Furniture firms call on government for help

As the furniture industry is expecting to cut more jobs in the next few months to stay alive in this time described as “worst” period in its history, the Cebu Furniture Industries Foundation Inc. (CFIF) is initiating efforts to work closely with the Department of Labor and Employment (DOLE-7).

CFIF will seek a special attention from the DOLE-7 to take advantage of the P22.5 million government funds allocated for displaced workers.

In the span of one and half years, furniture companies in Cebu had already laid off a total of 11,800 workers, these are employees that lost jobs because of company shutdown, or massive streamlining.

As the industry sees a potential contraction of about 30 percent in the next few months, more people are expected to lose their jobs this year.

While the industry’s depression, which is brought about by the severe market slump in the global market especially in the United States, has gone out of control, CFIF executive director Ruby Salutan said the organization is going to work directly with the DOLE-7 here to give special attention to the jobless individuals from the furniture sector.

CFIF president Eric Vincent Casas said although this time is the worst to have happen in the sector’s history, there is no reason to surrender, and industry players have to hold on believing that this crisis is near to hit the dead-end.

As of December last year, 25 furniture firms have closed down. Casas said those that are operating should hold on and continue to invest and harness their core competencies in design so that when the market recovers, they will outshine the competitors.

“We are now left with two choices, either to watch ourselves drown, or we see ourselves weathering the storm,” Casas said.

Casas made an appeal to the furniture sector not to give up, and continue to invest on design, skills and product development.

Casas, together with the officials from the industry is also calling the government for help.

“We are calling the stakeholders in the government to hold hands with us, as we are facing a critical situation,” Casas said. Any help from the government is needed for the industry’s survival.

Charles Streegan, CFIF vice president for external affairs said that although there is an expected further market contraction of 30 percent in the next few months, industry players are hopeful that recovery will start towards the third or fourth quarter this year, or early 2010.

The recovery will clearly be seen if the excess inventory will be wiped out, and consumer confidence in the world bounced back, and credit will be easily available again.

“Everybody [now] is holding back. Just like automotive, furniture is the last thing people will invest in,” Streegan said.

Record shows that furniture shipment from Cebu dropped by 18 percent from November 2007 to November 2008 period. This figure is expected to slide further as orders for furniture from other countries are becoming smaller and smaller in volumes.