SPIN program strengthened to sustain production demand

CEBU, Philippines - As Cebuano exporters, particularly in the gifts, toys, and houseware (GTH) sector, are losing sub-contractor manpower due to the emerging industries like tourism, Business Process Outsourcing (BPO), they are determined to strengthen the Subcontracting Partners for Innovation (SPIN) program to train countryside manpower to aid their sustaining demand of orders.

Cebu Gifts, Toys and Housewares, Foundation Inc., (Cebu-GTH) past president Jenifer Cruz said that most of the organization’s members are now participating the SPIN program, to sustain their production operation, while most sub-constructors largely from Cebu province are now shifting their livelihood focus to tourism related services, some are getting job opportunities in BPO sector.

Most exporters in Cebu now are tapping countryside residents from all over the country, to supply their sub-contracting needs, SPIN training has expanded to Masbate, Pangasinan, Abra, Zamboanga, said Cruz.

Cruz, whose company, the 33.3 Exports, is the pioneering and largest supporter of SPIN program, said that the current government’s decision to continue the program helps the suffering export sector.

The SPIN program, a government-private sector undertaking conceptualized in Cebu, not only generates employment for weavers but likewise assists exports in increasing production volume of exported products.

Under the program, the weavers in the countryside are made to undergo skills training on weaving and craftsmanship after which, their hand-made products are brought by the exporters once these passed quality standards.

Through this program, rebel returnees and indigents can immediately earn an income after a hard day’s work with their earnings dependent on the number of products they make, Caberte said.

SPIN trainings are focused on a “market driven” scheme wherein the products to be made by the trained group are actual export orders. Most exporters who do not have enough workers to do the job orders of their clients subcontract some of these processes.

Likewise, Cebu-GTH member of the board, and PhilExport-Cebu chairman for advocacy committee Pete Sepulvida said that the problem of exporters now, aside from the high cost of doing business, is to sustain the capacity.

“Cebu is becoming highly urbanized, and tourists’ oriented. We are losing a lot of waivers, craftsmen to new industries like BPO and tourism,” Sepulvida said.

Waivers in San Remegio, Sogod towns for instance “are disappearing” because of the new resorts established in the area, and existence of tourism related businesses.

Although, the export sector in general, is continuously facing difficult market situation, Cruz said “demand is always there,” and one of the most important things that exporters should maintain is its capacity.

Thus, SPIN program is greatly helping the battered export sector, significantly the small and medium players.

Earlier, DTI7 regional director Asteria Caberte announced that the Aquino government is supporting the program, in fact, it has recently received a budget of P2 million to sustain the program for the rest of the year.

The program, which started in June of 2008 with only P500 thousand budget, now benefits thousands of people and families from nine regions in the country, including regions, one, three, seven, eight, 10, 11 and 12.

According to Caberte the P2 million budget will be used for further training for more waivers, and also extend the program to other areas in the country as possible.

As of middle of last year, 45 municipalities have benefited from the program in Central Visayas. Around 77 trainings have generated 1,791 jobs. Booked orders for hapao baskets, placemats, tip towels and trays have reached P59.8 million in this particular period. (BANAT NEWS)