Cebu furniture makers seek government help
Powell Slaughter -- Furniture Today, January 13, 2003
Cebu City, The Philippines — Furniture manufacturers here are asking the Philippine government for help in competing with the Chinese.
The Cebu Furniture Industry Foundation, which represents the manufacturers, wants aid including tax incentives for capital improvements and a government-supported facility to buy and warehouse raw materials in bulk.
Traditionally, case goods makers in the Cebu region have focused on higher price points than those targeted by Chinese plants. But China is expanding into more expensive product, and Cebu-area producers also worry about growing competition from Indonesia, Malaysia, Thailand and Vietnam.
The Cebu foundation is seeking tax incentives for imported machinery to encourage factories to invest in equipment, said Nelia Navarro, Cebu provincial director for the Philippines' Department of Trade and Industry.
Manufacturers here also want a one-stop center to supply low-priced raw materials to the furniture industry, which would buy and import materials in bulk. Currently, Philippines producers must warehouse their own raw materials, adding to the cost of production.
Other industry requests include low-interest financing and funding for a world-class trade show center in Cebu.
The Department of Trade and Industry plans to have meetings this year with furniture industry leaders and also with foreign buyers who come to Cebu.
"They will tell the sector why they are buying from China, Vietnam and Thailand," Navarro said. "Hopefully, we can have some comparisons in terms of mechanization, design, speed of delivery and pricing."
The department plans to use the information to conduct a workshop for industry players to create strategies to enhance the competitiveness of Philippine furniture producers.
