The year that was

In two days’ time, we shall be welcoming 2014. If only to banish a year full of unprecedented calamities, shocking revelations of unmitigated greed in government, a spike in fatal traffic accidents involving mostly buses and trucks and other reasons that vindicate Murphy’s Law, everyone is ready to shut the door on 2013 and welcome 2014 as a new beginning.

This is mostly true for the people of Bohol, Cebu and Leyte, the general citizenry shocked beyond belief at how our legislators have raped the nation’s coffers.

Our economy has done very well this year, and at seven percent growth rate, we have edged out most if not all of our neighbors in the region. But the question still begs to be asked: has this trickled down to the grass roots?  Many of our business leaders do not think so.

As we always do at B&L (Business & Leisure), the TV show and likewise here in this column, we always end the year with assessments from some of our top business leaders as well as their forecasts for the coming year and we picked eight sectors for this: export, handicrafts, plastic, meat importation and trading, wood production, semi-conductors and electronics, manufacturing, and the furniture industry.

For the export sector, Philexport president Sergio Ortiz-Luis said that, versus 2012, their industry will end up positive this year. Last year and even early this year, Philexport was hopeful and targeted a 10 percent growth for exports, but the market forces have not cooperated—export had a measly one percent growth, although if tourism and the service sector are included, this could go up to four percent. The recovery of the American and European markets has at least pulled us out of the red, just barely. “It is improving slowly, too slow…far from what we would like to see,” said SOL.

The bigger sectors that have improved significantly include garments, finished wooden products including furniture, metal products, some food products and mining products. Many are still awaiting final legislature on mining to determine if this sector would improve next year.

Again, the sector is hopeful for 2014, especially now that they have determined that the market is recovering. While they initially thought that by 2016 they could double up their figures based on the 2010-2013 Export Development Plan, Mr. Ortiz-Luis says by all indications this is not going to happen, so there is less expectation for 2014-2016 as they finalize the Export Dev. Plan for this period.

Our handicraft industry has miraculously been resuscitated, and it’s about time. There is renewed vigor injected into this industry, and honorary president Dennis Orlina of the Philippine Chamber of Industry (PCHI) and the current president Mila Lacson are gung-ho about the job. The Chamber initially targeted a 10 percent growth or about $100 million in sales for 2013, and they not only reached the target, they surpassed it to reach a phenomenal 13 percent growth rate for the current year. Such a figure is coveted in any industry, but for the handicraft industry, it is manna unheard of for many, many years.

When we think of Philippine handicraft, many of us still conjure images of different baskets, miniature Sarao jeepneys or a tiny nipa hut with a carabao tethered nearby and perched on a small platform. Philippine handicrafts have transcended those bucolic scenes and are now artisanal, and the good news is, according to Mr. Orlina, the positive news has permeated to the communities in the countryside because the farmers who provide the raw materials for use in these handicrafts are being benefitted. We now see artistically crafted lighting fixtures and large vases, picture frames and handsome dividers.

And 2014 looms even brighter, says new PCHI president Mila Lacson who is the wife of business leader Ed Lacson. The Chamber is conservatively sticking to a 10 percent target growth rate for next year, and though they have mobilized their members to do relief efforts for the Yolanda victims, the lady president sees the silver lining behind the dark clouds. The world is watching us right now, she says, and whatever the poor Yolanda victims can produce out of the debris that has engulfed their towns, the world will buy. Even as they are auctioning off some valuable handicrafts, the proceeds of which will go entirely to the people of Tacloban, they are already conceiving designs for all that debris of Yolanda. And they will train and mobilize the townspeople to use their hands to craft something special that will remind the world that, yes, what destruction the super typhoon wrought, they will remold it in their hands and fashion something beautiful out of it.

That and the green economy movement across the globe are the two things that are going for the Philippine handicraft makers.

The industry of plastic is up next. Philippine Plastics Industries Association (PPIA) Peter Quintana says 2013 has been a struggle, much like 2012 though with some abating. If you will recall, 2012 was devastating for the plastic makers, particularly for the plastic bag sector which makes up 40 percent of the total plastics pie. With local governments one after another legislating the total ban of plastic bags, many plastic bag makers were forced to adopt 3-4 day/week work at the factories. About four companies were reported to have totally folded up.

Towards the latter part of the year, some municipalities who have pushed for a total plastic bag ban are delaying the implementation and some are even now reconsidering their stance and reviewing their ordinances, according to Mr. Quintana. Though much of this is still uncertain, the industry members are taking it as a positive sign. On the Congressional level, there have been two hearings, he adds, and out of the seven regulations, only one is for a total ban while six are for relating the use and imposing levies.

For next year, they are looking at the construction boom brought about by the rehabilitation of Leyte, Samar and Cebu to benefit their industry. It is wishful thinking to hope that Senate passes the legislation in their favor, but PPIA hopes that their biodegradable plastic bags will be their redemption. It looks like a total ban on plastic bags is not all that easy.  Did you notice that all the relief goods for Yolanda were packed in plastic bags? It is because those plastic bags are the easiest to grab and the most practical and convenient to use in case of emergencies. We hope, though, that there is a conscious shift to biodegradable bags.

Next week, part 2 of this short series.

Happy New Year to one and all and Mabuhay!!! Be proud to be a Filipino.

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