Smooth polls seen to boost furniture exports

MANILA, Philippines - Furniture exporters expect slight revenue increase of five to 10 percent this year and another 10 to 15 percent in 2011 amid generally peaceful elections and as industry players exploit more robust markets abroad.

This optimism was expressed by Emmanuel P. Padiernos, vice president for market development of Chamber of Furniture Industries of the Philippines (CFIP), in the light of the 9.4-percent rise in the country’s furniture exports to $240.3 million in 2009 from $219.6 million the previous year.

“With the positive effect of last election (generally peaceful, new leaders and better image of the country), buyers will be more comfortable to come to Philippine island to replenish their much-needed stocks,” he said.

Padiernos said the growth of the sector would also be buoyed by furniture industries‚ efforts to expand market in the region.

“Although a lot of our members are still apprehensive of China copying our products, we are considering penetrating the China market aside from India, Australia and of course the ASEAN,” he noted.

Padiernos said aggressive market promotion is thus crucial to attain this and next year’s revenue goals.

Moreover, he said the continued recovery of traditional markets such as the United States and Europe, albeit at slower pace, could boost industry growth.

The upturn of these markets helped furniture exporters achieve 9.4-percent growth in 2009, he added.

But despite this, Philippine furniture exports average growth rate for the period 2005 to 2009 is still minus 5.3 percent, according to Benjamin Chiu, market analyst of iSEARCH Philippine Exporters Confederation, Inc. Cebu, citing International Trade Centre Trademap data. 

“During the period 2005 to 2008, furniture exports in most major markets abroad were noted to be erratic but generally on declining trend,” stressed Chiu. “However, in 2009, most of these markets reported double-digit growths except for the United States and United Kingdom which still experienced negative growths.”

He also identified robust markets for the country’s exports, including China, Canada and Belgium.

Average yearly growth rates of furniture exports to these countries averaged at 101 percent for China, 51 percent for Canada and 20 percent for Belgium for the period 2005 to 2009.

“It is expected that Philippine furniture exports to these countries will increase partly because of the current trend and that the global economy started to recover,” Chiu further said.