1. THE PHILIPPINE FURNITURE INDUSTRY
Kenneth Cobonpue
THE PHILIPPINE
FURNITURE
INDUSTRY

2. WHY TAKE A SECOND LOOK AT OUR INDUSTRY?

3. The industry is the most sustainable industry in the Philippines

4. The Philippine Furniture Industry
Known as among the world’s best
in terms of design and quality…
Should say “design and quality” - DONE

5. …regarded as “the Milan of Asia”

6. 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.
“are known”. - DONE

7. 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

9. Sustainable employment upstream and downstream
Sustainable Resources
Sustainable growth

10. 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
Tree farmers
Harvesters
Saw mills
Raw material Traders
Transporters
Wholesales and retailers
Manufacturers
Designers
Support industries

11. The Philippine Furniture Industry
98% of 5,000 Furniture companies are categorized as Small and Medium Enterprises (SMEs)

12. Key Sector Analysis
KEY EXPORT SECTOR
2010 ACTUAL EXPORTS
US$ Million
2010 GRWTH vs. AVG 3 YRS %
INDIC. MARKET SIZE
MKT SHARE
MKT GRWTH
LVA
LVA AMT. AT 2010 ACTUAL EXPORTS
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
1,104
1,131,000
2. ELECTRONICS
31,080 3
1,900,000 2 5
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
1,693
75,583
Coconut Products
1,508 93
7,500 20 95
1,433
3,400,000
4. MINERALS
1,870
-23
12,650,000
0.01 15
1,496
180,000
5. SHIPBUILDING
1,543
554
83,000 16
20 
 308
33,045
6. MOTOR VEHICLE PARTS
3,679 24
420,000 1 65
2,391
70,000
7. GARMENTS/ TEXTILE
1,871 11
600,000
0.31
561
150,000
8. HOMESTYLE
427
-19
469,000
0.09
342
2,100,000
9. WEARABLES
599 26
400,000
0.15 70
419
140,000
THE BPO INDUSTRY WHICH IS ONE OF THE DARLING INDUSTRIES, ALREADY HAS 18% MARKET SHARE, WE ONLY HAVE %
HOMESTYLE ARE NUMBER 3 IN EMPLOYMENT, SECOND ONLY TO AGRI AND COCONUT
Raw Data Sources: BETP for Merchandize Exports; BSP for Services as processed by BETP
Benchmark Average 3 years cover "normal" market conditions.
Lifted from the presentation of DED Emma Mijares during Roadmapping workshop of Furniture industry 7 7

13. The Philippine Furniture Industry
Sustainable Resources
Great environment for tree and bamboo farming
Fantastic human resources (designers, carvers, weavers)
Professionals

15. Furniture industry supply chain
Gatherers/Harvesters of Raw Materials
Saw millers
Wood traders
Transportation of
Materials
Exporter
Buyer

16. Sustainable employment upstream and downstream +
Sustainable Resources =
SUSTAINABLE GROWTH

17. 231.51 Furniture and Furnishings's Annual Export Performance
EXPORTS HAVEN'T BEEN GREAT
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
Lifted from the presentation of DED Emma Mijares during Road mapping workshop of Furniture industry updated by BETP

18. Furniture Import Performance 2002 to 2013 (FOB in Million USD)
IMPORTS HAVE BEEN GREAT
BUT THAT'S NOT GREAT FOR US
Data sourced from NSO processed by: BETP

19. Source: BETP processed data
Furniture and Furnishings (including all Wood-based) Exports to EU
Source: BETP processed data

20. ADVOCACY CHALLENGES - DENR Administrative Order 99-46
Executive Order 23
EU Timber Regulation

21. THANK YOU..