ebu furniture industry makes slight pick-up in Q4

Written by Willy Rodolfo III / Reporter

Tuesday, 22 December 2009 20:39

Cebu furniture industry reported a slight pick-up in factory floor activities in the last quarter of 2009, but players remain conservative on its growth forecast for next year. Cebu Furniture Industry Foundation (CFIF) Angela Paulin said orders have started to come in the last few months, but this does not mean the worst is over for the industry that saw its revenues, companies and work-force numbers cut by almost half in the last two years. Paulin said the activity could be attributed to the fact that most US retailers, the industry’s biggest market, are only building up their inventory after scraping to a bare minimum this year. “We would like to take a conservative stance. There were some activities and some factories are busy, but we still do not know what will happen next year until we see the first quarter,” Paulin said. “The situation is getting a little bit better, but as far as the industry is concerned, we cannot plan until the end of the year [2010]. We can’t plan that far.” Figures in 2009 for the Cebu furniture industry were dismal. Exports for the first quarter of the year was only at $12.5 million, more than half less than the same period in 2008, which recorded $31.8 million. This, for an industry that only in 2001 posted revenues of more than $260 million for Cebu alone. Cebu furniture makers, although making up only 10 percent of the country’s number, produces close to half of the country’s production in terms of export value. Paulin said the industry’s optimism is pegged on recovering numbers in the US, especially on unemployment, which could translate to more economic activity. She said the domestic market has also helped a lot in keeping factories open with new hotels and condominiums opening up. She said, however, that the export market remains the bread and butter, especially for Cebu-based manufacturers. “The recession has taught us to be more creative, to think out of the box and to re-aim ourselves,” Paulin said. Cebu furniture industry players believe that their strength in design and the reforms they implemented in their factory floors will help them succeed in 2009.