The mattress companies in Egypt are all in standby and waiting for a solution for the dollar shortage and import restrictions.
How to manufacture mattresses when the supply chain is broken?
Since the September 2022 the economy of Egypt has been suffering a heavy dollar shortage because of restrictions on imports to the country. Now all investments are on standby. Too many containers of raw materials are waiting at the ports of Alexandria, Damietta or Port Said.
This means that companies needs to register the needed amount of USD or EUR to the national bank of Egypt to be able to make the payments for their goods.
Unfortunately sometimes the companies needs to have patience of 6 month to get the currency from the bank. Because of this reason all mattress companies are suffering now and hoping for sudden resolution of this crisis.
Every crisis brings opportunities: Wire!
Few years ago the market of Egypt was dominated by high carbon wire from Turkey. Now this trend have completely changed. More than five companies are drawing the wire for bonnell spring and pocket springs in the country.
Even one of the largest energy company in Egypt have entered the business of spring wire with their subsidiary of cable production. This dollar shortages have literally eliminated the import of wire and skyrocketed the volume of Egyptian wire drawing companies.
Enormous investments for foam production
For too long years egyptian mattress companies are producing foam. Now there is an immense investment into foam production technology especially from Germany by the leading three mattress manufacturer. One company have already started up their new production line. Two other companies are waiting for the delivery of the equipment from Germany. The shortage of the currency is also slowing down the procurement process of chemicals for foam production. But there is still no alternative on the local market.
Problem or Opportunity?
The problem of the dollar shortage has an essential message to the companies in Egypt: Export.
Most of the Egyptian mattress companies have still not realized the opportunities of exporting goods to foreign countries. This enourmous pressure because of the dollar shortage is for sure limiting the production capabilities of mattress manufacturer.
But the companies who are fighting back and looking for new opportunities on the international market will survive from this currency problems and also help to bring USD and EUR to the country.
What needs to be improved in Egyptian mattress companies?
The workflow in manufacturing process in Egyptian mattress companies needs to be optimized by using more automated technology. Only one or two companies are using mattress production lines to improve their efficiency. So the work stations in most of the mattress companies are not well organised.
One of the most obvious advantages of process automation in mattress production is to boost the productivity. So the companies will be able to produce a higher mattress capacity with less human menpower.
Our team is here to support you about this topic.
Please contact us for integrate more automation into your mattress production.
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