Wood, paper and printing manufacturing industry and its contribution to GDP
The industry includes 4 sub-industries:
- Production of wood, cork and straw products, veneer boards, wood panels and building joinery.
- Paper production and products
- printing
- Furniture manufacturing
The industry is one of the traditional industries, which, starting in the late 20th century, began to decline following the lowering of taxes and duties, which led to increased competition, mainly from the Far East. The erosion in the industry is reflected in the elimination of factories, a decrease in the number of employees, low salaries and marginal profitability. The industry currently contributes about 0.6-0.7% to GDP, compared to about 2.5-3% in the 1960s. The industry has continued to shrink in recent years. The industry’s share of GDP has also been shrinking in recent years as a result of growth in high-tech industries.
Important indicators
Data are in current prices except for 2005, which is in 2015 prices.
| 2005 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
| Industry GDP | From NIS | 8.8 | 9.4 | 9.9 | 8.8 | 8.8 | 8.5 |
| Share in GDP | % | 1.3 | 0.8 | 0.80 | 0.69 | 0.66 | 0.6 |
| Sales | From NIS | 25 | 22 | 23 | 20.5 | 20.7 | 19.3 |
| export | From NIS | 5-10% | About 5-10% | About 5-10% | About 5-10% | About 5-10% | About 5-10% |
| Employed | Thousands | 45 | 34 | 35 | 37 | 32 | 32 |
| Average monthly salary | Thousands | 8-9 | 9-10 | 9.5-10 | 9.5-10.5 | 10-11 | 10-11 |
| GDP of the economy | 660 | 1,166 | 1,224 | 1,269 | 1,330 | 1,406 |
The challenges of the industry
The industry faces several key challenges:
- Competition is increasing from the international market, especially from Far Eastern countries.
- Changes in production technologies that require constant investment.
- The need to raise the quality of products to compete in the market.
- Increasing awareness of the environment and the use of renewable materials.
Opportunities for growth
Despite the challenges, there are also opportunities for growth in the industry:
- Developing new products made from renewable materials.
- Use of advanced technologies to streamline production processes.
- Expanding the export market, especially to European countries.
- Collaboration with high-tech companies to develop innovative solutions.
summary
In conclusion, the wood, paper and furniture manufacturing industry faces many challenges, but it also has the potential for significant growth if the opportunities available in the market are taken advantage of. Investment in technology, product quality and proper marketing can lead to an improvement in the state of the industry.
As part of efforts to upgrade the industry, there is also a need for professional training of workers, to ensure that they can cope with new technologies and changing market demands. This training can include professional courses, workshops, and practical training in factories.
In addition, there is great importance for public-private sector collaboration to promote initiatives that can support the growth of the industry. These collaborations can include grants, subsidies, and tax breaks for companies that develop new technologies or invest in upgrading their plants.
Public awareness of products produced in Israel and the need to support local products is also of great importance. Local product marketing campaigns can help increase demand for these products, thereby supporting the growth of the industry.
In conclusion, the wood, paper and furniture manufacturing industry requires a multi-dimensional approach to address existing challenges and seize opportunities for growth. Investment in technology, professional training, collaborations with the public sector and increased public awareness are important tools to secure the future of the industry.
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