U.S. economic downturn hits Cebu hard
By Brian Carroll -- Furniture Today, December 3, 2001
CEBU, Philippines — Furniture producers around the world are reeling from the United States' down economy, including those in Cebu, traditionally one of America's favorite sources for furniture.
According to the government here, most Cebuana furniture makers have switched to shorter work weeks rather than lay off workers. Nelia V.F. Navarro, Cebu provincial director of the government's department of trade and industry, reported that many companies have adopted flexible work schedules.
In response to slow demand for furniture globally, producers here have been urged by the government to become more aggressive in their marketing efforts.
Apolinar Suarez Jr., president of the Confederation of Philippine Exporters Foundation, said Philippine furniture makers have been "badly hit" by the global economic slowdown exacerbated by the Sept. 11 terrorist attacks on the United States.
To survive, Suarez said furniture makers will have to define "their market niche. We can no longer rely on our usual way of doing things." Previously, too many manufacturers waited for customers to show up at their factories. That era is over, he said.
Some Philippine officials are reporting fewer visits by buyers, requiring Philippine manufacturers to visit their customers.
One exporter here, Pete Sepulveda of the Cebu Gifts Toys and Houseware Manufacturers and Exporters Assn., who exhibited in High Point in October, said buyers aren't coming because of "the Philippines' negative image abroad."
Cebu accounts for approximately 70% of Philippine furniture exports. The 10th annual Cebu International Furniture Show is scheduled for late February.
