Possible impact of the green economy requirements on the furniture industry development in Kaliningrad region

Immanuel Kant Baltic Federal University, A. Nevskogo Str., 14, 236016 Kaliningrad, Russia

Abstract

The article discusses the possible impact of the requirements of the “green economy” on the furniture industry development in Kaliningrad region. The main question posed in the article – whether furniture manufacturers from Kaliningrad region can withstand future changes related to the “green economy”. The authors collected and examined data on the main factors affecting the Kaliningrad furniture industry earlier (changes in customs regulations) and now (impact of the COVID-19 pandemic). Along with the general analysis, the authors considered the manufacture of individual products. No sharper drop in the furniture manufacture for home use compared with the furniture manufacture for offices was found as a result. As vendors, component suppliers, and furniture manufacturers have formed a regional cluster, its role in overcoming current challenges was also examined. Taking into account the current situation, the authors come to a rather negative conclusion about the contribution of the Kaliningrad Association of Furniture Manufacturers to the general anti-crisis actions. The requirements of the “green economy” are expected to lead to a significant increase in capital expenditures for Kaliningrad furniture manufacturers. Taking into account the current problems caused by changes in customs regulations and the COVID-19 epidemic, Kaliningrad furniture manufacturers will not put these costs at the top of their priorities in the next 3-5 years.