Philippines Sourcing: Furniture 2018

Philippine Furniture

 

In Philippines Sourcing: Furniture 2018, buyers can find:

Verified exporters – 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 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Exports of furniture and parts under PSCC code 9403 in 2017 amounted to $181.1 million.
  • The US and Japan were the major importers, accounting for over 60 percent of the export value.

  • The Philippines is home to more than 1,000 furniture makers.
  • Makers use wood and nonwood forest products, plastic and metal.

  • Several suppliers are pairing wooden and metal frames with nontraditional materials such as water hyacinth, seashell and bulrush.

  • Semi-mechanized production is the norm at many manufacturing facilities.
  • Many Philippine furniture suppliers will be keeping quotes at current levels.

  • Among surveyed companies, 40 percent are anticipating export sales growth of more than 10 percent in the next 12 months.

  • Most suppliers see rising costs as the main challenge that will hinder them from boosting exports.

Philippines Sourcing: Furniture 2018 Suppliers & products

Philippines Sourcing: Furniture 2018

Philippines Sourcing: Furniture 2018

• 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-furniturePhilippines-furniturePhilippines-furniturePhilippines-furniture
Dining & kitchen furniture   
Philippines-furniturePhilippines-furniturePhilippines-furniturePhilippines-furniture
Living room furniture   
Philippines-furniturePhilippines-furniturePhilippines-furniturePhilippines-furniture
Philippines-furniturePhilippines-furniturePhilippines-furniturePhilippines-furniture
Outdoor furniture  
Philippines-furniturePhilippines-furniturePhilippines-furniture

Philippines Sourcing: Furniture 2018 Industry overview

Philippines Sourcing: Crafts Industry Overview

Philippines Sourcing: Furniture 2018

• Bedroom furniture • Dining and kitchen furniture • Living room furniture • Outdoor Furniture

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

Philippine furniture exportsCompetitive advantagesChallengesIndustry composition
  • 2017 exports of furniture and parts under PSCC code 9403 amounted to $181.1 million.

  • Products sent to the US and Japan accounted for more than 60 percent of the export value.

  • Wooden furniture was the top-selling category.
  • Design creativity boosted by an abundant supply of raw materials is among the industry’s key strengths.

  • Another advantage that buoys the sector is the availability of skilled personnel.

  • Furniture suppliers also benefit from Initiatives of business support organizations and the government.
  • Rising production, marketing and logistics costs remain a major concern.

  • Aging workers affect productivity and increase lead times.

  • Bureaucracy is another issue hampering the growth of the local furniture industry.
  • The Philippines is home to more than 1,000 furniture makers.

  • SMEs account for the majority of the industry.

  • The key production hubs are Metro Manila and the provinces of Pampanga and Cebu.

The Philippine furniture industry is facing interesting times ahead, balancing the challenges of new government tax policies and the opportunities presented by growing local and overseas demand.

Local furniture suppliers are wary about the manufacturing cost increases, specifically power rates and fuel, that will result from the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law. Under TRAIN , which took effect in January 2018, there will be a staggered increase in oil excise tax over a three-year period. Excise tax on diesel per liter, for example, is about 5 cents (PhP2.50) in 2018; 9 cents (PhP4.50) in 2019; and 11 cents (PhP6.00) in 2020. TRAIN also raises the rate of coal excise tax from about 19 cents (PhP10) per metric ton to 96 cents (PhP50) in 2018, $1.92 (PhP100) in 2019, and $2.87 (PhP150) in 2020. These increases are projected to impact electricity rates.

Amid these concerns, furniture suppliers are looking forward to seeing the results of certain government initiatives to encourage the growth of exports. Processing and approval of applications for registration of micro and small enterprises (MSE) projects to the division chiefs/officers-in-charge of the Board of Investments (BOI) extension offices in Visayas and Mindanao. Effective starting November 2016, the delegation is meant to expedite processing of applications of MSEs and covers projects in the agriculture, services, tourism and manufacturing sectors with project cost of up to about $288,000 (PhP15 million).

Under the furniture roadmap, crafted by the Chamber of Furniture Industries of the Philippines Inc. (CFIP) with the guidance of the Board of Investments, the target is to make the country a global hub for furniture by 2030.

Exports

Exports of furniture and parts under Philippine Standard Commodity Classification (PSCC) code 9403 jumped 34 percent year over year in 2017 to $181.1 million, according to the Philippine Statistics Authority. This growth is a significant improvement from 2016, when the value of overseas shipments declined 24 percent year over year to $134.9 million.

The outlook for 2018 is positive, with the industry anticipating growth of about 10 percent, according to Myrna Bituin, Philippine Exporters Confederation (Philexport) Trustee for the Furniture Sector. A survey of the companies featured in this report indicate many are expecting double-digit increases.

Philippine Furniture Industry Overview Supplier Exports

The upswing in exports is attributed to renewed interest in sourcing from the Philippines, especially from the US. In coming months, marketing initiatives by business support organizations (BSOs) in cooperation with local government units and national agencies are projected to help boost overseas sales.

In 2017, shipments to the US amounted to $58.4 million, accounting for about 32 percent of the period’s overseas sales. Japan was also a key destination, with furniture and parts sent to the country reaching $55.9 million, contributing 31 percent to export sales. The other major markets were the Netherlands, the UAE and Germany.

Wooden furniture shipped under PSCC codes 940330 to 940360 was the top-selling category, accounting for 42 percent of overseas sales.

The furniture industry is also experiencing growth in domestic sales. Local demand is on the rise amid the construction of more condominiums, residential houses and hotels. For many suppliers in Metro Manila and Pampanga province, the ratio of domestic to export sales is now 50:50. Companies in Cebu province, on the other hand, are still strongly geared toward overseas markets, export sales accounting for approximately 80 percent of revenue.

Competitive advantages

Design creativity boosted by an abundant supply of raw materials is among the industry’s key strengths. Makers are combining two or three materials in their designs, providing buyers a wide range of choices. Options include models featuring sustainable inputs such as such as abaca, bamboo, coco coir and buri.

Another advantage that buoys the sector is the availability of various craftsmen, particularly those capable of handling different materials. Carlo Cordaro, owner of furniture supplier Cebu Fil Veneer Corp., noted that the dexterity of Filipino craftsmen’s hands is “commendable.” With skilled workers, makers are able to fulfill a variety of custom orders or styles.

English proficiency is also an advantage, facilitating communication of designs and specifications, and order turnaround.

Another factor enhancing the competitiveness of Philippine furniture suppliers is the support from local trade associations and government agencies. Trade associations such as Philexport, the Chamber of Furniture Industries of the Philippines Inc. (CFIP), the Pampanga Furniture Industries Foundation and the Cebu Furniture Industries Foundation Inc. (CFIF), together with the Department of Trade and Industry (DTI) and other government agencies, implement several initiatives to help promote the sector.

Such initiatives include providing capability building and training opportunities to members. CFIF, for example, is partnering with the Technical Education and Skills Development Authority (TESDA) to set up a furniture academy program for new entrants to the industry to address the challenge of an aging workforce, and to enable skills and technology transfer to the younger generation. Trainings for executive and middle management personnel, with special focus on handling a family-owned business to ensure sustainability, will also be provided.

Challenges

Rising production, marketing and logistics costs, which reduce the sector’s price competitiveness, remain a major concern. Limited access to capital or credit also continue to hamper capacity expansion and marketing efforts.

In terms of marketing costs, exhibiting in local shows such as the Philippine International Furniture show would mean spending about $1,000 for a 3×6-meter booth. For Ambiente and other international shows, the expense could run to about $23,000 for a shared booth.

To help suppliers promote their products, BSOs seek partnerships with the local government units and agencies to subsidize participation in trade shows. BSOs also work with the DTI and other government to provide capability training in activities such as design, product costing and online marketing.

Another challenge that the sector must address is aging workers, which affect productivity and increase lead times.

Bureaucracy is another issue hampering the growth of the local furniture industry. For one, the renewal of license to cut rattan stems was changed from the regional level to national, making it more expensive and tedious to process permits for harvesting.

Industry composition

As of the 2012 Census of Philippine Business and Industry, there were 1,018 furniture makers in the formal sector of the economy. Small and medium-sized enterprises (SMEs) account for the majority of the industry.

Small enterprises have fewer than 100 workers. They usually operate factories measuring about 3,000sqm and are capable of producing up to 20 TEUs monthly.

Midsize companies usually fewer than 200 full-time employees. Their plants typically occupy approximately 5,000sqm and monthly output can reach 100 TEUs.

Makers with larger factories and workforces can roll out over 100 TEUs each month.

In Luzon, the major production hubs are Metro Manila and the province of Pampanga. Cebu province, meanwhile, is the key manufacturing center in Visayas.

Metro Manila and the nearby provinces Cavite, Laguna, Batangas, Rizal and Quezon are home to SMEs that specializes in wooden furniture or mixed-media designs. Pampanga is associated with handcarved wooden products, but it is also home to makers of wicker and iron furniture.

The supplier base in Cebu includes makers offering pieces in wood, rattan and non-traditional materials such as abaca and Typha orientalis, locally known as lampakanay.

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 Furniture Industry Overview Locations Map

Philippines Sourcing: Furniture 2018 Product features

Philippines Sourcing: Furniture suppliers and products

Philippines Sourcing: Furniture 2018

• 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
  • Makers use wood and nonwood forest products, plastic and metal.

  • Several suppliers are pairing wooden and metal frames with nontraditional materials such as water hyacinth, seashell and bulrush.

  • Combining traditional and modern elements is a strong trend in design.
  • Semi-mechanized production is the norm at many manufacturing facilities.

  • Carving, painting, weaving, upholstery, sanding and inlaying are usually done by hand.

  • Makers use paint, varnish and other chemicals that comply with US and EU standards.
  • Most suppliers target the midrange and high-end segments.

  • Quotes are based mainly on the cost of raw materials.

  • Size and design complexity are also key considerations in pricing.

Materials & designs

Philippine furniture suppliers use a wide range of materials, including wood and nonwood forest products, plastic and metal. Mixed-media designs are common.

Makers of wooden pieces usually procure mahogany from the provinces of Quezon, Cebu, Bukidnon, Misamis Oriental and Davao Oriental. Gmelina wood is sourced from Biliran, Leyte, Zamboanga del Norte, Agusan, Surigao del Sur, South Cotabato and Sultan Kudarat. Acacia wood, meanwhile, is obtained from Tarlac, Aurora and Bataan.

Rattan is often sourced from Tarlac, Aurora, Lanao Del Norte, Davao Oriental, Davao del Norte and Agusan del Sur. The lampakanay is purchased from Cebu and Lanao del Norte, while abaca comes mainly from the Bicol region.

Most synthetic furniture makers, however, import PE from mainland China. Some opt for Greeco polypeel, a type of PE fiber developed and available in Cebu.

Stainless steel is typically imported from mainland China, Taiwan or Japan.

To differentiate their models, several suppliers are pairing wooden and metal frames with nontraditional materials such as lampakanay, abaca, water hyacinth and seashell to create unusual structures. Recent releases include mahogany-based pieces that have metal, stone or natural fiber trimmings.

In terms of design, the transitional style or the combination of traditional and modern elements is a strong trend. Pop culture is one of the factors influencing such pieces, with iconic items seen in popular TV shows being used as inspiration in various product categories.

Many suppliers are also adding space-saving pieces to their selections amid the growing condominium market in the country.

Most suppliers have three to five R&D personnel, including an in-house or consultant designer, production manager, and general or marketing manager. The last post is usually held by the owner.

Manufacturers update their own collections as well as accept ODM orders. Samples are normally developed in 15 to 30 days, depending on specifications.

Manufacturing & QC

In terms of the manufacturing process, the major production steps are similar across categories.

The process starts with material selection and preparation, which usually involves carpentry and metalwork, depending on the inputs. Materials for individual parts then undergo different processes depending on the design. This includes weaving of the wicker parts, and the creation of inlays and upholstery. Once all the parts are ready, assembly, finishing and packing take place.

Semi-mechanized production is the norm at many manufacturing facilities. The production steps that are typically done by hand are carving, painting, weaving, upholstery, sanding and inlaying.

In terms of machinery, among those often found in factories are units for straightening, splitting, sizing, cutting and sanding. Wooden furniture makers usually have different types of saws, jointer-planers, shapers, routers, drill presses, sanders and boring machines.

Production lead time ranges from 30 to 90 days, depending on the volume of orders and intricacy of design.

Quality control begins with the selection of raw materials. Wood is assessed according to texture, moisture content and strength. In paint, varnish and other chemicals for finishing, companies look for inputs that follow the US and the EU standards. Finished products follow ASTM requirements and other internationally recognized guidelines.

QC also involves ensuring that they comply with social and environmental standards. Besides the environmental compliance certificate required by the Philippine government, furniture makers targeting the EU are also advised to secure a certificate of compliance with the guidelines of the Business Social Compliance Initiative (BSCI).

The average size of QC teams is five for midsized enterprises and three for small firms.

Pricing

Suppliers continue to target the midrange and high-end segments.

Quotes are based mainly on the cost of raw materials. Size and design complexity are also key considerations in pricing. Other factors that may affect pricing are the peso-dollar exchange rate, order volume, and the payment methods or conditions in setting quotations.

Price guide

Price guide: Bed frames
$450 to $500
Queen bed; frame and headboard in a combination of mahogany and MDF; upholstered headboard; 160x198x120cm; upholstered headboard
More than $500
Queen bed; kiln-dried mahogany frame; woven abaca headboard; 182.88x223.52x121.92cm

Click image to enlarge.

Philippines furniture product features Typical Components of a bed

Price guide: Dining Chairs
$100 to $150
Mahogany frame; PE wicker; 20x22x35.5cm; density foam cushion with microfiber fabric or leatherette cover
$160 to $300
Powder-coated metal frame; PE wicker; medium-density foam seat cushion covered with microfiber fabric or leatherette; 90.17cm backrest height; 50.8cm width; 55.88cm depth
More than $300
Powder-metal frame; rattan or PE splits; medium-density foam seat cushion covered with microfiber cover

Philippines furniture product features Typical Component of dining chair/

Price guide: Living room seating
$220 to $350
Accent chair; metal frame; lampakanay rope; 118.11x72.39x160.02cm; with seat cushion
$360 to $600
Accent chair; metal frame woven; lampakanay rope; 134.62x113.67x72.39cm; with seat cushion
More than $600
Loveseat; plywood carcass frame; lampakanay or abaca robe; with seat cushion made of medium-density foam with microfiber fabric cover; 78.74cm backrest height; 198.12cm width; 91.44cm depth

Philippines furniture product features Typical Component of a living room sofa

Price guide: Outdoor chaise lounges
$230 to $250
Powder-coated aluminum frame; synthetic PE; 80x197x32cm
More than $250
Powder-coated aluminum frame; abaca or jute; 99.06x78.74x101.6cm

Philippines furniture product features Typical Component of an outdoor furniture

Philippines Sourcing: Furniture 2018 Supplier survey

Philippines Sourcing: Furniture 2018

Philippines Sourcing: Furniture 2018

• 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.

Export pricesExport markets & salesProduct trendsChallenges
  • Many Philippine furniture suppliers will be keeping quotes at current levels.

  • Of those companies planning to increase their quotes, most will keep adjustments within 10 percent.

  • Higher raw material costs and overhead are driving quotes upward.


  • Most companies see export sales increasing in the next 12 months.

  • Among surveyed companies, 40 percent are anticipating growth of more than 10 percent.

  • The US and Europe will remain the main export destinations.
  • Geometric-inspired structures will remain prevalent in Philippine furniture.

  • Use of metal and metallic finishes will also be popular.

  • Recycling and upcycling of materials will remain a strong trend as well.
  • Most suppliers see rising costs as the main challenge that will hinder them from boosting exports.

  • Spending for paint and other chemicals increase 5 to 10 percent annually, while rates for timber go up about 20 percent each year.

  • Limited access to financing is another major concern.

Export prices

Most furniture suppliers will maintain their prices in coming months.

Of the 16 suppliers that answered the question on export prices, more than 50 percent will be keeping quotes at current levels for the next six months to match the price points of other sourcing hubs such as China, Indonesia, and Vietnam.

Forty percent of the surveyed companies are planning to increase quotes to cover higher raw material costs and overhead. Among these, 67 percent will keep adjustments within 10 percent and the remainder are planning higher increases.

Philippines Furniture Survey Export Prices

Export markets & sales

Most suppliers see export sales rising in the next 12 months, following renewed efforts to promote furniture overseas, particularly handcrafted and custom designs. Among surveyed companies, 47 percent are anticipating growth of up to 10 percent, 20 percent are expecting a jump of 11 to 20 percent, and another 20 percent are projecting higher increases.

Many enterprises will continue to focus their efforts on boosting exports to Europe and the US, the traditional overseas destinations of Philippine furniture. A number of suppliers are also looking at strengthening their foothold in the Asia-Pacific region, specifically in Japan and China, because of the proximity of these markets.

Suppliers are exhibiting at trade shows within the country and overseas, including in Italy and New York, to reach target buyers. Some have partnered with retailers in Europe or entered into distributorship contracts with companies in the US and Japan.

Geometric-inspired structures will remain prevalent in Philippine furniture, as materials such as rattan and wood are flexible enough to be shaped into unusual forms and curves. Several suppliers will also be adopting a minimalist style to cater to specific markets such as Japan.

Use of stainless steel, aluminum and other types of metal is also expected to be popular in upcoming releases as suppliers add a modern and futuristic touch to the design. Metallic finishes are also being adopted to serve as contrast to natural or wooden finishes.

Recycling and upcycling of materials will remain a strong trend as well. Bon Ace Fashion Tools Inc., for example, is using discarded seashell to decorate their products.

Philippine Furniture Supplier Survey Export Forecast

Challenges

Most suppliers see rising costs as the main challenge that will hinder them from boosting exports. Manufacturers, however, cannot easily raise prices to cover higher expenses due to intense competition. Many choose to absorb cost increases and reduce margins.

On average, spending for paint and other chemicals increase 5 to 10 percent annually. Rates for timber such as mahogany and gmelina go up about 20 percent each year.

Marketing costs add to manufacturers’ burdens. These include spending for trade show participation, product development, online and print promotion, and advertisements. Companies spend $5,000 to $10,000 to participate in local trade shows, and $20,000 to $25,000 for international events.

Philippine Furniture Supplier Survey Key Findings

Limited access to financing is another major concern. Manufacturers typically rely on advance payment from buyers or bank loans to fund spending for raw materials and wages, but loans impose high interest rates.

Access to credit is also difficult. Small companies usually only depend on their earnings, because bank loan requirements are oftentimes too stringent for them to fulfill.

Philippine Sourcing: Furniture 2018 PDF download

Philippines Sourcing: Furniture 2018

Philippines Sourcing: Furniture 2018

• Bedroom Furniture • Dining and kitchen furniture • Living room furniture • Outdoor furniture

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Industry overview

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  • Competitive advantages
  • Challenges
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  • Philippines furniture suppliers

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  • Furniture exports
  • Supplier locations map

Product features

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

Supplier survey

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  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Philippines furniture suppliers

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  • Export prices
  • Export forecasts
  • Key findings

Philippines Sourcing: Furniture 2018 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 status
Bedroom furnitureDining & kitchen furnitureLiving room furnitureOutdoor furniture
Betis Crafts Inc. Active  
Bon Ace Fashion Tools Inc. Active   
Cebu Fil Veneer Corp. Active   
Chall Inc. Active   
Coast Pacific Manufacturing Corp. Active  
Diamond Cane International Inc. Active   
Enpekei International Inc. Active    
Filipino Creazione De Mano Inc. Active  
Finali Furniture & Home Accessories, Inc. Active   
Murillo Export International Inc. Active
Obra Cebuana Furniture Designs Inc. Active   
Pacific Traders & Manufacturing Corp. Active  
Peter and Paul Inc. Active  
Wicker & Wine Inc. Active