Strong dollar to benefit exporters albeit briefly

CEBU, Philippines — The strong US dollar versus Philippine peso may help exporters raise their profitability a bit, but industry players expect this to be temporary.

“It’s a windfall profit” described Ramir Bonghanoy, past president of Gifts, Decors and Housewares Exporters Foundation Inc. (Cebu-GDH).

Bonghanoy, who is the founder of Bon-Ace Fashion Tools Inc., said that the profits from strong dollar could only offset the rising cost of raw materials caused by the spike in oil prices.

Besides, he said the windfall profit is only expected to last at least 30 days.

What is apparent right now, he said is the Pinoy exporters’ intensifying battle with competition, especially against neighboring countries like Vietnam and Indonesia.

He said the export sector now, especially the manufacturing side is undergoing transition as it is changing the way it does business, from traditional to new age.

Constant investment in innovation is crucial to every company, “it’s hard to get big orders nowadays”, particularly to those companies which do not adopt innovation.

The influence in social media is also affecting consumers’ behavior in buying, including their taste and style, thus market projections are becoming too unpredictable.

Bonghanoy’s company makes fashion accessories and home furnishing products for luxury brands abroad such as New York and Paris. (FREEMAN)