Exporters bent to prove resiliency against crisis

CEBU, Philippines - Despite the apparent negative impact of the global crisis taking its toll on the Cebu export industry, industry players continue to seek the opportunity to improve their bottomline and prove their resiliency against the troubled situation.

“There is no denying the fact that there is a crisis and we have to deal with the fact that our sector and our businesses are badly affected but what matters now is how to rise to this challenge. If you surrender, you always lose so we have to fight it together,” said Jay Yuvallos, Philexport Cebu president in an interview.

He said that together, players in their sector can synergize, collaborate, listen and learn from each other’s experiences at this point of turmoil so that they can move for one action that can help them survive.

“Nothing is impossible. The crisis and its effect to our business is already a given but what we are going to do about it matters the most,” said Yuvallos.

He also said that right now export players continue to maintain their sales through effectively marketing and packaging their products.

“Most now talk about lessening the operational cost of creating a product and how to become efficient and save on costs. They now look at what really matters to the business. We are also now focusing on our financial statements to improve the bottom-line,” said Yuvallos.

Meanwhile, in a recently held survey commissioned by the Cebu Chamber of Commerce and Industry (CCCI) which measured the pulse and the confidence level of private businesses in Cebu in line with the hardships experienced at this point of global recession, it showed that 40 to 50 percent of the respondents raised that this year is going to be tough for their businesses and they are expecting volumes and revenues to go down as demand and orders continue to diminish, said Clarito Fruelda, CCCI vice president for external affairs in an interview with reporters during the chamber's annual membership meeting.

He said that their survey’s respondents were mostly among export firms and also most of them come from their members.

Fruelda said that as effects of the global economic meltdown, firms project that the worsening situation might translate to further job losses especially from the export companies and those manufacturing firms, which operates in export processing zones.

“Direct effect on the number of manpower could happen as effects of the reduction of demand products and services and the contraction of the market,” said Fruelda.

But he said that Cebu however as a business destination remains to be in a better position compared to other cities affected by crisis.

“There are still positive outlooks on other sectors such as the construction and real estate because they continue to manage growth on the level. Right now tourism and ICT are also doing well and it is a counter action because export is down and it gives Cebu’s local economy a balancing factor,” he said.

Fruelda said that the recovery of the export sector will have to be anticipated in line with the recovery of the US economy because it remains to be the industry’s top market.

He said that export companies look at possible end of crisis during the third to fourth quarter of this year or on 2010 depending greatly upon the stimulus actions of major foreign economies such as the US. - THE FREEMAN