Furniture exporters reiterate call for government support

CEBU, Philippines - Furniture exporters are again calling for government support to help the struggling industry as sustaining the industry will help boost the country’s bid for inclusive growth.

“We may not be the darling of exports in terms of volume [compared to electronics] but we are an industry that makes manpower and respectable employment," said Chamber of Furniture Industries of the Philippines president Nicolass De Lange.

In his recent visit to Cebu, De Lange dismissed the impression that the furniture sector in the Philippines is already on the verge of being a “sunset industry” saying that a rebound is still very possible and thereby employing more people is still on.

"We are a sustainable industry in terms of employment, resources and growth. Our industry is a big jobs generator, employing 1.9 million direct and indirect workers and benefitting 5.4 million Filipinos in the supply chain," he said emphasizing the fact that the furniture sector deserves a "second look."

The industry, being heavily battered by the slow recovery of the United States economy, is appealing to the government to support in making the environment conducive for the surviving players.

While there is hope and rebound of demand is already seen, De Lange said the government's help could make the industry breathe again.

According to De Lange the government can help address the challenges the industry is battling such as the high power and logistics costs, port congestion, bureaucratic red-tape, un-friendly labor laws, among others.

These are just few of the dozens of concerns that the industry would like to appeal to the government, he said.

The long standing issue on financial support continues to haunt the players not to mention the unfair distribution of government-funded support for companies to attend trade fairs and shows to key markets abroad.

De Lange, who is also the chairman of the Furniture Industry Board Foundation and the ASEAN Furniture Industries Council, said that there is insufficient and over-controlled financing support for marketing.

He mentioned that usually companies that are chosen to benefit from government-funded promotional blitz abroad on furniture are based on personality, explaining further that those that are chosen to benefit the support are not the small and medium players, but those that have already made their names globally.

“A lot of furniture companies in the Philippines are small and medium enterprises and they lack the budget to join international trade fairs on a sustainable basis. We are calling on the government to spread out its budget for others to benefit,” he said.

Revenues from exports of furniture and fixtures reached $242.335 million in 2013, up from $179.71 million in the previous year.

Aside from this improvement, he said the Philippines can leverage in the furniture making sector, compared to other countries, because of its great environment for tree and bamboo farming.

Significantly, he said the Philippines is blessed with talented and highly-skilled designers, carvers and weavers, making the industry more globally competitive.

In 2012, the country’s total furniture production reached US$538 million, of which total furniture export stood at US$137 million and local sales at US$399 million.

The United States remains the country’s top market for furniture exports, accounting for 62 percent. It is followed by Japan, United Kingdom, Italy and Australia. — Ehda M. Dagooc (FREEMAN)