CEBU can deliver end-to-end manufacturing — from design to export — at scale, but must address persistent gaps in execution, financing and production discipline to fully compete in higher-value global markets, creative director and exporter Butch Carungay said.
Speaking at the Cebu International Investments Summit on Jan. 13, 2026, Carungay said the province’s long history of global trade and multigenerational manufacturing base position it to move beyond low-cost production toward more sophisticated, design-led exports.
“Cebu can deliver end to end, from design to export, and it can scale — but only if we are honest about both our strengths and our challenges,” he said.
Carungay said Cebu’s design capability is grounded not only in aesthetics but in market intent, materials, cost discipline and manufacturability, with many firms producing prototypes and small batches intended for eventual global distribution.
However, he said companies often struggle to scale from small-batch production to repeatable manufacturing due to weak documentation, financing constraints and inconsistent export compliance.
“Scaling fails when companies are forced to jump too fast,” he said, noting that Cebu’s competitive edge lies in its institutional memory, including fourth- and fifth-generation manufacturers with experience in sustainable expansion.
Cebu City is a Unesco City of Design, positioned for value-added, no labor-only, manufacturing.
Recommendations
To strengthen Cebu’s manufacturing value chain, Carungay outlined priorities that include early-stage materials and product innovation, incentives for pilot production runs, stronger manufacturing execution and quality assurance systems, improved market access and targeted fiscal support tied to compliance, digitalization and export readiness.
“These should not be blanket giveaways,” he said. “Incentives should reward execution and value addition, not just volume.”
Carungay said Cebu’s competitiveness should be anchored on reliability and execution, positioning the province as a regional manufacturing and design hub capable of serving global markets. / KOC