Overseas export orders still unreliable

CEBU, Philippines – Despite the seeming recovery of the overseas market, the export sector remains cautious as up until now, orders still come in trickles and in inconsistent volumes.

Exporter Pete Delantar, proprietor of green furniture company Nature's Legacy said that exporters are now being careful in their manufacturing operations, including hiring and maintaining people, as orders are too unpredictable, and planning ahead or projecting is too risky for exporters nowadays.

Aside from economic threats and the changing preference and attitudes of buyers, Delantar said exporters must also be prepared against calamities as these could also dampen the interest of buyers to spend for new furniture and other home furnishing products.

"The world has changed now. We cannot plan well for the future. Anything can happen. Thus, we have to adjust in producing products as per order," Delantar said adding that some clients order minimal numbers of furniture items, unlike in the previous years.

Delantar, who also sits as a member of the board of the Cebu Furniture Industries Foundation Inc., (CFIF) said employees and workers of the furniture industry are still facing an uncertain future, as the market has shifted to unpredictable attitude, plus the danger of increasing competition from other furniture making countries.

Some furniture companies has adopted the "no-order-no-work" system, which is way better compared to the massive retrenchments that happened in the previous year.

Gifts, Toys and Houseware Exporters in Cebu (GTH-Cebu) past president Jenifer Cruz also noted the same observation saying that after the global recession, the market trend and buying pattern of the overseas market has significantly changed.

"We did not expect that the recovering market will bring us a very slow movement of volume orders. Unlike in the post 1997 crisis, that after the regional economy recovered, the global market was also able to respond," Cruz said.

Cruz, who owns one of the largest home furnishing exports manufacturing companies in Cebu, the 33 Point 3 Exports Inc., said that recovery of orders in the last five months of this years, is not discouraging, however a change of consumer and buying pattern was observed.

In the past, regular clients mostly from the United States ordered long-lead and greater volumes of products immediately after the 1997 regional crisis, now most if not all clients only placed lesser orders, with short-term lead-time.

Because of stiff competition with China and also India, in the home furnishing sector, Cruz said the recovery of the global recession starting 2010, is hardly felt by the exporters.

"There is still uncertainty of orders. That's why we still have to work double-time and invest equipment upgrade and design capability," Cruz said adding that despite the recovering market, exporters now a days still face market uncertainties.

On the other hand, Delantar expressed confidence of Cebu's furniture sector to get ahead from the rest of the competitors in terms of employing 'green operations, and producing environment-friendly furniture and home furnishing products.

Delantar is also joined by famous furniture designer Kenneth Cobonpue in pushing green furniture campaign to sustain its share in the world market.

Cobonpue believes that the one of the strongest shields for Cebu furniture industry to sustain its marketability in the world, despite the fast changing preference of customers, is to take advantage in promoting and producing eco-friendly products.  (FREEMAN)