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20 export firms in Cebu cease operations in 2015

Ehda Dagooc (The Freeman) - December 16, 2015 - 9:00am

CEBU, Philippines - Twenty export companies have ceased operations this year as the export sector continues to struggle amidst a very challenging global market.

Philexport-Cebu president Nelson Bascones said that these 20 companies that have already discontinued their affiliation with the organization are mostly sub-contractors and small scale exporters who have decided to diversify or shifted into another business.

To date, Philexport-Cebu membership-base is at 500 export firms, which is a little bit lower compared to the past few years when the export sector performance was still at moderate to high levels.

Philexport-Cebu however, cannot quantify the number of employees affected by these closures. However, Bascones said while these companies stopped to do export business, most of them kept their employees for their new business ventures.

The closure of diversification of export firms, he said has not largely affected the jobs of employees, as most (if not all) are still absorbed by their employers for another job requirements.

Except for electronics, the export sector is generally seen to hit a depressing negative note this year. Although, the furniture sector is slowly gaining strength, this is not enough to pull up the struggling performance of other sectors, Bascones said.

The furniture export in Cebu, which is now leverage on high-end niche market, also aided by the robust domestic market, grew an estimate of only one percent year-to-date, Bascones said.

Based on the documents processed via PhilExport-Cebu’s one-stop-shop facility, export figures from January to September this year dropped by nine percent. This does not count the export documentation processes recorded in other agencies, like in the economic zones, airfreight forwarders, among others.

Cebu contributed only about two percent of the total export sector in the Philippines. But what makes Cebu visible in the export industry is its ability to provide niche goods, and popular global brands, he said.

The struggling global market and other factors continues to give stress to the export sector's feasibility, add to that the impending US election, Japan's economic hiccup, the concerns in Greece, which affects the entire market of Europe, and the ongoing struggle of China's economy.

What worsens the problem is the government's lack of interest to support the export sector, especially in terms of hearing their immediate concerns, added Bascones. (FREEMAN)

 

BASCONES BUSINESS CEBU COMPANIES EXPORT MARKET NELSON BASCONES PHILEXPORT PHILEXPORT-CEBU SECTOR YEAR
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