According to IAL Consultants (109 Uxbridge Road, Ealing, GB-London W5 5TL) at the end of 1994 both the automotive and furniture industries in Europe showed strong growth after a difficult period during the recession of 1992-1994. This has meant that for slabstock foam, total production levels in 1994 are, in total, slightly lower than those of 1991 with moulded flexible foam production, particularly in automotive seating applications, being below that in 1991. Prospects for polyurethane flexible foam production increases across most of Europe are good for at least the next two years with flexible slabstock production expected to recover more quickly than moulded foam production.

These Pan European trends however hide significant local variations. Some principal trends in the major European countries are given below:

Germany: German foam production has been particularly hard hit as the automotive and furniture industries struggled during 1992-1994 with recessionary pressures amplified by reunification costs. The recovery in foam production is being delayed by the move into Eastern Europe of several furniture manufacturers purchasing slabstock foam locally. Recovery to 1991/92 levels is not anticipated until at least 1998 or later.

Italy: While the domestic flexible slabstock market has been depressed, export sales of both foam and furniture have improved its relative position as a manufacturer of flexible foam, particularly with respect to France and Germany. This has been facilitated in 1994 by the weak Lira giving export advantage.

France: France has seen the same recessionary pressures as the rest of Europe and the foam industry has reported difficult trading conditions. In particular, furniture sales were very depressed until the end of 1994. Moulded foam sales, while depressed, have been protected by a French motor industry which has performed better than the motor industry in other European countries. Production of flexible foam is forecast to grow strongly over the next 18 months in France to reach or exceed 1991/92 levels.

UK: The current outlook in the UK is quite optimistic as the automotive base is expanding following Japanese investment in the industry, in particular. Furniture sales are expected to continue to improve into 1995. Total flexible foam sales are anticipated to grow at 3-4% over the next two years.

Benelux: The Benelux countries depend heavily on export sales to France and Germany and to a lesser extent Denmark. They have been hard hit by recessionary pressures in France and Germany. Additionally, their domestic furniture and automotive markets are still depressed. It is anticipated that foam production will grow relatively modestly in the next two years but will strenghten in the latter part of 1996.

Spain: The Spanish economy has been suffering particularly severely during the recession so that slabstock foam production has been depressed in line with very low furniture sales. Moulded foam has fared better since the Spanish car industry, despite having had a difficult 1993, continues to increase production. However the main cars produced are the smaller models so that moulded foam is not expected to grow quite as fast as general expansion in car industry output.

The publication "The European Polyurethane Flexible Foam Industry – 1995" is available at a price of £ 475 from IAL Consultants.