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NACE 2002 - 36 Manufacture of furniture; manufacturing n.e.c
NACE 2002 - 37 Recycling

This group includes seven industries, the most important one being the manufacture of furniture (it accounts for over 50% of total employment in the group), and also musical instrument.  

In recent years there has been an increase in labour productivity in these industries. Thanks to this the competitiveness of Czech manufacturers at the domestic as well as the European market has been  improving. The achievements of Czech producers are documented by growing exports to the demanding German market which account for 40% of all exports. On the other hand, there is a threat in the form of cheaper imports from Poland. As for toys, China poses the greatest risk in terms of competition. The manufacturing industry n.e.c. faces the problem of low levels of investment in the development of technologies and R & D , and this is reflected in the low demand for workers with more advanced qualifications.  However, these areas must be developed over the long term, particularly in furniture manufacturing, and the number of jobs requiring upper secondary and tertiary qualifications must increase if market success is to be achieved. The living standards in the CR and Central Europe as a whole are rising, and the requirements for quality furniture on the part of customers are growing. The period for which furniture is used before it is replaced is getting shorter.  The EU average is around 10 years, in the CR it is much longer (16-18 years). On the other hand, the manufacture of furniture is one of the industries that are influenced by the pace of growth in housing construction which is expected to slow down in the next year and recovery can come as late as after 2010. The economic crisis has severely hit the manufacture of musical instruments. However, long-term prospecs of Czech manufacturers are relatively good and the industry should recover and see a renewed demand for skilled labour. Moreover, the increasing birth rate in recent years ensures – at least for the next couple of years – a growing demand for toys and prams.  

Overall, employment in this sector could remain unchanged or grow slightly depending on the development of effective demand, household consumption trends and the pace of growth in construction and its recovery from the economic crisis.  Workers with skills in design, manufacturing technologies and sales and marketing will be of key importance for the competitiveness of Czech companies. As with other industries, new markets emerge as a result of rising standards of living and growing demand in Easter Europe. It is necessary to make use of these new opportunities.

In the upcoming years there should also be an increase in employment in the field of recycling and reuse of waste which also falls within this sector. The use of secondary raw materials shows a relatively large potential due to important national as well as European legal regulations that support environmentally safe disposal and reuse of waste. One of the specificities of this industry in terms of human resources is the need to respond, often very quickly and flexibly, to a changing situation in the market – one of the reasons being that the legislation and the overall waste management policies change rather frequently.

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