The Philippines is touted as the "Milan of Asia", producing exquisite and intricate furniture that is both unique and innovative. Aside from design, the wide range of materials used has attracted buyers looking for one-of-a-kind furniture. Exported models are showcased as accent pieces in homes, hotels, resorts and offices worldwide.

From its rattan and wicker origin, the Philippine furniture industry has diversified into bamboo, stone, wood, metal, plastic, leather and other indigenous materials such as abaca, arurog, palm wood and coconut husk. It has also grown to become one of the country's top export revenue generating sector.

In the first eight months of 2008, export value of woodcrafts and furniture reached $767 million, an increase of 14.5 percent over the same period in 2007.

Despite strong buyer interest, however, furniture makers in the Philippines are facing a series of problems that have made the business environment challenging.

The strong performance of the Philippine peso in early 2008, combined with the current downturn of housing and real estate projects worldwide, have brought weaker export sales.

This has forced many suppliers to streamline production and reduce their workforce. Some companies, on the other hand, have expanded their product lines, or have begun to cater to the domestic market.

The following are some of the key trends we see in the Philippines' indoor and outdoor furniture industry:

• Exports in the line are expected to see slight growth in the next 12 months, with suppliers feeling the effects of the housing slowdown.
• Makers will either maintain current prices or increase quotes slightly in the coming months. The intensifying competition from furniture makers in other countries in Asia has made Philippine companies cautious of raising product quotes.
• Many suppliers will continue to concentrate their R&D efforts on material innovation in coming months. Companies will maintain their focus on locally available materials as a response to the fluctuating costs of imported materials.
• The majority of Philippine-made furniture is currently shipped to the US. This market concentration, however, may change as a growing number of suppliers target emerging markets such as Russia, India and other countries in Asia.

This report covers all types of indoor and outdoor furniture produced in the Philippines, including tables, chairs, benches, dressers, cabinets, beds and armoires. Suppliers generally offer furniture for both indoor and outdoor use. There are many, however, that just focus on indoor furniture.

The Products & Prices section in this report details the features and price ranges of furniture made in the Philippines. This includes the latest trends in style and materials.

The Industry Overview discusses key issues affecting export manufacturers and elaborates on the composition of the industry.

The majority of furniture makers in the Philippines are locally owned, although some are foreign-invested. Production of indoor and outdoor furniture is concentrated in Metro Manila, Cebu and Pampanga, where the majority of companies interviewed for this report are also based.

Seventy percent of surveyed suppliers have production facilities in Cebu province, while 7 percent have workshops in Pampanga or Metro Manila. Makers are also located in Iloilo and Negros Occidental.