Domestic producers are willing to provide the market with high-quality furniture, if the government will listen to their suggestions

By the condition on1st of January 2016 there are 1052 registered furniture enterprises in Kazakhstan, among which 9 are small businesses and 1043 are medium. In fact only 665 companies operate, of which 656 are referred to small business. Furniture production accounted to 26.819 million tenge in 2015. Compared with 2014 it fell by 21%. The share of the domestic market is about 26%, 74% accounts on import of furniture products. In general, the furniture is imported from Russia - 28%, China - 13%, Ukraine - 12%, Belarus - 9%, Italy - 8%, Turkey - 7%. Export of Kazakhstan's furniture in 2015 increased 3 times compared with 2014 and amounted to 4825.9 thousand USD. Our country supplies its products to Kyrgyzstan, Uzbekistan and Afghanistan.

The furniture company "Dara ART” with the trademark “Grand Prix” of Astana works on the market for over 6 years. Its CEO Karlygash Baybachenova started her business from scratch, with the rental shops, garages, without equipment. Now "Dara ART” - is one of the most successful representatives of the industry, which takes order for all kinds of products from economy to luxury class. "During development, we gradually started buying used equipment, then the new. Just six months ago, we have attracted investors, expanded production, equipped the enterprise with the latest equipment, and thus prepared for the upcoming EXPO-2017", - said Baybachenova.

The company buys raw materials for its goods in Almaty. The only thing that is not made in Kazakhstan is fittings, although we have the potential. The head of "Dara ART” does not exclude that she will soon correct this situation, recently, she even traveled to China and studied their production. "Why not? This will help us to increase further the Kazakh content in the finished products and lower prices. Then we will not need foreigners", - she said.

Answering the question whether Kazakhstan can today produce quality furniture and provide its market with domestic products, Karlygash Baybachenova unequivocally replies: "Yes." "5-6 years  ago I would have remained silent on this matter. But now I can say with certainty, most of the companies in recent years have raised their level of production, they have gained experience and today are equal to European countries. Kazakhstani furniture manufacturers can compete with other countries, and they are ready to cooperate", - said the businesswoman.

According to the representative of the Association of Furniture and Woodworking Industry of Kazakhstan Kanat Ibraeva, Kazakhstan has created equal conditions for all the furniture companies, but the problem is that during the procurements the terms of reference are prepared by the staff of government agencies without consideration of the opinion of experts of the furniture industry. In this case there is no advance payment for participation in the competition, which constitutes an obstacle for participation of companies with low turnovers. Small companies located in garages have no working capital to execute properly the order ..."- Ibraev began to explain.

"Therefore, there are people with money that bribe the organizers of the tender, win it and then go to small garage companies and say: "Can you do it for this amount. The small garage company does it, as it has no choice. Our industry will never develop in this way. And we will not be able to provide our state with domestic furniture", - finished his thought Baybachenova.

Kanat Ibraev sees the salvation of the furniture industry in full transition to guaranteed state orders. In addition, according to him, it is necessary to develop common standards. "An ordinary public officer sits on such expensive furniture that the directors of large foreign companies can’t afford. Because there is no standard. State organizations globally have standards on furniture, office supplies and so on. We do not. Its chaotic ... Therefore, there is 5-6 fold increase in the value in the pricing policy", - said the representative of the association.

"In this way, and the state loses, and we, the producers, are losing. Business is made on our business", - confirmed Baybachenova.

As a result, furniture manufacturers have stated that the market of furniture lacks stability and planning. "We do not know what criteria the new person in the Ministry will introduce tomorrow. The market is a mess. If the state within the framework of its powers will establish the regulation of this market, in principle, there will be no need in subsidies. Just a guaranteed order with a certain registry of Kazakh producers, as they say, each gets something. Otherwise, 90% of the industry will disperse. This jobs - about 30 thousand", - said Ibraev.

Deputy Director of the manufacturing industry of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Hakim Sabirov, in turn, said that the Department of manufacturing industry in conjunction with the Procurement and local content Department of the Chamber is considering issues to ensure that domestic manufacturers, enterprises of various branches have guaranteed orders, including the issue of equipment with furniture production of kindergartens, schools, secondary educational institutions, sports facilities, hospitals and other facilities constructed at the expense of the state budget, the budget of local executive authorities, quasi public companies, subsoil and other major consumers. This work will provide an increase in the share of furniture production in domestic consumption to 40% or more. But Chambers will not be able to carry out all this work, if the producers themselves will not be consolidated into a single sectoral business associations. "Consolidation of the business - it's not a wish, it is a necessity. You, businesses, united in a single union, receive the the state order: the annual plan that is necessary to make furniture for certain institutions with certain technical requirements. You, the association of furniture makers, say, yes, we'll do. But you do not just do it, and, in contrast to foreign suppliers, you provide services of maintenance support ", - he said.

In addition, the association with NCE elaborates on the development and further approval of the Roadmap on development of the furniture industry. Kazakhstan furniture manufacturers, members of APMDP, consolidated and ready to rehabilitate their industry. Today, the association includes enterprises, which provide more than 50% of furniture throughout the furniture industry. Now the question is only whether the state will go towards business.

"If the state will help us, we will save huge budget money, which go now to someone's pockets, or feed the economies of other countries. We are ready to sit down with the government, to explain and to show", - concluded Karlygash Baybachenova.