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) Key Sector Analysis KEY EXPORT SECTOR 1. IT-BPO & Other Services 2. ELECTRONICS 2010 ACTUAL EXPORTS US$ Million 2010 GRWTH vs. AVG 3 YRS % INDIC. MARKET SIZE US$ Million MKT SHARE % MKT GRWTH % LVA % LVA AMT. AT 2010 ACTUAL EXPORTS US$ Million ESTIMATED NO. OF WORKERS 11,041 21 62,000 18 30 90 9,937 526,000 2,202 42 30,800 7 8 90 1,104 1,131,000 1,900,000 2 5 30 9,324 520,000 31,080 3 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 1,508 93 7,500 20 10 95 1,433 3,400,000 Coconut Products 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 80 342 2,100,000 8. HOMESTYLE 427 -19 469,000 0.09 7 9. WEARABLES 599 26 400,000 0.15 10 Raw Data Sources: BETP for Merchandize Exports; BSP for Services as processed by BETP Benchmark Average 3 years cover 2006-2008 "normal" market conditions. Lifted from of DED Emma Mijares 707the presentation419 140,000 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 Gatherers/Harve sters of Raw Materials Saw millers Wood traders Transportation of Materials Exporter Buyer Sustainable employment upstream and downstream + Sustainable Resources = SUSTAINABLE GROWTH Furniture and Furnishings's Annual Export Performance 2006 -2013 Jan – JanNovember November 2013 2012 2006 2007 2008 2009 2010 2011 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 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) 160 140 120 100 80 60 40 44 20 0 2002 148 136 124 88 72 72 74 62 54 46 42 2004 2006 2008 Data sourced from NSO processed by: BETP 2010 2012 Furniture and Furnishings (including all Wood-based) Exports to EU 2006-2013 20-25% total 203 industry exports goes to EU market 184.58 31.41 2013 21.72 2012 145 47.63 2011 34.05 2010 169.57 29.98 2009 148.8 50.52 2008 240.16 58.4 2007 260.61 58.98 2006 0 50 Export to EU 100 Source: BETP processed data 295.45 150 200 250 300 ADVOCACY CHALLENGES - DENR Administrative Order 99-46 - Executive Order 23 - EU Timber Regulation THANK YOU..