Half of Cebu bizmen have dim outlook

BUsiness Mirror
Monday, 02 March 2009 00:00

CEBU CITY—Close to half of business executives in Metro Cebu expect the economy to worsen in 2009, according to a survey by various business chambers and professional organizations here.

Clarito Fruelda, vice president for external affairs of the Cebu Chamber of Commerce and Industry (CCCI), said one reason is that in the coming months, the manufacturing and export sectors are expected to reduce production for lack of orders and sales.

“Many of the businessmen are expecting their production volumes to go down. This may result in more jobs getting lost,” said Fruelda. “The condition of the market could force companies to reduce their manpower.”

The survey was conducted by the Cebu Economic Advisory Group (CEAG), composed of various local and foreign business chambers and the academe. Over 100 respondents answered the survey held between December and January.

Those surveyed were members of the CCCI, businessmen from the Japanese, American, and European business chambers, locators at the Mactan Economic Zone, Finex Cebu, and the Cebu Bankers Club. The survey was managed by Dr. Juanito Aliño of the University of San Jose-Recoletos.

According to the survey, 46 percent of the respondents expect the economy to worsen, and 41 percent expect a higher inflation rate.

Despite the generally grim expectations, a number of businesses also expect improvements in their sector. Some 28 percent of respondents said they expect an improvement in the “main business activity/sector” while 34 percent said there will be no change. Around 36 percent expect a “deteriorating condition.”

Respondents from 75 of the Japanese firms that are members of the Japanese Chamber of Commerce and Industry-Cebu see their business “deteriorate” in 2009.

Still, Fruelda said Cebu is faring better than the rest of the country because while manufacturing and exports are plummeting, the tourism and business process outsourcing sectors are showing advances. “We are lucky because there are some balancing factors in the region’s economy. While many sectors are going down, some sectors are still going up and this keeps the economy going.”

CCCI president Edward Gaisano said in a statement it is crucial for the individual businesses and government agencies to identify the workers set for layoffs so they could be retrained.

“There is also a need to address issues and concerns especially in the areas of peace and order, traffic, power, and water utilities as these can strategically affect the overall business climate in Cebu for 2009,” said Gaisano.

The CEAG was organized to identify and address common concerns of the various business groups in Cebu. Gaisano said that while certain issues are top priority for some business sectors, there are common problems that businesses in general should face.