Local Furniture Exporters Affected by Canceled Orders From Abroad

Philippine local furniture exporters have received an unusually high number of order cancellations from abroad in light of increased fears of a recession that has changed spending patterns and driven down demand in two of the largest markets in the Philippines.

President of the Foreign Buyers Association of the Philippines (FOBAP), Robert Young, has said that nowadays, they are predicting orders for furniture to be shipped to Europe and the United States will slow down by 25% in 2022 from $200 million back in 2021.

Before the pandemic, Philippine furniture exports, specifically, wooden desks, cabinets, chairs, and tables were estimated to be around $300 million.

“The fears of a recession in the US are making our clients order less. People are trying to save now on shopping expenses,” said Young.

FOBAP is an association that represents members who are buyers of garments, furniture, and other Philippine products made for export. Ikea, Crate and Barrel, Crabtree, and Evelyn are a few of the international brands that are their clients.

Young mentioned that a problem concerning the limiting growth of exports was due to international certification of the wood used to manufacture these furniture products.

The wood certification is issued by the Forest Stewardship Council (FSC), which is a Germany-based nonprofit organization established in 1993 which is tasked to promote responsible management and sustainability in forests around the world by awarding certification that is recognized in several countries.

Most of the furniture suppliers in the Philippines get wood from non-certified sources by the FSC. According to Young, countries such as Europe and the United States refuse to buy furniture made from non-certified wood.

Source: Inquirer