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[June 2002]
Philippine Ceramics Industry Aims to Pilot New Approach to Clustering
The Philippine Exporters Confederation (PHILEXPORT) says that the ceramic industry in Metro Manila - as well as the fine jewellery industry in Meycauayan and the furniture industry in Cebu - has expressed interest in adopting a new approach to industry clustering as a strategy for faster growth.This surfaced after a series of dialogues between industry leaders and a team of consultants from J.E. Austin & Associates from the USA during a mission to the Philippines to help specific segments of the export sector develop their strategies for faster and rapid growth. The dialogue was initiated by the USAID-supported TAPS project of PHILEXPORT.
J.E. Austin team leader David Flood compared notes with industry leaders and EDC cluster guru Ceferino Follosco. It emerged that benchmarking Philippine industries in relation to their counterparts in other countries to determine what market segment in the domestic industry they seek to hit can add a new dimension to the strategy.
The J.E. Austin method of analysis and its access to hard facts and figures in the global marketplace have been seen as pivotal in these three industries' development. These groups, when resources allow that they get the services of the team that has helped other industries in Sri Lanka, Thailand and other East Asian countries, are ready to again be the country's test cases.
Other industries, especially those that are dominated by small enterprises, may have to move their industry clustering programmes using government funding and local consultants through the EDC and the DTI. From both experiences, the export sector expects to draw the best practices and develop a new module that fits the distinct business environment in the country.
The ceramic industry is reported to have found itself in a bind after mainland China invaded the decorative ceramics market with cheap, though less artistic, versions. Its leaders also became fascinated with the prospects of finding out what segment of the market it must target and what strategy and tactics to adopt to hit that market.
ENDS