Cebu exports drop 32% in January-July period

CEBU, Philippines - The Philippine Exporters Confederation Cebu Chapter reported a 32 percent drop in total exports in the first seven months of this year declaring that 2009 has been very difficult for the industry.

Philexport Cebu Chapter president Jay Yuvallos bared in the annual report for 2009 that they are very pleased with the accomplishments that the organization has done in the past three years but then the previous months has been a challenge for the whole sector.

Yuvallos said that 2009 had strong effects in the export sector due to the economic meltdown following “the collapse of the US Sub prime markets and the ensuing global recession that heavily challenged the export industry.”

He added that the Philippine Export Industry recorded a decrease of 32 percent in total exports in the first seven months of this year, with the semiconductor sector being the most affected as it is the biggest exporting sector in the country posting a 36 percent drop in sales from January to July alone.

Other sectors also posted decline in exports like the garments and textiles industry with 25 percent drop in orders and production, the wearable garments also reported of the same drop in export production as well as the Giftware and Home décor industry.

Petroleum products posted the biggest drop of 78 percent followed by coconut products, which suffered a 54 percent decrease. Metal components were down by 30 percent followed by electronic products, which posted a drop of 28 percent, while home furnishings dropped by 21 percent.

The marine products and carrageenan declined by five percent this year while the food industry reported a three percent drop.

The negative effect of the decreasing export revenues of export companies also made a dent in the labor and employment rate of the country.

Yuvallos said that Philexport estimates 150,000 workers were retrenched between October 2008 to July 2009 and 97 companies have shutdown their operations since 2008. 63 companies have reportedly not renewed their membership this year including 28 from the furniture sector.

But according to Yuvallos, despite all these, they are still pleased to have pushed through with a lot of activities that have helped their member companies and the business sector in general.

Yuvallos said that Philexport ran nine branding and conceptual marketing seminars including industry branding for different sectors. It still has another one scheduled for Philexport Cebu and one for the holiday décor group in Manila this December and one trade fair participation seminar.

He said that they were also able to successfully hold the annual Beauty health and Wellness Show with the Cebu Chamber of Commerce and Industry and Ayala Corporation.

Yuvallos also said that they are very pleased with their performance in the past years despite challenges as they continued to fight for their advocacies which has helped the whole industry like a request of a 50 percent cut in wharfage fees from October to December of this year and led the whole industry in seeking relief from the government on taxes, power rates, customs duties & taxes and banking penalties & surcharges due to the economic crisis

“We have set the direction and crystalized the vision for the future of the Cebu export industry,” said Yuvallos who encouraged their members to work hard together in achieving their dream of “a well capacitated, efficiently clustered and robustly competitive export industry in the face of intensifying global competition.”