WITH the housing sector in the United States facing “challenging” financial conditions, it comes as no surprise that Cebu’s furniture exports would decline.
The Cebu Furniture Industries Foundation (CFIF) reported a 20 percent decrease in container shipment in January to August this year against the same period in 2007.
The group of furniture makers and exporters also reported that around 42 out of its 188 member-companies have closed shop.
CFIF executive director Ruby Salutan emphasized, though, that most of the closures are temporary.
“You have to understand that Cebu does not produce the lowest-price items.
But if we continue to do what we do best—find our niche and deliver good products and services in the market—we will be in a much better position to cope and help minimize the effects of the US slowdown on the local industry,” said Charles Streegan, CFIF vice president for external affairs.
Export share
According to CFIF, Cebu is responsible for more than 60 percent of Philippine exports to Europe, North America, Middle East and other parts of Asia.
The National Statistics Office reported a 4.3-percent growth in Philippine exports in July from a year ago, against a revised 8.8 percent growth in June.
Electronics was the biggest export product, which increased 2.6 percent to $2.56 billion. Other top products included clothing and clothing accessories ($170.16 million), as well as woodcraft and furniture ($95.91 million), among others.
Sixteen percent or $707.44 million-worth of Philippine exports in July went to the US.
The Department of Trade and Industry 7 reported that Cebu’s total exports reached $2.055 billion in January to June this year, compared to $0.830 billion in the same period last year.
“We want to believe that by the first quarter of 2009, things will be better. It depends on what you read and what you want to believe. There is no reason to be cynical because there are still lots of opportunities without having to rely on the peso-dollar exchange,” Streegan said.
Foreign exchange
He noted that the outdoor furniture is doing well while the rattan furniture and other handicraft products, like bags and accessories, might experience slight or flat growth due to the peso appreciation.
Exporters believe, though, that the present foreign exchange is better than in December 2007 when the peso went up to P41 to the dollar. As of Oct. 3, the peso closed at P47.04 against the greenback.
“The local furniture industry is continuing to advance its strength. We continue to partner with the academe and with designers. We have lots of programs to improve our products and services that can bring up the spirit of the industry,” said Streegan.
CFIF supports Cebu’s goal to be the design destination of Asia.
CFIF recently launched its design and product development program, partly to prepare exhibiting companies for the Cebu International Furniture and Furnishings Exhibition (Cebu X) 2009 this coming March. (NRC)
