CEBU, Philippines – While the recovery of the export sector is still uncertain in the next few years, exporters from Cebu and the neighboring provinces are confident to post at least a double-digit growth in the next three years.
The different sub-sectors in the export industry in Cebu are confident that they can weather the difficult market situation, as they are "cautiously upbeat about the export prospects from 2011 to 2013.
A report from the PhilExport-Cebu indicated that based on the 2010 figures, exporters in Cebu are seeing a turnaround starting 2011, although they kept a conservative outlook because of the apparent uncertainty in the global market.
Food exports committed to grow by at least five percent in 2011, and a percentage higher by the next year, and eight percent in 2013.
Garments on the other hand, expect to grow by an average of 10 to 15 percent in the next three years.
While health and wellness sector projected to generate at least US$ 10 million revenue by 2013.
The battered furniture sector, although still grasping for the effect of real market recovery, projects to grow by eight percent next year, and 10 percent in the following two years.
The home décor exports, made its conservative prospects with seven and eight and nine percent growth from 2011 to 2013.
Seaweed exports see a 10 percent to 15 percent growth from 2011 to 2013. The Central Visayas exports pushes for a bit higher than the projection made by the national industry sectors.
Despite the improving performance of orders from the overseas market, exporter Pete Delantar, the owner of green furniture company Nature's Legacy said that exporters now are too 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 now a days.
Aside from economic threats, and the changing preference and attitudes of buyers, Delantar said exporters also has to wary on the calamity happenings, as this could also dump consumers recovering interest to buy new furniture, and other home furnishing products.
"The world has changed now. We can not 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.
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 very to respond," Cruz said.
Although, the seaweed exports projected at least a 10 percent to 15 percent growth in the next three years, Seaweed Industry Association of the Philippines (SIAP) president Benson U. Dakay said its growth will depend largely on the players' consistent competitive advantage and the plight of foreign exchange in the country.
Worst, Dakay said that if external and internal intervention will continue, such as the volatile foreign exchange movement, among others the industry may experience even a zero growth in the next three years.
In 2009, total demand of carrageenan in the world market was 55,000 metric tons, but it is expected to reduce this year, to 50,000 metric tons due to the crisis, and the substitution of other hydrocolloids. (FREEMAN)