RP furniture exports post positive growth

Despite tough local and global challenges, the Philippine furniture industry remains optimistic as it started posting positive growth rate in its export revenues in 2002.

Chamber of Furniture Industries of the Phils. (CFIP) president Jose Leo Caparas disclosed that the Philippine furniture export market started showing early signs of recovery after a negative performance in 2001 as it recorded a $287.4-million revenue as of November 2002, an increase of 5.6 percent over yearend 2001 which ended with a total of $249.5 million.

The US continues to be the biggest market for Philippine furniture, importing as much as 66 percent of the Philippines’ total exports. As of November 2002, export to the US was valued at $190.82 million, followed by Japan at $18.11 million, Great Britain and Northern Ireland at $7.87 million and Australia at $6.1 million. The biggest increase, however, was posted by new markets in the Middle East. Exports to Saudi Arabia amounted to $5.86 million while that of UAE was placed at $4.4 million, growing by 30.68 and 21.23 percent, respectively, over the previous year.

Wood furniture which began to dominate the export scenario in 1998, has continued to sustain its growth at $110.66 million, followed by rattan which has continued to decline at $87.74 million.

If the trend in the industry continues, and with the right interventions, policy incentives and strong government and private sector collaboration, the furniture manufacturing sector can very well achieve its export target this year, Caparas noted. He cautioned however, that this is not something to brag about. He warned of the hurdles ahead as global economies continue to be faced with threats and the Philippine furniture sector still facing issues and challenges such as lack of supply of raw materials, insufficient and antiquated woodworking and other technology, lack of financing opportunities that SMEs can avail, high labor cost, lack of information and necessary trainings, low productivity; and, political, economic and peace and order situation of the country.

As the national umbrella association of the Philippine furniture industry, CFIP has been focusing and strengthening its efforts to address formidable issues and challenges, Caparas said.

He stressed a number of programs and projects which were undertaken by the CFIP that resulted to the improved performance in 2002. These include the aggressive marketing and promotion activities which saw the group attending various international trade fairs in US, Europe, ASEAN and the Middle East; bigger and better Philippine Furniture Festival (PFF) shows; a highly successful Philippine International Furniture Show 2002 (PIFS); development of a new design program for its members; stronger advocacy program to address such issues as raw material supplies, productivity through acquisition of technology, and high transportation cost; closer cooperation and coordination with its more than 1,200 members nationwide, among others.