Cebu exporters see strong recovery

By Katlene O. Cacho

Tuesday, March 20, 2012

THE export industry in Cebu is seeing strong recovery this year on the back of the improving economic conditions in the US and Europe, an official of the Confederation of Philippine Exporters Foundation (Philexport) Cebu said yesterday.

According to Philexport Cebu executive director Fred Escalona, although the US and Europe economies are not improving drastically, there are already signs of market recovery and confidence as shown in the stability of their stock markets so far.

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“We are on our road to recovery. Exciting times are coming,” Escalona said at the sidelines of the Economic and Investor Confidence Forum organized by the Cebu Chamber of Commerce and Industry in partnership with the Philippine Stock Exchange at the Cebu City Marriott Hotel.

Escalona said the export industry in general has “bottomed-out” in terms of problems, but he noted the soaring fuel prices have remained to be a challenge in terms of recovery.

“But of course, we have a low-interest regime purposely done to stimulate growth,” Escalona said.

Escalona’s views on industry recovery were reinforced by Philexport president Venus
Genson, who attended the Manila Fame last week.

“The show was good for us, specifically for the furniture industry. There were buyers we never expected to come again,” said Genson, who owns, Art ‘n Nature Manufacturing Corp.

Genson noted there were buyers from the US, South America, Korea and Japan.

“That was one good show, we expect an increase on booked orders as manifested by the interests and inquiries of buyers during the three-day trade show,” she said.

Unity

Genson added if there was one positive thing that came out from the economic crisis is the unity and convergence of export companies.

“It brought unity to the country’s export industry despite the risks and problems we are facing,” she said.

Manila Fame is one of the longest running trade shows in Asia-Pacific. Last October, Manila Fame and three other major sourcing events in the Philippines - Manila now, CebuNext and Bijoux Cebu - merged into a single event.

This year’s Manila Fame was held last March 14-17 at the SMX Convention Center in Manila. The trade show was attended by members of the Cebu Furniture Industries Foundation, Cebu Fame and Cebu Gift Toys and Housewares Inc.

To take advantage of the expected market recovery, Escalona said the export sector will eye China market because of its rapidly-growing middle class market and increasing affluent-lifestyles.

“Philexport Cebu is currently working on the opening of a China desk. We are coming in (to China) to be a competitor not in the low-end market but on the high-end market,” Escalona said.

Good year

Trade Secretary Gregory Domingo, on the other hand, reinforced the rosier outlook this year, saying that “2012 will be a good year for the country’s economy and that there is much to look forward to this year.”

In his talk, Domingo said the country’s competitiveness has drastically improved over the years. He said that Philippines, which used to be an expensive business destination, has become cheaper compared to China.

“China-based companies are now looking elsewhere and Philippines and Indonesia are most commonly mentioned as alternative locations of their businesses,” Domingo said.

The implementation of the private-public-partnership projects and the continued positive performance of the stock market would also be significant drivers for the country to achieve its five to six percent growth target this year, Domingo said.

Published in the Sun.Star Cebu newspaper on March 21, 2012.