Export sub-sectors start gaining ground

CEBU, Philippines - Although Cebu’s export industry largely manifests the erratic movement of the global economy, Philexport-Cebu reported that sub-sectors are showing some promise.

Philexport-Cebu executive director Fred Escalona told The Freeman in an interview that the good outlook for industrial goods, fashion accessories, and food sectors have prompted entrepreneurs to put their confidence on these three sub-sectors in the export business.

In the first quarter this year, export was good but downtrend was noticed in the second quarter. The sector's movement is still erratic in general, although there are sub-sectors that are showing promising path ahead, Escalona said.

Over-all, the industry's performance mirrors the global trade. "They are still fighting. We lost some members, but we also gained new players.”

Demand for fashion accessories has shown encouraging results, the market in this particular sector is somehow sustained, or slowly recovering, he said.

"Something remarkable is happening in the fashion accessory sector," said Escalona adding that transactions via sea freight are increasing and products are transported through big cargo containers.

The improvement in the industrial goods sector is fueled by the increasing demand of mineral exports, scrapped metals, and Mactan stone. These companies are operating outside of the Mactan Export Zone.

Likewise, the food sector is making its way up, specifically in the export of locally-produced VCO (virgin coconut oil), coconut water, among others.

Furniture export on the other hand is still on a fragile state, while those that remain in the business today are the old institutions that already made stable clientele abroad.

Escalona's insight is based on the PhilExport-Cebu record accumulated by one-stop-shop facility, via the sea-freight cargo transactions. This report does not include export goods transported via air cargo service.

At present, PhilExport-Cebu has over 400 members, from 165 members in 2005. (FREEMAN)