Philippines Sourcing: Furniture 2017

 

In Philippines Sourcing: Furniture 2017, buyers can find:

Verified exporters – 9 featured suppliers offering various types of furniture

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Philippines-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Philippines Sourcing: Furniture 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Furniture exports under the PSCC code 9403 for the first nine months of 2016 reached about $97.0 million.

  • North America, particularly the US, is the largest market.

  • Many furniture suppliers in the Philippines have shifted production to midrange and high-end lines.
  • Raw material options include wood and nonwood forest products, plastic and metal.

  • Most manufacturers keep nearly all production processes in-house.

  • Carving, painting and weaving are typically done by hand.
  • Most suppliers intend to maintain current prices or keep price increases to a minimum.

  • Several companies are anticipating increases in export sales in 2017.

  • Space-saving designs and geometric structures are expected to remain a trend in upcoming releases.

Related video:

Philippines Sourcing: Furniture 2017 Suppliers & products

Philippines Sourcing: Furniture 2017 Suppliers and Products

Philippines Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Garden & outdoor furniture

Our team has visited all Philippine manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Bedroom furniture   
Philippines Sourcing Furniture 2017 suppliers and products
Dining & kitchen furniture   
Philippines Sourcing Furniture 2017 suppliers and products
Living room furniture   
Philippines Sourcing Furniture 2017 suppliers and products
Garden & outdoor furniture   
Philippines Sourcing Furniture 2017 suppliers and products

Philippines Sourcing: Furniture 2017 Industry overview

Philippines Sourcing: Furniture 2017 Industry Overview

Philippines Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Garden & outdoor furniture

This section discusses key issues affecting export manufacturers in the Philippines, offering insight into industry composition and important supply centers.

Philippine furniture exportsCompetitive advantagesChallengesIndustry composition
  • Exports under PSCC code 9403 for the first nine months of 2016 amounted to about $97 million.

  • The US, Japan, the Netherlands, the UAE and Germany are among the top destinations of furniture exports.

  • Exports include models made of metal, wood and nonwood forest products, and plastic.
  • The Philippines has a skilled workforce, which includes creative and resourceful designers.

  • Another advantage of the industry is the variety of raw materials that are readily available in the country.

  • The government has programs and policies that support the industry.
  • Rising raw material costs are a major concern of the industry.

  • Manufacturers also have to deal with high logistics costs and delays in the delivery of raw materials.

  • A number of suppliers have limited access to financing.
  • The Philippines has approximately 4,000 furniture manufacturers.

  • Most companies are single proprietorships or family-owned businesses that operate on a small scale.

  • Cebu, Metro Manila and Pampanga are the main production hubs.

Philippine furniture exports

Many furniture suppliers in the Philippines have shifted production to midrange and high-end lines amid higher production costs and intense price competition in the low end.

Makers are capitalizing on the Filipinos’ design capability and craftsmanship to offer innovative pieces. The emphasis is on providing quality, design and material instead of price.

Additionally, a number of furniture companies are promoting their products in international trade shows such as the Ambiente in Frankfurt, Germany, the International Contemporary Furniture Fair and NY NOW in New York, Maison&Objet in Paris, and in locally held shows like the Manila FAME and the Philippine International Furniture Show.

Many furniture suppliers are also working to increase penetration of the domestic market even as they strive to boost exports because overseas demand has yet to fully recover to levels before the 2008 financial crisis. The country’s vibrant tourism industry has paved way for the construction of hotels, restaurants and resorts, providing new opportunities for furniture suppliers.

Furniture exports under the Philippine Standard Commodity Classification code 9403 between January and September 2016 amounted to approximately $97.0 million, according to data extracted from Tradeline Philippines, citing the Philippine Statistics Authority (PSA). Exports in 2015 reached about $178.4 million in 2015, down nearly 30 percent compared with figures in 2014.

Products sent to other countries in Asia and the Americas accounted for the majority of overseas sales in 2015, absorbing 38 and 40 percent, respectively. Europe accounted for 13 percent of exports, while the Middle East accounted for 6 percent.

The US, Japan, the Netherlands, the UAE and Germany were the top importing countries in 2015. Exports to the US amounted to $69.1 million, Japan $56.5 million, the Netherlands $9.7 million, the UAE $7.7 million and Germany $ 5.19 million.

Philippines Sourcing: Furniture Industry Overview Exports

Furniture exports include pieces made of metal, wood, plastic, rattan and bamboo.

Competitive advantages

Among the factors supporting the furniture industry’s shift to midrange and high-end lines is its access to a large pool of skilled workers, who are products of formal and informal training. The majority of the country’s population also have some proficiency in the English language, facilitating communication between suppliers and buyers.

The Philippines’ skilled workforce includes creative and resourceful designers who take inspiration from the country’s diverse culture and rich history to create pieces that are relevant to the modern consumer and lifestyle. Among those who have made their mark abroad are Kenneth Cobonpue, Vito Selma and Ito Kish.

The country is also home to craftsmen whose skills have been passed down from previous generations. Northern Luzon, for instance, are known for the quality woodwork of its craftsmen.

Another advantage of the industry is the variety of raw materials that are readily available in the country.

Gmelina plantations, for example, can be found in all three major island groups of the Philippines. Among the major producers of gmelina logs are the administrative regions of the Zamboanga Peninsula, Soccsksargen, and Caraga in Mindanao.

Rattan is also grown in various parts of the country. In 2015, Palawan province in Luzon and the Caraga region in Mindanao were among the major producers of split and unsplit rattan, according to statistics posted on the website of the Forest Management Bureau of the Department of Environment and Natural Resources (DENR).

furniture exports

The country has more than 50,000 hectares of bamboo forest, the Department of Environment and Natural Resources said in a March 25, 2015, news release from the Philippine Senate. The Ilocos region in Luzon and Soccsksargen region in Mindanao were major producers on bamboo poles in 2015.

The Bicol region in Luzon, meanwhile, is a major source of abaca. Plantations can also be found in Visayas and Mindanao.

The Philippine furniture industry also benefits from government support. According to the GOV.PH website, a product of the Department of Trade and Industry (DTI) and Board of Investments (BOI), “The Philippine furniture industry aims to be the global design innovator or hub for products using sustainable materials by 2030, with thriving domestic and international markets and a competitive and motivated labor force.”

Government initiatives toward this end include the establishment of fabrication laboratories or fab labs, which offer rapid prototyping and digital fabrication services. The DTI, together with the Department of Science and Technology (DOST), Bohol Island State University (BISU) and Japan International Cooperation Agency (JICA), co-funded the first fab lab shared service facility (SSF), which was launched in 2014 and is located in BISU.

Including the one in Bohol, the Philippines now has 10 fab labs. In Visayas, another fab lab was set up in the University of the Philippines (UP) Cebu City campus. Fab labs in Mindanao are located in Mindanao State University – Iligan Institute of Technology in Iligan City; and the Mindanao Trade Expo Foundation in Davao City. Fab labs in Luzon can be found in the Philippine Science High School Central Luzon campus in Angeles City, Pampanga; Don Honorio Ventura Technological State University in Bacolor, Pampanga; Philippine Science High School Ilocos region campus in San Ildefonso, Ilocos Sur; Bicol University in Legaspi City, Albay; Philippine Footwear Federation Inc. in Marikina City; and the UP Diliman Campus in Quezon City, Metro Manila.

The DTI has also established Negosyo Centers in various parts of the country, with the number reaching 447 in 2016. Negosyo Centers are tasked to promote “ease of doing business and facilitating access to services for MSMEs within its jurisdiction.” Its functions include providing business registration assistance, business information and business advisory services.

In terms of promotion, the DTI, through the Center for International Trade Expositions and Missions (CITEM), organizes Manila FAME, which is a biannual trade show featuring furniture, home furnishings, holiday gifts and decor, and fashion accessories.

On skills development, the BOI, the Chamber of Furniture Industries of the Philippines (CFIP) the Technical Education and Skills Development Authority (TESDA) talked about the training programs that CFIP requires. Scholarship programs for furniture training will be offered by TESDA and the CFIP intends to absorb 70 percent of the trained students.

Challenges

Rising production costs are a major concern of the industry. Wooden furniture manufacturers, in particular, are faced with higher rates for raw materials due to the limited supply. The average rate per board foot of mahogany in the third quarter of 2016 was 36 percent higher compared with the 2015 average. The cost of gmelina was up 48 percent from 2015, according to data posted on the website of the Forest Management Bureau.

In addition, suppliers have to deal with high logistics costs. This expense could account for 24 to 53 percent of wholesale prices, according to an article posted on the website of the Philippine Information Agency (PIA) on April 9, 2016.

Congestions in domestic ports also delays delivery of raw materials, resulting in longer lead times. To minimize the risk of not delivering goods to buyers on time, suppliers stock raw materials. This option is not possible for small companies, however, due to limited funds.

Republic Act 10668 or the Foreign Ships Co-Loading Act, which was signed in 2015, is expected to facilitate the movement of goods and reduce suppliers’ logistics costs as this allows “foreign vessels to transport and co-load foreign cargoes for domestic transshipment and for other purposes.” The implementing rules and regulations for the Cabotage Act, as it is also called, was signed in 2016.

A number of furniture suppliers, especially small operations, face the additional challenge of having limited access to additional capital or credit for funding capacity expansion, marketing and other activities.

Promoting products in trade shows, for example, requires an investment of $20,000 to $30,000 if the show is held abroad and $10,000 to $20,000 for local exhibitions. These rates include product development, booth fee, transport and accommodation, among others.

To cover production costs and other business expenses, furniture suppliers in the Philippines target midrange and high-end segments, where there is less price competition. Efforts to deal with higher costs and the limited supply of wood have also encouraged companies to diversify in terms of materials used and designs offered.

Some are incorporating seagrass, shells, coconut lumber and leather in their pieces.

Several furniture suppliers are also keeping price adjustments to a minimum to sustain and grow existing buyer relationships.

Industry composition & hubs 

The Philippines had about 4,000 furniture makers in 2012, less than one-third of what the number had been in 2001, according to an August 2012 report posted on InterAksyon, citing the Chamber of Furniture Industries of the Philippines (CFIP).

The 2012 Census of Philippine Business and Industry, meanwhile, showed there were 1,018 furniture manufacturers in the formal sector of the economy.

Most companies are single proprietorships or family-owned operations. The Philippine furniture industry consists mainly of companies wholly owned by Filipinos, but there are some foreign-invested enterprises.

Small companies have fewer than 100 permanent workers. Occupying about 3,000sqm, their factories are capable of producing up to 20 TEUs monthly.

Midsize companies have up to 200 full-time employees. Their plants occupy 5,000sqm and can roll out about 100 TEUs each month.

Manufacturers with larger workforces and factories can produce more than 100 TEUs monthly.

Cebu, Metro Manila and Pampanga are the three centers of furniture making in the Philippines.

Makers in Cebu province, which is located in the Visayas island group of the Philippines, is known for its rattan furniture. The area is also home to several manufacturers of fine wood furniture.

Furniture suppliers in Metro Manila and nearby cities in the Calabarzon region, which is in the island group of Luzon, focus on wooden products or pieces that combine various materials. Pampanga, also in Luzon, is associated with hand-carved wooden products, but it is also home to makers of wicker and iron furniture.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the furniture suppliers featured in this report.

Philippines Sourcing: Furniture Supplier Locations Map

Philippines Sourcing: Furniture 2017 Product features

Philippines Sourcing: Furniture 2017 Product Features Living room furniture Dining & kitchen furniture Bedroom furniture Bar & bistro furniture Outdoor furniture

Philippines Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Garden & outdoor furniture

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Philippine furniture suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • The selection of furniture from the Philippines comprises leg items and case goods.

  • Raw material options include wood and nonwood forest products, plastic and metal.

  • Minimalist designs, multifunction models and geometric structures are a trend in new releases.
  • Most manufacturers keep nearly all production processes in-house.

  • Carving, painting and weaving are typically done by hand.

  • Furniture suppliers exporting to the US comply with ASTM requirements.
  • Pricing depends mainly on the materials used, as well as the size and design of the furniture.

  • The amount of labor that is required is also a major consideration in pricing.

  • Most designs target the midrange and high-end segments.

Materials & designs

The selection of furniture from the Philippines comprises leg items and case goods. The first category includes chairs, tables and beds, and the second comprises cabinets, desks, wardrobe cases, dressers and kitchen storage units.

Wood such as gmelina and Philippine mahogany remains a popular material, especially for living room and bedroom furniture. Dining and kitchen tables are often made of wood as well.

Adoption of nonwood forest products such as rattan and bamboo are also common in pieces meant for indoor use. Stainless steel, aluminum and wrought iron, meanwhile, are popular raw materials in dining chairs and outdoor furniture. For the latter category, synthetic resin and fiberglass are also options.

Mixed-media pieces, which adopt different natural materials or combine these with plastic and metal, are available from many suppliers.

The industry offers a wide range of designs. Thirty to 50 new models, for instance, are released semiannually in time for the Manila FAME fairs.

Suppliers typically have three to five employees focusing on product development and customizing designs to buyer specifications.

At several companies, the focus is on minimalist pieces and multifunction models that save space. Geometric furniture also remains a trend.

Amid rising environmental awareness and the shortage of traditional materials such as wood and rattan, a number of companies are using recycled plastic and wood. Naturescast Inc., a subsidiary of Natures Legacy Eximport Inc. located in Cebu province, uses a material made from dead bark, shrubs, fallen twigs, leaves and other agroforest waste.

Manufacturing & QC

Most manufacturers keep nearly all production processes in-house. Outsourcing of framing, sewing, weaving and other steps, however, is typically done during peak season.

Machinery is usually involved in metalworking, framing and carpentry. Straightening and splitting equipment, crosscut saws, sanders, pneumatic jigs and finishing booths are among the common equipment used.

Carving, painting, weaving, upholstery making and inlaying are the processes typically done by hand.

QC begins in material selection. Makers using wood, for instance, check the wood’s texture, moisture content and strength. The paint, varnish and other chemicals used for finishing are those that meet US and EU requirements.Furniture suppliers exporting to the US comply with ASTM standards, including those for flammability of fabrics and formaldehyde emissions. Among the standards followed by those sending their products to the EU is the International Standards for Phytosanitary Measures No. 15.

Pricing

Most designs target the midrange and high-end segments. Pricing depends mainly on the materials used and the size and design of the furniture. The amount of labor that is required is also a major consideration in pricing.

For beds, the selection between $500 and $800 includes king-size models with gmelina frames embellished with carvings. More expensive pieces include those with solid mahogany frames featuring handcarved patterns on the headboard.

In sofas, models priced below $300 come in solid mahogany or cut rattan and features carvings. Designs higher up the price range include pieces with mahogany, or metal frames wrapped by split rattan.

Mahogany dining chairs without upholstery are available for less than $100. At higher prices, the selection includes upholstered models with frames combining powder-coated metal with PE or rattan wicker.

For outdoor seating, chaise lounges reaching $500 come with synthetic resin or PE frames with armrests. Upholstered chairs with a powder-coated metal frame, rattan bindings and stainless steel legs are priced higher.

Price guide

Price guide: Beds
$500 to $800
Gmelina or Philippine mahogany; handcarvings, queen or king size
More than $800
Solid mahogany; handcarvings; king size

Click image to enlarge.

Typical parts of a bed
Price guide: Dining chairs
Less than $100
Solid mahogany; turned or carved leg; lacquer finish
$100 to $200
Powder-coated metal frame woven with PE wicker; medium-density foam cushion with synthetic leather cover
More than $200
Philippine mahogany; medium-density foam cushion with microfiber fabric or synthetic leather cover; rattan accents
Typical parts of a dining chair
Price guide: Sofas
Less than $300
Solid mahogany or cut rattan; foam cushion; handcarved patterns on arms
$300 to $500
Solid mahogany; medium-density foam cushion; leather cover
More than $300
Powder-coated metal and split rattan; medium-density foam cushion; microfiber fabric cover
VTypical parts of a dining chair
Price guide: Outdoor seating
$300 to $500
Chaise lounge; synthetic resin or PE frame; five reclining positions; with armrest
More than $500
Upholstered chair; powder-coated metal frame with rattan bindings; stainless steel legs; cushion with water-resistant cover; pillows
Typical parts of a lounge chair

Philippines Sourcing: Furniture 2017 Supplier survey

Philippines Sourcing: Furniture 2017 Supplier Survey

Philippines Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Garden & outdoor furniture

To give buyers first-hand information from active furniture exporters in the Philippines, we’ve surveyed the manufacturers featured on this site.

The companies surveyed reflect the composition of the Philippines furniture industry in terms of company size, geographic location, product range offered and materials used.

Prices

Prices of furniture in the Philippines are expected to be relatively stable in the next six months. Among 11 surveyed suppliers, 45 percent intend to maintain current prices. Of those planning to raise their quotes, 83 percent will keep adjustments within 10 percent and 17 percent see price increases of more than 15 percent.

Many companies are keeping price adjustments to a minimum to sustain existing buyer relationships and match the price points of counterparts in China, Indonesia and Vietnam. Increases in quotes are primarily intended to maintain margins amid higher raw material costs and overhead. A few makers intend to invest in improving their manufacturing facilities.

chart prices

Export markets & sales

Philippine makers are generally optimistic about 2017 exports amid efforts of the industry and the government to promote furniture, in particular handcrafted and innovative designs. Of the surveyed suppliers, 55 percent are anticipating increases of up to 20 percent in overseas sales and 18 percent are projecting higher growth. The remaining companies expect export sales to stay flat.

North America and the EU, the traditional destinations of Philippine furniture exports, will remain key overseas markets. Of the survey respondents, 28 percent indicated that North America will be their most important target market in the next 12 months and 27 percent chose the EU. Other companies intend to establish strong ties with buyers in Asia, the Middle East and other regions.

Philippines Sourcing: Furniture Supplier Survey Export Forecast

The furniture industry’s selection of space-saving designs are expected to expand in coming months. Among surveyed suppliers, 37 percent will be focusing product development efforts on multifunction pieces such as chairs with built-in lamps, and 18 percent intend to create more minimalist furniture pieces.

Geometric patterns on furniture will also remain a trend in upcoming releases. More than one-fourth of the suppliers surveyed plan to focus R&D on these structures.

The trend for environment-friendly furniture will also continue, with several makers adopting inputs such as veneer from coconut palms and recycled materials.

Challenges

Rising raw material costs is the primary concern of many furniture suppliers as they cannot easily adjust prices due to the tight competition. More than 45 percent of the survey respondents indicated this as the primary challenge facing their companies.

For 27 percent of the surveyed suppliers, weak or unstable demand from their overseas markets is the main challenge. Several companies have indicated demand has yet to fully recover to levels before the financial crisis of 2008.

Limited access to financing is another major concern, as this restricts makers’ ability to invest in expanding or improving their production facilities. This, coupled with high marketing costs, is also preventing several companies from boosting product promotion.

Philippines Sourcing: Furniture Supplier Survey Key Findings

Philippines Sourcing: Furniture 2017 PDF download

Philippines Sourcing: Furniture 2017

Philippines Sourcing: Furniture 2017

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Supplier & products

Sections


  • Products
  • Philippine furniture suppliers

Industry overview

Sections


  • Highlights
  • Exports
  • Competitive advantages
  • Challenges
  • Industry composition & hubs
  • Philippine furniture suppliers

Charts


  • Export value
  • Export markets
  • Supplier locations map

Product features

Sections


  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Philippine furniture suppliers

Charts


  • Supplier production

Supplier survey

Sections


  • Highlights
  • Prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Philippine furniture suppliers

Charts


  • Export prices
  • Export forecasts
  • Key findings

Philippines Sourcing: Furniture 2017 Supplier list

Philippine furniture suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusBedroom furnitureDining & kitchen furnitureLiving room furnitureGarden & outdoor furniture
Cebu Fil Veneer Corp.Active
Eurowood Products & Technique Mfg Corp.Active  
Ferns Finewood Furniture Inc.Active  
Finali Furniture & Home Accessories Inc.Active 
Infinite Quality Designs Center Inc.Active 
Murillo Export International Inc.Active
Obra Cebuana Furniture Designs Inc.Active 
Pacific Arts & Décor International Inc.Active
Pacific Traders & Manufacturing Corp.Active