Furniture Exports 2010

Prospects for exports of furniture for 2010 remain bleak on sluggish demand from the country’s main market, the United States.

Manuel Dizon, president of Mandaue-based Celloom Furniture Corp. said outlook is not very optimistic as the industry has not seen a turnaround in sales to the US since the crisis set in. The US accounts for 70 percent of furniture exports, said Dizon. However, he said sales of furniture, like electronics, are bottoming out.

He said about 50 factories in Cebu, the center of production of furniture for export, have closed down since the financial crunch while those which have managed to survive have not made any new investments in their operations.

"Sales to the US have been seriously affected and even factories in China have been closing down," Dizon said.

Dizon said even his own company was not spared by the slump but Celloom is one of those that try to counter the impact of the recession by turning to other markets.

Dizon in fact has secured a large business from Europe, partnering with a firm which transferred its business from China to the Philippines.

Dizon debunked what others claim that China is more competitive.

"That is not true, we can produce high quality furniture," he said.

To date, Celloom has invested P60 million. It has 150 employees but is supporting 400 subcontractors. In 2008, its exports reached almost $4 million but this has since dropped by 30 percent this year.

Celloom is unfazed and continues to pursue new markets and innovations to forge ahead.

Through Sunweave International which specializes in wholesale outdoor furniture, Celloom is now tapping Europe and the Middle East as well.

Celloom’s furniture is largely made of special kind of paper made out of loom and plastic, also known as synthetic fiber woven through aluminum frames.

These materials could evolve into impressive works of art, with unique forms and textures.

Celloom is the first and only loom furniture manufacturer and exporter in the Philippines that is recognized for using these types of materials.

Dizon said when all other exporters were into rattan and wooden furniture making and outdoor furniture was just beginning to be popular, Celloom ventured into the use of synthetic materials in making the furniture look like rattan. These made its products ideal for outdoor use which is a hit in the export market.

Celloom also made innovations by introducing a furniture collection made of aluminum that looks like wood, pinewood in particular. Celloom is now supplying Woolrich, an outdoor clothing line that also sells lifestyle products.

Dizon said this year Celloom would introduce a new line of outdoor furniture that looks like birch wood. The collection has been showcased in Chicago.

Celloom Furniture started commercial operations in 2003 as a manufacturer and exporter of high-end outdoor and indoor furniture.

As of October, exports of furniture (including woodcraft) are down 16.26 percent.

The furniture industry in the Philippines is best represented by the Cebu Furniture Industry Foundation as Cebu is the biggest contributor and the furniture capital of the country.

A big 70 percent of the total furniture products of the country are exported to the US, and the remaining 30 percent distributed to the European, Middle Eastern and Asian markets.

Cebu designers and manufacturers make use of indigenous materials such as sea grass, abaca (manila hemp), arorog and butay (coconut twig) mixed with wood, bamboo, rattan, stone and wrought iron. Other materials used are animal skins, shells, seeds, leaves and tree barks .

VIA