MANILA, Philippines - The local furniture industry is projecting a 25 percent growth in revenues this year citing demand from the domestic market as well as recovery in key export markets.
In a statement, Myrna Bituin, trustee for the furniture sector of the Philippine Exporters Confederation Inc. said the rise of more hotels and condominiums in the country is expected to support the growth of the industry’s revenues.
“The local market is even better since we have hotels and condominiums...We have a lot of hotels that will be coming in and also refurbishing. So I think the local market will be even bigger eventually than the export because of the rise of the hotels,” Bituin said.
As for the key export markets, she said the demand from the US is improving.
“The US market is one of our most important partners and we are giving our effort to bring back the biggest market. I think it will be a better 2015 than 2014,” Bituin said.
The group is also bullish on growth prospects in the European Union (EU) despite the implementation of the bloc’s timber regulation.
“Although there is the EU timber regulation, we have a lot of plantation species. So our certification is only the problem...When we look into the chain of custody, it is a matter of putting all the resources and working together and implementing it. I think that’s the most important thing,” Bituin said.
The EU timber regulation which came into effect on March 3, 2013, seeks to prevent the circulation of wood from illegal logging in the European region.
The regulation prohibits placing illegally harvested timber and timber products on the EU market.
Bituin said local industry players are working closely with the government to be able to take advantage of demand overseas.
Data on revenues of the furniture industry from the domestic market were not immediately available.
Latest data from the Philippine Statistics Authority showed revenues from exports of furniture and fixtures amounted to $300.219 million as of end-October this year, 40.9 percent higher than the $213.003 million in the same period last year.