Impact of the financial crisis of 2008 on furniture industry in the Czech Republic and development of tangible fixed assets in 2005- 2012 and its possible renewal

Abstract

This paper is focused on furniture firms in the Czech Republic during the period 2005-2012, which covers the year of the crisis. The aim was to assess the given economic situation of the manufacturing businesses comparing some of the economic indicators such as tangible fixed assets, revenue from own production and services, pre- Tax profit and labor costs. The study was conducted in the Czech Republic using the data provided by the Czech Statistical Office. Results for the specified period and selected groups of micro furniture companies are shown; dependence of economic indicators within the given time period is also analyzed. The analysis has shown that the smallest of the firms were least affected by the economic crisis; moreover, the medium-sized of the companies exhibit tangible assets growth and certain degree of inertia in years 2008 and 2009. Finally, possibilities how the micro furniture companies could proceed when purchasing new technologies are outlined.