Kenneth Cobonpue

WHY TAKE A SECOND LOOK AT OUR INDUSTRY?

The industry is the most sustainable industry in the

Philippines

The Philippine Furniture Industry

Known as among the world’s best

in terms of design and quality…

…regarded as “the Milan of Asia”

The Philippine Furniture Industry

Philippine furniture manufacturers are known for their expertise in craftsmanship, hand-made work (e.g. carving, weaving), antique reproduction, hand-finishing, and strict quality assurance, applied on good design.

Filipino’s almost by nature are artistic, given even the scantiest of resources a Filipino craftsman can turn even an egg shell into a design masterpiece

• Sustainable employment upstream and downstream

• Sustainable Resources

• Sustainable growth

•

The Philippine Homestyle Industry

Sustainable employment upstream and downstream

•direct and indirect employment to 1.9 million workers (*2013 figure down from 2.1 million in 2011)

•business and employment to 5.4 million Filipinos in the supply chain

The Philippine Furniture Industry

98% of 5,000 Furniture companies are categorized as Small and Medium Enterprises (SMEs)

77

Key Sector Analysis

Raw Data Sources: BETP for Merchandize Exports; BSP for Services as processed by BETPBenchmark Average 3 years cover 2006-2008 "normal" market conditions.

KEY EXPORT SECTOR

2010 ACTUAL EXPORTSUS$ Million

2010 GRWTH vs. AVG 3 YRS%

INDIC. MARKET SIZEUS$ Million

MKT SHARE%

MKT GRWTH%

LVA%

LVA AMT. AT 2010 ACTUAL EXPORTSUS$ Million

ESTIMATED NO. OF WORKERS

1. IT-BPO & 11,041 21 62,000 18 30 90 9,937 526,000

Other Services 2,202 42 30,800 7 8 90 1,104 1,131,000

2. ELECTRONICS 31,080 3 1,900,000 2 5 30 9,324 520,000

3. AGRIBUSINESS 3,625 27 1,369,000 0.26 10 80 2,900 10,764,000

Food: Fresh/Processed/ Marine 2,116 35 769,000 0.28 10 80 1,693 75,583

Coconut Products 1,508 93 7,500 20 10 95 1,433 3,400,000

4. MINERALS 1,870 -23 12,650,000 0.01 15 80 1,496 180,000

5. SHIPBUILDING 1,543 554 83,000 2 16 20   308 33,045

6. MOTOR VEHICLE PARTS 3,679 24 420,000 1 8 65 2,391 70,000

7. GARMENTS/ TEXTILE 1,871 11 600,000 0.31 5 30 561 150,000

8. HOMESTYLE 427 -19 469,000 0.09 7 80 342 2,100,000

9. WEARABLES 599 26 400,000 0.15 10 70 419 140,000Lifted from the presentation of DED Emma Mijares during Roadmapping workshop of Furniture industry

•

The Philippine Furniture Industry

Sustainable Resources

• Great environment for tree and bamboo farming

• Fantastic human resources (designers, carvers, weavers)

• Professionals

Furniture industry supply chain

Sustainable employment upstream and downstream +Sustainable Resources=SUSTAINABLE GROWTH

2006 2007 2008 2009 2010 2011

Jan-November

2012

Jan – November 2013

Furniture

274.12 240.32

219.73

137.19

150.75

161.36

145.89

203.68

Furnishings

21.33

20.29

20.43

11.61

18.82

23.22 25.53 27.84

Total Export 295 261 239 148 168 184

171

231.51

Furniture and Furnishings's Annual Export PerformanceFurniture and Furnishings's Annual Export Performance2006 -20132006 -2013

Lifted from the presentation of DED Emma Mijares during Road mapping workshop of Furniture industry updated by BETP

Furniture Import Performance 2002 to 2013 (FOB in Million USD)

Data sourced from NSO processed by: BETP

44 46 42

54

72 72 74

62

88

136

148

124

020406080

100120140160

2002 2004 2006 2008 2010 2012

0 50 100 150 200 250 300

2006

2007

2008

2009

2010

2011

2012

2013

295.45

260.61

240.16

148.8

169.57

184.58

145

203

58.98

58.4

50.52

29.98

34.05

47.63

21.72

31.41

Export to EU

20-25% total industry exports goes to EU market

Furniture and Furnishings (including all Wood-based) Exports to EU 2006-2013

Source: BETP processed data

ADVOCACY CHALLENGES

- DENR Administrative Order 99-46

- Executive Order 23

- EU Timber Regulation

THANK YOU..