A CLOTHING and apparel industry player is pushing for the immediate implementation of strategies under the new export blueprint to bring down the cost of doing business in the country and boost competitiveness, as plans of reshoring or onshoring of manufacturing pose a risk of extinction of the local industry.
Robert Young, a trustee for the textile, yarn and fabric sector of the Philippine Exporters Confederation Inc., said global events such as the recent pandemic and the war between Russia and Ukraine, the dependence on Asia, and the orientation for imports and apparel production are now transforming the sector.
“(These) have resulted in a plan of reshoring or onshoring the manufacturing sites, which means bringing back business operations and processes to a neighboring site or right on the location of the importing country,” said Young, also president of the Foreign Buyers Association of the Philippines.
He said plans of reshoring or onshoring of manufacturing can result in the imminent closure of the present apparel manufacturing for the export market and its related industries in the Philippines, as well as the massive displacement of apparel workers.
“Thus, it may cause the extinction of such (an) industry,” he added. “This is a big red flag for the Philippine apparel and clothing industry.”
To deter the transfer of the manufacturing firms, Young particularly cited the need to address the basic root causes of the uncompetitiveness of Philippine apparel in international markets, such as restrictive cost of power, labor and logistics.
“The biggest challenge is the concern of a much higher labor rate component in importing economies,” he said.
Under the Philippine Export Development Plan 2023-2028, export stakeholders aim for adequate support for export firms’ infrastructure requirements, such as in power, transport and logistics, and telecommunications connectivity.
“The new digital and robotics manufacturing that will play a significant role in the reduction of labor cost is also part of the plan,” Young said.
“The government and the private sector must realize the negative impact of these reshoring scheme plans and should join hands in seriously implementing solutions urgently as per the PEDP report for the survival and competitive advantage of the Philippine clothing and apparel manufacturing, thus saving it from extinction,” he added. / PHILEXPORT NEWS AND FEATURES
