Made by hand and machine

Golden Cane Furniture Manufacturing Corp. started out as a backyard business venture in 1987, with only the civil engineering background of president Carlos Pascual as a tenuous link to furniture-making.

"As a married couple, we started out in the rice milling business in Nueva Ecija. We decided to go into the making of furniture because we saw its enormous export potential," said senior vice-president Eufrocina Pascual.

Golden Cane started with a workforce of 50, including the Pascual couple, and an export volume of one container a month of furniture and home accessories made of rattan mixed with other materials as diverse as metal, leather, and abaca. Today, the company averages 150 containers a month, requiring the coordinated labor of over 6,000 employees and satellite workers in three locations–Mabalacat and Clark in Pampanga, and in Nueva Ecija. (The best of its designs will be showcased with other members of the Chamber of Furniture Industries of the Philippines during the Feb. 28 to March 2 International Furniture Show at the World Trade Center).

"We trained them. And now, they are giving us quality workmanship which is very encouraging for those who want to develop the skills base in furniture and handicrafts," said the senior vice-president

Competitive

The plants in Pampanga are semi-mechanized.

"The edge of the Philippines is weaving done by hand. We are known everywhere for natural woven materials. But to be efficient, we have to mechanize those processes that lend themselves to automation," said the president. "One supplier thought I was joking when I told him the company can process about 1,000 kilometers of rattan split a day. He visited our plant to verify this and affirmed our belief that Filipinos can be very efficient furniture makers."

Because of its assembly line set up–where a piece of furniture is assembled by a group rather than made from start to finish by one person–the company can deliver repeat orders in 30 days instead of the standard 60 days.

"Our competitiveness lies in our twin focus on quality and productivity. Buyers demand good design, reasonable price, quality or the flawless execution of the design, and reliable delivery," said Carlos Pascual. "From the beginning, we invested in equipment and implemented good system controls. This is why we’ve passed all our customer audits and have repeat orders."

Plans

Going forward, the global market for furniture is expected to grow even as competition increases. To stay in business, specialization will become increasingly important to get the volumes required by efficient operations.

""The industry is not dying. We have what it takes to compete globally," said Carlos Pascual. "As an industry, we don’t have to target only the high-end markets. We can still meet the needs o the medium-priced segment. But we have to work together to capitalize on our strengths."

Even as it beefs up its export market, Golden Cane has established a local presence through a sister company called Isla Filipina International, which intends to open a showroom in Makati this year. The company and its team of interior design also intends to accept contracts for the renovation and refurnishing of hotels, restaurants, and homes.