THE PHILIPPINE FURNITURE INDUSTRY TODAY. Today, th

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THE PHILIPPINE FURNITURE INDUSTRY TODAY
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• Today, the Philippine furniture industry has
  metamorphosed in a highly diversified
  manufacturing sector, which is composed of
  roughly 15,000 furniture firms directly or
  indirectly employing about 800,000 people. This
  is thrice the employment estimate of 250,000 in
  the 1980s and does not include the estimated
  1,000,000 people in the sub-contracting network.

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• Ninety-eight percent of these companies are
  micro, small and medium enterprises with only 2
  being large enterprises. The bulk of all these
  companies are concentrated in three provinces,
  namely Metro Manila, Cebu and Pampanga.

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• These figures clearly indicate that furniture
  manufacturing in the Philippines is still
  labor-intensive, with products ranging from leg
  items (chairs, tables, beds, settees) case goods
  (cabinets, desks, chest of drawers, kitchen
  storage units and related products) and a
  combination of these two (building or home
  fittings, shelves, ornaments and similar
  products).

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• Moreover, the industry relies heavily on locally
  procured raw materials such as wood (which
  represents 40 of the total furniture produced in
  the country) rattan, bamboo, buri and other
  forest-based or agricultural materials (which
  account for another 40) metal, stone, plastic,
  and a combination of these materials (mixed
  media).

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• The industry, as a whole, contributes about
  U600M in the sales to the economy. This does not
  include the taxes and sundry fees which the
  furniture companies, as well as the 1.8M workers
  in these establishments, bring into the coffers
  of the government through taxes.

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• Growth was admittedly sluggish starting the late
  1990s, reaching a high of U381.39M in 2000 and
  dropping to a low of U297M in 2001 due to 9/11.
  Recovery has been slow but steady, despite
  hiccups such as the Asian health crisis in 2003.

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• Prospects and Challenges. The prospects for the
  industry are very bright for 2005 a 37 growth
  in export sales for the 1st quarter of 2005 viz
  the same period in 2004 was posted the industry
  was the 4th highest export sales earner across
  revenue streams during the 1st quarter of 2005

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• the industry enjoys continued international
  recognition for excellence in product design and
  craftsmanship as well as creativity and
  innovation in the application of materials.

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• The reality of an increasingly global market,
  however, is not lost on the industry. Not only is
  competition from other furniture producing
  countries getting stiff, but the industry is also
  experiencing problems with the flow of its raw
  materials, as well as a drain in its competency
  skill base. Despite these, prospects for our
  industry remain good.

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