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PHILIPPINE

L_STITUTE Working

STUDIFS

FOR DEVELOPMENT Paper

ON THE WOOD BASED

LEATHER

PRODUGTS

MANUFACTURING

STUDIES

83-01 FURNITURE,

A_D FOOTWEAR INDUBTRIES

Ok THE PHILIPPINES


ACKNOWLEDGEMENTS

We wish

to express

the cooperation, out whom o

our sincerest

assistance

these studies

Dr. Filologo and Mr. Mario

and enaouragement

would

Pante,

appreciation

not have been

Jr., Dr. Romeo

Ferramil

of

and gratitude

the following,

for

with-

completed:

Bautista,

of the Philippine

Mr. Isaac Puno

Institute

III

for Develop-

ment Studies ; o

Dr. Magdaleno

Albarracin,

U.P. Business

Research

o

The SGV Foundation,

o

Messrs.

o

Prof. Romeo

o

Foundation,

of Business

Messrs.

Edgardo

Center;

of Premiere Patalin_hug

Financing. C_P,; of the U.Po

Administration_

Reyes

Industries

Mayor Osmundo

Balbin of the

Inc. and the SGV Development

dela Paz and Dr. Epictetus

College

Remedios

Inc.

Jaime Cari_o and Jose Cabacaa

Furniture o

Jr. and Prof.

and A1 de Lange,

Jr. of the Chamber

of

of the Philippines;

de Guzman

and Mr. Domingo

Antonio

of the Marikina

Shoe Trade Commission; o

Atty.

Manuel

Cruz of the Tanners

o

Atty. Cora JacOb of ÂŁhe leather

o

Messrs.

Gregorio

furniture

Timbol

Prof. Honesto

Nuqui of

o

Mr. Cristopher

Gomez,

Mr. Saturnino

_omputer

products

and Juvenal

of the Philippines;

manufacturing

CatejQy

industry;

of the wood-based

industry;

o

Magno,

Association

programming;

the U.P. Computer for statistical

Navarrete and

and_,

Center;

advice,

and Mr. Roberto

Ps_el_-

Verdejo,

for


- ii -

o

Our research Dacmnay,

assistants,

Ms. Gina Villa

corps of interviewers

Ms. Araceli

Paraiso,

and Ms. Ma. Victoria

who helped

S. Poblador,

B{enveoido

Ad_-i-amoO. Solis,

M. Aragon of

and the

our data.

Team*

Roy C. YbaSez,

the U.P. Business

tion, Inc. and the U.P. College

Taro,

us put together

The Research

(* Niceto

Mr. Ernesto

Research

of Business

and

Founda-

Administration.)


- iii -

TABLE

I.

OF CONTENTS

INTRODUCTION A.

B.

Objectives

and Scope of the Studies

1.0

Objectives

of the Studies

I-i

2.0

Scope of the Studies

I-2

3.0

Limitations

1-3

of the Studies

Method

i .0

II.

Definition •of Terms

1-4

2.0

Sampling

I-7

3.0

Data Gathering

4.0

Analytical

WOOD-BASED

Overview

B.

General

Procedures

1-21

Tools

FURNITURE

A.

C.

Procedures

1-26

INDUSTRY

of the Industry Characteristics

1.0

Size Distribution

2.0

Product

3.0

Organizational

Production

II-i of the Sample

of Establishments

Lines

Inputs

II'-8" IIUl5

Characteristics

II-23

and Practices

1.0

Production

Fanilities

2.0

Production

Capacity

and Major

Practices

II-26

and Capacity

Utilization

II-37

3.0

Labor

Force

II-42

4.0

Raw Material

II-47

5.0

Product

II-51

6.0

Production

Design/Technology

P rac rices

Support

Facilities

and II-53


- iv-

D.

Marketing

Practices

1.0

Channels

2.0

Seasonality

3.0

Pricing

4.0

Credit

5.0

Downpaym_mt

6.0

The Export

F.

General

II-70 on Sales

Market:

Some Problems,

Institutional

Sources

Functions

and Budgeting Linkages

of and Problems

Sources

of Financing

Major Problems Conclusions Financing Export

FOOTWEAR

II-93 11-96 11-98

in Financing II-i01

in Financins

If-106

and Recommendations

for the Small Manufacturers

Promotion

II-i14 II-I18

Biblio 8raphy

llI.

II-74

Management

3.0

/2.0

II-74

and Prospects

Planning

1.0

II-69

Sales

2.0

Rajor

11-59 II-65

Practices

Major Managerial

.2.0 G.

of Sales

1.0

i. 0

Prospects

of Distribution

Issues E.

and Export Market

If-121

INDUSTRY

A.

An Overview

B.

General

of the Industry

Characteristics

of the Sample

Ill-i 111-6

1.0

Location

III-6

2.0

Years of Operation

III-6

3.0

Types of Business

Organizations

!II-8


- V -

Page 4.0

5.0 C.

D.

Size Distribution

of Respondents:

Labor

Force and Output

Product

Type Distribution

Production

_pj_s

No.

Levels

111-8 Ill-ll

and Practices

1.0

Sectoral

2.0

Production

3.0

Other Facilities

IIl-18

4.0

Labor

111-18

5.0

Raw Material

6.0

Production

7.0

Quality

Control

8.0

Sources

of Information

9.0

Summary

Marketing

Distribution

III-ii

of Output

IIl-ll

Equipment

111-14

Force Inputs

III-22

Practices

III-23 111-27 on Technology

III-28 III-30

Practices

III-31

1.0

Channels

2.0

Seasonality

Iii-34

3.0

Credit

111-46

4.0

Pricing

5.0

Modes of Transport

111-38

Export

111-40

6.0 7.0

of Distribution

111-31

Sales Practices

111-38

Market

Summary

111-50

E.

General

Management

F.

Sources

of and Needs

1.0

Sources

2.0

Financing

3.0

Other Problems

4.0

Summary

Practices

111-51

for Financing

of Financing

and Working

of Equipment in Financing

III-54 Capital

III-54 III-59 111-.59 III-64


-vi-

Pap_e No. G.

Major

Conclusions

1.0

The Domestic

2.0

Export

3.0

Additional

and Recommendations

III-65

Market

III-66

Market

III-68

Considerations

for Growth

Bibliography

IV.

LEATHER A.

B.

C.

D.

III-70 III-74

INDUSTRY

Overview

of

the Industry

1.0

Ori_,_insand Structure

IV-i

2.0

Economic

IV-2

3.0

Some Industry

4.0

Investments

General

Significance Statistics

in the Industry

Characteristics

IV-6 IV-8

of the Sample

1.0

Capacity

IV-8

2.0

Years in Operation

IV-9

3.0

Organization

IV-9

4,0

Employmemt

and Location

IV-10

Marketing 1.0

Supply and Demand

for Leather

2.0

Distribution

I_-ll

3.0

Pricing

IV-II

4.0

Prospects

and Credit Practices

IV-10

IV-13

Production 1.0

State of Technology

IV-13

2.0

Capacity

IV-14

3.0

Large

and Utilization

Tanneries

and the "Sipa-Sipa"

IV-15


- vii -

P_e No.

E.

F.

G.

4.0

Expansion

5.0

Raw Material

6.0

Leather-Using

7.0

Prospects

General

Possibilities Supply

Ownership

2.0

Planning

Quality

Industries

and Alternatives

Management

1.0

_d

IV-16

IV-18 IV-19

Practices

and Management

IV-21 IV-22

Financing 1,0

Sources

2.0

Problems

Summary

of Financing in Financing

of Findings

IV-23 IV-23

and Recommendations

1,0

Major

Findings

IV-24

2.0

Some Recommendations

IV-25

Biblio graphy

Vo

IV-17

LEAIKBR

IV-28

PRODUCTS

A,

Overview

B.

General

INDUSTRY

of the Industry Characteristics

1.0

Scope

2.0

Organization

3.0

Years

4.0

Location

5.0

Size by Labor

V-I of the Sample V-I

and Ownership

in Operation

V-2 V-2 V-2

Force and Sales

V-6


- viii -

Page C.

D_

NO_

Production 1.0

Raw Material

2.0

Craftsmanship

3.0

Product

4.0

Mechanization

Quality

and Supply

and Quality

v-6

Control

V-10

Design

V-II V-12

Marketing

"f

1.0

Channels

2.0

Pricing

3.0

Prospects

.

of Distribut_" and Selling

V-12

Terms

in the Export

V-14

Market:

_

Vil8

,

E. Management 1.0

Extent of Ownelr Participation

in

- .,. -" •

Management 2.0

V-I 8

Extent of Pr_-paration. and NSe of .Busines s /Finaucial: Repot ts

3.0 F.

Planning

V-20 V-20

Finance 1.0

Financing

2.0 Sources 3.0

ProBlems

and Terms

V-24 of Financing

Uses for Available

g. Conclu io acom

Funds

V-27 V-28

dations

1.0

Raw Materials

V-29

2,0

Export Marketing

V'29

"7,

3.0

Technical

4.0

Financing

BibliograPhY ...

VI.

SUMMARY _.

Assistance

V-30 V-30 V-31

"'Trl-I


- iX -

LIST

Table No.

OF TABLES

Descri_

I.i

Summary of Sample Populations of Manufacturing Establishments (by Industry and by Area)

I-ii

1.2

Distribution of Sample Population, WoodBased Furniture Manufacturing Establishments (by Area jnd by Size)

1-12

I. 3

Distribution of Sample Population, Leather Tanning Establishments (by Area and by Size)

1-13

1.4

Distribution of Sample Population, Leather Products Manufacturing Establishments (by Area and by Size)

1-14

1.5

Distribution of Sample Population, Footwear Manufacturing Establishments (by Area and by Size)

!-15

1.6

Summary of Derived end by Area)

1-16

1.7

Distribution of Derived Sample, Wood-Based Furniture Manufacturing Establishments (by Area _nd by Size)

1-17

1.8

Distribution of Derived Sample, Leather Tanning Establishmemts (by Area and by Size)

1-18

1.9

Distribution of Derived Sampler Leather Products Manufacturing Establishments (by Area and by Size)

1-19

I.i0

Distribution of Derived Sample, Footwear Manufacturing Establishments (by Area and by Size)

1-20

I.ii

Summary

1-24

of Results

Sample

Sizes

of Field

(by Industry

Survey

Operat_oms


- X -

Table No. II.i

Descz_ption to

Gross Value Added

Gross

P a_e No. Domestic

11-3

Product (Manufacturing), Wood-Based Furniture and Fixtures (1970-1980, at Constant 1972 Prices) 11.2

Philippine Exports of Wood-Based Furniture and Fixtures as a Percentage of Total Philippine Exports (1976-1980, in FOB $ Values )

II-5

II. 3

Percentage Distribution of Philippine Exports of Wood-Based Furniture and Fixtures Accor-

II-6

ding to Principal in FOB $ Values)

Raw Material

(1970-1979,

11.4

Location

of Respondents

II-9

11.5

Distribution Force

II.6

Use of Household Fo rce

Ii.7

Distribution

II.8

Number of Respondents Engaged in the Manufacture_ Subcontracting and/or Resale of WoodBased Furniture, by Major Product Type

II-17

II.9

Distribution of Respondents According Location and Principal Raw Material

II-18

II.10

Distribution of Respondents Who Exported During the Period 1976-1980, by Location and Principal Raw Material

II-20

Iioli

Distribution of Respondents •_qqo Exported During the Period 1976-1980; According to Number of Years Actually Exporting in the Period, and to Principal Raw Material

II-21

11.12

Number of Respondents Who Have and/or Are Ensaged in Export of Wood-Based Purniture, by }_jor Product Type

11-22

11.13

Distribution of Years First Exported

11-22

11.14

Distribution of Respondents Years in Operation

of Respondents

Labor,

by Size of Labor

by Size of Labor

of Respondents

bY Gross

in Which

Sales

to

Respondents

by Number

of

II-lO

II-13

II-14

11-25


- Xi -

Table No.

Descri_

Pa_e No.

11.15

Distribution of Respondents According to Number of Types of Equipment, by Principal Raw Material Used

11-28

11.!6

Distribution o f Respondents According to Number of Pieces of Equipment, by Principal Raw Material Used

11-29

11.17

Common Types

11-30

11.18

Distribution of Respondents According to Ratio of Number of Pieces of Equipment to Size of Labor Force, by Principal Raw Material Used

11-33

II.19

Reasons Given for Subcontracting/Passin_ on Production of Certain Products/Components

11-36

11.20

Distribution of Respondents According to Proportion of Job Orders to Total Production

11-38

II.21

Estimated

11-41

11.22

Compensation for Household Labor Force

11.23

Number of Firms Using Various for Services of Employees

11.24

Reasons for Use of Piecerate/Batchwork of Compensation of Workers

II.25

Sources

11.26

Reasons Given as to Why Machinery Constitutes a Problem

11.27

Sources of Financing to Maintain Other than Own Capital

11.28

Types of Market Outlet

Used

11.29

Types of Market Outlet

Used

as Main Outlet

11-61

11.30

Types of Market Outlet o f Sales

Used, by Percentage

11-62

11.31

Major Reasons Given for Using Market Outlet Exclusively

11.32

Major Reasons Given of Market Outlet

of Equipment/Machinery

1980

Capacity

of Information

in Use

Utilization Labor,

by Size of

Modes

of Payment

as Mode

on Technology

11-44

11-46

11-48

11-52

Breakdown

Inventories,

11-55

11-56

11-60

One Type of

for Most Preferred

Type

11-63

11-64


- xii -

Tabl__eNo_u.

Descri t2_9_ ' Major Reasons Givenfor Type of Market Outlet

11.33

Least Preferred

II.34

Modes of Transport/Delivery

11.35

Months With dents

Ii.36

Pricing

iI.37

....

P__,e No_______.

to Market

Peak Sales9 As Cited _

11-64

Outlets

by R_pon,

_

11-67

' " II-69

Practic&S

Distribdtion Percentage

II-66

of Respondents According of Credit Sales to Total

II-71

l!1.38

Credit

11.39

Application of Receivables, Purchase Orders and/or Postdated Checks to Supplier's 1 Credit or Other Financing

11-73

11.40

Distribution of Respondents According Usual Downpayment on Sales

11-75

11.41

Growth in Philippine Exports of Wood-Based Furniture and Fixtures in Comparison with Growth of Total Philippine Exports !

11-76

11.42

Major Countries of Destination of Philippine Exports of Wood-Based Furniture and Fixtures (1976-1980, in FOB $ Values)

11-78

I_ITM_jor llCOl_tries of .Destirmtionilof Philippine Exports of Wood-Based Furniture and Fixtur_s, Including Builderl's_woodwork (19761980_ in FOB $ Values)

11-79

11.43

Terms on Sales_ Sly Buyer

to Sales

'

11-72

Type

to

".[

I!.44

Distribution of Respondents Export Sales (1976-1980)

According

11.45

General CharacteriStics of Exporter-Respondents Compared go Entire Sample

11-87

II.46 '_

Extent of Owner's Responsibility Managerial-Functions

II-94

11.47

Number of Piersons Primarily Responsible Major Managerial Functions

11.48

Extent of Preparation

11.49

Reasons

of Business

for Preparation

to

11-85

in Major

for

Reports

of Business

Reports

ii-94

11-97 11-97


- xiii -

Table No.

Descri_ with

Pa_e No.

Iio50

Registration

C_vernment

11.51

Average

Total

II.52

Sources

of Financing

11.53

Supplier's Credit as a Percentage Total Borrowings

11.54

Major Problems

II.55

Collateral Requirements Source of Financing

11.56

Imputed

11.57

Major

Borrowings

I!-i00

in 1980

11-102 11-103 of

11-104

in Firmncing

Interest

Problems

Agencies

II-108

According

to

Rates on Supplier's

11-109

Credit

Cited by Respondents

11-115

III.I.

Regional Distribution turers, 1977

111.2

Gross Value

II!. 3

Location

111.4

Distribution Operations

111.5

Types of Business

111.6

Distribution of Responden=s Labor Force

by Size of

111-9

III. 7

Distribution Capacity

by Output

III-9

111.8

Number of Respondeuts Engaged in Manufacture, Subcontractin_-_ and Resale of Footwear

I_I-12

111.9

Output Share of Respondents Force

111-1.3

III.10

Machinery/Equipment

lll.ll

A_e Distribution

of Principal

111.12

Age Distribution

of All Machinery

111.13

Use of Household

Labor

Added

of Footwear

11-112

Manufac-

of the Foo_mOlrlndustry

111-3

111-5

of Respondents

1-11-7

of Respondents

by Years

of

111'7

Organization

of Respondents

111-9

By Size of Labor

of Footwear

Firms

IIl-15

Machinery

111-17

by Size of Labor

111-19 Force

111-21


~ xiv -

Table No.

Description

Pa_e No.

111.14

Compensation of Household of La_@Z Force

111.15

Distribution Workshift

of Respondents

III.16

Distribution Days

of Firms by Number of Working

Iii.17

Ave;age Capacity Utilization by Size of Labor Force

III.18

Sources

III.19

Types of Market

Outlets

III-32

III.20

Distribution of Firms by Percentage of Sales, by Type of Market Outlet Used

111-32

III.21

Seasonality turers

III-35

III. 22

Pricin_

III.23

Modes of Transport/Delivery Outlet

III.24

Exports and Imports Footwear industry

III.25

Composition

III.26

Top Ten Countries of Destination for Philippine Footwear Exports_ 1976-.1980

III-49

111.27

Number of People Primarily Responsible Major Managerial Functions

111-52

III,28

Extent of Owner Responsibilit? l_na_erial Functions

111.29

Extent

11!.30

Reasons

for Preparation

III. 31

Sources

of Financing

III. 32

Size Distribution

III.33

Maturity

of Information

of Sales

Labor

by Size

111-21

by Length of

of Respondents

on Technology

of Footwear

111-24

III-25

II1-26

III-29

Manufac-

Practices

111-39

of

of Footwear

of Preparation

to Market

III-39

the Philippine

III-41

Exportsj

III-43

for

in Major

of Business

Reports

of _usiness

Reports

111-52

III-53 III-53 III-55

of Borrowings

of Suppliers'

1979

Credit

III-55 III-57


- XV -

Table No.

Dgscription

III. 34

Problems

111.35

Use of Collateral

111o36

Interest Rates on Borrowings of Financing

Pa_e No.

in Borrowing

III-61

by Source

of Financing

111-62

by Source

111-63

IV.1

Gross Value Added Leather Product

in the Leather and Industry, 1970-1981

IV.2

Values of Philippine Exportation and Leather Products

IV.3

Philippine Goods

IV.4

Selected Characteristics of Leather and Leather Products Establishments with Five or More Workers, 1956-1978

IV-7

IV.5

Selected Ratios for Leather Product Industries

IV-12

Impcrts

of Leather

IV-3

ef Leather

and Leather

and Leather

V.l

Number of Respondents and Sub Contracting Product Type

Engaged in Manufacturin8 of Leather Products, by

V.2

Distribution Op era tion

V. 3

Location

V.4

Distribution of Respondemts Labor Force

v.5

Employment Process

V.6

Distribution Sales

V. 7

Types of Market

V. 8

Pricing

V. 9

Distribution of Firms by Percentage Credit Sales to Total Sales

of Respondents

by Years

of

of Respondents

IV-4

IV-5

V-3

v-4

V-5 by Size of

of .Household Member

of Firms by Level

V-7

in Production

V-8

of 1980 Gross

V-9

Outlet

V-13

Practices

V-16 of

V-17


- xvi -

Table No.

D_s criptipn

V.10

Extent of Owner Participation Managerial Functions

V. II

Sources of Information Technology

on Design

and _@_._

V-21

V.12

Extent of Preparation

of Business

Reports

V-22

V.13

Reasons

V.14

Problems

V.15

Sources

for Preparation in Securing of Financing

in Major

of Business

Financing

Reports

V-19

V-23 V-25 ?-26


I-i

I.

INTRODUCTION These studies and footwear undertaken

manufacturing

meat Studies.

grant

In addition,

the leather

A.

Objectives 1.0

financial

To conduct

an analysis

for Develop-

industry was

the leather

The studies

products

were

com-

from the SGV Found-

Corporation.

of each industry's particularly

and general

management

and technological

structures

and prospects,

and socio-economic To provide policy

rationalization among

financial

market

performance,

costs. planning

for each industry,

as institutional

operations

development,

benefits and

status

in the areas

management,

inputs to government

formulation

such areas

1.4

(UPBRF),

of the Studies

of organization

1.3

tanning

were

Inc.

Institute

assistance

and future prosp_cts_

1.2

the, Philippines

upon

Financing

products,

and Scope of the Studies

Objectives ioi

bears

industries.

ation, Inc. and the Premiere

leather

_Research Foundation,

industry

and footwear manufacturing additional

of

from the Philippine

as this latter

pleted with

furniture,

industries

by the U.P. Business

under a research

studied,

on the wood-based

including

development,

and technological

and

industry

development,

others,

To provide

the private

prehensive

review of each industry.

To generate

useful

the conduct

of industry

sector with

experiences

a fairly com-

and insights

studies.

in

TM


I-2

2.0

Scope of the Studies These industry

covered

as defined

population Manila,

studies

the major

in the next

for each industry

Bulacan,

Rizal

section.

was drawn

and Laguna,

furniture

included

as well.

'_he studies

covered

of each

The sample

from Metro

wi_h

of that for the wood-based Cebu and Pampanga

sectors

the exception

industry,

the following

primary

which

aspects

of each industry: 2.1

Organization managerial

and general management, practices

and capabilities

including of firms

in the: industry; 2.2

Production as well

facilities_

systems

as technological

and capabilities,

development

trends in

the industry 2.3

Market

factors

and marketing

pects_ particularly demand, 2.4

market

Financial

prafitmbility,

and pros-

in the areas of supply and

structures,

growth

problems

and pricing_

nnd perfor_-_nce in terms of

investm_'_ntand financing

problems

and trends 2.5

Input factors

2.6

Socio-economic

and related impact

foreign exchange environmental

issues;

and

in terms of employment

generation,

implications째

as well

as other

and


I-3

(All references

to operations

firm in the survey were based unless otherwise Findings

on calendar

year

1980,

specified.)

were

the industry,

and status of each

used to evaluate

and, wherever

future

possible,

prospects

make policy

of

re-

co--halations. 3.0

Limitations

of the Studies

The restriction Metro Manila,

of the coverage

Bulacan,

Rizal

of each study

and Laguna

and Cebu in the case of the wood-based industry)

was necessitated

sources.

The PIDS indicated,

for future extension such expansion results

of coverage

obtained

would

areas above-mentioned, secondary to a

data allows

nationwide

however,

principally

apply only

except where for extension

the

to the of

of such findings

firmncial

information

or even preventing,

limiting, analysis

initially

team realizes

analysis

of the data

derived

to be relatively

by way spotty,

much of the

contemplated. that,

resources

generated

findings

permitting,

in the survey

by the team is desirable,

to further significant ations.

While

availability

thereby

firms conducted

a possibility

is not yet attainable,

have proven

further

re-

coverage.

of a field survey

The study

budgetary

scope/magnitudeo

In general,

financial

(and Pampanga furniture

by limited

to a nationwide

to

of

and may lead

and/or policy

redommend-


I-4

B.

Metho d 1,0

Definition i.i

of Tenns

_94ood-Based Furniture

Industry"

the six sub-classifications Standard

Industry

(Manufacture except

3321(0) I/-

Classification

Manufacture

3323(0)

(PSIC) code # 332

These

and fixtures,

are:

and repair Of wood

including

- Manufacture

fur-

upholstery

and repair of rattan

furniture

(feed_ wicker

including

uphostery

- Manufacture

to five of

Philippine

furniture,

of metal).

niture, 3322(0)

under

and repair of

primarily

refers

and cane),

of box beds and

mattresses 3323(0)

- Manufacture lockers,

of partitions,

and office

shelves,

and store

fix-

tures 3329(0)

- Manufacture

and repair

and fixtures_ metal, 1.2

"Leather

Products

sub-classifications ture of leader substitutes

except

not elsewhere

Industry"

refers

under PSIC

and products

of furniture

primarily

of

classified. to the following

code #323

of leather,

and fur, e.xcept footwear

(Manufacleather

and wearing

apparel) :

-- A P$1C code presented in the form xxxx(O) is used to denote a four-digit classifications whose only five-digit sub-classification is itself.


I-5

32321

- Manufacture

of luggage,

handbags

and

of products

of leather

wallets 32329

- Manufacture leather

substitutes,

and

not elsewhere

classified. This study,

however,

those leather genuine

has been

products

leather

manufacturers

as raw material

some of their products. tanning '_ covers and leather 1.3

"Footwear

only use

for at least "leather

- Tanneries

finishings.

Industry"

rubber,

refers

to all classifications

#324

(Manufacture

plastic

or wood

sub-classification 355 (Manufacture ture of plastic

under

except

of footwear,

footwear)

products

of wood

and wood

- Manufacture

of leather

32491

- Manufacture

of slippers

32492

- Manufacture

of other

plastic

classified), and cork

shoes and sandals

footwear,

or wood

except

footwear,

classified

3552(0)

- Manufacture

of rubber

35602

- Manufacture

of plastic

33193

- Manufacture

of wooden

accessories

(Manufac-

as follows;

3241(0)

alsewhere

356

not elsewhere

furniture),

rubber,

and one

each of PSIC code numbers

of rubber products),

and 331 (Manufacture products,

input

#3231(0)

to

which

In addition,

PSIC code

under PSIC code except

restricted

footwear foot, ear footwear

and

not


I-6

1.4

"Establishments"

or "firms" within

refer to those actually of the products

engaged

as defined

turing is a minimum

well

and/or

While

requirement,

purchase

as any other

in the manufacture

above.

or firms may, in addition, tracting

the industries

manufac-

the establishments

be engaged

in subcon-

for sale and/or

activity

resale,

(e.g., repair),

as

apart

from manufacturing. 1.5

"Employees" cluding

refers • to personnel

household

members

or not the latter compensation 1.6

'"Labor force" hold members

of the firm, ex-

and/or

are pald

helpers,

salaries

for work

undertaken

refers

to employees

and/or helpers

in the production

process

whether

and/or

other

for the firm. and those

directly

participating

(i_e., directly

involved

at some or all stages of the transformation or semi-finished i. 7

'YBorrowings" includes

supplier's

understood

to the ave_.e

to refer

throughout

"Types

of market

buyers

transacting

from endusers

include

credit,

of

and is

aggregate

includes

directly

to retailers,

manufacturers

products).

amount

Cf 1980.

outlet"

In the case of leather

of raw

all forms of indebtedness

the firm, including

outstanding 1.8

goods into finished

house-

with

all types of the firm,

wholesalers

ran?_in_

and others.

tanning,

this would

of leather

products.

also


1-7

1.9

"Wholesaler",

as used in this study, refers

buyer who buys a firm's resale, whileas primarily

product

"retailer '" refers

for sale to endusers.

buyer of leather

from a tannery

to manufacturers

of leather

a wholesaler, leather

without

actually

Accordingly,

primarily

sold

depart

For instance, who sells

a

primarily

is treated

to the quantity

as

of

to these manufacturers.

"wholesaler"

in this study_

for

to one who buys

products

regard

to a

and "retailer",

from their

as used

common volume-

based usage. 2.0

Sampling 2.1

Procedures

Sampling

Fra_

The sample population

was arrived

supp.rposition of thre_ listings, 2.1.1

1978 Preliminary

at by a

as follows_

List of Large

2/

Establish-

merits--- This is a publication

of the

National

Office

Census

containing

and Statistics

a list of establishments

ing_ in the case of industrial ments,

i0 or more people째

industry,

employ-

establish-

It contains

region and address

(NCSO)_

the

of each firm.

_/The use of the term "large '" in this publication (i0 or more employees) is inconsistent with the standard definition of 20 employees or more.


I-8

2.1.2

NAC!DA

List of Registered

compilation

of all firms

tries which

registered

with

the National

lopment 1979.

registry

in the three indus-

as cottage

(NACIDA) _enerated

Of firms, which

upon 2.1.3

address

Deve-

from 1963 until from NACIDA's

contains

firmWs year of registration, prietor,

industries

Cottage Industries

Authority This was

Firms - This is a

and number

each

name of proof employees

registration_

NCSO Computer

Printout

- This

list prepared

in 1977,

based

is a census on a 1975

census of establishments, _ • It contains among others,

coded

of employment

and revenue of each

List excludes

2.1.1,

apart

from being only

establishm._Its with

O_ the other hand_ firms which tO other

data relative

have become

locations,

or changed

list

preliminary,

less than 10 employees.

2.1.2

includes

non-existent_

NACIDA

a number

as NACIDA

inasmuch

transferred

registration

for five

(5) years

believed

that many NACIDA-registered

and non-renewable.

the ownership, person

of

force,

does not update

registry,

the name of another

firm.

gro,_n in size of labor

proprietors.

ever, transfer

to size

is valid

It is firms, how-

and registration

(usually

its

a member

in of


I-9

the family or a friend) re-registered

(under another

tinue to avail

of privileges

NACIDA-registered

firms.

not been updated

end relative

the firm to be

proprietor) usually

Finally,

for the years

Since each of lists •inherent

to enable

2.1.1

accorded

].976 through through

serve

of the studies_

tion process,

2.1.3

weaP_%esses, it was

of the three lists

the overlaps

1979. has

decided

would

best

with some of

traced and eliminated. as expected_

to

list 2.1.3 has

that a combination the purposes

and con-

/The elimina-

was not quite

thorouEh:

that some firms were

double-counted

lisK was established

in the course of the survey.

Nonetheless, rently

such cases of double-counting_

due to the above-cited

tions with NACIDA_ of final

sample

In order size of labor

proved

to attain force,

for purposes

small

registra-

to be manageable

consistency

the definition

(4.2?_

in treatment

(i0 employees

were

used

or more)

or more),

employees

unknown). 3_/

was

Thus,

for size of labor

(less than i0 employees),

employees

of

in list 2.1.1

of classification.

three classifications force:

multiple

appa-

size).Z

of "large _' establishment adopted

in the composite

and unclassified

large

(i0

(number of

3/The standard classifizations, unorganized (less than 5 employees)_ small (5 to 19 e_p_loyees) and large (20 employees or more), were used in the analysis of survey data_ however°


I-i0

The sample populations classified

were,

accordingly_

by area and by size.

/Refer to Tables

1.2, 1.3, 1.4 and 1.5 for summaries populations tanning, ments,

of the wood-based

leather

respectively,

and size. sample were

Table

then drawn

for every

2.2

Sample

of

establish-

according a summary

to area

of all four samples

out o_ each of the four

points being

drawn at random

(each stratum being

a size versus

the establishments).

size per stratum total_

adjustments of certain

strata

1.9 and I.lO, sample

in certain owing

down by area.

sizes

tanning,

by pro-

cases where

to the small

Tables

hand,

leather

products

respectively,

per

1.7, 1.8,

summarize

for the wood-based

sizes /--Table

size, as determined,

on the other

establishments_

was determined

in tl_ sample population.

the sample

i_%dustry, broken

leather

except

were necessary

1.6 presents

deter-

furniture,

and footwear

each broken

down by

and by size./ Final

smaller ating

leather

Size

portion'to

area

classified

separately

stratum

Sample

mined

and footwear

hy area째__/ Stratified

sample

listing

furniture,

1.1 presents

populations

populations,

area

products

of the sample

sample

sizes,

than the derived

constraints.

however, sample

were

sizes

In particular,

in general due to oper-

a very large


I-ii

TABLE

I.l

SUI,_ARY OF S_PLE

POPULATIONS OF MANUFACTURING (BY INDUSTRY AND BY AREA)

ESTABLISHMENTS

Indus.try Wood-Based e____a Ar

Furniture

FO o tWe_

Leather

Leather

Products

_

Total

Metro Manila !I/ ist District

i185

25

50

0

260

2nd District

300

788

198.

0

1,286

3rd District

162

18

50

4

234

4th District

185

32

24

0

Laguna

55

423

4

0

482

Bulacan

86

24

37

25

172

Rizal

57

43

6

0

106

Cebu/2/ Pampan_a-

Total

21 (by industry)

1/First

Dis=rict:

Second

District_

265

-

-

-

265

236

-

-

-

236

_

i_353

369"

Quezon

City, San Juan, Mandaluyong,

Caloocan

Fourth

Pasay City, l_akati, Las PiCas, Taguig, Pateros

2/Only

for wood-based

29

3,28__2

City of Manila

Third Districts District_

241

City, Malabon,

furniture

indust_'.

Navotas,

Pasig_ Marikina

Valenzuela

Para_aque,

Muntinlupa,


1-12

TABLE 1.2

DIStrIBUTION OF SAMPLE POPULATION_ WOOD-BASED FURNITURE MANUFACTURING ESTABLISI_4ENTS (BY AREA AND BY SIZE)

Size of Labor

Force, To tal

Small

Large

Unclassified

(by area)

Metro Manila ist District

142

41

2

185

2nd District

153

116

31

300

3rd District

107

54

1

162

4th District

72

106

7

185

Cebu

168

87

i0

265

Pampanga

146

8_

6

236

Bulacan

51

34

!

86

Laguna

35

4

55

Rizal

Total

16

,.32

(by size)

906 ,J

2__5

563 _

O

6_22

57


1-13

TABLE 1.3

DISTRIBUTION OF SAMPLE POPULATION, LEATHER TANNING ESTABLISHMENTS (BY AREA AND BY SIZE)

Size of Labor

Force Total

Area

Small

Bulacan

_

Unclassified

(by.area)

9

16

0

25

ist District

0

0

0

0

2n4 Bis trict

0

0

0

0

3=d District

0

2

2

4

4th District

0

0

0

0

Laguna

0

0

0

0

Rizal

0

0

0

0

18

2

29

Metro Manila

Total (by size)

9


1-14

TABLE 1.4

DISTRIBUTION _FACTU_ING

OF SAMPLE POPULATIONp LEATHER PRODUCTS ESTABLISHMENTS _BY AREA AND BY SIZE)

Size of Labor

Force Total

Area

Small

Large

Unclassified

(by area)

Metro Manila ist District

39

6

5

50

2nd District

150

43

5

198

3rd District

37

i0

3

50

4th District

20

4

0

24

25

ii

1

37

Laguna

3

i

0

4

Rizal

4

2

278

77

Bulacan

Total (by size)

0

14

.6

36__99


1-15

TABLE 1o5

DISTRIBUTION 'OF SAMPLE POPULATION, FOOTWEAR MANUFACTURING ESTABLISHMENTS (BY AREA AND BY SIZE)

Size Of Labor

Force To tal

Area

Small

Large

Unclassified

(by area)

Metro Manila ist District

9

7

9

25

2nd District

232

60

496

788

3rd District

7

i

I0

18

4th District

12

7

13

32

278

33

112

423

Rizal

35

5

3

43

Bulacan

17

6

i

24

Laguna

Total

(by size)

59__00

ii__99 , J,,

644

1,353


1-16

TABLE 1,6

SU_IARY

OF DERIVED

(BY INDUSTRY

SAMPLE

SIZES

AND BY AREA)

Indus try Wood-Based Are__a

Furniture

Footwear

Leather

Leather

Total

Products

Tanning

(by area)

Metro Manila ist District

17

4

6

0

27

2nd District

29

90

23

0

142

3rd District

ii

2

4

0

17

4th District

II

I

5

0

17

Laguna

2

70

0

0

72

Bulacan

6

4

5

i0

25

Rizal

5

i0

1

0

16

Pampanga

19

-

-

-

19

¢_bu

i_/7

-

_C-

--

44

lO

Total

(by industry)

i17.

1.8,,i

17

352


I-i

TABLE 1.7

7

DISTRIBUTION OF DERIVED S_4PLE, WOOD-BASED FURNITURE _ANUFACTUP.ING ESTABLISHMENTS (BY AREA AND BY SIZE)

Size of Labor

Force To tal

Are____a

Small

Large,

Unclassified

(by _area)

1st District

i0

6

.!

17

2nd District

16

l0

3

29

3rd District

6

4

i

ii

4th District

6

4

1

ii

Pampanga

ii

7

1

19

Cebu

i0

6

1

17

Bulacan

3

2

1

6

Rizal

3

2

0

5

1 .........

1

0

2

Metro

Manila

Laguna

Total (by size)

66

42

9

11__/7


1-18

TABLE I. 8

DISTRIBUTION OF DERIVED SAMPLE, LEATHER TANNING ESTABLISHMENTS (BY AREA AND BY SIZE)

Size of Labor

Force Total

Are__.__aa

Small

Large

Unclassified

Bulacan

3

7

0

i0

Metro Manila

0

0

0

0

Laguna

0

0

0

0

_i_al

Total

0o_

(by size)

3

0___

0___

_

0_

o

"

i0


1-19

TABLE 1.9

DISTRIBUTION MANUFACTURING

OF DERIVED SAMPLE, LEATHER PRODUCTS ESTABLISHMENTS (BY AREA AND BY SIZE)

Size of Labor

Force Total

Area

Small

_

"Unclassified

Metro Manila ist District

.3

2

1

6

2nd District

12

9

2

23

3rd District

2

1

1

4

4th Dis trier

3

2

0

5

Bul_can

3

i

I

5

Rizai

i

0

0

i

L_gun_ Total

(by size)

.,0

O

0_

O

24

15

_

44


1-20

TABLE I.!0 DISTRIBUTION OF DERIVED _d_UFACTURING ESTABLIShmENTS

Size of Labor

S_4PLE, FOOTWEAR (BY AREA AND BY SIZE)

Force Total

Area

Sma__ l.l

La_

Unclassified

(by area)

Metro Manila ist District

2

0

2

4

2rid District

39

8

43

90

3rd District

1

0

1

2

4_h District

i

0

0

i

31

6

33

70

Rizal

5

2

3

i0

Bulacan

2

1

i

4

17

83

Laguna

Total

(by size)

8__1

18!i


1-21

number

of firms listed

leather

products

not actually as input.

m_nufacturin?, establishments

use leather

/As a result,

of completion

of field

only 29 leather desired

sample

interviewed,

C_athering Procedures

301

The Interview

the fact

and/or

was finalized

/Most of the more were

_:iven pra-coded

small number were

schedule

regarding

after

of th_i:sehypotheses report

a pre-test

responses_

involved

only a

were

submitted

data,

of

hypo~

A number

discusse:_ in part in the by the study

being

team to

had to be

put together

of the insufficiency

mary and secondary

hundreds

certain

beforehand.

as the data were

or quality:_

was

than one hundred

k/Some of these hypotheses

because

interview

criticalproblematic

some of which

theses had been formulated

analyzed

by interviewers.../

left open-ended./

The interview

abandoned

that a full

an 18-paEe

unde_'_aken on some of the more

the PIDS.

(66% of the

sample popula-

visited

team developed

which

preliminary

arrived,

Schedule

The study

variables,

substitutes)

manufacturers

(85% of the total

Data

questions

did

by the time the target date

notwithstanding

variJ_:ies.

of

size ef 44) had been successfully

tion) had been sought

schedule,

(only leather

survey operations

products

315 establishments

3.0

in the sample population

and

of both

pri-

in terms of quantity

and/


"r-22

3.2

The Field

Survey

The conduct

of the field

survey

passed on to a private

firm with

(largely owing

experience

takings).

The study

checking already

activities

quest_ns,

typ.g

ponses subject

are deemed

and the second

firms were

those highly

cant number

of cases,

to two res-

unlikely

to be

questions by the inter-

type, all other

the field survey

asked

questions

or simple

the study

cross-

firms

according

discrepancies

under-

undertook

little or no explanation

Due to major

suspend

type,

to memory lapses,

requiring viewer;

The sampled classified

capability

in related

by way of sampl<ng

(_%e first

for _hich

expected

team, however,

interviewed.

selected major

to past

was initially

noted

questions). in a signifi-

team decided

and to conduct

to

a total

resurvey. The lessons

drawn from

the field survey

pointed

to a strong

depth and early 0n-the-job as well

as a continuous

their work. the study

view schedules째 and close

also edited

to the respondents

and/or

rectify

certain

in many

responses.

of

for in-

of interviewers, and review of provided

completed

of the intensive

interviewers

return

conduct

need

was directly

Inspire

supervision_

training

monitoring

Supervision

team, which

the initial

still cases_

by

inter-

training had to to clarify


1-23

The

study

a scheme

team's statisticalc0nsultant

for automatic

respondent"

replacement

in a fixed sequence each primary

stances

of substitutes.

where

fail to materialize.

the sequence

was applied.

substitut_o_

a sequence

of substitutes automatic

eliminated

bias

the possibility

in the choice of a subs-

(including

undertaken

time interviewers, with

sired aggregate

with lasted

333 successful

operations

sample

larFely

brought

little

to be

tion to other

in section

factors.

of results of

of i0 full-

(94.6% of the de-

of success about

of inter-

more than 4 months,

size of 352).

using leather

(as discussed

sunmmry

an average

had to be given a specific

of manufacturers input

training

interviews

due to the marglnality stages,

were

to the interviewer.

The resurvey viewers),

was

substitution

titute if_ say, a pool of substitutes left open

For in-

This system of automatic

effectively

of interviewer-based

of

tapped one after another

exhat_qted, an alternative procedure

by one

In general,

was assigned

to be

an interview

in the original

to be interviewed)

respondent

these substitutes, should

of a "primary

(i.e., a firm included

list of establishments

devised

The field cutoff

date

in the latter

by the preponderance substitutes

only as

2째2 above),

in addi-

/._Referto Table l.ll field operations,_/

for a

Such


TABLE

I.ll

Distribution

OF FIELD

by Industry Leather

Furniture

_anning

Products

Footwear

Total

1,531

29

369

1,353

3,282

size

117

i0

44

181

352

7.6

sought/visited

342

15

315

332

1,004

22 o3

sample

population

sample

Frequency

Success ful interviews Cannot be located Transferred location Closed/stopped operations Non-amnufacturer (dealer only) !_ot in industries as defined (different product lines) Not operating in 1980 Refused to be interviewed outright Difficult to interview (dropped after 3 or more visits) Inconsis tent/insufficient data

Total

counted firms

in list

sought/visited

Leather

Leather

Fu,

Tanning

Products

115 86 18 35 8 13

i0 0 0 0 0 0

29 80 26 26 1 126

179 59 6 43 5 i0

333 225 50 104 14 149

3 27

0 1

2 15

i 17

24 4

1 i

5 2

9 342

2 15

Samp_le Population

Wood-Based

Leather

Leather

Furniture

Tannin S

Products

100.0%

100.0%

% to T_al

Wood-Based iture

OPERATIONS

% to Total

Leather

Derived

Double

SURVEY

Wood-Based

Total

Fir_q

SI_@IARY OF RESULTS

Footwear

Total

100.0%

100o0%

100.0%

34.5

11.9

13.4

i0.7

51o 7

85.4

24°5

30.6

[_. of Firms

Sought/Visited

Wood-B_se_/

Le_.ther

Leather

Furniture

Tannin g

Products

33.6% 25.2 5 o3 i0.2 2.3 3.8

66.7% 0 0 0 0 0

9 °2% 25.4 8o 3 8.3 0.3 40.0

6 60

0o9 7.9

0 6.7

0o6 4.8

0o3 5.1

0.6 6°0

ii i

41 8

7.0 i. 2

6.7 6.7

1.6 0.6

3.3 0.3

4ol O. 8

3

0

14

2.6

13.3

1.0

0

1.4

315

332

Footwear

Total

i_004

100.0%

100.0%

100.0%

Footwear _ •9_Iv J_ .$. 17.8 i. 8 13.0 1.5 3.0

100.0%

Total 33.2% 22,4 5.0 i0.4 1.4 14.8

100.0%

|


1-25

marginal

success

rate,

the incremental Table 33.2%

costs

leather

tanning,

products).

an overall

success

success

leather

another

substitutes

33째 7% either

or had transferred

tion provided the oriKinal

products,

of firms soughtvisited

to be using purely

by people

location

turned out

could not be (per informa-

at or in the vicinity

of

address),

115 suc_.essful interviews

of tanneries

there were

of wood-based

fi_;,_ (98.3% of the 117 desired

furniture

sample size), i0

(100% of !0), 29 of leather

nmnufacturers

products

(65.9% of 44), and 179 of footwear

establishments Secondary

40% o_

as raw

At the close of field operations,

3.3

for

at _ "'' for leather

In the case of leather

material., while

rate of

rate was at 66.7%

and the lowest

the total number

located

felt, did not justify

ivnolved.

I.ll shows

(the highest

it was

(98.9% of 181).

Data

In addition

to primary

data ?>athered from the

survey of 333 establishments, gathered,

principally

secondary

frem the _ational

data were Census and

/

Statistics

Office

(NCSO)_

the Natfonal

Economic

and

/

_uthority the Philippines Industry Certain

(NEDA),

(CBP),

the Ministry

(M_I)) and various publications

resp ec t.

_he Central

were

of Trade

industry

likewise

Bank of and

associations.

used

in this


1-26

4.0

Analytical 4.1

Tools

Statistical

Considerations

Stratification area and size stratified

of the samples

(as was

analysis

done) would

of

data, except

according sarily

population

match with

actual

For instance_ 56,4%

that distribution

Table

force

i0 persons

interview

results.

i.7 indicates

to be in the "small" employed).

yielde,? only

employment

Interview

shows a weakness

indicated

a¢cordin_

(This discrepancy

is probably

growth of firms which

not possibly

suggest,

hand,

lists

cottage

(and other)

industries. )

used to arrive the basis

to size collapses. brought

likely

about

by the

in the business_

of when

have not been

registerini_-with NACIDA would employment

i_,_,, the data on

a situation

it is highly

than

this category.

remained

be taken account

gistry or NCSO's the other

have

(less

data, however,

Accordingly,

for stratification

as the data would

for wood-based

in the listings

at the sam_,le population.

at least

category

36% (41 out of 115)in

discrepancy

the sample

did not neces-

(66 out of 117) of lthe sample

furniture

This

for the observ-

and, hence,

to size of laher

to

have allowed

ation, early on in the analysis_ of the sample

according

that

could

NACIDA's updated.

reOn

that firms

tend to understate

data in order

to qualify

as


1-27

In view of the above, not be made

to proceed

along

tified in the sampling study

sample

derived

derived

size would

4 °2

original

sample

_ampling

procedure

the

indicated

for each industry

that Would

of the sample population;

without

likely have

iden-

Nevertheless,

consultant

still be representative a sample

of data could

the size strata

frame.

team's statistical

the original

analysis

stratifying

the same

so stratified, <_cu_se4

according

composition considering

in Section

to

as the the

2.0 above.

Computations C<;_:_2_terizationof data was University

of the Phi!ippi_es

had to be sources

tentatively

of the project

computer

services

proved

of

within

frequency

a result,

financial The

the SGV Foundation,

a grant

volume

for computer

of data

Center). generated

most of the computer

the limited

tabulations

re-

budget

outputs

were i4 the form

and cross-_tabulations.

data analysis was pri_%cipally limited

chi-squar_

tests.

ther data analysis with

Center, but

(extended by the SÂŁ-'VDevelopment

f_om the field survey,

at the

inadequate.

after

the UPBRF with

D_le to the enormous

possible

Computer

_n_t elf after

work was resumed

Inc. provid_d

initiated

additional

significant

The study

team feels

(e.g., correlation

resources,

findin[.s and/or

As to

that fur-

analysis),

may lead to further policy

recommendations.


1-28

Chapter

!I of this report presents

on the wood-based the footwear

furniture

industry.

ning and leather these chapters

and recommendations summarizes

Chapters

products

contains

industry,

relative

while

Chapter

IV and V discuss

manufacturing

a section

the findings of our study

industries.

discussing

to the industry

the same over all these industries.

III deals with

the leather While

our major concerned,

tan-

each of

conclusions Chapter

VI


I!-i

I%o

A.

Overview

WOOD-BASED

of the Industi_

The dulang (low bed made

(low table), ba_ki-_o

primarily

in the Philippines (_mio /--i7)

Today, Philippines

_ngaged

(by subcontracting),

care t:o consider.

wood-based

or (Cody

may not be all that

One estimate in 1977

furniture

Cia_sification

directly

presen_ce of many unregistered

manufacturers

and repair of furniture metal),

of the Spa_ard_

to _ome 50,.000 persons

industry

five of the six s_b--c!assifications Industry

in u_e

furnit.ure manufactu-

employment,

howe_er,

manufacture,_s.

furniture

_e

already

in th_ _lanufacture of wood-based

providing

due to the believed

"backvard"

arrival

for as long as a_}:_would

â&#x20AC;˘Such statistics,

reliable

to the

that _ood-based

and fixtures,

indirectly

15,000

even prior

and

the Ch_:._berof Furniture Industries of the / (CFIP) estimates that there are from 4,000 to

5,000 establishments furniture

(low stool)

of bs_iboo siats) were

indicati_

ring has been here

/--3_).

FUPd_ITURE INDUSTRY

(P$iC)

st,_tes as _,'_any as (_7orld Bank /--67). is tak_n to _refer

under Philippine

code number

to

Standard

332 (manufacture

and fix turas_ -except primarily

Of

as f_;llows:

3321(0) 1/ - Manufacture including

and repair of wood

furniture_

uph#istery.

1/The fom_,_t xxxx(0) .is intended to indicate a one-to-one correspondence between four- e._d five-digit sub-6lassifications o


II-2

3322(0)

-

Manufacture

and repair of rattan

(reed, wicker

and cane),

including

3323(0)

-

Manufacture

of box beds

3324(0>

-

Manufacture

of partitions,

and office 3329(0)

-

Manufacture

In 1980,

elsewhere

classified.

_192 million prices),

at constant

our roughly

3325(0)

lockers,

1972 prices of _zoss

and

of metal, not

- manufacture

_enerated

0.81%

shelves,

primarily

and venetian

the industry

and mattresses

and repair o_ furniture except

shades

upholstery

fixtures

fixtures,

One sub-classification, and door screens,

and store

furniture

of window

blinds,

was disregarded.

a _ross

value

(P474 million domestic

added of at 1980

product

for

menu fac turi ng.2/ "ThÂŁ_ industry

is widely-dispersed

country., but the l_rFer mainly

in Metro Manila

to the major sources site shippin_ engaged

and export-oriented and Cebu, because

of raw materials,

and tradins

in the export

principal national

degree,

is characterized source of rattan,

Qeaport.

firms are located

as well

as the requi-

(Cody/3J,

furniture

by proximity

Firms

are mostly located

;regales City.

Cebu,

to Mindanao,

and the presence

The _reater number

the entire

of their proximity

facilities. _

of rattan

in Cebu and, to a lesser particular,

throughout

in the

of an inter-

ef wooded

furniture

2/The National Accounts Staff, Statistical Coordination Office, NEDA has data shc_inF _hat gross value added (at constant 19,72 prices) increased from _88 million to _192 million between 1970 and 1980, indicatin_ a modest increase in share of _ross domestic product for nanufacturin_ from 0.74% to 0.Sl%. This share was decreasinK from i972 to 1977_ _hou_h. (Refer to Table If.l).


II-3 TABLE II. 1 GROSS VALUE ADDED TO GROSS DOMESTIC PRODUCT (MANUFACTURING), WOOD-BASED FURNITURE AND FIXTURES.. (1970-1980,

Gross

AT CONSTANT

1972 PRICES) -_/

Value Added,

Wood-Based Furniture ?/ and _Fixtures (_million):-'

Yea_..._r

% to Gross Domestic P roduc_ _(Manufacturing)

1970

88

0.74%

1971

98

0.78

19 72

86

O. 64

19 73

90

0.59

19 74

88

0.55

1975

74

0.45

19 76

79

0.45

1977

90

0.46 - 0.74

1978

15_ /

19 79

167/3/

0.74

19 80

1923/

0.81

--

_

"

1/Sources 2/At

-

,

National

constant

â&#x20AC;˘3--/ASrevised

,i

Accounts

Staff, Statistical

Coordina%ion

Office,

NEDA.

1972 prices_ in the 1982 Philippine

Statistical

Yearbook

(a NEDA

publication',


11-4

exporters

are located

Exports

of wood-based

$6.3 million values, over

or an equivalent

furniture

these

respectively,

in 1976 and 1980. $i16.3 million,

average

However_

and 0.85%_

or 0.60%

has been

accounting

for 86.7%

1970-1979,

reaching

wood

furniture

furniture

1974 to a measly

Philippine

"it would untapped having

economy

exports,

raw material), over the period

in 1979.

The share

of

o_ wood-based

from a high

/

(DRC) for wood using NCSO's

for 1969o

of 37.6%

in

Buri_ bamboo

relatively

picked

up

that _ vast

favorably

as o.. furniture

table of the

for 1974 was with

the 8.88

They observed

export potential

competing

the

and rattan furniture

input-output

DRC for manufacturing. also

2--/estimated

l_e DRC figure

compares

for such nOn-impor_

low DRCs

was

exports

and fixtures

to total exports

and Associates

cost

at 6_99,

appear

Philippine

exports

in contrast hsve

Power

average

exports

for 1976-1980

(as principal

has dropped

even lower at 5.77, which weighted

for only

(Refer to Table !I .3째)

resource

and fixtures

accounted

0.8% in 1978 and 1.1% in 1979.

in 1978 and 1979o

domestic

rate of 65%

II .2 .)

a high of 92.4%

and other materials,

..... _ Bautista,

in FOB US $

growth

amount

of aggregate

and fixtures

grew from

total Philippine

furniture

and fixtures

in 1980,

amounts

(See Table

in rattan

/--17.)

and fixtures

of aggregate

The bulk of wood-based

(See Amio

annual

of

The aggregate

over the same period.

however_

Manila.

in 1976 to $46.9 million

the period.

0.25%

in Metro

industries

and fixtures

that

remained in 1969

(both metal


T,_LE

II.2

PHILIPPINE EXPORTS OF WOOD--BASED F_NITURE AS A PERCENTAGE OF TOTAL PHILIPPINE (1976-198D,

_ear

AND FIX_JR_S EXPORTS

IN FOB $ VALDES)

Total

Philippine Exports of Wood-basad

% to Total

Philippine Exports of Wood-based Furniture snd

Philippine or_ E

Furniturel_d Fixtures --

Philippine Exor_

Fixtures, Builder's $16,424,207

Includingll Woodwork _="

% to Total Philippiue E__orts

1976

$2,573,675,684

$6,325,137

0.25%

1977

3,150,886,989

13,266,247

0.42

22,883,437

0.73

]978

3,.424,876,025

16,500,050

0.48

29,806,314

0.87

]979

4,601,189,916

33,343,792

O. 72

52,808_ 160

i. 15

]980

5,487,787_554

46_ 856,143

0.85

61,217,616

1.12

_otal (1976-1980)

1/Source:

$1_9_,238,416,168

National

Census

$116,291

and Statistics

3.69

Office

0.60%

$183_ 139 _734

0.64%

0.95%


II-6 TABLE II.3 PERCENTAGE DISTRIBUTION OF PHILIPPINE EXPORTS OF WOOD-BASED FURNITURE AND.FIXTURES ACCORDING TO PRINCIPAL RAW MATERIAL II (1970-1979,

Percentage Year

IN FOB $ VALUES)

Distribution

Wood

by Principal

Raw Material

Buri, Bsmb o9/ and Others 2_

Rattan

Total

1970

5.3%

87.5%

7.1%

1971

6.6

91.1

2.3

i00.0

1972

16.6

81.9

.i, 4

99._

1973

28.2

71,6

0,1

1974

37.6

60,4

2.1

i00. i_/

1975

21.6

75.6

2.8

i00,0

1976

15,9

83, 7

0.3

99._

85.6

2.2

i00.0

1977

12.2

99.9% 3/

/

99,9 _3/

/

1978

O. 8

90.8

8,4

100.0â&#x20AC;˘

19 79

I. 1

92.4

6.6

100.13-/

8.4%

86.7%

4.9%

w

,

-

1970-19 79 (Aggregate)

Based

------on data of the National

2--/Excluding furniture 3--/Withroundoff

error_

Cansus

and Statistics

and fixtures prineqrily of metal. should

equal

100.0%.

Office.

i00.0%


II-7

and wood), o."

So much

the traditional, plywood

primary

and rattan

wood-based

has been said exports

poles)

furniture

the low DRC, it appears rage further Whether

exports

program

a program

should

is imperative with

should

effi-

as exhibited

by

ought

to encou-

should

at all develop

an export

remain

and what

to be seen,

components however.

in the industry,

would

be the expected

be given

special

and potentials

with so

doiug o

fail to attain

It

beneficiaries

attention,

for addressing

Many

such

who, along

but also in terms of the expected

will probably

this is done.

the relative

that the government

involve,

and costs associated program

sawn lumber,

E_oods (e.g.,

industz7

for the industry,

terms of capabilities market,

With

furniture

that the firms

of such aprogram,

processed

away from

in that sector.

the e,:tire economy,

export

towards

the government

promotion

(e.g., logs,

and fixtures).

ciency of the wood-based

for shifting

not only in the

benefits

an export promotion

its objectives

un%ess


II-8

B.

General

Characteristics

of

the Sample

The sample population 1,531 establishments Pa_panga,

Rizal,

used in this study

spread

Lagune

over Metro

and Cebu.

consisted

Manila,

A final

of

Bulacan,

sample

.'.._" ..... 17:

size of 115 ./i-.=2_, •

(compared

to a derived

sample

of a total of 342 firms

size of i17) was

sought

and/or visited.

and Io7 present

suramaries of the sample

derived

respectively_

sample,

size of labor force. distribution 60% of

(Tables Io2

population

hand,

are located

at, out

and the

down by area and by

of the 115 respondents

in Cebu, 13% in Pampanga, Bulaean

broken

On the other

the respondents

arrived

the geographic

is presented in Metro

in Table

Manila_

and the remaining

13.9%

13.1% in Rizal,

and Laguna.

The success

rate_'in the field survey

suggests

that only

••some 56_-of our samp._e -po_ulation._actually represents based

furniture

and fixtures

tion (assuming •.

....

1.0

the survey mostly

Size Distribution Of

=anufacturers

that =ha firms which

,

during

IL

me

_I15

, ,

represent firms

firms Successfully

...

h_ve

closed

interview&d,

.

- -

are small

"

gives a distri_butioh of respondents

from

[ "

Tabie ii.5)

by size' of

distributioii differs the expected

........

:(5 to 19 _,orkers),

(20 or more workers).

labor' foreeo '/_his

14%

sector (with a labor force . i

of from i t-o 4), 40.4%

Significantly

.

which

of Establishmenhs ....

.

and 45°6% large

in 'actual opera-

_could not be located .,

are in the unorganized •

wood-

highly

distribution

as

4).

.... .i.


II-9 TitLE !I째4

LOCATION

Location

OF

RESPONDENTS

Frequency

l/

%___

ist district

18

15.65%

2nd district

29

25.22

3rd district

I0

8.70

4th district

12

i0.43

Pampanga

15

13.04

C_b u

16

13.91

Eizal

7

6.09

B ulacan

6

5.22

Laguna

2

I. 74

Tot al

i15

i00.00%

_. m,

lJ.= _.

1/Based on address of mai_ office. Of the 115 firms surveyed, 16 have their manufacturing facilities in locations different from the main offices. Only 6 of 115 respondents have more than one malufacturing facility.

2--/FirstDistrict-" Second District_ Third District: Fourth District:

City of _Manila Quezon City, San Juan, Mandaluyong, Pasig, Caloocan City, Malabon, Navotas, Valenzuela Pasay City, Makati_ Las Pifias, Para_aque_ Muntinlupaj Tagui_, Pa_eros

Marikina


II-i0

TABLE II.5

DISTRIBUTION OF RESPOi_I;EI_TS , -i/ BY SIZE OF LABOR FORCEr-

Employees

Size Force of Labor

%4 ! --j

_

None

0nl 2/

2

Including

Cumulative %

i, 8%

_4/ --

_

i. 8%

Household

-

-

Labo 3/

Cumulative %

-

i -

4

23

20.2

21.9

16

14.0%

14.,0%

5 -

9

17

14,9

36.8

25

21.9

36.0

lO -

14

Ii

9.6

46.5

ii

9.6

45.6

15 -

19

9

7.9

54.4

i0

8.8

54.4

20 -

29

19

16.7

71.1

19

16.7

71.1

30 -

49

i_

13.2

84.2

13

11.4

82.5

50 -

99

6

5.3

89.5

7

6.1

88.6

i00 - 199

6

5.3

94.7

7

6.1

94o7

200 or more

6

5o3

i00o0

6

5.3

i00.0

Total

i/Based

n4

On headcount

100.5J

n4

only.

2/lhe term "employee", helpers.

_s used in the study_

--3/Labor force is defined to include_ household members/helpers directly

excludes

roundoff

error,

household

members/

other than employees_ only those participating in production.

4/Percentages are based on i14 of 115 respondents_ labor only by contract. 5/With

99째97Y

One responden=

employs


II-ll

shown in Table respondents persons째

1.7, in which

have a labor

at least

force of less

The sam4_le, however,

resl_'ondents as falling within result,

as discussed

likely

reported

data in order

Accordingly, of stratified

of the basis

standing

this problem,

to be representative virtue

however,

being

it is highly (63.5%

registered

with

(and

as cottage

industries.

data,

the idea

owing

for stratification. the sample

procedure째

to the

Notwith-

is still

of the sample

had tr_proceed

This

employment

of survey

of the sampling

36% of

of firms, which

team had to abandon

analysis

collapse

only

with NACIDA

to qualify

the study

than I0

I.B.2_ may have been

hand,

tend to understate

of

category.

registry

that firms registering

this agency) other)

this

On the other

of the respondents

yielded

in Section

due to the use of NACIDA's is not updated.

56.4%

believed

population Data

on the basis

of

by

analysis, the entire

sample ._7 Th+e 1977 NCSO Survey

of Manufacturing

Establishments,

on the other

the s_=ae area)

a distribution

the unorganized 20.7% large.

sector, Possible

ence in findings are discussed

66o1%

hand,

(for

in 1977 of 13o2% small

implications

between

indicated

firm_, and of this differ-

the NCSO survey

in the immediately

in

and ours

succeeding

section.


II-12

Our sample labor force

of 115 fir_s yielded

of 5,294

labor exclusively of 46.4, with

by

smallest

(excluding

one firm employing

contract)_

yielding

standard

larg___streported

deviation

size of labor

that our sample

of the sample population, a total

areas covered "legitimacy

of 103,5,

force was

employment

of close

by our survey

rate"

Table II .6

alone

to the sample

indicates

members/helpÂŁ:rs process9

is indeed

the above

Some 43% of our sample

The

800_ while

according

figures would to 40_000 in the

(applying

population

the extent

a 56% size).

to which

household

in the production

to size of labor is

repres_'.ntative

employ house/%old labor.

ar,a employed

that the practice sized

a mean size

was 2.

Assuming

suggest

a total estimated

more prevalent

firms, as is to be expected_

two firms in our sarapie which

force,

It shows

among the smallerThere are even

use household

labor

only. Gross sales

estimates

only by 96 firms estimated

sales

respondents Only 6.3%

(83.5% of the sample)° at PI00,000

reported reported

sales

Sonle respondents,

sales

sales

(Refer to Table lI.7 these gross

for 1980 were

)

provided A full third

or less_ while at no more

82.3% of

than _i million.

in excess of _5 million. It is not clear whether

estimates

are meaningful_

for instance,

read off

however.

their sales


11-13

TABLE 11,6

• ___ .F.,r.e_c_ .. Using_-H_-use_Ido_:'_Not Us{__ _' .... _-

Size of Labor

USE OF HOUSEHOLDLABOR, BY SIZE OF LABOR FORCE

Force

\' Labbr_ ,: . Househeld

% Using

Lab_ri,_otal

Household

Labor

Not Using Household• Labor

Total

i -

5

Ii

9

20

55,0%

45.0%

100.C

6 -

i0

19

3

22

86.4

13.6

IO0. C

ii -

15

5

ii

16

31.2

68.8

IO0.C

16 -

20

1

13

14

7.1

92.9

IO0.C

21 -

30

3

9

12

25.0

75.0

IO0.C

31 -

50

5

5

i0

50°0

50.0

100.6

51 - i00

2

6

8

25.0

75.0

i00.(

3

9

12

25.0

75.0

100.(

49

65

114

43.0%

57.0%

i00.£

2t

lOl - 800 Total


II-14

TABLE 11.7

DISTRIBUTION OF RES_gNDENTS BY GROSS _IALES_'

Estimated 1980 Gross Sales

. _<_ooo)

Cumulative

Frequency_

25 and below

_

Cumulative

_

ii

11o5

Ii

11.5%

26-

50

6

6,2

17

17.7

51-

i00

15

15째6

32

33.3

i01-

200

13

13.5

45

46.8

201-

500

25

26째0

70

72.9

501- i000

8

8.3

7_

81 o2

I001- 2000

5

5.2

83

86.5

2001-

6

6.2

89

92.7

5001-10000

4

4_2

93

96.9

10000-15000

2

2.1

._

99.0

15001-'20000

C

_

95

99.0

20001-25000

. ,,,

1

1.0

96

I00.0

5000

Tot l

99.8 Y

_l--JPerrespondents _ estimstes_ 2--/19respondents answer.

_/With

either

roundoff error.

could not make an estimate

or refused

to


If-15

figures

from

large,

be

income

96

with

I_U_ion

would_

right_

with

sales

yielded

deviation

however_

In

gross

respondents

ia

only

sales

of

appear

difficulty from

of

force

been

chosen

the

Product

fimr_ in

major

used

in

wood-based

product

this

builder's and

rieso

further

Any

made

the

even

unwieldy.

furniture

every

to

the

the

few

fairly size

a substitute of

in of

the

have

for

data.

of

and

wood-based

buri of

that

identified

home

furniture,_ fixtures and

buri

fixtures

and

acc_sso-

disaBgregation

would

less

manageable,

respondent

is

a wood-based

our

took

survey

a respondent

subeon£raeting furniture

and

rattan

establishments

single

wood-based

been

wood-_ased

level

manufaeturer_

possibility

resale

distri-

respondents,

as

woodwork_

rattan

survey

_,_ile

types

furniture_

furniture_

ent_aged

_T_e

skewed

getting

the

analysis

study=

office

aecessories_

the

the

million

sales

by

by

Lines

Six and

and

estimates.)

in

data

has

Yhe

to _e

sales

_1.2

million°

upward

financial

of

by

provided

of

_240_000o

high

the

23.1

accurate

size

may,

estimates

pushed

relatively

view

labor

which

a mean

of

therefore_ m_an

firlns with

2.0

rate_

a standard

_median,

re.turns,

questionable°

(At any these

tax

may

and/or and

into

as well purchase

fixtures°

have

account be for


11-16

Accordingly_ engaged

Table

11.8

in manufacture_

tl_e above-mentioiLed survey

shows

reveals

sample_

subcontracting

that 25 respondents_

to other

?roducts

/Our

or 21.7% of the of certain

On the other

16 respondent s) purchase

resale in

types.

on production

firth.

of respondents

and/or

six _'ajor product

subcontract/pass

products

the number

hand,

from other

13.9%

(or

manufac-

turers for resa!ao/ The distribution principal

of respondents

raw material

82.6% of respondents material_

14.8%

by location

used is given

in Table II.9.

use w,_od as princi_)al rnw

rattan

(as well

as buri,

similar

nlaterial) _ and 2o 6% undetermined

of wood

and rattan째

The ratta_

are located

principally

the latter

area includes

respondents

using wood

Only reported

smnp!e)

1976-1980_ actually

period_

finns.

/_-o of these Pampange_

latter

raw _:aterial.

However,

had any exports.

but presumably

firms

during

the

(21.7% of

The four other

as principal

had no exports

raw material during

did ex:nort Drier

the

to 1976.

four fir_,s are located

one in the fourth district

and one in Rizal./

of

any of their producas

only 25 of these

rattan)

manufacturers

of tl:e 115 respondents

expo_ted

fit%as (thr_%e using wood and one using

and

combinations

_ largar proportion

as principal

or se!lin[, to exporting period

furniture

bar_oo

in Pam_panga and Cebu, although

29 (or 25.2%) ever having

and

in

of Manila,


TABLE II. 8

NUMBER

OF RESPONDENTS

ENGAGED

IN T'rlE

M__qUFACTURE, SUBCONTRACTING AND/OR RESALE OF WOOD-BASED FURNITURE, BY MAJOR PRODUCT TYPE

Product Hon_

.Frequency ManuSubRefac____ture c_ract sale

T_pe Furniture

Office

(Wood)

Furniture

Fixtures Builder's

(Wood.)

a_id Accessories

(Wood)

W_o_ork

Rattan

and Buri

Furnitur_

Rattal

and Buri

Fixtures

Any M_ede

__ to Total RespDndents ManuSubReAny facture contract sale Diode

83

14

I0

85

72째2%

12.2%

8.8%

74째6%

43

5

2

44

37, 7

4,4

i,8

38, 6

55

7

2

56

48.2

6.1

1.8

49.1

25

3

1

26

21.9

2,6

0.9

22.8

22

5

3

24

19.3

4.4

2.6

21.I

15

2

1

15

13,2

1.8

0.9

13.2

-

and

Accessories

+4 e4 ba

Valid

cases = i15 respondents


II-18

TABLE 11o9 DISTRIBUTION OF RESPONDENTS ACCORDING TO LOCATION AND PRINCIPAL P_W MATERIAL

Principal

Raw Material

%

Wood

Ratta I/

Wood and Rattan

Ist District

17

1

0

18

94.4%

5,6%

0%

2nd District

27

i

1

29

93.1

3.4

3.4

3rd District

10

0

0

I0

i00.0

0

0

i00.(

4th District

9

2

i

12

75.0

16.7

8.3

i00.(

12

4

0

16

75.0

25.0

0

i00.(

P ampanga

6

9

0

15

40 o0

60.0

0

i00. (

Rizal

7

0

0

7

i00.0

0

0

i00. (

Bulacan

6

0

0

6

i00 o0

0

0

i00. (

2

50.0

0

115

82째6%

Location

of Firm

Total

Wood

11attan

Wood and Rattan

Tota2

Metro Manila

Cebu

Laguna

Total

1/Includes _/With

1

O

95

17

buri_ bamboo

round-off

error째

and other

1

3

such material.

14.8%

50.0

2.6%

i00.( 99째 c

!00._

i00.(


II-19

Of the 25 firms which (Table II.lO'givcs according ).0were while

a distribution

to loca_ion

able

of these

and principal

to do so throughout

the remaining

4 years.

did export within

15 exported

/See Table

25 respondents

ll.ll

within

they actually

exported,

the fly6 years in anywhere

the period

II.12 and II.13

e,_,port ....end years

1976-1980

(if the (I, 2, 3_

raw material oJ

ex-ported in 1980_

22 in

and 12 in 1976o

Tables

the major

of first

covereds

in which

and te principal

15 in 1977,

indicate

of years

only

from 1 to

for a distribution

in fact, only 21 respondents 1979, 20 in i978,

respondents

raw material),

according• to number

4 or 5 years)

1976-1980

product

export_

types

respeetively_

of

the 29 firms who ever exported_ _ne date• is indicative made of rattan similar

material),

of wood.

over

observetion, exported

furnish

exclusive

while

_.Thileonly

estimates

to exporting of exporting

$6°38 million

exports

and other

made primarily

of exports

1976-1980

of the 25

supports

such

of the 21 respondents

ii are rattem

primarily_

and rattan.

plus sales

the period

towards

bamboo

away from exports

For instance_

in 1980_

9 use wood

hould

as buri,

Even the FOB $ values

respondents

wood

(as well

of a shift

furniture

who

manufacturers_

one uses a combination 8 of the first

of expore firms)_

sales

(with _ mean of $797,8

category

(direct exports

equivalent

firms _ m6rkuos,

of

FOB $ value_

aggregated

thous_ud) o

On


11-20

!_BLE II.i0 DIS27RIBUTION OF RESPONDENTS W}iO EY_ORTED DURING THE PERIOD 1976-1980_ I;Y LOCATION AND PRINCIPAL P_AW MATERIAL

Principal

Raw Material Wood

Lo ca tion

Woo d

and

Rat tanI/

Rat tan

a____! To t

Metro Manila ist District

1

1

0

2

2nd District

4

0

i

5

3rd District

0

0

0

0

4th District

2

2

i

5

Pampanga

2

5

0

7

Cebu

2

4

0

6:

Rizal

0

0

0

0

Bu!acan

0

0

0

0

_O0

___0

,,.0

__0

iI

Iz

_/2

2__5

Laguna

Total

1/Includes

buri, bamboo

and other

similar

material.


11-21

TABLE

II.ll DISTRIBUTION WRO EXPOKTED DURING ACCORDING TO NUI,[BEROF IN THE PERIOD, #d._DTO

OF RESPONDENTS I_{E PERIOD 1976-1980, YEA_S ACTUALLY EXPORTING PRINCIPAL RAW MATERIAL

Princip_l NumSer of Years i! Actually Exporting,-" in 19 76-19 80

Wood

Raw Material

Rattan 2/

Wood and Rattan

To tal

1

2

i

0

3

2

1

0

1

2

3

3

3

i

7

4

3

0

0

3

5

2

8

0

i0

ii

12

2

25

Total

i/"Actually exporting" may refer to exporting firms_ or botho, 2/Inc!udes

buri_ bamboo

and other

to either

similar

direct exports

material째

or sales


II-22

TABLE II.IL

Product

NUMBER OF RESPONDENTS WHO HA_E _ND/O!( i/ ARE ENGAGED IN EXPORT OF WOOD-BASED FUPd_ITURE,--_' BY _JOR PROBUCT TYPE

T_

R_ttan

Frequency_

and Buri

Rattan and Buri Accessories

Furniture FixturEs

% to Total

14

48.3%

and 9

31.0

8

27.6

Fixtures and Accessories (WooL)

7

24. !

Builder _s Woodwork

5

17.2

i

3.4

Home

Furni_ur_

Office

(Wood)

Furniture

(Wood)

l-_ly 29 (or 25.2%) of 115 respondents sold _o exp_rt.ing firms.

TABLE 11.13

Year

Expor_ers

-_._-_or_-d,+ . . ever having

exported/

DISTP_BUTION OF YEARS I / IN _THICH N_,SPONDENTS FIRST EXPORTED _!

of First E. ox_._

F_

%

1976-80

16

1971-75

7

24.1

1966-70

2

6.9

1961-65

2

_.9

1948

1

3.4

1

3.4

29

99.9%

Cmnnot

recall Total

i/Only sold

29 (or 25.2%) of 115 respondents to exporting firms.

reported

55.2%

ever

havin_

_,xported/


II-23

the other h_qd,

8 exporters

provided

an aggregate

million,

or a mean value

(See Tab%_ exports

II 44°)

of rattan

FOB $ value

of only

furniture

furniture rattan

$161[.3 thousand,

_nanufacturers

of

have substant-

tha_ exports

have

total Philippine grown heavily

of

ships_ /--5 Z

of

in a latter

Gharaeteristiss

and nhe remaining reports

turers over follows; 16.5%_

wood-based

in favor

as will be discussed

$1o7% of the 115 respondents

that newly

the _eried

singie

of single

furniture

sing trend

over

five years

predominance 15o7%

registered

7°5%°

furniture

were

proprietor-

manufacas

corporations,

It noted_

manufacturers

(PDCP

distributed

76.0%;

proprietorships

however,

that

to total newly

had shown

an increa-

that period,)

of respondents or lasso

operating

are single

are corporations.

proprietorships_

registered

30°4%

18o3%

1970-1976

stud partnerships,

registrations

age o

that values

of [his _port.

Organizational

Only

then_

on the fil_n level_

time,

exp_rts

furniture_

section

been

of $1o29

furniture. At the same

3.0

estimated

furniture

It _,:ouldseem,

ially heee_ _reater, wood

of wood

have

Moreover,

for no more

been

in operation

60% of the firms have

than i0 years,

in the industry of the respondents

for

of relatively are more

indicating young

a

firms°

then 20 years

of


11-24

12.2%

of the fi1_s sampled

by other •than continue

the original

are being

owners,

to be under original

operated

while

_37o8%

ownership°

(Refer to

•.Table !I.14 .)

size

A cross-tabulation

of age- of the firm versus

(in terms of labor

force) yields

ficant

chi-square

result

are not indepeL,dent. size and ag_

linearly).

tendency

few years

as 35°4%

ceased operations.) to prevail_ pondence

finns

to close

down after

(The survey of registered

sample

and IIoB.I.

It would

may increase

over

_-Tere

the lack of corresof size of labor

(Table !. 7) and the

) noted

seem

a

:ilms im our sample may have

explain

the distributions

(Table Ii.5

a

data suggests

If the former possibility

force of the d_rived actual sample

either

to grow in size over

it may somehow

between

(though not

This ,nay indicate

in operation.

that as much

two variables

correlated

for firms

time, or for smaller

signi-

The data_ in fact_ suggests• that

are positively

necessarily general

that these

a highly

in Sections

I.Bo2

that size of labor

force

the years_

whileaS

data in NACIDAVs

,5

registry

indicate,

employees

othersinformation_

at the time of registration

where between earlier

among

1963 and 1979).

mentioned,

of the possible among other

understatement

data_

to qualify

and avail of the privileges

of

(which is any-

Of course_

it may simply

number

as was

have been an offshoot

:_f=mployment for registration

that go with

figures, with NACIDA

such registration°


II-25

TABLE Ii,14 DISTRIBUTION OF RESPONDENTS .. BY NIYMBER OF YE#diS IN OPE£_TION _!

Fre_snAy

,o

No. of Years

Original

i_. Operation

Ownership

Acquired

Total

1-5

29

6

35

28.7%

42.9%

30.4%

6-10

31

3

34

30.7

21.4

29.6

11-15

14

3

17

13o9

21.4

14.8

16-20

9

1

I0

8° 9

7° 1

8.7

21-25

3

I

4

3.0

7.1

3.5

14

0

14

13.9

More than 25

_k=ow_ 2/

1

Total

101

Original

o 14

_ 115

IJL_ of yearend 1960. 2JRespondent 3/With

cannot

roundoff

recall year established.

error

Ownershi__

i.o 100o1% !/

_ed

0

o ....9.9- 9_-3/

Total

12.2

0.9 100o1% 3/


II-26

C.

Production i.0

Inputs

and Practices

Production

Facilities

ioi

and Equipment

Plant

and Major

Practices

C_ody /--3 7 had observed workshops

in both solid wood

of the industry production°

that most

factories

and

and rattan sub-sectors

are p_:,oriyequipped for

_ _th plant Fur• their_.'._re _ ,,.

mechanized.

and equipment

are _,c_enerallydilapidated° 6_.i,r sureey have

showed

,..,i ......... s housed

or located

immed._,t,_ly adjoining "backyard

that 51.3%

areas.

type t_ operations,

only to limited

expansion.

ents are renting Cody further

of all respondents

in residences

or the

This suggo.sts somewhat which Some

may be _,_.sceptible 2_'_.7%of respond-

their _].._,:::c _-_tructureo notes:

"Although any seneral i_-_.,ric:_e factory would be suitable fer _he manufacture of furniture_ the bulky nature of the p-i,c-duct and its susceptibility to damage in handling require t_at factory premises should be relatively spacious_ free from ohstructions and should have flat floors, xxx Because the quality of the finish ofthn greatly affects the saleability of the product, separate enclosed :finishing areas with extractor fans are of considerable import_:nce. Only a small minority of Fiii__,inofactories have any of those desiderata." Out of 115 respondents, plants

in different

locations

Six of these 22 act_ai!y

!/The

remaining

i09 respondents

22 (or 19.1%) have than

the main

office.

have two plants, 3-/ while

(94.8% of sample)

have

only one.


II -

the sixteen

others

simply

and plants separately Seven having hand

tools

have

Tables

II.15

pondents

type/category

and II째16

a median

of 4,

_ .'_' pieces

Table maj_r

across

ty::,._/_egorv,

en_s.

The most

additional to 7) have

of equipment.

(See

of type_

and number

respectively.)

_Fne mean

is

the sample

4.6, compared

On the other hand,

lists

the mean

a median

equipment/machinery,

in common use among

common

type of

of 8. by

the respond-

equipment

are the

spec ...._zed saw and cutters,

which

very basic

Only a little more

to the industry.

half of the respondents_ planers

or compressors,

machinery Fewer

in milling

however, which

ar_ understandbly,

have

ought

and finishi[g_

routers

than and

to be standard respectively.

than 30% have any _.q_ip_:_.._c,.r.<t for shaping/moulding,

jointing, would

four

the total

is 9o9_ as against

17o17

while

for

for distributi_,ns of res-

o[ equipment,

number of types

number

(thi_ brings

_

report

possibly

implements,

ac_.ording to number

of _ieces

with

similar

except

only one piece째

three respondents oniy cn_e major

(6o1% of the sample)

whatsoever9

and other

respondents

their main offices

located.

respondents

no equipment

have

27

lathing

require

desirably, industry

and o_her [_erations

a fairly high

mechanization, is9 by and large,

degree

which

Ordinarily

of precision,

_ais suggests

that the

labor-intensive.

and_


,

_-,

_ABLE II.15 DISTRIBUTION OF RESPONDENTS ACCORDING TO NL_BER OF TYPES OF EQUIP_n_NT_ BY PRINCIPAL RAW MATERIAL USED

Principal NumBer

ef

T_pes oi E_ment

Wood Exp0rti_K

Ra_

Material

Ratt I/

lyonExportinE

Sub Tgtal

Wood

NonSub Ex_t___ _ Total

_in_

ExportinE

and Rattan

All_w Types of Principal Material (Total) Non,'_uh Total Total Non- Grand Ex._rtln_nE Total _ E__ Total

0

-

3

3

-

3

3

-

1

-

5

5

-

1

1

....

-

ii

ll

2

-

2

-

-

11

11

2

-

2

-

i

13

14

-

i

1

-

6

9

_

......

14

1

-

i

-

-

2 3

14

1

-

-

!

-

7

7

6

6

-

Z

ii

13

-

2

ii

13

-

1

14

6

9

-

I

14

6

-

15

7

-

7

7

i

-

l

1

-

i

2

7

9

8

1

2

3

2

-

2

-

-

-

3

2

5

9-Ii

-

2

2

1

-

1

-

-

-

i

2

3 I

All Type s22/

_otaJ

3

3

11

lJlncludes

6

aOe-'

buri_

bamboo

and

_ 1.1

91 other

9:-'

similar

-

-

1

-

1

4

5

14

2

1

3

Z_

3

_

7

10_

material.•

.%

i/Pe&pondent claims go into any detail. --3--IFonr wood

furniture

#-/Three exporters

that firm has "all

manufacturers

of rattan

types" of machinery/equip_snt

refused

furniture

to provide_information.

_efused

to provide

information.

"necessary

for the business,"

but refuses

to

_,

i


TABLE

II.16 DISTRIBUTION OF RESPONDENTS ACCORDING TO NIR_ER OF PIECES OF EQUIPMENT, BY PRINCIPAL RAW MATERIAL USF_D

Principal _,_her Pieces

oI of

Wood Non-

_ment

E_

Ex_i_

Raw Material

. I Total

Used

All Types

Rattan _II/ Non-

IE/xp_q_

Exporting

Wood

Total

_

and Rattan NonSub-

Material Total

Ex:?:_rtin_Total i i

_Zk_ -

7 4

4

i

5

6

i

15

I_

6

28

34

1

4

20

24

-

-

3

4

7

-

i

3

6

2

4

-

3

3

-

3

__.

-

1

-

3

3

-

1

1

......

2

-

5

5

I

-

1

-

3-5

i

15

16

....

6-9

3

27

30

3

1

4

....

10-14

_

•20

22

1

-

_I

1

-

15 -19

i

4

5

2

-

2

-

20-29

i

3

4

1

-

i

i

1

Z

3

1

-

1

....

9 !/

5

14

Tot_1

9 2/

S2 2._/ 91

_

2

Used _(Total) Total Non- Gr_nd Total ?

)

_0 o_ moze

of Raw

-

-

3 2

1

3

20

_

.89_

loo I..'4 t,-4

i/Incltdes 2/Thre_

buri,

wood

bamboo

fuN_iture

-3/Thre_ rattan

and similar manufacturers

furniture

exporters

material

_

(two of them exporting) refused

to provide

refused

information.

to provide

information.


TABLE

II.17

Average _f PiecesNumber per

No. of Respondents Type

of Equipment _achinery

Specialize cuuter

_4uorting as2/ Using-This Type _-

COitiON TYPES OF EQUIP_I_X_T/IIACBINERY IN ]TSB-I/

% to Total,, Respondent Using Respondents -_jl This Type

Average Age P_zng¢ (Years)

Across Usin_

_.%ge(Years) -4/

R_spondents This Type

AgeMedian (Years )4/ --

Weighted

Across Respondents

_ saw/ i01

90.2%

2_9

2-30

7.5

7°5

6

Pla:_er

65

58.0

Io 4

!-20

7 °4

7.1_

5

P,outer

58

51.8

I, 8

1-15

4.5

_,6

4

Compre_ _._:-.

57

50 o9

2 °_

1-20

5.2

6.5

4.5

Drill

39

34,8

i. 9

1-30

8°9

9.6

7

_4

30.4

2.1

. 1-25

8.!

7°9

4

33

29°5

i° 7

1-20

5°6

5.7

4

Jointer/joi'__t planer

30

26° _

i° 2

2-30

6o 8

6.8

5

Press

machine

28

25° _

Io2

2-2!_

5°6

5,2

5

Moulder/shaper

24

?i. 4

2°i

1-20

7. ]

6.9

5.5

L_the

17

15.2

1o2

3-50

iI_ 8

7_5

Sewing

machine

Sanding

machine

machine

13.4

;aa

--_/Seven (or 6.1%) of respondents reported not having any equip'nent/machinery piece, while an additional three hav_ only on_-_type° --2/l_cludes 7 respo_,dents reporting 3/Percentagesare

based

having

on 112 respondents

4/Taken over set of respondents estimated by resgondent.

using

"all

types of equipment/machinery

_:_horeplied

the _iven

other

in

to the question• regarding

type of equipment/machinery_

_han hand

the business",

tools°

Four

and refusing

respondents

to go into

have

one

any detail.

equipment/machinery.

excluding

only

eases _.,,_here age is unknown/cannot

be

o


Some pieces years),

<;f machinery

but the mean

or, the ]._,wside_ shift

and median

ages are relatively

This may indicate

from tra_:xt._. 7" *()nelly . , manual

mechanization_ slow pace,

_ithough

•Even among

to mechanize_

only

who h_v._ decided

would

claim

or pieces

t.i_:: p,"riod 1976-]380o

Sources

of equipment of financing

e_i_ao_ed wer_:_:,_.:_nc.apital (52 out of

private

moneylesd<_r

:,financing

indicated

resale value

such estimates

z_f fixed

doub_ful_

as_ats_

17.5%

PIO0_OOO

however_

may be meaningful

or

whatever

at all_ as these

s,_.:_:_ to be far from reason_fbly a_:proxi-

• matin_, the value nhe usual

who pr<•vid,_d estimates

o_: f)<_as_and 60.3%_

It is hiBhly

e_timates

eompeaiy and

an aggreg<:_'::,,_ _:_,.c>_ant of ,_i0:,_)00 or less_

42.9%, _50_000 less.

(6.9%) _

(I_4% eae_)o

Out of 63 respondents of current

72_ or

(23o (/,%) _i_pplier' s credit (4.,_

to bav_

(72 out of 1.15) i::port

ac'auiring some m_jo_: _iece

r_latives/fri(mds

towards

line of equipment/_,:_e_chinery_

62.6% =,f respondents

*:_, ,.,.,' ...... :_), banks

recent

at a painfully

respondents

a handful

a fairly

operations

perhaps

an esse,_tiaily complete

ev_r

are old (20 to 50

of fixed

capital-labor

Instead,

assets_

ratio

an alternative

exten_

of mechanization

numb_-

_f pieces

Accordingly,

approach measure

for relative

was dev.elo_ed:

of equipment

fails.

ratio

tc size of ichor

of


II-32

force.

(See Table

have machine _hile

11.18,)

1.5.2% of respondents

to _w<_rkerratios

2.8,3% haw

1;4 or less.

resF_ndent:?, fall within

A large

1:2 or l_SSo

ha_ bet._'_rth:,,_. ,:i__! ratio.

f:._n_'_ture _ufaeturers, s,.-., :. __-;_ ,._;a_, mcr_

of i:10 or worse, 56,6%

of

Only 14.2%

_':_. _,_i_::nera!ly l_w

_uggesting

that

!_tter

iabor-int_7;nsiv.?., th,::.n _._ood

,..._:;_._:.:,: ..:.: __mvJufacturingo

;,his ._-.._; ,. 3 ,:_ :=a.'..__ected ,_

:,wii_,' tO the :,:_±?.tiv_i applicabilii,: ..

,--r .;_._-

f, -

of _,_a,t-hines in

compare(_._,,_ith the

C._e - ..:_berof _:2P_:_ ,<._.':._.:.i of pie_e_ b'._t) _'•< :Y'.,.._] t a _.j.a_."_._ _,-."t_dency

• <;nt-4/ of equipm

to ±ncr_a_

_¢ith

t_>_'_':_ _._.i :i:,:e,-_"l.ii_orfor_._¢: or via estimated

in f:-'.c_', _o 4_:..'-<:.,..-.'..._ c,..:_. _:,e e:st_.}>lishedf_gr machine to worker

ratic_: .... /

such retio,_;d_ =:, " size of labor would

forc_

'_:::tion _o size c;f fir_; '....

,..,,r gr<-ss sai_

im_# ' [.kat relative

No_ even

amon_

increases,

T_is

_zr.erttof mechanization

d:.;esno& neces,_arily improve _izeo

ioe,_

as the firm grows

the firms exvortinR

_oed

in fur-

n.iSure is such a trend percepti_l_,) when. that would

--;'._iesame _ay be s_id equip;'nen_o

:;.._ aggr_4_at_ astim_ted

resale

',._,._,ue of


TABLE 11.18 DISTRIBUTION

[_tio of Number of Pieces of Equipment to Si_e of Labor Force

OF RESPONDENTS ACCORDING TO RATIO OF NbR_BER OF PIE_S OF EQUIPMENT TO SiZE OF LABOR FORCE, B_ PRINCIPAL RAW _£TERIAL USED

Frequency according Raw Material Used

Wood

Rattan

to Principal %

Wood and E_ ttan

Total

Wood.

Ratt_

Wood and Rattnn

Total

6, 7%

42.9%

66.7_

13, 2%

0 _[0 - O. I0

6

6

2

14

('J;]i- 0°25

12

4

-

16

13.5

28,6

-

15.1

_ _:_

0°50

27

3

_,

30

30,3

2i_!_

-

28,3

0,__.i- O, 75

14

1

i

16

i5.7

7,3.

33,3!

15, i

(,.76-- 1.O0

15

-

-

!5

16_9

--

-

14,2

i_50

8

-

-

g

9°0

-

-

7.5

i,:51 - 2.00

5

-

-

5

5.6

-

-

4.7

2o61 or more

2

.....

2

2,2

-

-

io9

I.CI-

Total

89 l/

l--/Katios could not be derived missing

data_

_/With

roundoff

14 !/

for 6 wood

3

i06

and 3 rattan

99.9% -2/ i00,0%

furniture

and fixtures

100.0%

-u_nufacturers

100.0%

due to t_ L_

error.


II-34

â&#x20AC;˘

s/

seem to be the expectation.-1.2

_umber

of Workshifts

Presumably

and Working

owing

Hours

to demand factors,

(I12 out of I15) of our respondents workshift

daily.

Only

two workshifts. ("workdays" that there

is generally 17.4%

5 to 13 hours

range.

Mos_: respondents working

week,

5.4Z five,

appropriate

workshifts considering

only one workshift),

are spread Mean

(88.4%>_

while

(2.6_) have

use eight-hour

may be more

the remaining

use only one

3 respondents

82.6%

97,4%

over

length

while

the rest of a

is 8.09 hours,

however,

apply

a six-day

2.7% use seven workin_

and 3.6X less than five,

days_

avera_i_4_ at

5.87 days. i. 3

Subcontracting Subcontracting common practice respondents). of certain (21.7%) major

a_nong firms 44 firms

components

subcontract

reasons

certain

epl_Jearsto be a relatively

given

operations

(51, or 44.3% of all

(38,2%)

to other

entire

pass on produc$.ton firms, while

products.

for subcohtracting are not within

Among

25 the

are that

the capability

5/It_is only in the mean number of pieces of equipment (19.3) that firms exporting wood furniture would seem t_ have an edge over the entire sample (9.9), But such is likewise the case with all exporting firms (16.4), whether using wood or rattan as principal raw material. This situation may simply be a result of the fact that exporting firm_ are generally larger (mean gross sales of _3.7 million_ mean labor force of 147.2_)',compared with the entire sample (mean gross sales of _1.2 miilion_ mean labor force of 46.4). _,e edga in n,,mber of pieces of equipment, therefore, seems to aris_ me:_ly out of the stated general tendency to own more equipment as _ize of the firm increases.


II-35

of the

firm,

and the insufficiency

1

equipment.

In addition,

respondents

passing

out cheaper

to do so.

to suggest certain

a significant

on production

that firms

may not be sufficient

to

have

22 of the 51 firms

II.19.)

to purchase volumes

such decision.

justify

certain

tradeoffs

in deciding

(43.1_ complain

output

is not as specified/e_ected,

report

that the output

time.

Moreover,

ing/passing

This seems

as production

to consider

of

that it turns

do not feel a need

are, of course,

fizm would

number

claim

(See Table

machinery/equipment,

There

of machinery/

that

tc subcontract.

_hat quality while

of

]9 (37.37_)

is usually not delivered on

2 firms

on production

(3.9_state

that subcontract-

turns out to be even more

expensive. At any rate, effect a)

solves,

the practice

at least

lack of resources

of subcontracting

to s_me extent,

in

two _roblems"

on the part of the firm passing

the par_ of the fiZm :tsk/ng on

;_e

capa_it_

on

)

"5

,

d,l

_

-

'

r_

WO

e

_

on

6/ m_darutilized

_c_m_racted

pro ductionb 1.4

Job Order

Versus

Standard Pzoduction

As will be discussed in the custom-made,

6JThis matter

is discussed

later, production

Job order area.

i_ She immediately

is generally

In fact, 48.7%

succeeding

section.


II-36

TABLE

II.19

REASONS GIVEN FOR SUBCONTRACTING/PASSING ON PRODUCTION OF CERTAIN PRODUCTS/COMPONENTS

Entire Product _s)

Reason

Given

Componen.t (s)

% to

% to

Respondents

Respondents

Passing onll Production _-

_

Frequency

Passing on.. Production _/

Turns out cheaper

19

43.2%

4

16.0%

Certain operations not within capability of the firm

19

43.2

1

4.0

Insufficient quantity of labor force

i0

22.7

6

24.0

Insufficient quality of labor force

Ii

25.0

3

12.0

Znsuf ficient machinery/ equipment

ii

25.0

2

8.0

4

9.1

3

12.0

2

4.5

-

Rush jobs/limited tO produce

time

Lack of space

-

1--/44respondents

subcontract/pass

on production

of certain

components.

2/25 respondents products.

subcontract/pass

on production

of certain

(entire)


i

II-37

of respondents produce orders.

_he mean

to total

production

Table

11.20

according

entirely

sample

according

proportion

is in excess

for a distribution

to proportion

to job

of job orders

of 70%.

(See

of respondents

of job orders

to total

produ_tion. ) 2.0

Production

Capacity

The study capacity

team found

in the industry

to handle.

Considering

labor-intensive number

two estimates inputs

consider soldo

a situation

_ile

perception working mate

relative

is based

wi_h

largely

are based

dependent

being

to provide

asked

output would

use of plant

be

(including

(as of 1980) p the first complement

s and volume

esti-

in 1980, while

on an "ideal"

on size of labor

to

on the respondent's

to be relevant,

labor-intenslve

capacity. 7/

(either in terms of

all possible

to maximizing

wa_ felt

was asked

capacity

is based

are a far cry

assembly-type

the respondent

where

a large

to speak of rated

respondent

on actual labor

estimate

firms have

operations

and equipment

This distinction

therefore_

each

one

are generally

fully-mechanized,

both estimates

sp_ce)

the second

being

even where

of production

or outputs),

difficult

that the firms

inappropriate

in the survey,

of production

a particularly

of equipment/machinery,

it becomes

Utilization

the notion

and that,

from the essentially sort,

and Capacity

labor

complement.

the industry of outputs

force.

--7/Mr.de LaDge_ president of the CFIP for 1983, cites this difficulty inj for instance_ CFIPWs coming up with actual raw material requirements of th,z industry to support the association"s requests for cutbacks in log and lumber exports.


11-38

TABLE II.20

DISTRIBUTION OF REsPoNDENTS ACCORDING TO PROPORTION OF .. JOB ORDERS TO TOTAL PRODUCTIO_ !

Orders to (_) T,gtalJob Product,,ipn

,.Frequency

o z

721• ___

s.3

1-20

7

6.1

21-40

13

11.4

41-60

14

12.3

61-_80

ii

9.6

7

6. i

56

49.1

81-99 i00 Total

114

2-/Based on 114 valid 3/With

roundoff

_esponses

error.

°

99.9_ 3/


II-39

Measures

for capacity

(board feet of lumber_ pieces

of plywood)

sales, peso v_lue of cabinets).

meters

based

or pieces

on total

The respondent

The most

of sales

was given

one of a sprinkling

deviation interval sample

to provide

compleme:_t averaged

2,000.

On

deviation of 5,286 median

to 10,074

complement

of 12,0!0_ to i1,814

capacity

or used any

board

estimates

6,838_ with

feet of based

on

a standard

a 95% confidence

for the true mean of the

capacity

averaged

yielding

however_

estimates

8_550, with

for the sample

8/While the metric system is being prevails in the industry°

pushed,

is

based

on

a standard

a 95_ confidence

for the true population

estim_te

feet_8/

measures.

The sample median,

the other hand_

ideal labor

estimates

using

This yields

populationo 9/

in

The rest of the respond-

per m_;nth, capacity

of 3,602

much latitude

weze: (i) board

of various â&#x20AC;˘capacity

of ii,789.

number

(n--51)_ and (ii) peso

For the 50 c r so respondents lumber processed

on

to apply.

per month

unable

of rattan poles,

cost of goods,

per mor_th (n=22).

ents either were

"input-based"

(peso value based

commonly used measures

of lumber processed

1980 labor

either

or '_output-based"

the choice a_fwhat measure (

value

used were

interval

mean.

The

is 4,000_

this measure

still

9/Assuming -that g3% of all firms in the sample population use wood as principal raw material and 81% are legitimate and existing firms in the industry as of 1980, this would translate into between 3.7 and 10.4 million board feet of lumber aggregate monthly caDacity within the area covered.


11-40

Using the above-cited zation was output

computed by dividing

by estimated

capacity

(unweighted) I0/ capacity on

1980

(see Table

capacity

of

a standard

interval

median

Mean

the •sample based devia-

for capacity

se_nple population

Sample

utili-

actual 1980

17.21).

is 63.6%, with

the entire

from 57.7% to 69°5%°

would

be

is at 50%°

complement_

capacity

is much lower_> at 44°6%, with

utilization

deviation

of 25.2%{ median

The corresponding

population

capacity

(A comparison utilizations of larger

utilization

interval

is 38°8%

of weighted

that isrger firms, better

for

to 50.4%°

end unweighted

tend to have

unweightee---

for the sample is

95% confidence

wc._i_ suggest

outputs,

s_mple

.11/

Based on ideal labor

a standard 48%.

estimated

A 95% confidence

utilizati,.n o_er

Cases,

utilization

lab,_r complement

tion of 25o6%.

mean

73 valid

mean

capacity

in terms

capacity

utilization

rates, ) Admittedly, city and capacity Nonetheless,

estimates

developed

utilization

are nowhere

the7 _re indicative

firms in the _ood-.based furniruze

10/_ weighted

mean ut111,.._on

industry

67.7%.

capa-

far from rough.

of a situation

rate based

pr.l, cessed (n=51) is a proximate sales (n=22), it is at 73_9%.

for production

where

in general

on board

feet of lumber

Based on P w11ue

of

I-_I/Aweighted ,_ean _tilization rate based :.rnboard feet of lumber processe@ 0:_=52) is somewhat higher, a_ 5!. 7%. Based on P value of sales (n=20)_ it is at an eveu higher 62.4%.


11-41

TABLE I!.21

ESTIMATED1980 CAPACITYUTiLI • ZATION= i/

Capacity Based •,on _ 1980 Labor Complement ±" Cap a city Utilization

I-

Frequenc_

9%

/

%

Capacity Based on i/ ideal Labor Complement--

Cumul a tiv_ %

3/ Frequency_--

%

Cumula tire %

1

1.4%

i.4%

3

4.2%

4.2%

i0 - 19

i

1.4

2.7

4

5°6

9.7

20 - 29

3

4._!

6.9

15

20.8

30.6

30 - 39

9

12o[_

19.2

7,!

15.3

45.8

40-

49

4

5.5

24.7

5

6,9

52.8

50 - 59

14

19.2

43_8

16

22°2

75°0

60 - 69

12

16.4

60.3

6

8.3

83.3

70-

79

6

_2

68.5

2

2.8

86.1

80-

89

8

IIo0

79.5

5

6.9

93,1

90-

99

1

1.4

80°8

1

1.4

94.4

14

19.2

i00o0

i00

To ta!

1 /Capacity

73

Utilization

4

i00_ 1%4/

5.6

72

= Estlmat_'_ ' __ A,ntual _:_:_" "" _" Out u_ Es t:i._nn i_._d..... ? " 'y

!00.0

i00.0%

.

TM

Kespondents _ere _ke,l to pro,vide t_c astimatas of "capacity" (both based on 1980 plant and equip-_,ent)_' one using 1980 labor complement_ and the other using an "ideal" labor complement that the-_ perceive would maximize use of pla_t and equipment. 2/Out of ii5 re spondents_ a total of 73 yielded valid responses for both estimated output and estimated capacity b_sed on labor complement, in terms of board feet of lumber processed (51 respondents) oz pedro value of sales (22 respondents). --3/Atotal of 72 responder_ts yielded valid responses for both estimated output and estimated capacity based on -':n "ideal" labor complement_ 52 in terms of beard feet of lumber processed and 20 in terms of peso value of sales. 4/With

roundoff

error.


II-42

produce

below maximw_

The majority their labor differ

possible

levels

of respondents

(80%) believe

force is sufficient.

significantly

when

Yet,

expressed

1980 labor co1_;lememt as against complement째

It would

seem,

therefore,

perceived

"ideal"

(_:,r maximum)

du_ to one or a number

possible

complement

possible

factors.

appear

AmonB

raw material)

(in turn owing

factors)

l_is may be

or

to one or some

to be ec.me of the

cx!:lan_,tlons.

Not_ithstandin labor

it:war than the

(primarily

low sales volumes

more plausible

that firms have

compl_ment,

of possiLLa

a dearth in inputs

of several

labor

,

maintainei: a labor complement

generally

estimates

in terms of actual

generally

others,

that

capacity

some "ideal"

%

g the observation

is, in many cases,

cor_>lement, capacity

use of th6 labc,r force,

Thi_

though_, _:-;:-ing to s_a_>nality of fluctuating

production

that actual lower

Utilization

on the former woul,] _:.tillpoiut

3.0

of production.

than the m'_ximum estimates

t.,i> ..;relatively

_ituation of s_les

19_0

based

inefficient

may be inevitable,

and, coDsequently,

levels째

Labor Force 3.1

Size of Labor _, was

Force

discussed

in Section

respo-_,.!entsare distributed labor force sectoY

as follows=

and 45,6%

according

above,

to size

the of

14% in the unbrBanized

(i to 4 employees),

employee@)

II,B.!

large

40.4%

small

(5 to 19

(20 or more workers).


II-43

Compared products

with

the footwear

manufacturing

furniture of labor

industry force

industri_

at the firm level.

with

(Two respondents_ exclusively.) firms

apparently

in fact,

This practice (see TaSle

becomes /_ly

any _alary_

in the production

process

(Refer to Table

feel

firms

the extent

as firms increase household

Payment

c_f sale -_

for partiei_e_ion to be practiced

more_

than in _he smaller

II_22_)._

o_ .of L,_,_.,u_

Eighty number

tends

labor

even to fairly

55.1% of f_rms using

in the larger

process.

II.6 )_ although

members/helpers

Sup?ly

eml:loying house-

extends

less pronounced

Never-

relatively

u_e household

ties to household

ones.

is still

in the production

labor pay the latter

3.2

labor

deviation

15-19o

42째6% of our sample

hold members/helpers

however_

Our sample yielded

(with a standard

use of householJ

prevalent,

in size.

larger size

and a L_edian in the range

theless_

large

_ the wood-based

has a relatively

a mean of 46.4 employees of 103.5)

and leather

per cent of respondents

of empl0?-,_:sis suffieiento_

that they need mere workers_

labor was _,,r.,,nclpally -" " mentioned

state 12/

that total

Of those who

skilled

manual

(18 of 22 respondents)_

1--2/Aplausible interpretation of such sufficiency_ relating to utilization of a firm's labor complement, was discussed in the immediately preceding section째


II-44

TABLE II022

COMPENSATION FOR HOUSEHOLD LABOR, BY SIZE OF LABOR FORCE

=.Fr_5u_ncy,, Size of Labor Force

Firms Usin_ Household Labor

Payiu_ Salaries . - ,

....

Not Paying Salaries

Paying Salaries

Not Paying Salaries

i -

5

11

3

8

6 -

i0

19

8

ii

ll -

15

5

4

i

16 -

20

i

i

0

i00.0

21 -

30

3

2

1

66.7

31 ~

50

5

5

0

i00.0

0

51 - I00

2

2

0

i00.0

0

lOl - _00

3

2

i

66.7

33.3

49

27

22

55.1

44.9

Total

!/ .... Based on row totals.

27.3%

72.7%

42.1

57.9

80,.0

20.0

0

33.3


11-45

and, only skilled

to a certain

_chine

%_ile

most

more

respondents

to be consistent _he respondents force,

in-house

in the

the declaration

and an

This seems of 80% of

.<.._pear that priorâ&#x20AC;˘ experience/skill

though nor_ _,bsolutely necessary

(Only an.insignificant

3.3

choice,

chcice o

cable from the manufacturers

schools,

to employ

or skill

as a first

training/appzenticeship

on training

prefer

opt for in-house

as a second with

for.

,_.nsuf:ficiency of their labor

It would

is desirable_

would

than 20% would

42.6%

called

experience

training/apprenticeship addi=ional

(5 respondents),

operat(_rs were

w_,rkers who h._ve prior industry,

extent

progrmns

or by _-_C

is easily

_ point

number

practi-

of view°

of rc_.:_pondentsrely

conducted or other

since

by trade/vocational

government

agencies.)

Specialization 75.7%

of respondents

specialization:, performs making same

reyort some

in the sense

one or some_

product.

level of specialization

not prac_ice

t_e small

is only

_;,anufacturers.

in the

by manufac-

Of the 24.3% who do

speei-Jiz._tion,

that such practice

(Almost

is reported

furniture,)

of

that one worker

but not all_> operations

one unit of finished

turers of rattan

degree

it is often

for the; big_

declared and not


11-46

Specialization independent

at a 5% level

data suggests it; larger 3.4

and Size ?_f labor

are not

.of significance.

that specialization

than smaller

force

â&#x20AC;˘

The

is more practiced

firms_ as expected.

Modes of Payment Table 11,23 _below shows using

(whether exclusively

the number

or in combination

other mc,_es) each of the modes of their employees_ a daily wage closely

_e

purely

Mozeover_

50% of total payroll 35.7_ say the same

Table

Mode

II.23

of

However_

as against

report

thing

about

of the

18.3%

rates.

that more

goes to piecerate

is

followed

21.7%

of daily wage

36.5% of the firms

for services

the firms),

exclusively_

on the basis

with

c,gmmonly used modes

(47o8_)o

firms use piecerate paying

most

of payment

(used by 50.4% of

by piecerate

of firms

than

workers,

daily wage

while

earners.

_PJMBER OF FIRMS USING VARIOUS MODES OF PAYMENT FOR SERVICE S OF E_4PLOYEES Number

of Firms

Using

this Mode _

% to

Total Resl_:_r_._ents

Daily

58

50.4%

Piecerate

55

47.8

Monthly

31

27 o0

Batchwork

25

2i. 7

Weekly

20

! 7o4

Hourly

i

0.9

* W_.ether exclusively

or in

cor_Joinationwith

Other

modes.


II-4 7

A total of 78 firms the piecerate (Table Iio24

and/or

(67.8% of sample)

batchwork

modes

surmmarizes the major

use

of payment째

reasons

given

for the use of either or "both of these modes payme_nto)

This

situation

in light of seasonality production) 4.0

might

be better

of sales

as discussed

of

appreciated

(and, accordingly,

in Section

II,D.2 below.

Raw Material Except and similar r_w material

for a few items_ hardware,

requirements

based furniture Lumber

which

such

as fittings,

may be imported_

available

of wood-

(PDCP /--5L7),

can accelmt

for 41-50%

of total raw material

cost

furniture,

and rattan

poles

raw

of wood material

cost of rattan

of total production Narra seems furniture

convinced exports

costs (Cody

of total

On the other

'for as much

made

of narra

as 50-60%

material, for

(Cody /--3 7) 9 and manufacturers

that only narra

hand,

/--3Z),

to be the most preferred

is suitable

(World Bank.-_/_ /),

furniture

6_-70%

furnitureo 13/

total raw materieJ1 cost can account

wood

most of the

for the manufacture

are locally

accessories

E_ile

has found

for wood

are furniture

it is believed substantial

that

acceptance

and demt._mdin the _-xport m-_rket due to its special

quali-

ties (PD(_ Fsj),

in

Cody IZ3j

notes

that, at least

l--3/Based on the 1978 PDCP Survey on the Furniture Industry, covering the w_od furniture and four rattan furniture manufacturers째

(PDCP ./_

).


11-48

TABLE 11.24

REASONS AS MODE

FOP, USE OF PIECERATE/BATCHWORK OF COMPENSATION

Reason for _sing Piecerate/Batchwork

Irregular/fluctuating

% to 11 Users---"

Total

% t_ ResPondents

32

41.0%

27.8%

26

33.3

22.6

Better quality of work/easier quality control

19

24.4

16.5

Preferred

15

19.2

13.0

7

9.0

6.1

6

7.7

5.2

6

7_ 7

5.2

Greater

demand

Frequency!

OF WORKERS _I/

productivity

by workers

Easier to determine tion of workers Less supervision Cotm_on practice

compensa-

n_eded

i--/78(or 67.8%) of the 115 respondents reported using either pieeerate orbatchwork as a mode of compensation, 55 (or 47.8%) use piecerate, while 25 (or 21.7%) use 5atehwork.


II-49

Europe,

narra

as a furniture

The Forest

Products

Commission

(FORPRIDECOM)

for adequate success

Kesearch

s_)stitutes

wood

fearin_

that forest

has for some for narra,

ultimately

had banned

_lisappearo

restrictions

to i_s grain,, texture_ coefficients

Luzon

vhioh

.domestic market) almon, mayapis,

is prefe[red

due

and expansion

difficult

expensive

to obtain

as well. (for the

inc].ud_ red and _h.ite lauan,

=anguile,

bastikan_

but this ban is baing

and y__/_al (PDCP / 5 /).

cf _._ttan poles circumvented

has be_._nbanned,

(World Bmnk/-6J).

i$ e l'_-,.ck of reliabi__ information

qu_Ltiti_,

tha_ supplies

pa_"ticularly

that are loc._lly used

Even _he expor_

A major problem

severe

Cody./--3__, PDCP _/--5_7).

and more

more

.'_:7-+'_r wood species

are exerted

it has imposed

and low contraction

i_ more

narra_i <and made narra

available

of this har_%vood migh_

(World Bank F67,

,These have made

of narra,

that can be felled_

the species from Northern

looking

Bank /--6 7).

the export

Moreover,

on amounts

time been

but has met little

World

reserves

unknown.

and Industrious Development

if at all (00<]37"F3_,

The government

is virtually

although

some quarters

will not lest unle_s

greater

to regul:._'[,.._ and regenerate

on

feel

efforts

the same

!-3,_7). 59.1% of our sampi_,_ fe_! that raw material is a major problem. for domestic

Whiia

o_her

.furniture, narra

species

supply

are available

is apparently

still much

sought-


II-50

after.

34 respondents

which

(or 34.7%

,_',_x_ufacture wood

specifically, lumber

furniture)

as against

in Beneral.

On the othec

rattan furniture

Hajor

specified

suppliers

sonably

problem);

are:

(23.5%).

the dwindling

supply

with

raw material

of prices

with

pol_s,

of delivery

quality

by

supply

to iD.cr " _=..:_Cu_rea-

r,:,.sxrictio_s(22.1%)_

conformance

All these

narra

h_i__d,16 c.f 20 respondents

unreliability

tendency

(50%)_ government

unsatisfacCcry

identifieJ

cite rattan/rattan

(61.8% of respondents

as a major

have

23 (23°5%) pointin_-_ to wnod/

manufacturing factors

of 98 firms in our sample

and

specifications

fact¢..:c_ me}" _:2mehow _e tied i_to of these

raw materials.

Perh,- _ .::t_ing to, _ha unrcli,:_bility of ,.L--,livery of raw materi_-i by suppliers_ than

three _:_:jorsources

while

16. .),_ _J have

and one,

71.3% of responclents have more of

their principal

raw materiai_

three._ c_._.i_.J, only 9,6% .'._nd 2,6% have

restec_ively,

91o,']% ,of _,_ooifurniture

in o-,_ sa-__G•e_,_2--,liy buy

_m_e_.

two

manufacturers

fro_.'_ . er yards

or s'aw

mills, 47.8_

:,f _'espondents usually

their usual canvass

:..:.a?i2li.ers cf raw ._at:_:rial., while

prices

The need facilities

accept prizes

and :)_y from for adequate

is mentioned

set by

46.1% usually

the lowest-priced

source.

and apT_r:i,ri,_celumber

drying

ss a critical

factor,

particularly

for exp_rts_

due to the _=_-h ._:_, moisture

content

of Philippine

lumber which

is hardly

suit_,b!_ .... ="r furniture,

especially


II-51

5,0

Product

DesignTechnology

Table II.25 presents in four areas process, nery,

of technology

product

It shows

design,

competent _e

quality,

to exercise

and technology_

of information

applieation_

•production

and choice of mac/li-

a _-_eneraltendency

as entrepreneurs, design

usu,_l sources

much

fcr owners, influence

even if he may

mainly

in pro<luct

not 9e technic@fly

to do so, Bureau

Philippine

of Standards

Standard

(PS No. 821-01-09)_ and procedures

in 1976 the

Spe.sificat-icn for _!oodc._i_,_miture which

_._e.<_ifies minimum

f3r-__.;,Ddenfum_iture

require_ents _ structure! samplin_.!_performance

standards

relative

to material

pa;fts construction = finish

tests_ and marking.

to be la_'_f-_e3.7 unfamiliar and those who

issued

with

Firms

seem

t?tis _e[ of standards,

are do uDu s£_m to fully

comply with

these standards It i.s little wond__r that the Philip'_._i.nes cannot make much hq:adway in._¢ood fa_:niture exl_orts, considerin}_ that the export m_zrket calls quality

products,

according

l_s Co_

and

out essentially

(not only in appearance,

but

make of che product). /-3 _ would

ac_cunt

firm, the skills the nature

desi[.,.ns carried

to specifications

in the entire

take into

with

for well-designed

have it_ product

design must

"the produc.tio_ facilities

of the

of its _,;orkforce_ a_ understanding

and characteristics

of the materials

of

used_


11-52

TABLE

II.25

SOURCES

OF INFOR}_TION

ON TECHNOLOGY

Area. o f Technolo gy_ Applica.tion. Source

of

Product

Information

Production

Design ._

Choice _

Ow_.er's l_as

102

75

92

99

Customers'

13

74

26

l

30

69

9

6

30

16

28

9

22

5

1

Cons ultants

7

3

4

7

industry

association

5

3

2

2

Other manuf_c ture+rs

4

6

4

1

Relatives /ffiends

3

4

2

0

Professional

I

7

0

0

4

1

0

0

Ideas

J0 urn al s/o ther publicatious Foreman' s/other workers' In-house

Design

i_eas

design staff

designers

2].

Center of the

Philippines

of

Mack!nery,


ii-53

the forms m_d colors of the article_

its tactile

beauty,

its decoration

its fitness

for the purpose,

and its acceptability regrets

more

Accordingly,

thaI_ passing "the industry

understanding relation

of the place

attention

to have

He ever

in the industry."

as a whole

lacks

and function

any

of design in

to its pDoductso"

Production 6.1

public."

that "er_iy the last two appear

received

6째0

to the consuming

Support

Quaiity

Facilities

and Prsctices

Control

83.5% of our sample

do no_ maintain

staff

to check on the quality

ion_

In 87.5% of

these

chef,ks on quality. foreman

production (4째2%)9

workers

cr a member

Quality in between one firms)_

themselves

(37.4%).

himself

the

(ii.5%)_ buyers

of the family 8io1%), sre usually

stations

(in 40.9%

afte__ each operation

each major _p_r_%_21o7%)_ very/after

product-

it is the production

(22.9% of cases)_

inspections

work

of in-house

=ases, the owner

In some,

_r supervisor

a separate

undertaken

of all respond-

(28.7%)_ after

and/or before

all operations

have been

completed

In only 12,2% of respondents

are cali-

bration

tools used for quality

control

quality

inspection

are available

only

7% of firms

instruments

in the sar_,ie_

ent app%i<_:slaboratory

purposes$

One lone

tests, while

deli-

in

respond-

the rest

(at


11'54

least

80%) rely solely It is, therefore_

which

would

Specification

Equipment

respondents

with

follow a regular

considering

to quality

the above

control

that have been

half

proce-

established.

(55 out of 108) of the

at least one piece

respondents

since mor_

have eight

may be fairly Nonetheless_

some 35.2%

one reason or other,

in Table

constituting II.26 below.

state

that breakdowns

while

14 report

undertake.

pieces

This need

than half of the

of equipment

or less

simple to maintain.

of machinery

breakdown

of equipment

maintenanc e schedule.

not be bad, however,

complain

Furnitures,

Maintenance

Only about

which

that firms

the Philippine

for Wooden

in relation

dures/requirements

inspection.

unlikely

of, say_

be able to comply,

statistics

6o2

highly

are at all aware

Standard

on visual

(38 out of 108) still

breakdown

as a problem

l_e reasons _ problem

given

that repairs

behind

are summarized

30 of these often

for

disrupt

38 respondents production

take time to


11-55

Table 11.26

REASONS GIVEN AS TO WHY MACHINERY BI_AKDOWN CONSTITUTES A PROBLEM

% to Respondents Reporting Breakdown Reason

Frequeqc_

Often disrupts duction

to be Problem*

Total

% to Respondents

with_Equipment**

pro30

78.9%

27.8%

Repai_ take long to undertake

14

36.8

34oi

Spare parts difficult to find

i0

26째3

9.3

8

21ol

7.4

Qualified repairmen difficult to find

7

18.4

6.5

Equipment quality

1

2.6

0.9

Repairs sive

are expen-

of low

* 38 respondents. ** 108 respondents째

6.3

Inventory

Management

62.6%

of respondents

stock up on raw material, accessories, finished inve=to_y when

37.4% of total

in process,

Of those who maintain

or other_

inventory

that they generally

_% on spare 24o_=

20.9% on work

goods째

respondents

report

stocks

reaches

are commonly

a minimum

respondents).

(26o1% of total

level

parts

and

and 47,8%

one type of replenished (43 cases, or

On the other hand, respondents)

on

report

30 that


I!-56

th_yacquire

and maintain

stocks

only

if there

are

_ob orders. Bowever, adequate

storage

inventory, work

14 out of 72 (19.4%) do not have facilities

for their raw material

4 out of 24 (16.7%)

in process

inventory,

do not have

(29o1%) for finished

This inadequacy

in storage

material

nature

space

of furniture,

goods

is easily

inventory. attributable

both in terms of raw

and product.

47.8% of respondents to maintain

inventories.

cing are summarized

Table 11o27

Source

for

and the same can be said

of 16 out of 55

to the bulky

space

(55 cases) Sources

of inventory

finan-

in the table below.

SOURCES

OF FINANCING TO MAINTAIN INVENTORIES, OT_ER THAN OWN CAPITAL

of

g_m_c_g

are able to borrow

Frequency

% to Respondents _ Who Borrow to

, ._ , .. % to Total

Acquire

Respondents

Inventories

Supplierv s credit

25

45.5%

21.7%

Banks

19

34 o5

16.5

Relatives/fr+ends

9

16.4

7.8

Private moneylenders

2

3o6

i. 7

55 cases째

The role of supplier_s pronounced

as financing

credit becomes

sources

more

are expanded

to include


II-57

aequlsition

of raw material

for maintaining discussed,

adequate

raw material

however,

Several

in general

in the section

problems

inventocy

stock).

are lack of financing

of respondents inventory 6.4

Other

ties.

Inspit¢

lities,

irregularity having

have,

disposal.

Only

mean that certain be at a complete

in keeping

firms require

claim 11.3%

facilifaci-

co have no p_Ims

cite problems collection,

to collectors

with

or with

to ensure

regular

wastes.

of respondents

in addition,

13.9%

lack of the latter

or lack of garbage

(the electric

Only

as _ust extraction

of the general

of raw material

97.4% energy

that most

as well

to pay "tong"

removal

no problem

88°7% of respondents

with waste

(32.2%).

(33.0%)

and Practifes

observes

plant relayouting,

of total

level.

Facilities

Cody /j3J

common of which

of raw material

of orders

a_ an adequate

Support

in maintaining

(76 cases, or 66.1%

seem to have

be

o4 financing.

the more

respondents) _ non-availability and unpredictability

This will

are encountered

levels,

(not necessarily

have

only one source of

company).

The remaining

their own generstor. mechanized

standstill

operations when

power

2.6%

This would would

generally

disruptions

occur°


II-58

Only 5.2% of respondents not experience those who to zework째

rejects

A further

the order),

that they do

of their products.

do, 89% (97 out of 109)

s_ll tc_ other parties placed

claim

22% would

Of

generally

at times be able to

(other than the person

oftentimes

resort

on bargain

who

terms.


II-59

D.

Marketin$1 Practices 1.0

Channels

3 _/ had observed

sell directly

to the public

few exceptions.

retail-selling

accounting

may be gleaned

of job orders,

there is lhardly any

stocks_

the respondents

(49o1%) have

for 100% of total production,

from Table I!.20, while,

only

standard

stocks.

directly

to end-users,

5.3% produce

entirely

Moreover_

respondents

their

use this

53% have

percentage

on the other

according

to

72,2% of respondents

el=her by way of their

front

olficeo

outlet

to any single

is to own retailend-users). for a summary

own show-

eontrast_

only

their products another

14o8%

middle_eno

to importers_

Table outlet

indicates

percentages

of outlet _

are used

refer

outlet

14.8%

of sales

to T,_hle ii,28, In

sell some or all of to wholesalers,

to what

as main

outlet

usedo7

7% to exporterand

II.29 shows

of market

exclusively,

type of market

24.3% of respondents to retailers,

or

(i.eo, the highest

/Please

of types of market

sell

In fact 37.4% of

type of distribution

this as main

of sales

job as

(in the case of the larger ma_ufacturers)

simply through

while

on the basis

In effect_

extreme,

rooms

that most manufacturers

from standard

Close to half orders

Prospects

of Distribution

Cody /

with

and Export Market

extent

outlet,

6oi% these

to types

while

Table

to these various

types

II 03C


TABLE II.28

TYPES

OF MARKET

OUTLET

USED

% to _espondents _lis Type

!

Respondents Type

of Outlet

j

Using This Type % to Total Frequency Respondents

No. of Respondents

J

Using This With Type i/_,pe Exclusively :-- Main

This as Outlet

Ranking Using This This Type Type First Exclusively

Using '

With "l_.is Type as Main Outlet

Ranking Type First

Own Retail/ End-users

83

72.2%

43

61

62

51.8%

73.5%

74.7%

Retailers

28

24.3

5

17

17

17.9

60.7

6u'.7

Wholesalers

17

14.8

5

i0

12

29.4

58.8

70.6

Importers

17

14.8

4

ii

ii

23.5

64.7

64.7

Exporters

b

7.0

i

3

3

12 째5

37.5

37.5

7

6 oi

0

3

3

42 o9

42.9

Middlemen / Agents

i/While 5F5 resp_ndents reported using typ6s of outlet respectively,

one type of outlet

exclusively_

0

48 and 0 reported

usfng

two and three

H 0% i O


II-61

TABLE 11.29

TYPES OF MARKET OUTL_ USED AS MAIN OUTL

!

Mean Percentage of Salas to this type

Type of O.utlet

No. of Respondents With This Type as Main Outlet

% to Total Re_sponden_s

,_f O_t_et, t_ E_sp_nd_nt's To_l Sale.a_ 2/ ....

Own Retail/ End-users

61

53.0%

9 !. 4%

Retailers

17

14.8

76.7

Importers

ii

9.6

81.0

Wholesalers

i0

8.7

93.8

3

2 _6

80.3

5

2.6

68o 8

Exporters Middlemen/ Agents

_/Main outlet is defined to be the type of market respond_nt_s high_st percentage of sales.

_/Only

for respondents

outlet with

using this type as main outlet.

the


TABLE II.30

Typ_

uf Outlet

TYPES

OF MARKET OUTLET

USED_

BY PERCENTAGE

OF SALES

â&#x20AC;˘ Frequency According to Percentage of Sales 0'_ii-20% 21-30% 31-50% 51-80% 81-99% 100% Total l-le_

Own R_tail/End_users

7

6

5

6

9

7

43

&_3

Retailers

5

i

1.

6

7

2

5

27

i'iiddl( men/Agents

2

1

1

0

i

2

0

7

%_holesalers

i

2

3

i

0

5

5

E _porters

2

0

i

I

1

i

l_porters

0

i

2

3

5

1

1-10% 8, 4%

on row totals

2--/Shouldbe equal to I001, except

for round

off errors.

31-50%

%1__/ 51-80%

81-99%

7.2%

I0, 8%

_, 4%

51.8%

99.8_

22,2

25.9

7.4

ID, 5

99 on

14.3

28.6

7,2%

6.0%

3.7

3.7

28.6

14.3

14.3

0

17

5,9

ll.S

17.6

5,9

1

7

28.6

0

14.3

4

16

6.2

12.5

18, 5%

0 I

1/Based

11-20% 21-30%

100% Total "_/

0

i00.

0

29.4

29.4 I00.

14.3

14.3

14.3

14, 3 i00.

i$. 8

31.2

6,2

25 o0

99.


II-63

Out of 115 r_spond_nts, using on,e ty_e of m_rket

58 (or 50째4%)

outlet

use two types and 7Y,_ three째 only one type of outiet_ pondents

ar_ varied;

given in Table volume

of sales

d_cision

exclusi_

While

more

the reasons

41o7%

than half

responses

It would

is not a major

while

use

give by such res-

The predominant

II.31 b_low_

reported

appear

consideration

are

that in _he

to use only one type of outlet.

.. '

t__

T_ble II .31 _._JOR Y_EASONB GIVEN FOR USING ONE .... TYPE OF MAF_KET Ok i_,ET=EXCLUSIVELY

6__ly One Type of Outlet Limited

capital

19

32. _

9

15. _5

6

10o3

Convenience Dwn outlet

expensive

A cross-tabulation the respondent

versus

of type of outlet type of main outlet

an _imost one-to-one

correspondence

variables.

in only

In fact,

suggest with

outlet

in use째

that the manufacturers

the channels Respondents

between

preference

_ere asked to state

This would

reasons

two

eases was it

seem

are essentially

two or more

their

these

differed

of dist_:.bution in current using

by

in use shows

3 of 105 valid

the case that the respondent_s the type of main

preferred

from

to

satisfied use.

types of market corresponding

outlet

_:: the


ii-64

most preferred

and least

Tables 11.32 and 11,33

Table Ii. 32

preferred

indicate

types of outlet.

these

reasons.

MAJOR REASONS GIVEN FOR MOST PREFERRED TYPE 0F MARKET OUTLET % to Total Respondents

Reason

Frequency

Us_in_ Mute Than One Type of Outlel

Big sales volume

19

33°9%

Bigger profits

i0

17.9

Sales certain

8

14.3

Con_enien t.

8

14 o3

Table !i,33

Reasons

MAJOR REASONS GIVEN FOR LEAST PREFERRED TYPE- OF.MAKKET OUTLET % to..To.t_]. Respondents Using No,re Th_n On9 T[p.e of Outlet

_

LoV sales volt,me

16

28.6%

Lower price/markup/profit .

14

25,0

Risky _ irregular sales _

ii

].9,6

Less

convenient :

ll

19o6

;_ong respondents

using

market

out£et,

preferred However_

direct

due to

more

tha_. one •type of ....

sales to'.end-_users appears

hig1_ez"<_'."_fits and,more

respondents

stable

who pre_er wholesaler_

to,be saieso

_ i._,_pc_ters.

and ire_ailers .ci£e big _,,_:!es .volume.-ior their prafereneeo On the oDher,hand,

r,e_pon_

who-;leaBt:prefer

S_lling


I!-65

direct

to emd-users

point

to low sale_

sales and less convenience° therefore,

where

to end-user_, Further_

some

while

respondents

relation

2.0

to retailers

sales

sales.)

is attributed

to

_re mentioned

in

and middlemen. the modes

of transport/delivery

the respolidents.

Seasona!ity

of Sales

A total of 93 respondents pointed

to a seesonality

to be highest Oexober

(80°9% of sample)

of sales.

in December_

to the Christmas

"L_onthof May is also cited of sales_

such occasions_ construction

presumably as well

projectso

sales_

and other

sales was

owing

though_

sales°

up in

Likewise,

a relatively

the high

to _fiestas_ and other of housing

56 respondents

seasonality

co_i_only cited

reason

period_

for i0 respondents

(or

in sales)

as accounting

the construction/housing

accounted, seasonal

season°

In all9

seem

_%is is attributed

as having

occasions

The next most

_o build

_s the co_pletion

60°2% of those recognizing Christmas

6_les would

starting

(see Tab T= II.35 below).

by respondents

volume

unstable

bad debtE

Table Iio34 presents used by

talk of stable

others memtion

while

unstable

(Here is a situation_

lower price/markup/profit

sales to retailers_

v_lume,

cite

for peak for peak which

reporting

only


II-66

TABLE

II, 3_

MODES OF '_,RA..]SPO...I,_ . _,,IDELIVERY TO MARKET OUILETS

Mode of TransportS/ D_live r_E_ loy_ed_'

% to Total _ p_0n. den ts

_

Own vehicle

81

70.4%

Pick up by customer

26

22,6

Hire

25

21,7

16

13,9

6

5,2

i

O. 9

vehicle

Shipping Pay

for pick up service

Public

transport

11 c-'79 respondents more modes.

reported

using

only ] mode,

while

35 use 2 or


II-67

Table_ II,35

MONTHS WITH PEAK SALES, AS CITED BY RESPONDS_TS % to Respondents

No. of _'_ponden%s _------

C._,.in_Month

as Having

Reporting

Peak

Sagas

Seasonal

Sales*

De_mb er

56

60 _2%

November

49

52° 7

October

38

40.9

May

35

37.6

* 93 ofl15 respondents.

The above

findings would

held view,.__ Lhat furniture with

the level

the study

exhibiting

such

reporting

of sales. respondents

a relatively

during

the period

whether

the months

fre_uent!y

seasonal

higher. October

to

to surmise flair

for

resl or not,

of June_

cited

July and

(34.4% of respond-.

_:a!es) as lean months

Yha ol,_eningof school was pointed as the pri.r:_cipalfactor behind

followed

that such

season.

handp

the most

correlated

anÂŁ_ also

homeowr_er has a natural

the Christmas

August were

volume,

income

the widely-

in construc_.ic, n activity.

established

a Situati0n_

On the other

ents

are highly

it is not all too unreasonable

that the Filipino

during

an upsurge

never

le,;el of disposable Decen_er,

sales

of disposz#._ieincome,

sales increase with While

!:and to support

by bad weather

in terms to by 25

low sales

(18 respondents)

and


!I-68

"no m__ney" (17 respondents), strongly income_

These. factors

sugge.st drops in the level even if only

of the second It would

of disposable

[_ussi.hiyremotely

appear:, therefore,

that the

i_._c':_me:.-;ghieh may

pronounced

periods

of high

tend

__nis may have

the level

of ._:q?_rationsof firms

to have

far-reaching

implica,tions <>n

little

prcduc+_:i...:_ " (Cody .../--3 -,F)_ It would_ n_._.ar: re_:_onable to assume

eisner

standard

accordingly_

a possible

=rc_uct-:..cn_n_d_ cc_.Âą.ia'eily_ a more utilizstio._, o_ f:a_acityo

relatively

in the industrT _

_b.:_tthe_'_ is generally

an inefficient

use of

numbers

0nly 12_9%

adjust prices

(generally

an increa.s_.e in vrices

go to as high

_he labor force of v:.d_ers.; or

sugges_

reporting

durin_ peak

a prevailing

du_'ing peak periods

of low sales).

cases,,

Such

20%, but may

That the other

seasonal

sales

and low periods

sentiment

sales;

p,a;.,k and low periods

do not go beyond

as 50% in some

8;2,[t%of raspon4ents adjust prices

during

during pcziods

generally

levelling

or less unii:_m

Of the 93 _:'e_:_i_c;nd,_i_,:_i _eDor"t'i_gseasonal

adjustments

be

._easonal ;',,roduetienvolume8

or a n<..._.._d to 1_ni...o¢ain varying

and a decrease

of

and low in the Philippine

setting,

may imply

volume

is _-5_,-j _":'; "- .._6men/,_._nt " â&#x20AC;˘ on t!'_clevel of

disposable

nowhere

in the. case

one.

f"._r_._uresales

consideTing

would

do not

may simply

that such adjustments


II-69

do not z:cnieve the expected u_ay be relatively expected

price

low saleS_

resn!.ts°

In effect,

demand

.inel,_.sticduring periods

a?.d rela.tive/.y price

of

_lastic

during

peak periods. 3,0

Pricing

Practice_

Table iI ,36 belo_,__h_w_

tL.<_-_r:_,:J.ng i_r:__cti.ces ,._f

=he 1i5 respon_._ents.

Tabie

_,I ....... L,:: PC,_'.:.,-,_,L_,.':.:,._

,._..

. _ ..... z__.ac e,j,......_,._

Pri_in_ V_riable

1 r .,:.<;

.....

i:,rici'_g ,°

'iFixe$."

,_a.-.,,._. i::_,-,_revai!ing,. P.r'; ,.;,_.., ._..at: by

72c_ ,:; ,_ I

ghat to

c_e

type

:'_c, with

_herefore_

except

56.5%

46

40.0

3

2, 6

___J:

O. 9

I15

100.0%

:............ ,.:_..........,_:_.,, 't'_.o reason

_aain

pravaili_':i_, _hat

exercise

of

65

I..';,......... _........ ',__;

i:uy'.:_r

......... ,.o,,.._..,..,'_,"J.sj ,, c,f! the;

_,_

_ll_r_c._,_ -

cutl,._t

.(-a c.:_¢rre:nc

lrrici.n::<

furni_.:_.::cc:

>:,iicyo

_.anufa,ctur,_z's

use

to

believe

t:',.._s anythax;_ 5

i_: ,:<:.u].d seem. are

able

.t-:::

some fre.edo_ in _:,,t_,,;._ _;h:_ieecf pric.i_g i_ractice,

in a.3me cases, 'without reg:_r:it_> the t:yp+.' of

outlet use,J, Lik_._ise, pricing dependent squar_

policy

on size of lo_or

test fails

does nor seem t.'._ be

force_

e_._the usual

to sho_ any such d_pendenee°

chiIt


11-70

appears,

therefore,

that choice of pricing

is not significantly (as measured Of

affected

34 reported

that markups

market outlet.

Credit

on design,

pricing,

types

of

that markups

as well

as

and the purchasing

buyers째

Sales

Credit sales a mean

range

(67.8%) sell on credit f_-m 5% to 100%

of 48.6% and a standard

(across

73 respondents

estimates

_-Refer =o Table

of respondents

according

to total sal_o/

With

the average

sales on credit it would capital

in particular

shows

close

and a credit period

credit

credit

to 50% of

of 31-45 ameunt

sales째

days,

of working

60 respondents

that receivables,

checks of buyers

to borrow

of credit

type.

(52째2% of the samF_i,_)report

are used

11.38

applier that a significant

and/or

of total

for a distribution

firm having

is tied ui_with

7.0%

able to provide

to percentage Table

terms on sales, by buyer

of

as a percentage II.37

terms.

t,_tLl sales with

deviation

who were

of credit sales

sales).

orders

across

to type of raw material

78 respondents

sales

use variable

45 mentioned

based

power of the intended 4,0

force)o

who

vary

Moreover,

vary predominantly according

by size of the firm

in terms of labor

the 65 respondents

practice

for working

from raw material

(refer to Table capital

purchase Iio39)

requirements,

suppliers

(44 out of


11-71

TABLE II. 37 DIStRiBUTION OF RESPONDENTS ACCORDING TO PERCENTAGE OF CREDIT TO TOTAL SALES

Credit Sales to

% to Total

otazs.s

Bponde. s

None Less

SALES

37 than 10%

32,2%

3

2.6

3

2.6

20-29

15

13.0

30- 39

6

5.2

40-49

7

6.1

50-59

17

14.8

lO- 19%:

60-69

1 •

O. 9

70- 79

5

4.3

30- 89

3

2.6

90-99

i0

8.7

3

2.6

5

4.3

100 •Unknown

=-'---115

Total

_/Wi_h

roundoff

error.

99. 9%1 --/


II-72

TABLE II.38

CREDIT

Fr_equency Direct

Users

TERMS ON SALES, BY BUYER TYPE

% to Respondents

% to

$ellimglgn Creditc-"

Total Respondents

Average Credit Pe;io d (Days)o

44

56.4%

38.3%

31-45 2/

Retailers

27

34.6

23.5

31-45 3/

Wholesalers

13

16.7

ii. 3

31-4_

3

3.8

2.6

16-30

2

2.6

i. 7

91-180

.Exporters C_vernment

Offices

12Out of 115 respondents_ 78 (or 67_8%) sell on credit while 37 (or 32.2%) do not. 2--/39of 44 ciÂŁed

this credit period.

3--/All27 cited this credit period. 4--/10of 13 cited

this czedit

period.

terms,

/


II-73

60 cases).

While

collateral-free_ based

imputed

is generally

interest

rates

rate and credit period

(see Table

rates

credit

equivalent

on discount

tively high

supplier's

II.56) o

costs associated

with higher

prices

when materials

It is, accordingly,

distinct

that firns

on unavoidably

hi[_h financing

credit has to be extended extent

_his situation

lity of the business

quite

are forced

costs,

to increase

affects

such

implicit

are sold on credit째 possibility

are rela-

Moreover,

do not take into account

a

to take

simply "because sales.

the overall

i_ subject

imputed

To what

profits.hi-

to further

study,

though.

Tnble II.39

APPLICATION OF RECEIVABLES, PUECIIASE ORDEP_ AND/OR POSTDATED CHECKS TO SUPPL!ER'S CREDIT OR OTHER FINANCING ,o to Total Respondents Using Receivables, Purchase Ordcrs_, P6stdated Checks

Source

of Financing

Supplier's

credi_

Banks

_

for lh_-financing* 44

73.3%

9

15.0

Packing

credit.

4

6.7

Private

moneylenders

3

5 o0

2

3.3

0 th ers

*Based on 60 of i15 respondents째


11-74

5째0

i_)wnpayment on Sales Of 115 respondents, downpayment/advances sales,

generally

!I .40.)

While

downpayment, the firm's

between

50,% was a clear

financial

6.0 _ The Export Market:

to which

exports

have

grown

exhibited

the latter. the period

1976-1980_

Inspite

have

continued

in 1980_

1976-1980). exports

The

annual

pales

rate

than

former

growth

compared with

and 21%, growth

furniture

to coustitute exports

aggregating

rate of

14% for

figures

as discussed

_his share

furniture

from !965 through

of the faster

of total Philippine 0.85%

at a faster

at 65%

of wood-based

and Prospects

of wood-based

(l_e corresponding

are higher,

exports

for which

Issues

11,4i).

an equivalent

37% over the period,

affects

Exports

exports

(refer to Table

of

could not be deter-

Some Problems,

total Philippine

II.A,

value

_as not investigated.

of Philippine

and fixtures

(See Table

downpaymen_

operations

Philippine

1980

modal

the prof_ortion of sales

Magnitudes

require

25% and 50%.

downpay_,ents are required

6ol

(or 78.3%)

on at least soz_m of their

the extent

r_ined, since

90

for

in section respectively,) rate,

however,

and fixtures

a minuscule

portion

(0.25% in 1976 and 0째60%

ow_.r the period

in total Philippine

in comparison

with

that of log


11-75

TABLE 11.40 DISTRIBUTION OF RESPONDENTS ACCORDING TO USU#_ DOWIIPAYMENT ON SALES

Usual Dowap,ayment

None

25

21.9%

I - i0

4

3.5

ii - 20

9

7,9

30

21

18.4

31 - 4O

i0

8.8

41 - 50

44

38.6

i

0.9

21-

_bre

than 50

T o t a 1

114

100.0%

!/Usual downpayment percentage applies only to some (ioe., not necessarily all) customers, for whom downpayments/advances on sales are required. Z/Based

on i14 valid

cases

(out of 115 respondents)째


TABLE II.41

GROWTH IN PHILIPPINE EXPORTS OF WOOD-BASED FURNITURE AND FIXTURES I_ COMPARISON WITH GRC_ OF TOTAL PHILIPPINE EXPORTS (1965-1980,

IN FOB $ VALUES)

(A) Exports of Furniture

_ncrease Over

(B) Exports

Yea_z

and i/ Fixtures--

Previous Year _

Builder' s.. Woodwork -_!

1965

$ 450,952

196t

511,893

13.5

68, i19

1967

643, 780

25.8

196_8

842,182

196_

(0.3)

of

$ 338,492

Increase Over Previous Year (%)

Total

Increase Over

Previous Year (%)

Philippine E_

Previous Y_ar (%)

$789,444

54.5%

$795_734,890

("19.9)

580,O12

(26.5)

877,405,702

10.3

141, 700

108.0

785,488

35.4

891,502,116

1.6

30.8

341,708

141.1

1,183,890

50.7

962,114,110

984,544

16.9

1,064,489

211.5

2,049,033

73.1

983,172,917

2.2

1970

1;190,954

21.0

I, 055_ 689

(0.8)

2,246,643

9.6

1,142,191;237

16.2

1971

1,211,382

i. 7

1,865,110

76.7

3,076,492

36.9

1,189,247,194

4.1

1972

3,189,956

163o3

2,859,658

53.3

6,049,616

96.9

i, 168_ 433,138

(1.8)

1973

3,365,469

5.5

5,728,394

100.3

9_093,863

50.3

1,837,198,097

57,2

1974

5,774,001

71.6

8,379,663

46.3

14; 153,664

55.6

2,724,986_237

48.3

1975

4;520,229

(21.7)

8,!38,716

(2.9)

12,658,945

(10.6)

2,294,470,333

(15.8)

197_

6,325,137

39.9

10,09.9,070

24.1

16_426,207

29.7

2,573,675,684

12.2

1977

13,266,247

109.7

9,617,190

(4.8)

22,883,437

39.3

3,150,886,989

22,4

1978

16,500,050

24.4

13,306,264

38.4

29,806,314

30.3

3,424,876_025

8.7

1979

33,343; 792

102 •I

19,464,368

46.3

52,808,160

77.2

4,601_ 189,916

34.3

19_/D

46,856,143

40.5

14,361,473

(26.2)

61,217,616

15.9

5,487,787,554

19.3

.

478.0%

Total _ _

Increase Over

.

2.1%

7.9

! ,

O_

j

i/Source:

National

Census

and Statistics

Office


ii-77

exports

_/,_i _o,'_ in 1977), or the totality

saw..-_ lumber

and pl_adood exports

The bulk of wood-based exports,

however,

has been

(see Table

1979.

iio3).

in rattan which

period

_xports

aggregating

exports

has dropped

of wood-based

including

buiider_s

and fixtures

from a high

8.4% over

the

wood-based

wood_-ork, w,,Ich often

States_

importinK

furniture

llo2%,a_d

on exports

As man be

Australia

countries

wood-based

and Japan

(The United

Japan

are

of Philippine

and fixtures,

accounted, for 45.8% over

accounts

of expc.rts of furniture

accounting

furniture

export s <_f the Philippines

1976-!.980.

are

(with the latter

manufacturer-exporters).

O_oL_/=of aggregate fixtures

of Philippine

and fixtures

and 11.43

portion

the United

the principal

in ss&_n lumber,

only

furniture

II_42

for a significant

14/Based

furni-

0_8% in 1978 and

(_ountries of destination

listed in Tables

period

of wood

1970-1979o

Major

noted_

account-

for 1970 through

the shaze

of 37o6% in 1974 to a meaaly 1.1% in 1979,

and fixtures

This share was 92.4% in

On the other hand,

ture and fixtures

(7..6% in.1977).I-_4/

furniture

ed for 86_7Z oi the aggregate 1979

of log,

over

States

the period,

for

and the "

alone Australia

i0.2%.)

of $133 million and $40 million

in lobs, in pil, wood

$66째6 million (World Bank /--6j)o


TABLE 11.42 MAJOR COUNTRIES OF DESTINATION OF PHILIPPINE EXPORTS OF WOOD-B_ED FURNITURE (1976_1980, _jor

Country of Destination

1976 - 1980 A___ate) Rank % to Total

AND FIXTUF_S i/

IN FOB $ VALUES) 2_'

1950 _ to Rank Total

197_8 % to Rank Total

_ 197_ Rank

1977 % to Total

F_ank

1976 7_ to Total

Rank

% to Total

U. S .A.l/

1

45.8%

I

44.0%

i

44.8%

]

50.9%

i

48.6%

I

44.7%

Australia

2

11.2

4

7.5

]

11.2

2

15.4

2

15.0

2

19.8

Japan

3

10.2

2

12.8

2

12.8

4

5. !

4

5.0

3

6.6

4

7.7

3

7.7

4

9.5

3

6째5

3

7.2

6

2.8

Netherlands

5

3=6

6

4.3

5

4.5

7

2.6

Sweden

6

3.2

5

4.4

7

2.8

8

2 o4

I0

I.5

5

3.1

Canada

7

2.9

7

2.6

6

3.6

6

3.0

9

2.0

g

2.6

Belgie

8

2.2

8

1.7

5

3.2

5

4.7

7

2.7

Italy

9

1.6

10

1.5

]0

1.2

,_

2.6

4

5.1

Fra__ce

I0

1,3

9

1.8

Denmark

II

1.3

9

1.5

7

2.8

9

2.5

I_

I.I

Hongkong

13

0.9

10

I. i

Lebanon

14

O. 8

15

0.8

16

0.6

West

Germany

United

Puerto

Kingdom

Rico

Bahamas

I0

9

B

[_I

1.3

2.0

6

3.3

Total FOB $ Value

$116,291,369

$46,856_143

$33,343,792

$16,500,050

$13,266,247

$6,325137 Go

1/Excluding

builder's

woodwork

2--/Source: National Census and Statistics Office 3/T_,,,_.n_Z Hawaii_ wh!n_ eo:_nted for 2.3% of exports

,,

over

the period

1976-1980

(1.7% i_ 1980, 2._

in 1979,

I


TABLE II.43 _AJOR COUNTRIES O_STINI_TION f_ _ _ PHILIPPINE EXPORTS OF W_B/_SED:FU_N_ITLrRE:A_D|_FI__ INCLUDING BUILDER'S Wf_l_O_ '. ' .... (1976-1980, IN PDB $ VALUES)_I/ Major Country of Destination

U.S.A.

1980 Rank

% to Total

1979 Z to Rank Total

. 17_978 % to Rank Total

1977 % to Rank Total

1976 % to Rank Total

I

43.4%

1

38.9%

I

45.0%

l

49.0%

i

45.8%

1

42.2%

Australia

2

13.1

2

8.9

2

II .6

2

15.6

2

17.9

2

22.7

Japan

3

7.5

5

3°7

3

8.6

3

6.6

3

I0.I

3

12.4

4

5.0

4

6.0

5

5

3.7

4

4.4

I0

1.2

Canada

5

4.3

8

3.3

4

6.4

4

4.8

7

2.0

5

3.6

France

6

2.8

3

6.4

9

1.3

7

2.7

9

3.2

6

3.2

6

3.2

8

] o6

Netherlands

8

2.4

6

3.3

7

3.1

9

1.6

Sweden

9

2. I

7

3.3

8

1.8

9

1.2

Guam

I0

2.0

i0

I .I

4

5.2

Belgium

ii

Denmark

7

1.8

6

2.0

West

2/

1976-19BO (A_reKate) Rank % to Total

?:

Germany

United

.Kingdom

6.0

7

2.5

5

3.7

I._

8

I .8

6

2 o8

12

I .2

I0

1.5

g

2.0

Hon_kong

13

I. I

9

1.5

Italy

14

1.0

I0

1.5

Spain

15

0_9

10

2.3

Total FOB $ Value

$183,139,734

l--/Source: National