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Monday, September 12, 2005
RP traders told to stay competitive with China
By Jessica B. Natad
Sun.Star Staff Reporter
Instead of sulking over the stiff competition posted by manufacturers in China, Filipinos should constantly look for ways and innovations to outwit the competition.
“Know your problem and your market so that you would know how to respond to your problem. Take bolder steps. Face reality. Stop the denial stage. Get out of your comfort zones. Do not cut corners,” said Joseph Martin Goodings, second secretary (development) of the Canadian International Development Agency (Cida).
Cheaper
Many manufacturing companies in Cebu, like those in the garments, shoes and furniture industries, are having a hard time competing with their counterparts in China, whose products are sold cheaper in the global market.
Goodings was the chairman of the review panel, which evaluated the business plans presented by the participants to the Private Enterprise Accelerated Resource Linkages (Pearl) 2’s executive director (ED) series. The project is aimed at addressing the needs of the business support organization (BSO)-beneficiaries by upgrading the management skills of their EDs.
Pearl 2 has recognized that a competent ED is the key element in the success and progress of a BSO and likewise, a key element in the success of companies in their respective industries.
The ED-participants to the project presented their business plans—the expected output of the 11 training module series—to the review panel from Sept. 8 to 10 at the Alegre Beach Resort.
Based on the business plans presented, Goodings told a press conference at the Alegre Beach Resort Saturday that most industries are facing large competitive threats, especially with China.
New methods
While some EDs are on the right track in recognizing that China is a threat and that the industry has to venture into “something new” to stay competitive, he said some EDs still focus on the same methods, which have been done for many years.
“We challenge them to be a little bolder, not to be afraid of doing things radically,” Goodings said.
One of the “same things” he meant is the participation in trade fairs.
“Trade fairs are useful. But this is not the full solution to the problem. You (companies) may attend a hundred of trade fairs, but these are not enough (to solve the problem on the products’ competitiveness),” Goodings said.
But trade fairs are still one of the effective solutions, he said.
Snoogie Apolinario, Cida consultant, said that for every $2 that Pearl 2 spends for the 35 BSO trade missions it has funded in the last two years, $4 returns to the industries.
Pearl 2, which started in 2002, is a development project funded by the Cida. It supports the development of small and medium enterprises to create meaningful jobs for both men and women in the Philippines.
The ED series is a collaborative effort of Pearl 2, the Venture Development Center (VDC) of the British Columbia Institute of Technology and the Department of Commerce of the University of San Carlos (USC).
The VDC was contracted by Pearl 2 to design the curriculum for the series, while the USC provided the services of two faculty members to deliver the program
There are 11 training modules to the series, which cover the core competencies needed for effective management of a BSO.
The modules build up the skills of participants and help them upgrade the management system of their respective organizations.
Enhancement
The ED series is part of the sectoral enhancement component of Pearl 2. The other components are capacity development for investment promotions and partnership development facility.
ED participants in Cebu were Noemi Avancena of the Fashion Accessories Manufacturers and Exporters Foundation, Toy Paralisan of the Cebu Software Association, Eddy Ares of the Cebu-GTH (gifts, toys and house-wares), Rosemel Calderon and Ruby Salutan of the Cebu Furniture Industries Foundation.
(September 11, 2005 issue)
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