and repair. United States sawn hardwood consumption, for furniture, cabinets and flooring, rose over 2% to reach 33 million m3, while the EU/EFTA sub-region rose by almost 8% to reach 15 million m3. Consumption in Other Europe rose less, by 3% to 4 million m3. Demand softened in the United States. Lower demand at the end of 2000 and early 2001, coupled with the increased production from withdrawn losses, resulted in falling sawn hardwood prices. China and other Asian countries have increased imports of sawn hardwood from the UNECE region, although some of that wood is returned in the form of value-added products such as furniture. The panel market is divided into structural panels, e.g. non-structural board OSB and softwood plywood, and non-structural panels, e.g. MDF and particle board. These two sectors exhibited divergent trends in the sub-regions of UNECE. MDF drew all panel markets up again in 2000, but a slowdown in capacity expansion is forecast in Europe in 2001 for the first time, and North America. MDF has found increasing acceptance in new uses, in addition to the preference it has earned in furniture manufacturing. The other main non-structural board, particle board, is truly a European product as production in 2000 rose by over 4% to a record 29 million m3, in comparison to stable production in North America at 13 million m3 (all statistics without OSB). Trade of particleboard in Europe was active in 2000, especially in the CEECs, but subdued in North America. With the strong dollar the United States imported more furniture, cabinets and other secondary processed wood products, which was reflected in domestic furniture plant closings, and a weakened demand for nonstructural panels. Structural panels showed opposite trends. OSB production in North America and Europe rose to new records by 2.3% to reach 18 million m3 in 2000 and by 54% to reach 1.4 million m3 in 2001. OSB continued substituting for softwood plywood for construction in North America, recording a 75% market share in sheathing. Meanwhile in Europe, the utilization for residential construction is less, although it is starting to become popular in some countries with the advent of wood-framed housing techniques. The increased production of OSB (and MDF) in 2000 led to a price collapse in North America. Production of engineered wood products increased in 2000, especially for glulam beams, which increased worldwide by 19% over 1999, to a record 3.1 million m3. For UNECE region producers the main export market is Japan, where approximately 55% of the market is imported, primarily from Europe, but also from North America and the Russian Federation, sometimes as glulam stock, i.e. sawnwood for manufacturing glulam. Although wooden I-beams have gained a 33% market share of the North American new residential construction flooring, production fell by 3% in 2000, mainly because lower-priced sawnwood joists (beams) were substituted. As approximately 60% of North American LVL (laminated veneer lumber) production is used as flanges in the I-beams, production of LVL fell by 6% to 1.4 million m3. 159
In 2000 the tropical timber market continued to recover from the steep downturn of the 1997 and 1998 Asian crises. China is having greater influence on the tropical timber trade, currently importing the most roundwood, and later possibly the most primary processed products. The UNECE region increased its imports of tropical sawnwood in 2000. The tropical timber trade is orienting itself away from primary products and towards secondary processed wood products. World trade of secondary processed wood products is expanding faster than trade of primary products, with five countries accounting for 60% of the imports: United States, Germany, France, United Kingdom and Japan. The initial effects of the shift of manufacturing of value added wood products to low-cost labor regions are beginning to be seen in North America, as evidenced by furniture plant closures in 2001, as furniture imports increased. Until now, markets for certified forest products (CFPs) have been constrained by supply, as well as final consumer demand. However in the last year, the area of forests certified for sustainable forest management doubled to 80 million hectares. Trade grew steeply too, especially in some environmentally-sensitive markets in the UNECE region. Demand continues to be driven by retailers and business-to-business markets, where advantages other than price premiums are currently important. Forest certification and certification of forest products is highly controversial, with strong opinions; however, positions are changing, and mutual recognition is established between some, but not all, schemes.
160
6.5.2 World Imports In terms of world imports, wooden furniture was traded worth $28.1 billion in 2000, up 28% since 1996. The worlds leading industrialized economies (30 OECD countries) registered imports of $25.5 billion in 2000, accounting for 91% of all wooden furniture imports that year. a) Major Import Markets for Wooden Furniture The following table illustrates the imports of some of the major markets for wooden furniture over the period 1997-2002. Table 69: Imports of Wooden Furniture Selected Markets
Country 1997 1998 United States 12,851 13,255 EU 12,052 12,468 Japan 15,116 9,184 China/Hong Kong 3,321 1,956 Canada 1,734 1,715 South Korea 2,376 912 Mexico 438 525 Taiwan 1,783 1,205 Norway 821 852 Switzerland 804 881 Source: International Tropical Timber Council 1999 16,015 12,846 10,814 2,914 1,896 1,404 619 1,157 762 867 2000 15,453 13,060 11,271 3,708 2,114 1,568 826 1,164 760 791 2001 14,963 12,006 9,853 3,460 1,945 1,571 833 837 758 758 2002 15,725 12,332 9,235 4,135 2,150 1,826 950 904 806 799
The United States is the worlds leading importer of wood products, importing $15.7 billion in 2002. Between 1997 and 2002, U.S. imports increased nearly $3 billion. The United States strong housing and remodeling market, coupled with the rising value of the dollar during this period, helped stimulate import demand. Imports from Canada, mostly in the form of softwood lumber, accounted for two-thirds of total U.S. wood imports. The European Union with 15 member countries represents the largest OECD trading block for imports of wooden furniture, accounting for $11.2 billion in 2000 and $12.3 billion in 2002. Japan is the third-largest wood product importer, with imports valued at $9.2 billion in 2002. In 1998, Japan fell from the top position after imports decreased to $6 billion. Japans economy had been plagued with bad loans, deflation, rising government debt and decreased housing starts. Graph 79:
Imports of Woode n Furniture - Ke y Import M arke ts
20,000
Value US$ 000,000
15,000 10,000 5,000 0 1999 2000 2001 2002
United States
EU
Japan
161
b) World's leading softwood log importers Japan is the worlds leading softwood log importer. Between 1997 and 2002, Japans softwood log imports decreased sharply from $2.4 billion to $1.2 billion. Although U.S. softwood log exports to Japan decreased over $900 million between 1997 and 2002, the United States remained its top supplier. The EU is the second-largest softwood log importer, with imports of $780 million in 2002. Chinas imports of softwood logs skyrocketed from $50 million in 1997 to $1 billion in 2002, making it the third-largest softwood log importer. Softwood logs from Russia accounted for over 85 percent of Chinas imports in 2002. As Chinas domestic log supply decreased, its construction, furniture, and pulp and paper industries turned to imports to meet demand. Table 70: Imports of Softwood Selected Markets
Country Japan EU China/Hong Kong South Korea Canada United States Norway Turkey Taiwan Poland 1997 2,400 566 66 653 216 56 122 52 29 6 1998 1,567 638 95 257 220 74 134 55 20 6 1999 1,681 873 272 370 207 113 114 53 19 12 2000 1,714 834 379 414 213 174 111 62 13 13 2001 1,477 776 542 423 216 152 92 35 17 14 2002 1,232 800 1,004 500 194 172 88 34 15 14
c) World's leading hardwood log importers China is the top importer of hardwood logs, importing $1.3 billion in 2002. Beginning in 1999, Chinas imports increased rapidly as a result of reduced tariffs, a logging ban, and a growing furniture industry. With imports of $1.2 billion in 2002, the EU is the secondlargest hardwood log importer. Japans hardwood log imports, which topped $1.3 billion in 1997, were valued at $550 million the following year and have since slid to $370 million in 2002. Table 71: Imports of Hardwood Selected Markets
Country EU China/Hong Kong Japan India Taiwan South Korea Canada Thailand Malaysia Philippines 1997 1,314 834 1,332 448 290 220 125 51 36 67 1998 1,547 743 554 428 150 92 141 51 20 42 1999 1,390 1,189 645 418 179 150 150 94 49 47 2000 1,325 1,471 617 460 171 146 176 125 62 41 2001 1,211 1,285 400 486 118 113 175 95 67 33 2002 1,150 1,222 367 500 122 97 179 88 70 29
162
d) World's leading softwood lumber importers In 2002, the United States imported $6.1 billion of softwood lumber, with Canada supplying 84 percent. Increased competition in the U.S market from New Zealand, Germany, Chile and Brazil cut into Canadas market share, which was as high as 94 percent in 1997. Strong U.S. housing starts, 1.7 million in 2002, combined with subsidized imports contributed to this high level of imports. Japans softwood lumber imports decreased from $3.6 billion in 1997 to $2 billion in 2002. Although softwood lumber imports from the United States decreased significantly during this period, the United States was still the top supplier in 2002. Since 1997, EU imports of softwood lumber have fluctuated between $1.7 billion and $2.1 billion, with imports decreasing from North America and increasing from Russia and the Former Soviet Union. Table 72: Imports of Softwood Lumber Selected Markets
Country United States Japan EU China/Hong Kong Norway Australia Mexico Canada Taiwan Switzerland 1997 7,004 3,631 2,014 85 234 215 50 162 146 98 1998 6,332 1,890 1,854 79 222 183 61 127 107 102 1999 7,374 2,410 2,007 84 189 193 76 151 90 99 2000 6,568 2,595 2,071 101 191 247 122 160 97 90 2001 6,386 2,159 1,699 116 176 131 143 109 73 84 2002 6,157 1,976 1,900 196 189 181 181 108 89 81
e) World's leading hardwood lumber importers Between 1997 and 2002, EU imports of hardwood lumber decreased from $2.5 billion to $2.3 billion. During this period, imports from the United States and Malaysia decreased $450 million and $250 million, respectively, while imports from Cameroon increased $250 million. Chinas imports of hardwood lumber increased from $530 million in 1997 to $1.4 billion in 2002. In 1999, China imported $300 million of hardwood lumber from the EU, most of which was beech. By 2002, Chinas demand for beech decreased and imports from the EU fell to $120 million. In 2002, Chinas hardwood lumber imports from Indonesia, the United States and Malaysia were valued at $340 million, $260 million and $160 million, respectively. Table 73: Imports of Hardwood Lumber Selected Markets
Country EU China/Hong Kong United States Japan Canada Thailand South Korea Mexico Taiwan Philippines 1997 2,484 525 357 970 333 148 284 102 298 79 1998 2,569 646 399 496 308 151 117 126 213 48 1999 2,567 1,059 441 594 352 184 193 128 199 70 2000 2,687 1,364 493 642 402 215 176 153 204 54 2001 2,418 1,280 462 530 345 224 169 136 129 55 2002 2,350 1,401 468 461 366 266 170 145 137 65
163
6.5.3 OECD Imports of Wooden Furniture from DMEC Countries Wooden furniture accounts for over 60% of the Organization for Economic Cooperation and Development OECD imports of furniture and bedding of all materials. The developing country exporters have secured a growing presence in the OECD trade on wooden furniture. Around $25.5 billion worth of wooden furniture items were imported in 2000, of which $9.6 billion (38%) originated from Developing Market Economies and China DMEC. It is three times the DMEC market penetration of 1992 when their share was 19.5% for a total market of $3.2 billion. Table 74: World Imports of Wooden Furniture
1996 Wooden furniture: World 21,940 OECD World - $ million 19,708 28,074 28% 2000 OECD 25,481 29%
SITC 821.13/16/50/79
Increase
It is apparent that the global trade in wooden furniture has become more open to developing countries, which have been able to expand their market shares at the expense of industrialized countries. There are, however, regional differences on the openness of trade. USA has clearly become more receptive for developing market economies and China DMEC furniture, whereas Europe continues to trade a larger proportion of its furniture intraregionally, and imports from DMECs remain a smaller component of total furniture business. Graph 80:
World Imports of Wooden Furniture
30,000
Value US$ 000,000
25,000 20,000 15,000 10,000 5,000 0 1996

World
2000
OECD
164
a) Major OECD Import Markets The following table presents the values of wooden furniture imported by the main OECD import markets from developing countries.
Table 75: Value of OECD Imports from DMEC Area in 2000 (US$ Billion) Country US Japan EU Australia Canada Total Value 5.3 1.26
2.37
0.25 0.22 9.4
The United States represented the largest share (55%) of the total wooden furniture imports from DMEC in 2000 ($5.3 billion). The US market for wooden furniture from the DMECs has doubled since 1996, which indicates its openness to source furniture from all over the world, and integrate with competitive supply chains from the developing world. Japan is the second most important buyer of wooden furniture from the DMEC. In 2000 Japan represented 13% ($1.26 billion) of OECD imports. DMECs accounted for almost 80% of all Japanese imports of wooden furniture in 2000, because the country has close trading ties with all the major Southeast Asian sources. China was the main supplier, with Indonesia strong for rattan and bamboo ranges. Japans imports have, however, failed to grow because of the stagnating economy. In 2000, $2.37 billion of the European Union's total imports came from the DMEC region. Their lower share (25%) of the EU import markets indicates that the region is not as easily approached as the US, especially when considering the effect of retail and merchandising differences found within the 15 countries, with few international chains or groups available beyond Ikea. The major import sources are found intra-regionally and Italy provided the largest shares. Central and Eastern European countries were among key suppliers, but these are gradually overtaken by DMEC, especially those countries based in Asia. In 2000, the United Kingdom ($670 million), France ($395 million) and Germany ($359 million) imported the largest amounts from the DMEC countries. The second tier of EU importers include the Netherlands ($273 million), Belgium, Italy and Spain, the three importing for more than $ 100 million of wooden furniture from the DMECs. Canada & Australia: Outside Europe, there remain two important larger markets. Australia ($247 million) and Canada ($220 million) have both more than doubled their imports from the developing market economies and China.
165
b) Major Suppliers from the Developing Market Economies China alone supplied one third of the DMEC deliveries of wooden furniture into OECD markets in 2000. China had conquered a 15%-units higher a share of the market in just four years, by more than tripling its deliveries to US$ 3.22 billion. Much of this expansion has been powered by the growing number of joint ventures on furniture manufacturing with foreign partners. China has benefited from the opening up of investment and the transfer of technology first from Taiwan (province of China), Singapore, and more recently from the US and Europe. The other four leading suppliers were from Southeast Asia, namely Indonesia ($1.5 billion), Malaysia ($1.1 billion), Thailand ($725 million) and Taiwan (Province of China, $667 million). Indonesia still enjoys abundant availability of low-cost timber and highly skilled carving labor, while the other three countries are increasingly investing in China mainland and Vietnam to exploit the competitive advantages offered there. Free export trade zones, abundant but skilled labor and lower initial investment costs have encouraged this move in spite of the tightening wood resources in the two countries. Wood imports and use of woodbased panels have secured much of the expansion as solid wood has become scarce. In Latin America, Brazil and Chile have increased their presence in exports of wooden furniture with great success. Eastern European suppliers have become stronger players particularly in the European Union markets. All the above-mentioned countries have entered the low-medium mass markets with large volumes. Their competitive position has been based on comparative advantages derived from lower raw material and labour costs, with external support provided by favourable currency rates and lowering of tariffs in major markets. Now these driving forces are changing in favour of even lower-cost producers (China, Vietnam), and the big ITTO supplier countries will have to focus on moving to the upper market segments with better designs and quality assurance of all product attributes, including the sustainability of wood (certification). Many Asian countries are now working on strategies that allow them to target specific sectors of the US markets and price points in style and design to overcome the strength of the China catch-all manufacturing base. The strengthening of market-led manufacturing according to more original designs is likely to help Asian suppliers penetrate also the EU markets, whilst providing a strong learning curve on how to reach and meet selective consumer tastes in different countries.
166
Table 76: OECD Imports of Wooden Furniture by Destination Destination

OECD (a) (b) EU (15) (a) (b) USA (a) (b) GERMANY (a) (b) FRANCE (a) (b) UNITED KINGDOM (a) (b) JAPAN (a) (b) BELGIUM-LUX. (a) (b) NETHERLANDS (a) (b) SWITZ.-LIECHT. (a) (b) CANADA (a) (b) AUSTRIA (a) (b) NORWAY (a) (b) SWEDEN (a) AUSTRALIA (a) (b) ITALY (a) (b) SPAIN (a) (b) DENMARK (a) (b) IRELAND (a) (b) MEXICO (a) (b)
1996
19,708.06 5,362.21 10,776.56 1,365.52 4,549.76 2,514.44 3,619.11 332.23 1,807.19 231.07 1,031.47 309.43 1,588.60 1,089.74 1,007.85 63.83 1,002.48 169.35 1,086.86 15.74 462.69 92.93 918.47 28.92 423.09 19.12 339.47 39.35 184.43 115.12 246.61 53.99 195.13 43.66 217.34 51.81 93.24 14.11 58.62 4.02
1997
19,818.50 5,915.15 10,264.57 1,570.93 5,264.80 2,854.03 3,183.39 306.20 1,667.64 269.10 1,209.82 376.75 1,477.09 1,025.53 953.29 98.12 922.64 213.00 910.75 17.64 558.63 124.36 787.43 25.37 447.83 23.97 357.18 46.99 221.53 146.83 235.87 58.91 222.59 56.07 268.38 64.86 122.77 21.80 77.74 8.45
1998
21,507.06 6,376.60 11,137.78 1,722.99 6,325.68 3,415.14 3,357.25 310.25 1,798.26 264.00 1,407.56 432.11 1,145.23 810.75 1,029.45 126.03 941.94 235.77 983.81 19.14 579.24 142.45 776.07 22.97 498.43 30.47 390.99 47.08 230.22 144.96 271.75 74.43 267.65 70.68 355.81 78.61 147.04 25.98 98.00 13.01
1999
23,728.75 7,955.56 11,627.93 2,050.10 7,804.64 4,384.51 3,171.10 336.94 1,898.02 318.79 1,568.45 554.10 1,263.37 976.14 1,087.86 154.26 1,055.38 250.29 1,012.08 21.82 601.27 170.49 795.56 22.63 473.86 31.83 427.81 53.55 281.47 191.82 340.45 106.18 334.69 104.98 353.51 75.54 170.99 33.44 108.25 17.70
2000
25,481.02 9,640.30 11,192.98 2,365.85 9,469.18 5,321.61 2,788.58 359.26 1,901.73 394.70 1,790.58 670.45 1,580.38 1,261.80 991.52 153.69 1,004.52 273.30 933.22 23.00 709.21 219.61 674.62 26.84 466.04 31.37 416.84 66.18 344.51 247.43 343.61 118.52 338.33 123.58 326.57 75.37 191.02 53.49 183.72 32.92
Index 2000
1996=100 129 180 104 173 208 212 77 108 105 171 174 217 99 116 98 241 100 161 86 146 153 236 73 93 110 164 123 168 187 215 139 220 173 283 150 145 205 379 313 819
Source: ITC/UNSO Comtrade Database*
Notes: a) Total imports b) Imports from DMEs and China
SITC 821.13, 821.16, 821.50, 821.79
167
Table 77: OECD Imports of Wooden Furniture by Country of Origin
Origin
DMECs of which: NIEs
1996
5,362.22
1997
5,915.15 833.15 640.33 75.15 51.25 66.42 5,082.00 1,220.15 1,048.82 734.89 486.93 434.33 244.59 278.73 149.40 165.66 54.97 64.61 26.17 26.62 27.45 11.20 9.19 9.37 7.36 5.13 3.58 72.85
1998
6,376.60 790.59 619.79 85.50 45.14 40.16 5,586.01 1,552.30 1,158.51 723.49 461.33 510.25 264.95 234.49 149.02 165.48 77.89 59.35 31.12 30.71 28.10 15.71 12.27 8.00 7.68 6.01 4.34 85.01
1999
7,955.56 879.32 681.30 109.82 49.15 39.05 7,076.24 2,214.94 1,389.27 913.69 603.46 568.29 308.92 273.42 208.74 177.07 93.38 60.37 33.75 36.47 29.22 30.03 9.73 9.61 9.47 6.70 5.60 94.11
2000
9,640.30 885.55 667.23 128.17 51.76 38.39 8,754.75 3,222.91 1,507.96 1,064.56 725.12 628.30 347.73 346.76 305.26 163.92 113.72 59.96 35.10 33.50 30.00 28.63 13.87 13.49 12.54 11.68 11.42 78.32
% share
Index 2000
1996 2000 1996=100 180 100.0 100.0 16.4 12.6 1.3 1.1 1.4 83.6 18.4 17.6 12.7 9.5 6.4 4.0 4.9 1.8 3.1 0.7 1.3 0.4 0.4 0.4 0.2 0.1 0.1 0.1 0.1 0.1 1.3 9.2 6.9 1.3 0.5 0.4 90.8 33.4 15.6 11.0 7.5 6.5 3.6 3.6 3.2 1.7 1.2 0.6 0.4 0.3 0.3 0.3 0.1 0.1 0.1 0.1 0.1 0.8 101 98 189 88 51 195 326 160 156 142 184 162 131 317 98 316 84 156 167 135 284 320 201 205 379 387 116
878.70 of which: TAIWAN (POC) 677.51 HONG KONG 67.77 KOREA REP. 58.64 SINGAPORE 74.78 Other DMECs 4,483.52 of which: CHINA 987.41 INDONESIA 943.44 MALAYSIA 682.97 THAILAND 511.79 MEXICO 342.34 PHILIPPINES 215.26 BRAZIL 263.97 VIET NAM 96.37 SLOVENIA 167.08 INDIA 35.96 CROATIA 71.31 EGYPT 22.50 HONDURAS 20.03 CHILE 22.27 TURKEY 10.09 YUGOSLAVIA 4.34 BOSNIA-HERZG. 6.70 ARGENTINA 6.13 COLOMBIA 3.08 MYANMAR 2.95 Others 67.53
Source: ITC/UNSO Comtrade Database*
168
c) OECD imports of Wooden Furniture from DMEC areas - Major Product Categories Developing countries' exports to OECD increased from $5.4 billion in 1996 to $ 9.6 billion in 2000. Furniture n.e.s. (not elsewhere specified, SITC 821.50) is the main category of imported furniture from the developing countries. It accounted for 67% ($6.5 billion) of OECDs total imports of wooden furniture from the DMEC area. Seats of wood (SITC 821.16) ranked second at 23% ($2.2 billion). Seats of cane, osier, bamboo, etc. (SITC 821.13) and furniture made of bamboo and similar materials (SITC 821.79) have equally lost ground to 4% and 6% of total imports, respectively.
Graph 81:
OECD Imports from DMEC Area by Type of Wooden Furniture

10000
Value US$ 000,000
9609
8000 6470 6000 4000 2000 420 0 1996 Furniture, n..e.s Seats of Wood Total 2000 Furniture of other Material Seats of Cane, Osier, Bamboo 3213 2215 1398 331 590 335 5362
d) General Trends: DMECs export more
OECD countries imports of wooden furniture amounted to $25.5 billion in 2000, compared to $19.7 billion in 1996. Around 38% ($ 9.64 billion) were supplied by developing market economies and China. In 1996, their role was more modest at 27%. The positive growth rate was mainly a result of strong import growth in the major markets, particularly the United States and the United Kingdom. In addition some relatively minor importers like Canada, Australia, Spain, Ireland and Mexico have doubled or tripled their imports. On the other hand, imports have declined in a few countries such as Germany, Japan and Belgium-Luxembourg. Despite the ailing of major industrialized economies and faltering consumer confidence, imports have captured a larger share of consumption than in the past. In all the major markets, furniture imports from developing countries have grown faster than overall imports. 169
Influx of products from China is the single most important reason behind this development. Behind China, a handful of other developing market economies dominate wooden furniture trade with the OECD, and hold a giant lead over some of their neighbours, who are just about to start developing their furniture industries. Best product opportunities have been identified in the EU markets in the following types of furniture: ethnic-design furniture, RTA (ready-to-assemble), home office, small/occasional, and furniture for children and the elderly. Market drivers and factors of change
The past decade has brought about significant changes in wooden furniture markets, for example in material compositions of furniture, competitive positions of producer countries and designs and finishes of furniture, as well as retail and promoting practices, networking and distribution patterns: 1. Growing outsourcing of semi-finished products and components from developing countries. 2. Tightening environmental regulations and mounting pressure for certification and labeling requirements on furniture (especially in the United States in the next 2 to 3 years). 3. Substitution pressure from new material combinations (wood, natural fibers and synthetics). 4. Higher potential supply of and demand for more diversified products of sustainable plantation woods. 5. Adoption of Internet in export promotion, growing business-to-business electronic commerce, and centralized electronic procurement of operating supplies. 6. Consolidation of the largest distribution channels into cross-continental mega-chains. 7. Gradual lowering of import tariffs, which is sometimes counterbalanced by higher nontariff barriers on trade. 8. Housing start-ups and consumer spending on interior refurbishment and replacements are the traditional forecasting tools for furniture sales. Furniture is classified as non-essential item, so it is usually first eliminated from shopping lists in bad times. Its purchase is usually triggered by the growth in the building and housing sectors, but even more commonly, as a result of replacements and renovation.
170
6.5.4 The International Market for Wooden Furniture in Focus The following section presents in-depth information about the Major markets for wooden furniture with a special focus on the EU, North America and the Middle East. a) The European Market Furniture industry The EU furniture industry accounts for about half the world furniture production. It employs various raw materials to manufacture its products with a production value of 82Mio in 2001. They range from wooden boards through leather and glass to metal. The EU furniture industry is export oriented, but the EU markets are more and more supplied by low production cost countries. Germany was the largest furniture producing EU country in 2001 with a production value accounting for 27% of the total EU furniture production. It was closely followed by Italy (26%) and by France (12%). The strengths of Europes wooden furniture industries are generally well known: steady raw material base, technological lead, quality and design, brands, distribution (proximity), clustering and networking. Weaknesses are in non-flexible labor, raw material costs and substitution pressures, which result in low profitability of the industry Graph 82:
Graph 83:
171
Graph 84:
Graph 85: Materials used in furniture production
172
Table 78: EU Production in the woodworking industry in million EUR, 1996-2000 Production (excl. VAT) 1996 1997 1998 1999 2000 2000 sawmilling wood-based panels wooden construction packaging "other wood products" Total 14.6 10.5 17.4 3.8 6.2 52.7 15.7 11.5 18.4 4.3 7.2 57.3 15.5 12.0 19.5 4.5 7.9 59.7 16.4 11.9 20.7 4.7 8.6 62.67 17.6 12.9 21.8 5.2 9.3 66.9 26.3 19.3 32.6 7.8 14.0 100%
The general trend in the production of the EU woodworking industries has risen steadily from 52.7 million EUR in 1996 to 66.67 million EUR in 2000. This trend follows notably the one of housing starts and repairs. In recent years, the growth rates have been the most significant ones in packaging (pallets) that increased from 3.8 million EUR in 1996 to 5.2 million EUR in 2000, in certain panels (MDF and OSB) which increased from 10.5 million EUR in 1996 to reach 12.9 million EUR in 2000 as well as in the engineered wood products. The latter products represent the sector's high value added modern development. The woodworking sector is facing fierce competition with imports and material substitution. European construction developments Total construction According to Euroconstruct, the consortium of research institutions specializing in the construction sector in Europe, the value of construction in their European country grouping is forecast to exceed 850 billion euros in 2001 and 2002. The European Panel Federation (EPF) Annual Report 2000-2001 states that the overall construction sector output in 2000 was 875 billion euros, up 2.8% from 1999. Euroconstruct forecast increased construction in all of their countries in 2001, with the exception of Germany and Norway. While Germany remains the single biggest market accounting for around 20% of the total, it is also expected to remain subdued throughout the forecasting period. (Euroconstruct). The largest contributions to total volume growth are forecast to come from France, Spain, Italy and the United Kingdom. However, in terms of relative growth Euroconstructs four central and eastern European countries (CEECs), Czech Republic, Hungary, Poland and Slovakia, are expected to outpace their western European members. There are structural differences between the construction sectors in Western Europe and Euroconstructs four CEECs. Renovation and modernisation account for more than a third of western European construction output, while CEEC construction activity is overwhelmingly dominated by new non-residential construction and civil engineering. Residential construction in the EU Of greater interest to the wood products sector is the development of residential construction because of the greater use of wood. Residential construction, including new construction plus repair and remodeling, in Europe totaled over 400 billion euros, or 46% of total construction, in 2000. 173
According to EPF, in 2000 Germany had a 30% share of the residential construction market in western Europe, followed by France, 14%, Italy, 13%, United Kingdom, 10%, and Spain, 8%; these 5 countries accounted for 75% of the market. In Denmark, and presumably in France, Germany and Switzerland to some extent, the exceptionally high construction expenditures in 2000, especially repair and remodeling, are linked to the December 1999 windstorms. Overall damage to buildings in Denmark was estimated by Euroconstruct at 1% of GDP. As the repairs were done in 2000, there is negative growth in the construction sector forecast for 2001. In conclusion, residential construction is expected to fare well in the Czech Republic, Hungary, Poland and Slovakia, which could indicate a general trend in other CEECs; however, statistics were not available to document this assumption. Western European countries have vastly different outlooks for residential construction in the short term. The repair and remodeling segment should be a factor that buoys up stagnant construction in many European countries. Table 73:
Table 74:
174
Forest products market developments in the United Nations Economic Commission for Europe - UNECE region Forest products markets escalated to new heights in 2000 in the UNECE region. Wood-based panels' consumption rose throughout the UNECE region, out distancing all other primary forest products sectors with over 5%, to a record 121 million m3. Consumption of sawnwood rose by 1.7% to an all-time high of 304 million m3, with stronger European consumption outweighing a slight downturn in North American sawn softwood consumption (hardwood consumption rose universally in the UNECE region). Commensurate with the developments above, roundwood consumption rose by 4.4% in 2000. Roundwood trade exploded in 2000 in the EU/EFTA sub-region, expanding by 50% as 2.6 million m3 more were exported than in 1999. Imports rose higher yet, by 6.8 million m3, a 19% increase over 1999, reaching 62.6 million m3, 8 to 10 times more than the other subregions. Much of these imports are intra- Europe. North American consumption of primary products fell overall by 1.0% in 2000, a drop of 7.6 million m3 in roundwood equivalent. However, this total masks gains to record levels in consumption of wood-based panels, sawn hardwood and secondary processed wood products. The slight drop in consumption hides the fact that North America had the highest average unit value prices in the region for exports of industrial roundwood, sawnwood (hardwood and softwood), particle board and OSB, and newsprint. Commensurate with a decline in sawn softwood production, sawlog consumption fell accordingly. For all primary forest products combined, the consumption in Other Europe rose by 10.4% to reach almost 76 million m3, while consumption in the EU/EFTA subregion rose less, by 3.8%, but on considerably higher volumes, achieving 492 million m3. It is important to note that many central and eastern European countries (CEECs) have moved out of the economic transition period and have reestablished their forest products production and trade capacities, often with foreign investments. These improvements are finally evidenced in rising domestic consumption. Commonwealth of Independent States - CIS countries, reported the first gains in forest products consumption as a whole since the beginning of the transition process in 1991. In Russia the consumption of panels and paper and paper board both increased by approximately 19%. Consumption of sawnwood continued falling; however, exports of sawnwood rose 20%. In fact, in 2000, boosted by the devalued rouble, exports of most other products also increased: plywood by 7%, paper and paperboard by 17% and woodpulp by 21%. Roundwood production, of which20% was exported, rose by 11%. For all of Europe, sawn softwood markets registered record production in part due to the storm-downed volumes of sawlogs, and mostly due to a rise in consumption. However supply, increased by imports from CIS and other supply regions, outstripped demand in Europe and prices generally fell from 2000 into 2001. A growing portion of the European production is being exported to Japan, other Asian markets including China, and the United States owing to favourable exchange rates in 2000 and 2001. Despite increasing exports out of Europe, the EU/EFTA sub-region remains a net importer of sawnwood. When the rapidly expanding exports from "Other Europe" are added to those of the EU/EFTA sub-region, Europe as a whole is a net exporter, with about 75% being traded within Europe and 25% being exported out of Europe
175
b) North America North American Demand for Wooden Furniture The United States Market The United States housing boom that began following the recession in the early 1990s, continued in 2000, and despite some pullback in 2001, the residential housing market remains healthy. Single family starts are the key to wood products demand because singlefamily units consume over twice as much lumber and panels as multifamily units. Singlefamily housing construction activity has remained very strong and well above 1 million units annually since 1995 as it now makes up over 80% of conventional housing demand (conventional excludes mobile homes and United States Department of Housing and Urban Development (HUD) Code homes). Furthermore, todays houses are larger (20% larger than the 1980s) and they have more amenities (multiple garages, extra bathrooms, more bedrooms, etc.). In addition, the resale market has been setting records for the past three years with sales of existing homes (resales) averaging in excess of 5 million units per year. This is important because residential remodeling and repair markets consume almost as much lumber and panel products as new housing activity, and the resale market is the best single indicator of what is going on in the remodeling market. Furthermore, this market gives good insight into furniture and kitchen cabinet sales, which are other important users of wood products. Housing activity is important to the United States economy and it is critically important to the wood products industry. This is because 90% of the United States homes are wood-frame compared with 10% in Europe and about 50% in Japan. Housing activity (new housing plus remodeling) accounts directly for more than 5% of GDP. When indirect impacts are included residential construction contributes over 10% to GDP. According to the National Association of Homebuilders the construction of 1,000 single-family homes generates 2,500 full-time construction jobs, $80 million in wages and $43 million in combined federal, state and local revenues and fees. It is remarkable that in early 2001, housing has managed to avoid the sharp pullback being experienced by the rest of the United States economy. Some analysts believe that the United States would be in a recession in mid-2001 if not for the resilience in housing. For example, United States GDP in 2001 is expected to advance less than half the 5% growth in 2000. Some analysts feel weakness in the United States economy is due to a sharp pullback in business investment spending and the obvious recession in the manufacturing sector. Yet, housing, through May 2001 at least, has been relatively immune to the macroeconomic slowdown. The main reason is that consumer confidence has remained relatively strong thanks to a still healthy employment picture and continued income growth. And, aggressive rate reductions by the Federal Reserve Board have resulted in attractive interest and mortgage rates, by which housing has been a direct beneficiary. The Canadian Market The Canadian housing market has improved steadily since 1998 pretty much in tandem with the improving economy. This is not surprising because Canada, as a NAFTA partner with the United States, is heavily tied to the United States economy. In fact exports to the United States account for almost one third of Canadas GDP, and when their southern neighbor has a strong economy, Canada benefits. Of course, the corollary also holds Canada cannot avoid a weakening United States economy. 176
Canadian housing starts have improved steadily over the past several years, growing from 137,000 in 1998 to 152,000 in 2000, an 11% increase. Although Canadas housing market is slowing down somewhat in 2001 (as is the economy as a whole), the pullback is expected to be minor if any at all. Canadas economy isnt expected to cool as much as its southern neighbour (because it did not grow as fast in the past four years and current strong energy demand is benefiting Canada), hence the expectation that housing should remain near last years total. For 2002, most analysts feel that Canadian starts should approach 160,000 units (as long as the United States avoids a recession).
Graph 86:
Outsourcing to Developing Countries Growing outsourcing of semi-finished products and components by the United States furniture industry has been a key driver for the growth in DMEC trade. A great number of United States furniture manufacturers have transformed themselves into assembly plants, finishing lines or merely distributors and marketers of outsourced furniture and components from China and other countries, e.g. Brazil, Mexico and the Philippines. While subcontracting the manufacturing processes to the lower-cost countries, United States firms still capture most of the value-adding potential in design, distribution and marketing functions, which they keep strictly under their control. The manufacturing process itself (particularly with standardized machinery) represents a lower value-added potential and is therefore easily sub-contracted anywhere in the world.
177
North American Market for Office Furniture The United States The United States is in a business-led recession. GDP contracted at an annual rate of more than one percent in the second half of 2001. This was the poorest showing since 1991 when the US economy was last in a recession. Analysts expect continued negative growth in the first quarter of 2002. There is justified hope that the economy will turn around later this year. The Federal Reserve Bank lowered interest rates 11 times in 2001 and the rate is now standing at a 40-year low. It is possible that the Fed will continue with its easy monetary policy. Analysts at AKTRIN are confident that the positive effects of lower interest rates will make themselves felt soon. Furthermore, businesses have drastically written off bloated inventories of unsold goods thereby setting a good foundation for a recovery. The US office furniture market enjoyed a record year in 2000. It reached a consumption peak in the second quarter valued at US$43.5 billion (at annual rates, evaluated at retail prices including sales taxes and including recycled furniture). Following the peak quarter, business purchases of office furniture started to decline. The decline became increasingly steeper and came to a halt only in the third quarter last year when the market value reached US$36.0 billion (on an annualized basis). This is a drop of over 17% between the top and the low point. Growth of the office furniture market will be modest for the foreseeable future. In fact, due to the still strong market in the first half of last year, thereby lifting the 2001 average to $ 37.7 billion. Canada The Canadian economy slipped into recession during the second half of 2001, shrinking for the first time since 1992. Sagging export sales, above all to the US, represents the most serious drag on the Canadian economy. Canada's office vacancy rate is on the increase but still at a fairly low 6.5% at the present time. The variance between Canada's major urban centers is quite wide, ranging from a low of 2.0% in Ottawa to a high of 9.1% in Montreal. A low vacancy rate usually triggers new commercial construction which - with a certain time lag - triggers new office furniture acquisitions. On the other hand, a high vacancy rate allows businesses to quickly expand their office space if there should be a need. The Bank of Canada has repeatedly lowered its interest rate to the present level of 2.25%. It is to be hoped that this will help to keep the recession mild and short. The first fifteen months of this century were very good for the Canadian office furniture industry. Business purchases of office furniture (new and used) culminated at C$4600 million (on an annualized basis) in the first quarter of 2001. However, the good fortunes did not prevail. Office furniture sales dropped very steeply, down to a low point of only C$3988 million in the third quarter of last year. This represents a decline of 13.3% in only six months. Meanwhile, office furniture sales have rebounded a bit, but growth is painfully slow. Due to the still excellent performance during the first quarter of 2001, the annual average of C$ 4223 million represented a peak year.
178
c) The Middle East Economic conditions vary enormously in the Middle East and the differences at a macroeconomic level are also present in the furniture industry. The per capita consumption of furniture varies from country to country as well as the degree of openness towards international trade in the furniture sector. Alongside countries that are net importers of furniture (Saudi Arabia, UAE, Kuwait), and where the sector is not very developed, there are other countries where the local production almost totally satisfies domestic demand (Turkey, Egypt and, to a certain extent, Israel). Distribution within the furniture sector is usually through independent outlets. Specialist chains are not very common. Only in Israel have some of the principal furniture manufacturers developed their own distribution networks. As an area the Middle East is an interesting one for the furniture sector. European furniture manufacturers are the leading exporters to the area since local consumers prefer high quality furniture and price is often not a decisive factor in the choice of articles. Furthermore, a middle class of consumers strongly oriented to consumption is emerging. In addition, with the development of tourism in the area there is increasing demand for goods to furnish the new tourist infrastructures.
179
d) Japan Most of the solid or composite wood used in Japan is for the construction of residential housing. While this is similar to North America, the levels of home repairs and renovations in Japan are surprisingly low. As such, changes in the numbers and types of houses built in Japan have a direct and immediate impact on the demand for wood products. During the past three decades, the Japanese housing market has rivaled the United States market in terms of overall housing starts. This is in spite of the fact that the population of Japan is only 126 million people compared to almost 300 million in the United States. However, it is not just the sheer size of this market that makes it attractive. Japan, like Canada and the United States, has a tradition of wood housing. In addition, the Japanese people, unlike Europeans, have embraced many aspects of North American house design and construction over the past 50 year. Houses in Japan are replaced every 20-30 years, most frequently due to loss of structural integrity, decay or a desire to change styles. Traditionally, earthquakes have led to fires decimating many urban centers. In these coastal regions, houses were built as temporary structures and belongings were portable. When earthquakes occurred people packed up their belongings and waited out the fire in the surrounding and safe mountainsides. They later returned to build houses from wood and paper as only semi-permanent structures. In addition, current building practices in the humid Japanese climate, combined with a culture that does not promote house maintenance, often lead to decay and/or the loss of structural integrity after only a short time. Forecasts indicated that Japan's general economic conditions in 2003 will be similar to those experienced in 2002. Housing starts, which have a great influence on timber markets, are expected to decrease to reach 1.1-million unit market. It is therefore estimated that in 2003 the overall demand for timber would be forecasted almost the same as in 2002. The figures for the past four years indicate that European and Russian timber have been doing considerably well, whereas demand for Japanese, American and Canadian species has been declining. In general, the overall demand in terms of total volumes decreased due to the slow down in housing starts. The market has become more sensitive to the quality of timber. High-airtight and higly insulated houses are gaining popularity. As a result, consumers have been moving rapidly to KD and laminated lumber, which have in turn lead to the expansion of demand for European lumber. It is worth noting however that the Japanese housing is still price sensitive that is users are still interested in lower-priced homes. In short, it is observed that the coming years will also witness high competition in terms of quality, price and capacity of stable supply. While the wood industry has been depressed for a long time, recently the number of trading firms, wholesalers, sawmillers and house manufacturers dropping out of business has been significantly rising due to deterioration of profitability.
180
e) China With the twentyyear rapid development after the reform and opening to the outside, China's furniture industry has achieved considerate scale and brimmed with the vigor. The total output value of furniture industry in 2000 has reached RMB 120 billion and increased 15.4% than the previous year, maintaining a steady increasing momentum in the decades. At present the number of furniture manufacture enterprises is over 50,000 with 5 million employees. Among the furniture producers, non-state-owned enterprises take up the largest market share followed by foreign funded enterprises and civil-run enterprises. It is worth noting however that foreign funded enterprises have been expanding considerably especially. Most civil run enterprises are small-scaled, with distinctive regional characteristics. They are mainly located in South China, East China, North China and Northeast of China. Guangdong province has the highest concentration, with more than 6000 enterprises, accounting for 12% of the total. In terms of value of output, Guangdong province produces output worth RMB 36 billion, taking up 30% of the total output, and furniture export value of RMB 1.8 billion, making up 50.5% of the national furniture export value. In 2000, the national labor productivity of China's furniture industry was RMB 2,4000/person*year. When compared to international standards, labor productivity is pretty low. This is mainly due to the low level of mechanization and the fact that the industry is dominated by small scale enterprises. Wooden furniture occupies the major part of furniture products, followed by metal furniture. Rattan furniture and plastic furniture make up a small proportion of the industry. A survey conducted by the National Bureau of Quality Control and Quarantine shows that one third of wood furniture has quality problems. While largescale enterprises enjoy a comparatively good reputation as to the quality of their furniture products, medium or small-scale enterprises have many quality problems. Environment related issues represent the major quality challenge facing China's furniture industry. The issue of environmental protection index, such as the excess release quota of formaldehyde of man-made panels, seriously affects the quality of the furniture products. However, the sense of green products in the furniture industry is increasing gradually. Product design is another significant weak point in China's furniture industry. Furniture expenditure accounts for 1.2% of the total family expenditures. In 2000, ownership of furniture such as wardrobes, sofas and writing desks per hundred families in urban areas has decreased. The number of different kinds of furniture owned by citizens has changed dramatically. The furniture-consuming characteristics between cities and countryside are quite different. The price of furniture is declining. In 1999 and 2000, people started to become aware of the reduction in furniture prices. The fall of furniture prices is the result of developments in the furniture industry including an excess of supply over demand, the adjustment of market laws and the change of peoples consumption habits. The current market conditions indicate the beginning of a new era characterized with higher competition, large scale production and more sophisticated production techniques. In 1999, the total demand for Chinese furniture totaled RMB 73.4 billion. Domestic demand remains the main market driver. It is forecasted that demand will generally be on the rise especially in western style and kitchen furniture. Estimates indicate that the yearly demand for Kitchen furniture will average RMB 35 billion. Demand for office furniture, hotel furniture and school furniture is also expected to rise.
181
Currently, Chinese exports of furniture are much higher than imports. In 2000, the volume of exports represented 24.7% of total furniture output. America, the main importer of Chinese furniture, has imported 50% of the total export volume. The Chinese furniture industry is at the early stage of its growth and has great potential. However many challenges need to be tackled in order for the industry to meet its potential. Of these problems, quality and environmental issues are among the most serious. It is perceived that in the coming decade, the structure of the Chinese furniture industry will take qualitative change, with one third of the enterprises expanding, one third of the enterprises specializing in one or more market segment and one third of enterprises shutting down. China has become one of the world's leading forest product trade countries. Its entry into the World Trade Organization and the Asia Pacific Economic Cooperation group, its trade liberalization program and fast economic growth make it attractive for investment. China is rapidly emerging as a major global furniture and wood product exporter. U.S. and European furniture makers are turning to China for a large portion of their production and the trend is certain to grow. China's large manufacturing base and lower labor and overhead costs have led to increased outsourcing of furniture manufacturing to China by the US. Furniture exports from China increased by 43% between 1999 and 2000. This demand was illustrated by global Do It Yourself (DIY) and home furnishing retailers, who described their companies' plans for rapidly expanding procurement from China. China is moving to surpass Japan as the largest wood importer in Asia. Rising wages in China have helped to increase domestic demand for wood products. At the same time, China is emerging as the manufacturing base of choice for Western markets. Partly as a result of China's Natural Forest Protection Program, which has led to the curtailment of domestic logging, production of roundwood has fallen and imports have risen. From 1998 to 1999, imports of logs increased by 100%, sawnwood by 25 % and veneer by almost 20%. Imports from Russia alone increased 171% in the same period.
182
7. Conclusions and Recommendations

An overall analysis of the components of the study revealed the following: The process of collecting, analyzing, and distributing data and statistics by information and statistics agencies, associations, and government departments is conducted through traditional techniques (using manual files systems, storing cabinets etc.). We are thus still very far away from using a paper-less form of information collection and distribution. It is worth noting that according to recent estimation, January 2003, 90% of total statistics and information are produced by the government and government affiliated associations and agencies. Presidential resolution no. 2915 issued in 1964 is still the main resolution that governs data and statistics collection and publication. This resolution stipulates that the only legally recognized source of statistics is the Central Agency for Public Mobilization and Statistics CAPMAS. It follows that no ministry or governmental department, public or private sector can issue or distribute any data without previous consent from CAPMAS. This resolution imposes very high degrees of restriction and hinders the development of data and statistics collection and distribution process in Egypt. Against this background and in an attempt to improve the availability and reliability of data, the National Democratic Party Policies Secertariat appointed a team of experts who are currently studying the means and methods of modifying existing laws and regulation. The outcome of this will be compiled into a draft to be presented to parliament in the next session as part of the new Freedom of Information Act. An approval of this draft will hopefully bring forth more accurate and comprehensive data especially with regards to taxes, customs, licenses, information from the Commercial Registry the Investment Authority, the Ministry of International Cooperation etc. The development of more accurate and comprehensive data will place Egypt in a position where it is able to make sound decisions with regards to all aspects of society. Discussions with key figures in the information sector including H.E. Dr. Ehab Elwy the Head of the Central Agency for Public Mobilization and Statistics - CAPMAS, Dr. Raafat Radwan, the Head of the Information and Decision Support Centre IDCS and Dr. Mostafa M. Mostafa, Consultant at the National Institute for Planning revealed that there is a general awareness of the importance of conducting sectoral studies based on the compilation of first hand information. These officials however confirmed that this study undertaken by the IMC and the Chamber of Woodworks is the first initiative of its kind not only on the level of the furniture and woodworks sector but on the level of the Egyptian industry as whole. It should therefore serve as pilot project to be replicated in other major industrial sectors.
In this context, the project team proposes the following:
The development of a strategy for collecting and compiling data on the furniture and woodworks industry that is based on the joint vision of the governmental bodies, representatives from the private sectors and NGOs. Such a strategy necessitates the establishment of a committee that includes experts from the tax and customs
183
authorities, finance and monetary sectors, as well as industrialists and business associations etc. The presence of all these groups will contribute to the development of a coherent vision for the furniture and woodworks industry as well as the necessary steps needed to bring forth growth.
It is perceived that this strategy would result in the formulation and implementation of a pilot project for the furniture and woodworks sector that introduces state of the art data collection and sharing techniques. Such an initiative should eventually be applied on the level of the industrial sector as a whole. The development of any industrial sector requires the implementation of a set of information related activities to assist it in becoming more competitive in the local and international market. In other words, the compilation and processing of general information should serve as a first stage that should be followed by the development and implementation of a comprehensive prioritized research plan. In this context, this study should serve as a preliminary investigation of the furniture and woodworks sector. The following areas have been identified as requiring further research: o Investigation of the production capacity of the furniture and woodworks sector as well as overall investment in the sector is necessary. o The used furniture market is a market segment has been expanding and that there are a significant number of retailers all over Egypt that deal in both used and new furniture. Sources of used furniture come which usually come from embassies, hotels, and ministries are either sold through retail outlets or through auctions. In this context, an in depth analysis of aspects such as size, locations, salesmen, capital, ownership etc is necessary. o The growth of the ship-building industry: It is important to note that the number of entities involved in ship-building and maintenance (196) appears to be significantly large, rendering it an important sub-sector that needs to be promoted and expanded. o Changes in demographic patterns (distribution of age groups) and their impact on the furniture and woodworks market in terms of demand and supply of labor force o Production Capacity and labor force employed by Feeding Industries o An in depth analysis of the tourism industry and the potential it offers to the furniture industry o An in depth analysis of the building and construction market and its impact on the furniture industry o An in depth analysis of the education and health sectors with a special focus on the forecasted growth in the number of schools and hospitals. o An in depth analysis of the automobile industry and the transportation sector o An in depth analysis of the packaging industry. o It is highly recommended to do further research on the total production and manpower of feeding industries.
184
Annex 1 List of Abbreviations

CAPMAS The Central Agency for Public Mobilization and Statistics CEEC Central and Eastern European Countries, CIS Commonwealth of Independent States DMEC Developing Market Economies and China EU European Union EFTA European Free Trade Area GOFI The General Organization for Industrialization IDSC The Information and Decision Support Centre / Cabinet of Egyptian Ministries ITP The International Trade Point ITC The International Trade Centre MOFT The Ministry of Foreign Trade OECD Organization for Economic Cooperation and Development UN The United Nations UNSTATS The United Nations Statistics Division UNECE United Nations Economic Commission for Europe
185
Annex 2 List of Tables

Page Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Furniture & Woodworks Factories Registered at the Industrial Registry Woodworks Factories (ISIC code: 3311) Registered at the Industrial Registry Furniture Factories (ISIC code: 3321) Registered at the Industrial Registry Woodworks and Furniture Manufacturing entities Listed at the Industrial Map Woodworking and Furniture factories Registered at GOFI Discrepancies between data obtained from the Industrial Map and GOFI on the total number of furniture and woodworks factories Discrepancies between data obtained from the Industrial Registry and GOFI Furniture and woodworks factories registered at the Commercial Registry (With capital > 50,000 L.E. and capital < 50,000) Furniture and Woodworking Factories (Capital >50,000) Registered at the Commercial Registry Furniture and woodworking factories (Capital <50,000) registered at the Commercial Registry Furniture & Woodworks Entities classified by Product Furniture and Woodworking Wholesalers registered at the Commercial Registry Furniture and Woodworking Retailers registered at the Commercial Registry Furniture & Woodworks Feeding Industries Numbers of Workshops registered in Furniture & Woodworks Cooperatives Number of Furniture Cooperatives/ Governorate Comparison Between Statistics on Workshops obtained from the Commercial Registry and the Ministry of Local Development Military Production of Furniture & Woodworks, Fiscal Year 2002-2003 Calculation of the Total Number of Woodworks and Furniture Entities 23 24 26 27 21 22
Table 7. Table 8.
29 32
Table 9.
33
Table 10.
34
Table 11. Table 12.
35 37
Table 13. Table 14. Table 15. Table 16. Table 17.
39 41 43 44 46
Table 18. Table 19:
48 49
186
Table 20.
Egyptian Imports of wood, wood products, wood, classified by Product, HS1996 Code Egyptian Imports of Each type of raw wood classified by country (US$ 000,000) Egyptian Imports of Wood and Wood Products - HS 1996 Code 44 (MOFT Vs. CAPMAS) Egyptian Imports of Raw wood and wood products Classified by Country ( HS1996 Code # 44) UNSTATS Egyptian imports of raw wood and wood products by region, HS1996 Code # 44 - UNSTATS & MOFT Imports of Wood & Wood Products from Major Trading Partners Egyptian Imports of Wooden Furniture Classified by Product Egyptian Imports of Wooden Furniture Classified by country of origin (US$ 000,000) Egyptian imports of Furniture, lighting, signs, prefabricated buildings (HS1992 Code #94) classified by Product Egyptian Statistics Imports of Furniture & Prefabricated Buildings Egyptian Imports of Furniture, Lighting, Signs, Prefabricated Buildings Classified by Country ( HS1996 Code # 94) UNSTATS Comparison between Egyptian s Statistics (MOFT) and Foreign Statistics (UNSTATS) for Total Imports of Furniture, lighting, signs, prefabricated buildings (HS1996 Code # 94) Egyptian Imports of Paints Egyptian Imports of Glues and Adhesives Imports of Tools & Machinery Egyptian Imports of Nails Egyptian Exports of Wood, Wood Products & Charcoal HS 1996 Code 44 Classified by Country Egyptian Exports of Wood, Wood Products HS 1996 Code 44 Classified by Region Egyptian Exports of Raw wood and Wood products UNSTATS
59
Table 21.
61
Table 22.
66
Table 23.
68
Table 24.
70
Table 25. Table 26. Table 27.
72 74 75
Table 28.
76
Table 29. Table 30.
77 81
Table 31.
83
Table 32. Table 33. Table 34. Table 35 Table 36
87 89 90 91 93
Table 37
95
Table 38
97
187
Table 39
Egyptian Exports of Wood by Region, HS1996 Code # 44 UNSTATS & MOFT (US$ 000,000) Comparison of Statistics for Main EU Trading Partners Comparison of Statistics for Selected Arab Countries Comparison of Statistics for the NAFTA Egyptian Exports of Wooden Furniture Classified by Product Egyptian Exports of Wooden Furniture Classified by country Egyptian Exports of Furniture classified by Region HS1996 Code # 94 - -Egyptian Statistics Egyptian Exports of Furniture, Lighting, Signs, Prefabricated Building Egyptian Exports of Furniture (HS1996 Code # 94) Comparison between Egyptian and Foreign Sources of Statistics for Exports of Furniture, lightings, signs & prefabricated buildings (HS1996 Code # 94) Comparison of Egyptian Exports Statistics for Furniture, Lighting, Signs & Prefabricated Building to Lebanon & Saudi Arabia Number of Workers Classified by Geographic Location - GOFI The Number of Workers in the Furniture and Woodworks Industrial entities Registered at Industrial Registry Comparison between the Figures for Labor GOFI vs. the Industrial Registry Number of Workers Registered with Furniture & Woodworks Cooperatives No. of Furniture & Woodworks Entities and Workers Registered at the Ministry of Insurance & Social Securities Number of Workers Registered with GOFI and the Ministry of Local Development Number of Technical Schools classified by Geographic location Graduates from Industrial Schools of Relevance to the Furniture Industry Number of Trainees in Vocational Training Centers Graduates of the Faculty of Applied Arts - Interior Design and Furniture section
101
Table 40 Table 41 Table 42 Table 43 Table 44 Table 45
103 104 105 106 107 109
Table 46 Table 47 Table 48
111 113 116
Table 49
118
Table 50 Table 51
124 125
Table 52 Table 53 Table 54
127 128 129
Table 55
130
Table 56 Table 57 Table 58 Table 59
131 133 136 137
188
Table 60
Custom Duties, Sales Tax and Service Fees Paid by Importers of Wood & Wood Products (US$ 000,000) Value of Custom Duties, Sales Tax and Service Fees Paid on Imports of Furniture, Lighting, Signs and Prefabricated Buildings (HS 1996 Code 94) Number of Tax Payers - Furniture & Woodworks Registered at the General Tax Authority Total Value of General Taxes Paid by Furniture and Woodworks producers Egyptian Consumption of Wood Furniture & Woodworks Total Number of Hotels and Resorts Capacity of the Egyptian Tourism Sector Discrepancies between Statistics Obtained from CAPMAS and the Ministry of Tourism on the Number of Hotels and Rooms Hotels, Resorts and Floating Hotels (Year 2001- 2003 ) Imports of Wooden Furniture Selected Markets Imports of Softwood Selected Markets Imports of Hardwood Selected Markets Imports of Softwood Lumber Selected Markets Imports of Hardwood Lumber Selected Markets World Imports of Wooden Furniture Value of OECD Imports from DMEC Area in 2000 (US$ Billion) OECD Imports of Wooden Furniture by Destination
142
Table 61
145
Table 62
148
Table 63 Table 64 Table 65 Table 66 Table 67
149 152 154 155 156
Table 68 Table 69 Table 70: Table 71: Table 72: Table 73: Table 74: Table 75: Table 76: Table 77: Table 78:
157 161 162 162 163 163 164 165 167
OECD Imports of Wooden Furniture by Country of Origin 168 EU Production in the woodworking industry in million EUR, 1996-2000 173
189
Annex 3
List of Exporters of Egyptian Wooden Furniture
The following list includes the names and contact information of companies engaged in the exportation of Egyptian wooden Furniture. Data has been compiled from the Kompass database and the Ministry of Foreign Trade Database.
Company Name
Alexandria Wood Industries (Mobilor) Abd El-Radye Co. Alex Qubec Service Egy Trans El-Akram for Trading Co. Fatea for International Export Mohammed Mustafa Co. Nas for Trading & Exporting Rock Bottom Co. Amir Furniture Showroom Arab Furniture (Al- Atrouch) Coteco Commercial & Engineering Decorative Furniture Factory Gmmal Trading Intl exchange (Index) Intl Furniture Manufacture & Trade ( Azmy Furniture ) J.T.M Intl Import & Export Joetrans Import & Export Kobtan Furniture Factory La Maison Intl Furniture Lariana Import & Export Madkour Intl for Export
Address Alexandria
El- Mkabaty Land, Smouha 119, Ebn El-Sear El-Qabary Menea El- Basal 59, Safya Zagloul St 11, Kamal Moursy El-Shatbe Queen El-Asafra - El-Montazh 2, Mahmoud Azme St - ElAtaryn 45, El-Ataren St 59, Eskandr Ebrhim St Meame 36, El-Gamaea El-Esthlakea St - El-Montazh 108, Masged El-Attareen St, El Attareen 2, El- Sheikh Ali Youssif St, El-Labban 15, El- Horreya Rd Km.23.5 Cairo/Alex Rd 19, El-Galaa St, Victoria 15, Horrey St, Ramsis Enterance 2nd, Industrial Zone Block No 7 2,Adly Yakan St, Glim 11 El-Nasr St, El-Mansheya Second Zone Area No, 3 Block 15, Borg El Arb 340,Canal El-Mohmoudua ElBahari 8,Misr Co, St Latin District 34, Ahmed Hafez St
Tel no.
03/ 4274111 N/A N/A N/A N/A N/A N/A N/A N/A 03/ 4846295 03/ 3903274 03/ 3916874 03/ 4701090 03/ 5336208 03/ 4929131
03/ 4590345 03/ 5861266 03/ 4873505 03/ 4594067 03/3928575 03/ 486213 03/ 5486531
190
Company Name
Patcho Ribatt Contracting Office Stylesia Furniture & Wood Industry Touch Wood Modern Wood Industries Wahab Furniture
Address
Om Zeghio Km5, After Free Zone Amr Ibn El-Aas St, Assfra Elbahreya 19, Al-Ahwesa St, Mina ElBassal Kingi Mariout, off Railway Line,Amreya Meamary Towers, 160 Ahmed Shawky St, Roushdy
Tel no.
03/ 4806316 03/ 5502969 03/ 3929131 03/ 4551448 03/ 5428682
Cairo
Abd El- Ghafar Furniture Companies Group Alaa El- Maghrabi Furniture Alfa for Furniture & Decoration Artisan Fret Way Co. Glob Service Co. Habye Exporting & Importing Co. Haredey for Exporting & Importing Co. Hyen Zakye for Exporting Co. Magic International Service Mervat Abd Allah Co. Mohsen Smarah Rwshde El-Sager Co. Samer Abo Zaed Co. Shalbye Brothers Co. Star For Exporting Tarek Hassan Zakye Co. Tarek Darwesh Exporting Office Troubks for Shipping Service Education Project Co. Egypt Falcon Co. Abo Shpana Export Co. 39, El- Boustan st, Bab ElLouk 9,El-Ferkaany St, off El-Qalaa St 57,Abd El-Hakim El-Refaie St Nasr City 717,Port Said St, Ghamra 1216 Masaken Sheraton 6B, Kasr El-Nil St 30, Darwesh St 41, Hanen Ebn Eshak St- Naser City 4, Shrif Basha El-Kaber 11, Emarat El-Marwa - Mis ElGdeda 28, Ramisi St 36, Mostafa Basha - El-Zeton 15, Rwshdy St - Abden 3, Al-fred St - Ezbet El Nhakl 127, Ramsis St 39, kamel Fathy St 4, Ebrahim Maklef - Ezbet ElNhakl 7, Masaken El-Sheraton 27,Masaken El-Sheraton 25, Talat Harb St 15, Dr: Aly Ebrahim Ramyz Heleopolis 34, Afriac St - Nasr City 02/ 7944948 02/ 5113544 02/ 2979898 02/ 2859611 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
191
Company Name
Ahmed Hesan Aly Co.
Address
14,Abd El-Azez Yousef Ein Shams
Tel no.
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 02/ 7021430 02/ 6345416 02/ 3590540 02/ 2619500 02/ 5554570 02/ 2918584
12, Twfek Mohamed St - Nasr Ahmed Twfek Mahmod Co. City Ain El-Heya Co. 58, Naswh - El-Zaeton Arab Arrow for Export & Import 45, Emarat El-Swdea Arw International 1, El-Ansary Ein Shams Atlas for Shipment Service Co. 1,Arb Contractor St Dalas Exporting & Importing Co. 14, El-Eshren St, Ein Shams Dar El-Slam Co. 70,Kloud Bek - El-Azbakea Ebad El-Rhman for Exporting Co. Egypt Lebanon for Exporting Co. Egypt Office for Exporting Egypt Sky Way Export Co. El-Ala for Exporting & Importing El-Fath for Exporting Co. El-Mashrabeya for Export & Trading El-Safa Export & Import Foundation El-Sbah for Export Co. El-Slam Trading for Export & Shipment Eros Exporting Co. Esko For Trading Co. 41, Nagib El-Rehaney - ElAzbakeh 3, Mostafa Ebrahim St 83,Nasr St 15, Yaqub El-Qabty - Ancient Egypt 35,Ashraf El-Seed St 15, Rwsdy - Abdin 5, El-Mwardey - El-Seda Zenab 107, Cornich El-Nil - El-Maadi 6,Shaban Mousy St - Ezbet ElNhakl 45,Mahmod El-Gnde St - Nasr City 44, Ahmed Moktar St 79, Hdaak El-Kwba St
Bassatin Metal works Factory El- Ind.Zone 1 Area 15 El-Khalifa saftawi & Co El-basatin Dafrawi Furniture & Dcor Showroom Debag Advanced Furniture (Amr Helmy Designs) Delta Egypt Progressive Furniture ( DEPCO ) Deutsche Intl Trade & Investment Egy Plus El-Naam Towers 8-10 ElMatariya St 34,Orabi St , El-Nahda Sq 5,El-Massanea St Ind. Zone off Gharab Elestad St 5 El-Mahatta St. 12B EL-Marwa Bldgs ElMerghani
192
Company Name
Enoch Import , Export & Commercial Agencies Furniture Production Establishment ( Mobilic Dcor) Hak for Wood & Furniture Trading Imexport K.M.K Furniture & Dcor Kassed Karim Bayoumi Furniture Kesseba Establishment for Import & Export National Bride & Groom National Engineering & Industrial Services (Neisco) Qemma Trade & Distribution Queen Furniture Samary Furniture Senior Furniture Soviplast for Stationery Tools Manufacturing Tagoury Trading Center Adel ElTagoury The Intl Office for Commercial Transactions (Inter Comment) Trans Express Worldwide Cargo Dakahleya Saabi Exporting Trading House
Address
Bldg.10,19 El Tob El Ramli Flat No.44 242,Ahmed Esmat St, Corner of Geusr El-Suez 40, Ein Shans St. 40, El-Sultan Abo El-Ela St 31, Ahmed Fouad St, Saint Fatima El-Merghani Rd Koleyat ElBanat 31, Ahmed Hesmat St Hlmiet El-Zeitoun Sq 4,Military Enginnering Towers, Naser City 5,Hassan El-Mamoun St, Ext, of Ahly Club Ind,Zone off El Gazair St, Basateen 50.Kasr El-Nil St 34,Port Said St, Ghamra 6th, District, Plot 66/68 Badr City 53, Ramsis St Roxy
Tel no.
02/ 4094967 02/ 2968109 02/ 4911043 02/5760073 02/ 6350557 02/ 2905696 02/ 736295 02/ 2424624 02/ 4018412 02/ 2744134 02/ 7020466 02/ 3916488 02/ 4250780 015/ 210073 02/ 2582256
22,Abd El-Khalek Tharwat St 15,Khorshid St, Maadi 49,Farida Hassan St
02/ 3927350 02/ 7034915 N/A 50/ 312516
Damietta
Amal Misr Asal Furniture Pharos Factory Nasr Mohammed Osman Co. El-Ahram Exporting Co. Azzab Furniture Factory Souk, El-SamakEl-Kabir Mohamed Abdu St Awal Ezbaat El-Borg Rd 14, Terat Abo Mosalam St 88, El-Fanar St 12, Hashmat St Ind.Zone , new Damietta 057/ 329644 057/ 343415 N/A N/A N/A 057/ 402885
193
Company Name
Dawleya Import & Export Egyptian Ukrania for Export , Import & Maritime Transport Fathy El- Labaan for Importing & Exporting Furniture City Ghazawi for furniture Halawani Import & Export Establishment Hassan El- Murr Brothers for Sitting Rooms Hassan Negm Sons Furniture Intl Maritime & Shopping (damitrans) Intl Trade & Transport Office Mohamed Mohamed Fathy ElLabban & Partner Nasr Baraw Furniture Raafat El- Bayoumi Furniture Stat Meuble Gharbeya Logic Technology Saad Mohamed Saad Furniture
Address
9,Damietta St Beginning of ElMatboli St
Tel no.
057/ 332686
St.No,101 Villa 28 Ras El-Bar El-Galaa St , El-Galaa Sq 3,Saad Zaghloul St 11, Saad Zaghluol St 6, El- Tahrir St Cornich El-Nil St El Tahrir St in Foront Of Omar Effendi Malah Bldg Galaa St, ElKabass Sq 100,Fekry Zaher St El-Galaa St ,Behaind The Bus Station Aed El-Haras El-Watany Fekry Zaher St Police Tower, Cornich El-Nile St off Hassan Radwan With ElHelw Tanta Km6 Mehalla/Tanta Ind,Rd
057/ 528620 057/ 336161 057/ 322684 057/ 321755 057/ 7614035 057/ 334088 057/ 324714 057/322957 057/ 3277281 057/ 322518 057/ 325993 057/ 322554 057/ 342728 N/A 40/ 3310863 40/ 2221483
Giza
Modern Building Carpentry Farouk Abd El- Moneim &Co (Mobica) National Art Development Industries Mashrabeya (Nadim) Misr General Motors Alexandria For Glass Industry Arab Shipment & Trading Co. El-Mahdey for Exporting Free Cool for Engineering Industry 194 El- Mohawellat Rd, Km 28 Cairo/Alex
02/ 5390091
5, Masanea st, Bin El- sarayat 3, Abo El- Feda - El-Zamalek 44, El- Agwza St 29, El-Mesaha St - Dokki 1, Maka off Gamal Abd ElNaser St - Fesal 43, Abd El-Menam - El-Agwza
02/ 7481075 N/A N/A N/A N/A N/A
Company Name
Gelet Limited Co. Misr Express Co. Abd El- Rahim Amr Furniture Establishment Dimension Project & Furniture Egymeuble Egyptian Furniture & Interior design (Antique) Kasr Furniture Kato Prestige Cosmetics Mansour Gallery Mazy Import & Export Molouk Furniture New wood Practicals Wood Manufacturing (Practico) Three A Furniture Unisas Intl
Address
28Km, Misr / Alex Road 23, Adly Habeb St - fesal 6,Rashdan st, Messaha Sq 1st , Industrial Zone , Plot 165/B Nahda Tower 21,Ahmed Orabi st. Industrial Zone Osim - Embaba 146, 26th July St, Agouza Industrial Zone No. 2 Plot No. 220 64, Teraat El-Maryotia St 4,Omar AbdEl-Aziz St, off Shehab St 13, El-Mathaf El-Zeraei St, Agouza Tereat El-Mariouteya 4th,Industrial Zone Plot No.8, 6th October First Industrial Zone, Area 146 6th October 49, El-Hegaz St, Mohandessin
Tel no.
N/A N/A 02/ 749119 02/ 8331656 02/ 3455375 02/ 4553706 02/ 3460811 02/ 8331260 02/ 3835349 02/ 3382787 02/ 7499818 02/ 3856345 02/ 8330078 02/ 8330860 02/ 3021524
Port Said
Slah El-Den Ebrahim Co. Mondial Shipping & Trading (M.S.T) 6, El-Zuhwr St El- Tawhid Bidg Mohamed Ali & El-Nile st N/A 066/ 242600
Sharkeya
El-Boraq Co. Arquwarzo Egypt / Italy Co. Egyptian Fiber Manufacturing & products ( Bed Taki) Akhdar Export & Import & Commercial Agencies Belmondo of Egypt Samirco Metal Furniture Taki Factories Zaki for Furniture & Decoration 195 10th of Ramadan Ind.Zone Mogawra 6 10th of Ramadan Ind.Zone Ind . Zone A1 , Area No.3/3 10th of Ramadan 4th District, 2nd Bldg Ind.Zone B2 Area No. G3 Khartoum St Industrial Zone A2 Area 3/5/12, Akhnaton St Ind.Zone A1 Area No. 11/5 8, Saad Zaghloul St, Zagazig N/A N/A N/A 015/ 366449 015/ 361927 015/363209 015/ 410093 055/ 355283
Annex 4
Furniture and Woodworks Entities Benefiting from the Drawback system (1999 - 2003)
The following table includes the names of the companies benefiting from the draw back system in their export transactions. The list also includes the export destination of these transactions. It is worth noting however that the investigation has revealed that the drawback system has proven useful for certain inputs namely textiles and upholstery as opposed to others such as wood imports. Code Product Type Country 1999 Other types of wooden 4421909090 products under code 2144 Other types of wooden 4421909090 products under code 2144 Other types of wooden 9403600090 furniture Wooden Bedroom 9403500000 furniture Wooden Bedroom 9403500000 furniture Wooden Bedroom 9403500000 furniture Other types of wooden 4421909090 products under code 2144 Other types of wooden 4421909090 products under code 2144 Wooden Bedroom 940350000 furniture 940350000 940350000 940350000 Wooden Bedroom furniture Wooden Bedroom furniture Wooden Bedroom furniture UAE Srilanka Spain USA USA Holland 2000 Yemen Srilanka USA USA France Italy USA France Italy Belguim Pharoah Factory - Abdel Salam 100064965 Zaki Abdel Salam El Helal Factory for Home 100336108 Appliances 405694806 Anwar Gaber Abdel Halim El Euopia for Exports and 254278779 Imports - Ehab Islamic Company for Electric 100259235 Appliances Islamic Company for Electric 100259235 Appliances 100186076 Nahdet Samanood Factory 100184758 Abu Sebaa's Textile Factory El Israa Furniture - Hassan Ali 329664468 Ibrahim 618174060 Mohamed Mostafa Fouda El Helal Factories for Home 100336108 Appliances El Helal Factories for Home 100336108 Appliances 204945119 Alpha Ceramics 618069097 Mahmoud Mahmoud Shoman Aza Abdel Ghani and Hazawai 461930838 Parters Alexandra Spinning and Weaving 100110687 Company Number Name of Entity
Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture
196
Code
Product Type
Country 2001
Number
Name of Entity
4420901000 Carved wood 9403300000 Offce furniture Other types of wooden 4421909090 products under code 2144 Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 4421909090 products under code 2144 Other types of wooden 9403600010 Home furniture Other types of wooden 9403600010 Home furniture Other types of wooden 4421909090 products under code 2144 Other types of wooden 4421909090 products under code 2144 Other types of wooden 9403600090 Home furniture Other types of wooden 9403600010 Home furniture 9403300000 Offce furniture Other types of wooden 9403600010 Home furniture
Germany UK Sri lanka Saudi Arabia South Africa Saudi Arabia South Africa Portugal France Saudi Arabia Canada Ireland Austria USA Qatar Lebanon Egypt Free trade 2002 Saudi Arabia France Saudi Arabia
Gama Group - Ibrahim Wahid 207446733 Mohamed Khayal 202455165 Baby Koka Clothes Company El Helal Factories for Home 100336108 Appliances 204961254 El Manzel for Furnishings 204961254 El Manzel for Furnishings 204961254 El Manzel for Furnishings 204961254 El Manzel for Furnishings 204961254 El Manzel for Furnishings 100049710 Lontex Comapany 204961254 El Manzel for Furnishings Egypt - Toronto Company for 706004140 Furniture 100398596 Educational Projects Company Prince Importing Company 6.185E+09 Abdel Razek EL Prince Santa Monica - Antoinr Anis 307507440 Sa'eed 100398596 Educational Projects Company 100398596 Educational Projects Company Mardini Tex for Spinning and 200190806 Weaving Larouche, Egyptian Company for 100258859 Production 100398596 Educational Projects Company Patch Egyptian Company 205033245
197
Code
4421909010 9403600010 9403600010 4421909090 9403600010 9403600010 4421909090 9403600010 9403600010 9403500000 9403600090 4421909090 4421909090 4421909090 9403600090 9403600090 4421909090 4421909090 9403600090 9403600010
Product Type
Other types of wooden Home furniture Other types of wooden Home furniture Other types of wooden Home furniture Other types of wooden products under code 2144 Other types of wooden Home furniture Other types of wooden Home furniture Other types of wooden products under code 2144 Other types of wooden Home furniture Other types of wooden Home furniture Bedroom furniture 0ther types of wooden furniture Other types of wooden products under code 2144 Other types of wooden products under code 2144 Other types of wooden products under code 2144 0ther types of wooden furniture 0ther types of wooden furniture Other types of wooden products under code 2144 Other types of wooden products under code 2144 0ther types of wooden furniture Other types of wooden Home furniture Other types of wooden Home furniture Other types of wooden furniture wooden furniture - Other
Country
Canada USA Belguim Lebanon Kuwait USA USA Italy Saudi Arabia Saudi Arabia France USA European Union Austrailia USA Kuwait Cyprus Italy Cyprus Egypt - Free trade
Number
706004140 706004140 706004140 100398596 330646494 706004140 100398596
Name of Entity
Egypt - Toronto Company for Furniture Egypt - Toronto Company for Furniture Egypt - Toronto Company for Furniture Educational Projects Company Wood Appliances Company Egypt - Toronto Company for Furniture
Educational Projects Company El Mashrabeya Products - Blana 200140558 Development El Manzel for Furnishings El Manzel for Furnishings Sany Acrelic Educational Projects Company Educational Projects Company Educational Projects Company Egypt - Toronto Company for Furniture Kandil Company Educational Projects Company Educational Projects Company BlueSky Exporting Company French Furniture Company El Nadim Company for the Production of Mashrabeyat Ibrahim Othman Ibrahim Halloumi Company for Trade & Furniture
204961254 204961254 200094866 100398596 100398596 100398596 706004140 205037100 100398596 100398596 701210990 205036279
2003
9403600010 9403600090 9403600090 France Egypt - Free Trade Egypt - Free Trade 205117694 293699208 200162772
198
Annex 5
Forest products terminology
Coniferous (softwood) All woods derived from trees classified botanically as Gymnospermae, e.g. Abies spp., Araucaria spp., Cedrus spp., Chamaecyparis spp., Cupressus spp., Larix spp., Picea spp., Pinus spp., Thuja spp., Tsuga spp., etc. These are generally referred to as softwoods. Non-coniferous (hardwood) All woods derived from trees classified botanically as Angiospermae, e.g. Acer spp., Dipterocarpus spp., Entandroprhagma spp., Eucalyptus spp., Fagus spp., Populus spp., Quercus spp., Shorea spp., Swietonia spp., Tectona spp., etc. These are generally referred to as broadleaves or hardwoods. Tropical Tropical timber is defined in the International Tropical Timber Agreement (1994) as follows Non-coniferous tropical wood for industrial uses, which grows or is produced in the countries situated between the Tropic of Cancer and the Tropic of Capricorn. The term covers logs, sawnwood, veneer sheets and plywood. Plywood which includes in some measure conifers of tropical origin shall also be covered by the definition. For the purposes of this terminology, tropical sawnwood, veneer sheets and plywood shall also include products produced in non-tropical countries from imported tropical roundwood. Transactions Removals The volume of all trees, living or dead, that are felled and removed from the forest, other wooded land or other felling sites. It includes natural losses that are recovered (i.e. harvested), removals during the year of wood felled during an earlier period, removals of non-stem wood such as stumps and branches (where these are harvested) and removal of trees killed or damaged by natural causes (i.e. natural losses), e.g. fire, windblown, insects and diseases. It excludes bark and other non-woody biomass and any wood that is not removed, e.g. stumps, branches and tree tops (where these are not harvested) and felling residues (harvesting waste). It is reported in cubic metres solid volume underbark (i.e. excluding bark). Where it is measured overbark (i.e. including bark), the volume has to be adjusted downwards to convert to an underbark estimate. Primary products The names of individual forest products and product aggregates are listed below in the order in which they occur in the publication Forest Products Statistics. Separate definitions are not provided for coniferous and non-coniferous components where the general definition given above applies. Unless indicated otherwise, each forest product category includes both coniferous and non-coniferous components. Roundwood All roundwood felled or otherwise harvested and removed. It comprises all wood obtained from removals, i.e. the quantities removed from forests and from trees outside the forest, including wood recovered from natural, felling and logging losses during the period, calendar year or forest year. It includes all wood removed with or without bark, including wood removed in its round form, or split, roughly squared or in other form (e.g. branches, roots,
199
stumps and burls (where these are harvested) and wood that is roughly shaped or pointed. It is an aggregate comprising wood fuel, including wood for charcoal and industrial roundwood (wood in the rough). It is reported in cubic metres solid volume underbark (i.e. excluding bark). Wood fuel (including wood for charcoal) Roundwood that will be used as fuel for purposes such as cooking, heating or power production. It includes wood harvested from main stems, branches and other parts of trees (where these are harvested for fuel) and wood that will be used for charcoal production (e.g. in pit kilns and portable ovens). The volume of roundwood used in charcoal production is estimated by using a factor of 6.0 to convert from the weight (mt) of charcoal produced to the solid volume (m3) of roundwood used in production. It also includes wood chips to be used for fuel that are made directly (i.e. in the forest) from roundwood. It excludes wood charcoal. It is reported in cubic metres solid volume underbark (i.e. excluding bark). Industrial roundwood (wood in the rough) All roundwood except wood fuel. It is an aggregate comprising sawlogs and veneer logs; pulpwood, round and split; and other industrial roundwood. It is reported in cubic metres solid volume underbark (i.e. excluding bark). The customs classification systems used by most countries do not allow the division of Industrial Roundwood trade statistics into the different end-use categories that have long been recognized in production statistics (i.e. saw and veneer logs, pulpwood and other industrial roundwood). It excludes telephone poles. Sawlogs and veneer logs Roundwood that will be sawn (or chipped) lengthways for the manufacture of sawnwood or railway sleepers (ties) or used for the production of veneer (mainly by peeling or slicing). It includes roundwood (whether or not it is roughly squared) that will be used for these purposes; shingle bolts and stave bolts; match billets and other special types of roundwood (e.g. burls and roots, etc.) used for veneer production. It is reported in cubic metres solid volume underbark (i.e. excluding bark). Pulpwood, round and split Roundwood that will be used for the production of pulp, particleboard or fibreboard. It includes: roundwood (with or without bark) that will be used for these purposes in its round form or as splitwood or wood chips made directly (i.e. in the forest) from roundwood. It is reported in cubic metres solid volume underbark (i.e. excluding bark). Other industrial roundwood Industrial roundwood (wood in the rough) other than sawlogs, veneer logs and/or pulpwood. It includes roundwood that will be used for poles, piling, posts, fencing, pitprops tanning, distillation and match blocks, etc. It is reported in cubic metres solid volume underbark (i.e. excluding bark). Wood charcoal Wood carbonised by partial combustion or the application of heat from external sources. It includes charcoal used as a fuel or for other uses, e.g. as a reduction agent in metallurgy or as an absorption or filtration medium. It is reported in metric tonnes. Chips and particles Wood that has been deliberately reduced to small pieces during the manufacture of other wood products and is suitable for pulping, for particle board and fibreboard production, for
200
use as a fuel, or for other purposes. It excludes wood chips made directly (i.e. in the forest) from roundwood (i.e. already counted as pulpwood, round and split). It is reported in cubic metres solid volume excluding bark. Wood residues The volume of roundwood that is left over after the production of forest products in the forest processing industry (i.e. forest processing residues) and that has not been reduced to chips or particles. It includes sawmill rejects, slabs, edgings and trimmings, veneer log cores, veneer rejects, sawdust, residues from carpentry and joinery production, etc. It excludes wood chips made either directly (i.e. in the forest) from roundwood or made from residues (i.e. already counted as pulpwood, round and split or wood chips and particles). It is reported in cubic metres solid volume excluding bark. Sawnwood Wood that has been produced from both domestic and imported roundwood, either by sawing lengthways or by a profile-chipping process and that, with a few exceptions, exceeds 5 mm in thickness. It includes planks, beams, joists, boards, rafters, scantlings, laths, boxboards, sleepers and "lumber", etc., in the following forms: unplaned, planed, fingerjointed, etc. It excludes sleepers, wooden flooring, mouldings (sawnwood continuously shaped along any of its edges or faces, like tongued, grooved, rebated, V-jointed, beaded, moulded, rounded or the like) and sawnwood produced by resawing previously sawn pieces. It is reported in cubic metres solid volume. Wood-based panels This product category is an aggregate comprising veneer sheets, plywood, particle board, and fibreboard. It is reported in cubic metres solid volume. Veneer sheets Thin sheets of wood of uniform thickness, rotary cut (i.e. peeled), sliced or sawn. It includes wood used for the manufacture of laminated construction material, furniture, veneer containers, etc. It excludes wood used for plywood production within the same country. It is reported in cubic metres solid volume. Plywood A panel consisting of an assembly of veneer sheets bonded together with the direction of the grain in alternate plies generally at right angles. The veneer sheets are usually placed symmetrically on both sides of a central ply or core that may itself be made from a veneer sheet or another material. It includes veneer plywood (plywood manufactured by bonding together more than two veneer sheets, where the grain of alternate veneer sheets is crossed, generally at right angles); core plywood or blockboard (plywood with a solid core (i.e. the central layer, generally thicker than the other plies) that consists of narrow boards, blocks or strips of wood placed side by side, which may or may not be glued together); cellular board (plywood with a core of cellular construction); and composite plywood (plywood with the core or certain layers made of material other than solid wood or veneers). It excludes laminated construction materials (e.g. glulam), where the grain of the veneer sheets generally runs in the same direction. It is reported in cubic metres solid volume. Non-coniferous (tropical) plywood is defined as having at least one face sheet of non-coniferous (tropical) wood.
201
Particle board (including oriented strandboard (OSB)) A panel manufactured from small pieces of wood or other ligno-cellulosic materials (e.g. chips, flakes, splinters, strands, shreds, shives, etc.) bonded together by the use of an organic binder together with one or more of the following agents: heat, pressure, humidity, a catalyst, etc. The particle board category is an aggregate category. It includes particle board; oriented strandboard (OSB) and flaxboard. It excludes wood wool and other particle boards bonded together with inorganic binders. It is reported in cubic metres solid volume. Oriented strandboard (OSB) A structural board in which layers of narrow wafers are layered alternately at right angles in order to give the board greater elastomechanical properties. The wafers, which resemble small pieces of veneer, are coated with e.g. waterproof phenolic resin glue, interleaved together in mats and then bonded together under heat and pressure. The resulting product is a solid, uniform building panel having high strength and water resistance. It includes: waferboard and oriented strandboard (OSB). It is reported in cubic metres solid volume. Fibreboard A panel manufactured from fibres of wood or other ligno-cellulosic materials with the primary bond deriving from the felting of the fibres and their inherent adhesive properties (although bonding materials and/or additives may be added in the manufacturing process). It includes fibreboard panels that are flat-pressed and moulded fibreboard products. It is an aggregate comprising hardboard; medium density fibreboard (MDF); and insulating board. It is reported in cubic metres solid volume. Hardboard Fibreboard of a density exceeding 0.8 g/cm3 It excludes similar products made from pieces of wood, wood flour or other ligno-cellulosic material where additional binders are required to make the panel; and panels made of gypsum or other mineral material. It is reported in cubic metres solid volume. Medium density fibreboard (MDF) Fibreboard of a density exceeding 0.5 g/cm3 but not exceeding 0.8 g/cm3 It is reported in cubic metres solid volume.
Insulating board Fibreboard of a density not exceeding 0.5 g/cm3 . It is reported in cubic metres solid volume. Wood pulp Fibrous material prepared from pulpwood, wood chips, particles or residues by mechanical and/or chemical process for further manufacture into paper, paperboard, fibreboard or other cellulose products. It is an aggregate comprising mechanical wood pulp; semi-chemical wood pulp; chemical wood pulp; and dissolving wood pulp. It is reported in metric tonnes air-dry weight (i.e. with a 10% moisture content).
202
Secondary processed wood products Further processed sawnwood Wood sawn or chipped lengthwise (including strips and friezes for parquet flooring, not assembled) and continuously shaped (tongued, grooved, rebated, V-jointed, beaded, moulded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or finger jointed. Excludes: sawn or chipped wood with further treatment of edges and/or faces other than planing, or sanding. Wooden packaging material Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood. Casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood, including staves. Builders joinery and carpentry of wood Including windows and doors and coverings thereof as well as cellular wood panels, assembled parquet panels, shingles and shakes. Wooden furniture Seats with wooden frames as wooden camping and garden seats etc. and parts thereof. Except: seats convertible into beds, swivel seats, medical seats. Wooden furniture other than seats as of a kind used in offices, in the kitchen, bedrooms and elsewhere, as well as parts of all these. Prefabricated buildings predominantly made of wood E.g.: Log cabins, houses predominantly prefabricated from wood-based panels. Engineered wood products These definitions come from the APA-The Engineered Wood Association. APA classifies glued engineered wood products into three general groups: 1. glued laminated timber (glulam), 2. structural composite lumber (SCL) consisting primarily of laminated veneer lumber (LVL), but also parallel strand lumber and oriented strand lumber, and wood I-beams. Glued laminated timber (glulam) Glulam is an engineered stress-rated product created by adhesively bonding together individual pieces of lumber having a thickness of 50 mm (2 inches) or less. Its one of the most versatile of the engineered wood products. It can be easily shaped into forms ranging from straight beams to complex curved members and is used for a wide variety of structural applications in both residential and nonresidential construction. Glulam is used typically for headers, girders, purlins, beams, arches, and in exposed applications such as bridges, marinas and transmission structures. Structural composite lumber Laminated Veneer Lumber (LVL) LVL is the most widely used of the structural composite lumber products. It is produced by adhesively bonding thin wood veneers together in a large billet so that the grain of all veneers is parallel to the long direction. The LVL billet is then sawn to desired dimensions depending on the construction application. Some of the many uses are in header and beam applications, hip and valley rafters, as scaffold planking and as flange material for wood I-beams.
203
Parallel Strand Lumber (PSL) PSL consists of long veneer strands laid in parallel formation and bonded together with an adhesive to form beams. Like LVL and glulam, this product is used for beam and header applications where high bending strength is needed. Oriented Strand Lumber (OSL) Similar to PSL, oriented strand lumber is made from flaked wood strands that have a high length-to-thickness ratio. Combined with an adhesive, the strands are oriented and formed into a large mat or billet and pressed. OSL is used in a variety of applications from studs to millwork components. Wood I -beams Wood I-beams are structural, load-carrying products designed mostly for floor joist applications. The beams offer long length and low material weight. Their I configuration provides high strength and stiffness. The flange material for I-beams is typically dimension lumber or LVL; the web material is typically oriented strand board (OSB) or plywood. Wood I-beams, used extensively in residential construction, continue to be the fastest growing of the glued engineered wood products.
204

Egyptian Woodworks Monograph

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Egyptian Woodworks Monograph

Uploaded by

Copyright:

Available Formats

The Industrial Modernisation Centre - IMC The Chamber of Woodworking Industries - CWI

Egyptian Woodworks Monograph

Arab African Centre for Marketing & Consultancy Services AAC

Woodworks Monograph AAC

C) Summary of Findings Number of Entities

31,881 8,012 38,017 138,375

Value of Taxes charged on the Furniture & Woodworks Sector

Government and Household Consumption

Estimates for the Value of Tourist Industry's Consumption

International Industry for Furniture

Conclusions & Recommendations

Woodworks Monograph AAC

93 93 106 120 121 122 122 124 9

124 125 127 128 129 130 131

Woodworks Monograph AAC

Woodworks Monograph AAC

Woodworks Monograph AAC

Woodworks Monograph AAC

Woodworks Monograph AAC

2.2. Summary of Findings

31,881 8,012 38,017 138,375

Woodworks Monograph AAC

2.3. Furniture and Woodworks Entities Registered at the Industrial Registry

Woodworks Monograph AAC

Table 1: Furniture & Woodworks Factories Registered at the Industrial Registry

Furniture Factories (ISIC Code 3321)

Daqahleya 6% Cairo 15% Damietta 26%

Woodworks Monograph AAC

Giza 7% Cairo 13%

Woodworks Monograph AAC

Sohag 4% Daqahleya 4% Assuit 5%

Woodworks Monograph AAC

2.4. Furniture and Woodworks Entities according to the Industrial Map

614 527 432 167 165 106 97 58 53 50 45 24 23 19 16 47 2456

Woodworks Monograph AAC

Industrial Map (IDSC & GOFI)

Factories w ith less than 10 w orkers (SMEs)

Factories w ith more than 10 w orkers

Woodworks Monograph AAC

Graph 6: Furniture & Woodworking Factories Registered at GOFI

400 300 200 100 0

Woodworks Monograph AAC

Woodworks Monograph AAC

Woodworks Monograph AAC

Difference 5 59 176 25 57 9 42 37 6 8 63 11 17 3 73 591

Woodworks Monograph AAC

No. of Entities Registered at the GOFI

No. of Entities Registered at the Industrial Registry

Woodworks Monograph AAC

Woodworks Monograph AAC

Woodworks Monograph AAC

Ism ailia 2% As wan 2%

Kafr El Sheikh Port Said Menya Beheira 1% 1% 2% 1% Other 3%

Dakahleya 4% Qaloubeya 4% Asiout 4% Monofeya 5% Sharkeya 8% Giza 19% Alexandria 12%

Woodworks Monograph AAC

Woodworks Monograph AAC

144 145 111

151 145 111 108 105 102 87

Woodworks Monograph AAC

Category Activity Investment Company Cooperative Societies Private

Total Source: Commercial Registry

Woodworks Monograph AAC

North Sinai Qena Kafr El Sheikh Matrouh Total