Italy`s wood and furniture industry is entering a new phase in terms of labour costs. The renewal of the Wood and Furniture Industry Collective Agreement for 2026-2028 introduces guaranteed wage increases and maintains an inflation-adjustment mechanism, while companies continue to face elevated costs for energy, raw materials, logistics and labour.

The issue is particularly relevant for companies operating in wood processing, furniture manufacturing, wood-based panels, windows and doors, sawmilling and the wider timber industry, as wage increases are being introduced at a time when competitiveness remains under pressure.

Wood and Furniture Collective Agreement: €134 Guaranteed Wage Increase

On 3 September 2026, FederlegnoArredo and the trade unions Feneal-Uil, Filca-Cisl and Fillea-Cgil signed the preliminary agreement for the renewal of the Wood and Furniture Industry Collective Agreement for 2026-2028.

For parameter 134 - AS1 specialised category - the agreement provides two guaranteed increases:

- €95 from September 2026
- €39 from January 2027

The total guaranteed increase is therefore €134 on contractual minimum wages, equivalent to approximately 8.2% of the minimum base wage for the category concerned.

Additional adjustments linked to the IPCA inflation index are expected in January 2027 and January 2028.

Current estimates included in the agreement indicate adjustments of approximately 2.4% and 2.6%. Including inflation recovery, the overall wage increase could therefore exceed €250 for the AS1 level.

Italian Inflation Reaches 3.3% in August 2026

Wage developments need to be considered alongside the broader inflation environment.

According to preliminary ISTAT estimates, Italy`s consumer price index increased by 3.3% year-on-year in August 2026, compared with 2.9% in July.

The acceleration was mainly driven by energy prices. Non-regulated energy prices increased by 16.9% year-on-year, while regulated energy prices rose by 18.8%.

Acquired inflation for the whole of 2026 reached approximately 2.9%.

For companies operating in the wood and furniture industry, energy inflation is particularly important because electricity, gas, drying, pressing, CNC machining and transportation represent significant components of industrial production costs.

Wages Become More Closely Linked to Inflation

One of the key characteristics of the Italian wood-furniture collective agreement is the continuation of a system combining fixed wage increases with periodic adjustments linked to actual inflation.

The mechanism is designed to protect workers` purchasing power but also makes labour costs more sensitive to inflation.

For wood industry companies, particularly labour-intensive manufacturers, this increases the importance of planning:

- personnel costs
- productivity per employee
- selling prices
- industrial margins
- automation investments
- energy consumption
- wood and timber costs
- export performance

Additional Pressure on Wood Industry Margins

Higher wages are not necessarily problematic when they are accompanied by increased productivity and adequate selling prices.

Pressure becomes more significant when labour, energy and raw-material costs rise faster than finished-product prices.

Many companies in the Italian wood and furniture industry compete directly on international markets.

Manufacturers of furniture, panels, doors and windows, flooring, components and other wood products therefore need to balance cost recovery with maintaining their competitiveness abroad.

The situation is further complicated by changing prices for wood, timber, lumber, wood-based panels, adhesives, resins, hardware and energy.

The wider European wood market in 2026 is already characterised by cautious demand, elevated raw-material costs and pressure on producer margins, making cost control increasingly important for sawmills, timber traders and furniture manufacturers.

More Than 200,000 Employees Covered by the Agreement

According to FederlegnoArredo, the Wood and Furniture Industry Collective Agreement applies to more than 200,000 employees across Italy.

The economic impact of the agreement is therefore significant.

For thousands of Italian companies, higher wages represent a structural increase in operating costs that will need to be absorbed through higher efficiency, productivity growth, innovation and, where market conditions permit, price adjustments.

The new agreement also includes higher premiums for overtime, night and holiday work, together with changes to seniority-related benefits and contractual welfare provisions.

Automation and Productivity Become Increasingly Strategic

Rising labour costs may accelerate investment in automation across the wood industry.

CNC machinery, robotics, automated warehouses, ERP systems, cutting optimisation and digital production management can help increase the value generated per employee.

For wood and furniture manufacturers, the issue is therefore not simply reducing labour costs but improving industrial productivity.

Companies capable of combining skilled employees, automation and efficient production organisation may be better positioned to absorb wage increases without significantly damaging margins.

Wood Prices Add Another Layer of Cost Pressure

Labour is only one part of the cost equation.

Across several European markets, softwood log prices remain relatively high, while demand for sawn timber remains cautious. This imbalance has created a widening gap between wood raw-material costs and achievable lumber prices, placing direct pressure on processing margins.

Furniture companies and other downstream manufacturers are also exposed to fluctuations in lumber, panels and imported wood products.

This means that companies need to assess labour costs together with:

- timber and log prices
- lumber prices
- panel prices
- energy costs
- transport rates
- exchange rates
- interest rates
- international demand

Exports and International Demand Remain Critical

The Italian wood and furniture sector remains strongly oriented toward international markets.

Exports are therefore essential for supporting production volumes, employment and margins.

WoodBusinessPortal analysis of the Italian wood-furniture supply chain shows that international sales remain a major pillar of the sector, while raw and semi-finished wood imports also play an important role in industrial sourcing.

If wages rise while international demand slows, margin pressure can intensify.

Conversely, stronger exports, higher selling prices and access to growing markets may help companies absorb rising labour costs more effectively.

For this reason, monitoring wood exports, furniture exports, timber imports and international market trends is increasingly important for strategic planning.

2026-2028: What Should Wood Industry Companies Monitor?

Over the coming quarters, companies throughout the wood and furniture supply chain should closely monitor:

- inflation and the IPCA index
- labour costs
- energy prices
- wood and timber prices
- lumber and panel costs
- industrial productivity
- sector revenues
- wood imports and exports
- furniture exports
- construction activity
- demand in major European and international markets

The interaction between these indicators will determine whether higher wages can be absorbed through productivity and growth or whether they will increasingly need to be reflected in finished-product prices.

Follow Wood Prices, Labour Costs and Market Trends on WoodBusinessPortal.com

For wood industry companies, monitoring labour costs alone is no longer enough. Wages, inflation, wood prices, production, demand and international trade are increasingly interconnected.

📊 Read our analysis of European log prices and pressure on wood processing margins to follow raw-material costs, lumber markets and the challenges facing sawmills and wood processors.

🌍 Explore The Wood Market in 2026: prices, demand, imports, exports and industry trends for a wider view of the European timber and wood-products market.

🇮🇹 Read our report on Italy`s wood and furniture industry, revenues, exports and market trends to understand the position of one of Europe`s most important wood-processing and furniture markets.

WoodBusinessPortal.com provides wood industry professionals with timber and lumber prices, statistics, import-export data, market analysis, forecasts, trends and international B2B opportunities.

🌲 Monitor wood prices. Track labour and production costs. Follow timber imports and furniture exports. Analyse market trends and identify new suppliers, buyers and business opportunities.

Visit [www.WoodBusinessPortal.com](http://www.WoodBusinessPortal.com) for updated information on the international wood market, timber, lumber, sawmills, wood-based panels, furniture, forestry and global wood trade.

Sources

FederlegnoArredo - CCNL Legno-Arredo
FederlegnoArredo confirms the preliminary agreement signed on 3 September 2026 for the renewal of the national collective agreement covering the Italian wood, cork, furniture, furnishing and forestry sectors and more than 200,000 employees.
https://www.federlegnoarredo.it/plus/relazioni-industriali/ccnl-contratto-collettivo-nazionale-di-lavoro

Confindustria Ancona - CCNL Legno Arredo Industria: preliminary renewal agreement
The document details guaranteed wage increases of €95 from September 2026 and a further €39 from January 2027 for the AS1 level, giving a guaranteed total increase of €134, in addition to inflation-related IPCA adjustments.
https://www.confindustria.an.it/ccnl-legno-arredo-industria-2/

ISTAT - Consumer Prices, August 2026
According to ISTAT preliminary estimates, Italian annual inflation reached 3.3% in August 2026, while acquired inflation for the full year stood at approximately 2.9%.
https://www.istat.it/comunicato-stampa/prezzi-al-consumo-dati-provvisori-agosto-2026/

FederlegnoArredo - Economic Data for the Italian Wood-Furniture Supply Chain
FederlegnoArredo`s Study Centre provides economic indicators and data covering production, imports and exports across the Italian wood and furniture industry.
https://www.federlegnoarredo.it/plus/centro-studi/dati-economici-filiera-legno-arredo

WoodBusinessPortal.com - Log Prices Remain High Across Parts of Europe
Analysis of elevated European log prices, cautious lumber demand and pressure on sawmill and wood-processing margins.
https://woodbusinessportal.com/newsdetail-en-2604

WoodBusinessPortal.com - The Wood Market in 2026: Romania and Europe
Market analysis covering wood prices, timber demand, lumber production, wood imports and exports and the outlook for European wood-industry companies.
https://woodbusinessportal.com/newsdetail-en-2598