Furniture exporters see revenue losses due to El Niño

MANILA, Philippines - Forest-based furniture exporters expect revenue losses due to dry spell brought about by El Niño and climate change towards the latter part of 2010.

“Revenue losses may stem from lack of materials. I think towards the latter part of the year, the ordering will improve. But if we have nothing to sell, if we cannot produce the orders, it is difficult” said Rashmi Tolentino-Singh, vice president for industry relations of the Chamber of Furniture Industries of the Philippines (CFIP).

Singh said the current El Niño may have adverse effects particularly on the bamboo and vines should these dry up as a result of the drought. These are used as raw materials for production of furniture products.

“Many of our companies now have shifted from traditional rattan to the use of vines. So I expect them to be really affected by that,” she said.

But firms which are using non-traditional materials like fiber glass, metal and resin and those importing materials may be spared from the drought‚s impact, she added.

To address this, Singh cited the need for the exporters to consider materials development and utilize other materials which could help them cope with the impact of the El Niño.

“From economic crisis to climate crisis, but we are still here. There is a need to work more on the part of the company owners, on the part of the associations and on the part of the government also to keep the industry afloat,” she further said.

PHILEXPORT President Sergio Ortiz-Luis Jr. earlier said that apart from the lingering global financial crisis, export stakeholders would consider the impact of climate change in the crafting of next Philippine Export Development Plan (PEDP).

Ortiz-Luis said climate change was already taking its toll on company resources and country.

He identified indigenous exports particularly food, furniture, mining and manufacturing that maybe affected by the changing weather conditions.

“We must not only be able to minimize our losses, we must be able to adapt to new situation. And we must plan a more rapid recovery as individual enterprises, as industry groups and as a pivotal segment of the national economy,” he added.