The performance of Cebu’s furniture manufacturing and exporting industry has been affected by the stiff competition in the global furniture market posed by other Asian countries.


This is why the Cebu Furniture Industries Foundation Inc. (CFIF) is calling on industry players to be “on their toes” and to constantly find ways to improve and innovate.

“We can’t be complacent. We need to do something as an industry to compete with the ever-changing landscape. We have competitors and they have overtaken us,” said Laurie Boquirin, member of the board of trustees of CFIF.

Decline

In a press conference last Wednesday at Café Havana, CFIF revealed that Cebu’s share in the country’s total furniture exports last year has declined to 40 percent from 70 percent in 2001.

The data was taken from the Bureau of Export Trade and Promotions, which based its information from the exports that leave every port in the country, including the Port of Cebu.

CFIF president Michael Basubas said, though, that there is a possibility that some furniture exports from Cebu passed Manila port to comply with some environmental requirements imposed by certain countries, such as Australia.

“But this does not change the fact that our (Cebu furniture exporters’) performance, like that of the entire country, is declining,” he said.

Basubas said the Philippines’ share in the global furniture market is .31 percent—small compared to Belgium’s, one of the countries with the lowest market share, of three percent.

China gobbled the largest market share of 17 percent followed by Italy with 13 percent.

With regard to export growth rate, Philippines had a negative growth rate of 6.9 percent from 2000 to 2012. The country has been overtaken by Vietnam, a new player in the market, which has a positive annual growth rate of 38.6 percent.

Despite this grim development and several challenges, the local furniture manufacturing and exporting industry is fighting to stay alive and has managed to stay on top of the competition, Boquirin said.

She said CFIF, the primary support organization of the industry, is coming up with programs that will drive the industry to be more competitive and support the positioning of the industry as the “design destination of Asia.”

Programs

To address the industry’s market and design information needs, the CFIF information center is offering a series of product design and development programs as well as market intelligence forums.

The CFIF IC will also launch the IT explosion, which aims to promote the use of IT in doing business among industry players.

According to the International Trade Council in Geneva, Switzerland, the world demand for furniture in 2012 was estimated to be at $110 billion. Some 30-percent of the market demand comes from the United States. (JBN)