The present work is a study done in 2005-2007 on the profile of furniture industries in the municipalities of Chapecó and Coronel Freitas, known as the furniture pole of Coronel Freitas located in the western region of the State of Santa Catarina, Brazil. The main objectives were to characterize and to analyze the productive/supply chain in order to learn about the future perspectives of sustainability in the furniture industry. The study was justified by the importance that this activity has gained in the region. The furniture industry already established in Santa Catarina has the largest exporting center in the country located in the pole of São Bento do Sul, producing basically residential furniture of pine wood, participating with 50% of the nationally exported volume in 2003. On the other hand, in the western region there are 2 consolidated furniture poles such as those of Coronel Freitas and Pinhalzinho. The representative institutions in the region, such as the Municipal, Commercial and Industrial associations, the furniture makers’ unions and the furniture companies themselves, together with official organs such as SEBRAE, are betting their efforts on the sense of economic and environmental sustainability seeking consistent alternatives and getting away from the traditional agro-industrial model. Direct interviews were made with all the firms in order to determine the productive chain. Several aspects dealing with survival , such as concentration level, factors of production usage and marketing were contemplated. Among the main results, it was verified that economic difficulties in the region, associated with problems of quality and administration, are keeping in check the industry of custom made furniture. In Coronel Freitas, it was found that there was no more companies that make custom made furniture. There were eighteen companies reasonably well structured making standardized furniture, producing kitchens, dining rooms, bathroom and bedroom counters. In Chapecó from the list of one hundred and five officially constituted companies, only ten (9.52%) were left making standardized furniture and twenty nine (27.62%) making customized furniture. The market has signalized some imperfect competition nuances, with product differentiation and search of new niches. Mostly firms (46%) are of small size while 40% are even smaller, the so-called micro-enterprises. Technology level varied from the simple artisan (custom made) up to full mechanization. Gross average annual revenue was estimated to be around R$ 49.389.000,00 with a potential to reach R$ 92.631.000,00. The main alleged reasons for the actual situation were: taxes, labor legislation, labor training, lacking of official policies, market demand and cash flows problems. The study allowed to infer and to suggest several government policies, at three levels, in order to maintain future economic sustainability and also actions among the enterprises in particular those stimulating partnerships.
