We already know that the kitchen industry is not recession proof. Though most companies have held up pretty well so far, we are starting to some some cracks in the road to recovery. Some are pretty wide and deep…
The companies who seem to be effected the most, by the world recession, are a few of the largest companies. Perhaps their sheer size, makes it so much harder to adjust to though times and make the unnecessary adjustments quickly.
If you look at the 10 largest European Companies, you can see the effect of the global economy – Nobia, the largest European kitchen group (at least in 2009), already sold off Pronorm in 2010 and is now reported to pull out their Poggenpohl brand from the up coming Eurocucina…
One other German industry giant – the Alno Group, is also reported to be in rough waters. The ever so needed capital, from new Swiss investor, Mr. Max Muller is hopefully going to help the company who has reportedly have gone through several changes in middle and upper management lately and allegedly is in the middle of a pending law suit by the previous CEO over compensation.
In Italy, the recent bankruptcy of the 50+ year old Salvarani and the rumors of many brands in financial difficulties have the industry in buzz…
It will be very interesting to see what the Milan Fair and the Eurocucina show will look like next April. Rumor has it that Cosmit, who is the organizer of the show, is working very hard on convincing companies to return to the show next year.
I hate to see any company in difficult and especially ones of this size who employ so many people. It’s all about price nowadays and if they are not going to significantly drop their prices then they have a problem. These large companies are now competing with a lot of door manufacturers who supply the kitchen trade which leaves franchise showrooms like above finding it difficult to compete even if they do offer a superior product.
Any thoughts about Leicht? I was told in their showroom in NYC that they are the largest manufacturer in Germany.
David – not even close… The largest in Germany is Nobilia, than Alno, Häcker, Nolte, Schüller, Bauformat and there are others…
Why they need to make up these stories is beyond me… especially since the largest, doesn’t mean the best…
Good luck,
kitchenguy