WAREHOUSE operators have high hopes for the incoming government but are holding off the celebration party for the industry.
The operators said while the incoming new administration provides much excitement and hope, these need to translate to solid figures — such as additional volume – for the industry.
Customs Bonded Warehouse Operators Confederation (CBWOC) president Alfredo Yatco told PortCalls exporters and their support sectors will closely look at the first 100 days of the incoming administration to see if it can deliver better than its predecessor.
“The increases in export products and gross domestic product in the first quarter of the year do not reflect the true state of our economy (which) was driven mainly by election spending,” Yatco said.
“Based on our assessment, aside from electronics, other export sectors such as garments, furniture, handicraft and manufactured goods, have remained dormant up to now,” he added.
“The increase in exports, as reported, has yet to be felt by most stakeholders suggesting that the improvement in the market is very fragile. What we want to see is the new government providing enough support for the industry to sustain and maintain the activity it posted in the first couple of months of the year.”
Fast results needed
Yatco said majority of exporters and their support industries are barely surviving as it is. If the new administration fails to deliver fast results, this could lead to a new round of company shutdowns.
Yatco said volumes handled by warehouses, except those situated in economic zones, have remained flat since last year.
The operators are now banking on recent foreign and local road shows for better business starting the third quarter of the year. They are also hoping that the Greek economic debacle will not greatly affect the US and other European nations.
Some CBWOC members, mostly from southern Philippines, have yet to reactivate their business, waiting for the industry to fully pick up.
The association predicts full recovery from the crisis not earlier than 2012.
