Cebu furniture exports hits $19 million in first quarter

CEBU, Philippines – The National Economic and Development Authority (NEDA-7) reported that Cebu furniture exports generated a total export value of US$19 million for the first quarter of this year.

Although, the report does not include the comparative performance of the sector in the same period of last year, the industry however, was able to average a monthly growth of 19 percent from January to March of this year.

The export value in March recorded at US$6.5 million, down by 13 percent from US$7.4 million in February but 32 percent higher compared with the US$4.9 million in January of this year.

The United States remains the largest market for Cebu furniture exports in the first quarter of 2010 covering US$12 million or 64 percent of total exports.

Other markets also include Japan, the Netherlands, Ireland, Germany, South Korea, the United Kingdom, Italy, Australia and Saudi Arabia with shares of less than five percent each of total exports for the same period.

NEDA-7 further reported that the countries of Japan, South Korea, Australia and Saudi Arabia are the best markets for Cebu furniture industries since exports to these markets have consistently been growing from January to March 2010.

The fastest growing market is Saudi Arabia. Cebu furniture exports to Saudi Arabia tripled in March in the amount of US$170 thousand from US$38 thousand in February.

Although representing only 12 percent of total exports, other furniture products also grew by 24 percent in March while other furniture products reported a minus 20 percent growth for the same period. 

Meanwhile, record from the Bureau of Custom (BOC) indicated that there is a slight decline of number of container vans shipped out of Cebu for the first quarter this year, compared to the same period of 2009.

In 2009, the industry shipped out a total of 2,754 container vans out of Cebu to different destinations worldwide. This year in the first three months, BOC recorded a total of 2,728 container vans shipped out of Cebu.

In an earlier interview with Cebu Furniture Industries Foundation Inc. (CFIF) president Angela Paulin, she said that the industry is now looking at Asian countries is now one of the focused markets of furniture exporters in Cebu, having learned hard lessons during the height of global financial crisis that mainly hit its largest consumer the United States.

"We are looking at more at intra-Asia trade, as Asia has been the least affected by the crisis. China and India are now starting to be interesting markets for us," Paulin said. (THE FREEMAN)