Furniture firms expect 10% rise in profit
Local furniture makers expect a 10-percent growth in revenues this year given the robust demand here and abroad, according to the Philippine Exporters Confederation Inc. (Philexport).
Expected to drive this growth will be the continued rise in local demand, given the ongoing construction of buildings, hotels and resorts, among others.
Myrna Bituin, Philexport trustee for the furniture sector, was quoted in a statement as saying that some local furniture companies had opted to focus on serving local demand, citing a group of manufacturers in Aklan that caters to hotels and resorts in the area.
“You save on your freight cost and you are here … serving your country. For those who are mechanized, for those who know about design, they can serve the local market,” Bituin said.
Despite the slowdown in demand from the United States, traditionally one of the largest markets for local furniture, exports are seen to continue growing, according to Bituin.
Bituin noted the Middle East was one of the growing markets for the local wood sector, while Philippine exports to Japan remained huge due mainly to the high demand for prefabricated housing components.
“Europe is also a good market … Europe is very traditional as [buyers there] can sell your product for 10 to 15 years,” she added.
This year, the Department of Trade and Industry had said that it would make an aggressive pitch for the local furniture and furnishings industries in the global arena, as it targets to participate in more trade fairs this year.
The Center for International Trade Expositions and Mission (Citem), in particular, will participate in more international trade fairs in the United States, Europe, Middle East and Asia to showcase Philippine craftsmanship.
Last month, the Chamber of Furniture Industries of the Philippines sought for more aggressive government interventions that would help boost the local furniture sector and enable it to cash in on the rising demand locally and abroad.
Nicolaas de Lange, national president of the Chamber of Furniture Industries, earlier said the group expected continued growth in demand as more hotels, resorts, offices and residential areas are put up in the Philippines.
The group had also expressed optimism that the furniture demand in the United States would take off to supplement the strong domestic demand.
