Furniture manufacturing is alive and well, and business opportunities are there for the taking if firms, whatever their size, are enterprising enough to grasp them.
A cross-section of manufacturing industries have taken a hit in recent years, some more recently by the global downturn, and furniture manufacturing has witnessed some shrinkage. But FXB Group managing director Joseph Borg believes the sector has adapted well to changing scenarios and continues to thrive.
His own firm has seen local orders rise by 30 per cent over the corresponding period in 2008.
"People are pessimistic, but the hurdles can be overcome if there is determination," Mr Borg told The Sunday Times. "We must be positive and talk positive. This is a sector renowned for the hard work and high quality craftsmanship it entails.
"Visions and strategies can be realised if there is wisdom, acumen and creativity."
Last month, Mr Borg felt compelled to dispel the general negativity permeating the manufacturing industry, and publicly outlined the strategy FXB has implemented over the past 10 years.
In an opinion piece entitled 'Manufacturing with pride in European Malta' in The Times on May 14, Mr Borg mapped FXB's route from the late 1980s. FXB was meticulously restructured as the landscape changed: import licences were removed, levies were introduced and later dismantled.
Mr Borg wrote how the group struck a balance between efficient production, seeking new business, and importation of quality ready-made furniture. Experience and careful pricing ensured the company identified the correct direction. Many other firms have followed suit.
Today, FXB Group incorporates eight companies and directly employs nearly 100 people. It still operates mainly from its original factory at Xewkija Industrial Estate in Gozo, has two other manufacturing units in San Gwann, and displays a 50-50 mix of locally manufactured and imported, branded furniture lines at its three showrooms: Prestige in Msida, Nouvelle in Qormi, and Natur in Victoria.
The group is largely run by the Gozitan family - Mr Borg and his two brothers-in-law - and a professional management team. It continues to manufacture furniture for the domestic market where demand for its products is healthy. Its contract portfolio includes a string of jobs completed for the hotel and real estate industry in Malta, across Europe and North Africa.
FXB is now close to completing the largest contract it has ever undertaken: manufacturing, subcontracting and assembling several thousand pieces of furniture and accessories for its considerable share of Corinthia Group's Palm City residences in Janzour, Libya. The village, designed with ex-pat professionals in mind, officially opens in September.
From its very beginning, the Borg manufacturing firm has always sought to broaden its horizons. Mr Borg's father, Francis X. Borg (hence FXB), now group chairman, set up shop in the 1950s and often attended trade events in Italy, nurturing his contacts with Italian manufacturers.
He opened the factory in Xewkija in 1969 and formally established a company in 1970, projecting an image with strong Italian influences, thanks to his collaboration with firms overseas.
Mr Borg explained how his father realised the domestic Gozitan market was too small for his expansion plans. Soon after the factory opened, Francis Borg began to enter the contract business, and in a few years a large number of restaurants in Malta sported chairs manufactured by the Borg company. By 1982, Mr Borg was manufacturing kitchen cabinet doors for export to the UK. His son Joseph decided to join the company in 1984 aged 24 - just as his father was beginning to contemplate downsizing.
Instead, the family business sought more opportunity and pioneered the industry. It opened its first showroom in Malta in Zurrieq and FXB introduced the fitted kitchen to Malta in the early 1980s. The firm also disturbed clients' love of mahogany by manufacturing furniture made of oak and displaying them at the annual Trade Fair. An Italian designer was roped in and modern bedrooms were assembled in the showrooms to clients' delight.
FXB took on its first hotel contract manufacturing furniture for the Galaxy Hotel in Sliema. It never looked back. Since the early 1990s, FXB has manufactured furniture for most of the Maltese islands' best-known hotels and resorts, meeting standards set by international chains, including Malta's own Corinthia hotels, locally and overseas, in collaboration with international partners.
Mr Borg is particularly proud to have been assigned the manufacture of loose furniture for the bedrooms and public areas for the Regent Grand Hotel de Bordeaux, one of the best hotels in the region. FXB has also been responsible for supplying and manufacturing office furniture for major corporations, and has even kitted out two cruise liners.
The group has worked particularly hard to build the FXB brand which continues to enjoy high esteem as one of Malta's top furniture makers.
"To us, the brand stands for value and quality," said Mr Borg, who also sits on the board of Bank of Valletta plc. "That is confirmed not only by repeat contract business, but also by our numerous clients who advertise the fact that a property for sale has a fitted FXB kitchen. Some home owners even ask for their kitchens to be dismantled so that they can take them with them to their new homes. It is both flattering and satisfying."
Mr Borg concedes that such an open market continuously presents challenges. Firms which traditionally do not belong to the sector are now importing furniture - around 30 firms have brought branded and non-branded lines to Malta.
Mr Borg said his company does not begrudge their business but warns that customers expect service and advice on materials when making their purchase, and support afterwards. New entrants to the sector must have the expertise and the tools to provide both.
FXB itself, he explained, used to incorporate a sizable maintenance division. Under the restructuring plan, the division became a separate operation providing the same service to other firms in the sector.
"We even began to import equipment and other ancillary machinery from Italy and Germany to provide this service," Mr Borg explained.
"Today, Techwood International is a very successful company, employing 10 people. It also supports other firms by retailing raw sanded pieces produced by the group for them to complete."
The group is constantly on the look-out for new talent and has taken on five Gozitan Mcast apprentices. In the next few weeks, Mr Borg and his management will be training some personnel from Saudi Arabia currently starting their new manufacturing plant in their country. FXB's in-house computer controlled manufacturing system is also being proposed for this new venture.
Mr Borg is confident in the industry's future and the changes that await firms of all sizes over the next few years.
"There is still space for the traditional joiners and carpenters, who should be capable of collaborating with the larger firms or identifying a niche market for themselves," Mr Borg pointed out.
"What will change is purchaser habits. Probably, young couples will soon no longer build their own homes, and their priorities will change. The sector will have to adapt to the times and to new tastes and lifestyles. What will not change is the demand for good quality furniture at the right price."