1. SAFCOL FORESTRY INDUSTRIALISATION CONFERENCE
4TH - 5TH OCTOBER 2017
Timber furniture manufacturing as an industry to promote development and growth of the industry, for the development of SMME’s and the value chain
PENWELL LUNGA
CHAIRMAN-SAFI

2. AGENDA Background – SAFI Furniture value chain
Socio economic drivers for investment
Barriers to industry growth
Industry and government strategic plan
Conclusion

3. COMPANY PROFILE
Business
Labour
Government
SAFI is a joint initiative of industry, labour and government.
Shares common interest of promoting development and growth of the South African Furniture Industry.

4. SAFI OBJECTIVES Provide market intelligence information.
Facilitate support services.
Penetrate domestic and international market.
Facilitate supply chain optimisation.
Promote effective manufacturing and design.

5. FORESTRY RESOURCES AND DOWNSTREAM LINKAGES
Woodlands
Natural Forest
Plantation Forests
Wood Furniture
Non – Timber Forest Products
Conservation / Recreation
Wood Products
Pulp & Paper
Source: Pogue T.E, 2008

6. FURNITURE VALUE CHAIN Foreign retailers Construction
Foreign wholesalers
Foreign retailers
Consumer
Construction
Plastic, Metals, Paint, adhesives
Forestry
Sawmills
Furniture
Machinery & other technology
Retail, Mining etc
Domestic wholesalers
Domestic retailers
Consumer
Source: Kaplinsky and Morris, 2006

7. SOCIO-ECONOMIC DRIVERS FOR INVESTMENT
Potential to play an important role in promoting growth and alleviating poverty.
Traditionally labour intensive and includes local craft based firms and large volume producers.
Has the second lowest cost per employee.
Suited for small scale production, which can support rural economies.

8. BARRIERS TO INDUSTRY GROWTH
High concentration of the retail sector.
Declining competiveness.

9. VS FURNITURE RETAIL VS MANUFACTURING SECTOR Source: Erasmus, 2004: 70
Source: DTI, 2008

10. DECLINING COMPETIVENESS
Lack of investment in technology to drive innovation and productivity
Shortage of both design and technological skills
Lack of research and development to support a global industry

11. INDUSTRY AND GOVERNMENT STRATEGIC PLAN
Furniture design programme
Furniture manufacturing hub
Market access programme
Furniture skills development programme

12. FURNITURE MARKET ACCESS PROGRAMME
Furniture designation
School, office and bed and mattress was designated in 2012
Development of public furniture guideline
Strategic partnership with retailers
Supplier development programme in partnership with the dti
National Pavilions and Trade missions
2017 – furniture companies participated in Mozambique, Zambia, Zimbabwe and Ghana
More focused missions in the future
Development of compulsory standards
School furniture compulsory standards
Office furniture

14. IMPROVING THE FURNITURE COMPETITIVENESS
Information dissemination
Establish and operate a sector information desk
Competitiveness improvement programmes
Facilitating access to markets
Local market development – retail and government
Regional (SADC) market development
Facilitating access to finance

15. FURNITURE DESIGN PROGRAMME
Furniture design competition
4th competition – theme storage
Attract designers in the furniture sector
Competition for professionals, students and developing designers
Furniture design qualification
The dti in involved the development of the qualification with the view to promote skills in the sector
Future design workshops

16. FURNITURE SKILLS DEVELOPMENT PROGRAMME
Learnerships
A work based learning programme
Assists learners to gain the necessary skills and workplace experience.
Skills programs
Recognition of prior learning
Work Integrated learning
Assists in providing career development, linking students with industry for relevant experience.

17. THE END THANK YOU Western Cape 75 Harrington Street Cape Town 8001
F:  
Gauteng
Office 305
3rd Floor North cliff Atrium
189 Beyer's Nude Drive 2195 T: F:
THANK YOU