Handicraft makers eye 4-10% export growth this yr

MANILA, Philippines - Handicraft makers expect exports to grow by four to 10 percent this year from a year ago as it anticipates higher demand from other countries.

“Market realities for example, consumers demanding new products outside of those made in China, increase of cost of production in China and the general decision of China to move towards service-oriented industries will drive increase,” Philippine Chamber of Handicraft Industries director Dennis Orlina said in a statement.

He said the industry achieved its 10-percent growth target last year as buyers continued to purchase handicraft from the Philippines.

“The perceived decision for regular buyers to continue sourcing from the Philippines continued,” said Orlina.

Total handicraft exports in 2012 were valued at $130 million.

To boost export sales, Orlina said there is a need to establish a more cost efficient supply chain and logistics.

Recent calamities which hit the Visayas region late last year such as the 7.2-magnitude earthquake and Super Typhoon Yolanda, affected the sector particularly the supply line of raw and semi-processed raw materials.

The calamities have likewise displaced first-tier suppliers of semi-finished products.

Aside from the calamities cost of  Orlina said industry players are also contending with high labor, utilities and transaction.

“Perhaps moving present operations to a regional setting will lower cost of operations, thus generally help improve financials,” he said.

A more aggressive approach in product development, he said, will also be necessary to compete in the global market.