furniture industry reasearch

7/21/2019 Furniture Industry Reasearch

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Competitive Priorities

in theFurniture Industry of the

Philippines


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The Philippines is known for making

quality and artistic furniture. It is one of

the industries that made it to the globalmarket, The country ranks as one of theworlds best producers of fine furniture.

But apparently there has been a decline in

the furniture business in the country. The competition in furniture industry has

increased worldwide because of morecountries are willing to trade.

According to Jose Ramon Abad ThePhilippines is now the worlds bestproducers of fine furniture. (2012)


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The furniture industry of the Philippines isone of the top exports industries in thecountry. It has large impact of socio-economic condition of the Philippines as it

is the major source of livelihood forFilipinos all over the country.

Over the years, export furnitureproduction in the phillippines rapidly

evolved. Philippines furniture is one of thepriority export products given assistanceand support by the government.


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Expanding its scope to become Asiasacknowledged leader in making high

quality furnitures products. The furnitureindustry manufactures affordableproducts of delicate craftsmanship which

is the successful result of moderntechnology combined with humancreativity and eye for beauty.


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Italy is the top exporter of furniture to

the United States from Europe. Italysfurniture manufacturing was force toexport the lumber required forproduction. One of the success factors

of Italian furniture manufacturing is thepricing policy applied by furnituremanufacturers in spite of raw materialcost increases.


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Major furniture manufactures are locatedin three areas: Manila, Pampanga andCebu. The furniture industry is forecasted

to grow by 10% due to a boost in theconstruction industries and several tie upswith the real estate industry. BPOs areeven encouraging demand for furnitureand produce high quality furnishings thatcan cater both local and foreign markets.


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Ghana is a relatively small sub-SaharanAfrican emerging economy. Their

manufacturing companies struggledbecause they could not acquire the rawmaterials needed for their production due

to scarce foreign exchange reserves. Inorder to address the concern the economicliberation policies had nurtured an open

economy and minimize problem of themanufacturing companies to obtain rawmaterials and inputs and other resources.


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Despite the improving business climate,

the Philippine furniture industry is facedwith the threat of declining revenues dueto the ASEAN Integration happening nextyear. With free trade among ASEAN

members, the industry might be force todrive down prices or even shut downoperations.


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Also a chance that local furnituremanufacturers would relocate to otherASEAN regions with cheaper rawmaterials and labor. Lastly, thePhilippines have barely touched theASEAN market; most of its exports are tothe European nations and the UnitedStates. The Philippines is at a hugedisadvantage because other ASEANcountries, like Vietnam and Indonesia,have already penetrated the market.


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According to the report, the furniture sectorparticularly exporters, remains under intenseglobal and regional competitive pressures. Aglobal downward price pressure influenced by a

weakening dollar and stiff competition fromVietnam and China.

Philippines export of furniture for the pastyears( 1999 to 2003) were declining. The

problem concerns in the difficulty inhaving a competitive price of the productsfor export.


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According to the Chamber of FurnitureIndustries of the Philippines there aremajor concerns about the furniture exportindustry. The concerns are the lack ofsupply of raw materials, lack of financing

opportunities for the small micro-entrepreneurs (SME), high labor cost, lackof information, low productivity as well as

the political, economic and peace andorder situation in our country.


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The reason to study the furniture industryis to be aware of what is its latest

competitive trend in the global market. By studying the competitive priorities of

the furniture industry in the Philippines,

researchers hope to understand theindustry a lot better and suggestimprovements for the benefit of local andnational furniture manufacturers in the

country for the growth of the Philippineeconomy and for enhancing the industryscompetitiveness.


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Through this study the furniture sectorswill be able to explore the proper

management and supply agreements fromother countries to address the problem oflack of raw materials as well as the idea offinancing the SMEs that will helpincreasing their productivity.

Having this study the challenges tomaintain our edge in human capital

aspects will be addressed througheducating relevant skills and training infurniture making.


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Group Members;

Mary GraceGuerra

ZyrabelleSumatra

Jean RheaBisnar

Sheena Maresyap

Bernadeth

Jameselle

Dwight Gorne

CarmelQuarteron

Johay Saripada

Edward

Esclamado

furniture industry reasearch

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