Furniture, Handicraft Export Growth Expected To Slow.

THE COUNTRY’S furniture and handicraft shipments will likely slow down this year, in line with a general normalization of the entire export industry from the strong rebound in 2010, government and industry leaders said over the weekend.

Specifically, furniture and handicraft sales to foreign buyers could grow by as much as 10% this year, driven by the continued recovery of traditional markets like the United States and opening of new opportunities elsewhere.

"Furniture and handicraft exports are projected to increase 10% [this year]," Trade Secretary Gregory L. Domingo said in his keynote address during the opening last Saturday of the 53rd Manila F.A.M.E. International at SMX Convention Center in Pasay City.

"We are not lacking in creativity. We just need...to train them [manufacturers] to internationalize the taste," he said in an interview later.

Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. and vice-chairman of the Export Development Council (EDC), said in an interview at the event that this projection is in line with what is expected of the entire export sector this year. "Overall projection of growth [of the EDC] is 10%. This time around, it will be modest growth. We’re just matching furniture and handicraft export growth projection with the total growth," Mr. Ortiz-Luis said.

Woodcraft and furniture exports increased 23.18% to $1.181 billion in 2010 from the preceding year, while total exports grew 33.7% to $51.39 billion in the same comparative periods, latest data from the National Statistics Office showed.

"The foreign market is starting to open up. Hopefully, the existing buyers are still there and there’s a good chance that we will be able to draw in a new batch of buyers," Joy C. Cancio, president of Chamber of Furniture Industries of the Philippines, said in a separate interview.

"Our traditional market is the US. In addition, we look at major global activities such as world cups or Olympics. They will be investing a lot in tourism and will be buying a lot of furniture."

She particularly cited alternative markets like Russia and Brazil which will host the Olympics in 2014 and 2016, respectively.

India and China are also being eyed because of their growing economies and big population, Ms. Cancio said.

"We are looking at at least 5%-10% increase," Dennis A. Orlina, board secretary of the Philippine Chamber of Handicraft Industries, said separately.

"US is the traditional market, but there are a lot of inquiries from alternative markets in Europe." -- A. M. G. Roa

Source : bworldonline.com