The growth potential and competitive development of the furniture industry in Santa Maria, RS

Abstract

In the light of the difficulties faced by national industrial companies in recent years and the concern with the industrial sector as a contributor to local development, this article examines the potential for growth and competitive development of the furniture industry in the city of Santa Maria. The strategies used by some companies were analyzed, as well as the adaptation of the industry as a cluster and its competitiveness. After a questionnaire was applied to the companies that are members of NUMOV/SM, it was possible to conclude that the strategy preferred by most of them is differentiation, which contributes to a better performance in the market to which they belong. As far as the clustering process is concerned, in spite of some difficulties that were observed, many potentialities were also found, such as the existence of leadership and cooperation in the sector. The variables analyzed regarding the industry’s competitiveness showed in general a satisfactory behavior. However, a few problems occur because of the slow economic growth in the region. Thus, potentialities are present, but for the industry to develop those problems must be eliminated, for in this way it will be able to have a more significant impact on the local community by contributing to generate income and job opportunities in the region.

Key words: Competitive development, furniture industry, regional economy.