The Philippine Garments Industry

I. PRODUCT COVERAGE

For Garments product coverage/classification by Harmonized System (HS)

please click here.

II. PRODUCT USE/S

•Yarn
for knitting and weaving into fabrics, garments, and other made-up
articles
• Fabrics
are made into garments, accessories, home furnishings and other
made- up articles
• Garments
men's, women's, children's and infants' wear and other wearing
apparel such as gloves, mittens, undergarments, stockings, socks,
shawls, scarves, neckwear and other related apparel
• Other Textile made-up Articles
tents, luggage, fishing nets, sacks, carpets., etc.
III. PRODUCTION CAPACITY

Total monthly capacity by product of active firms.

Products Unit Of Measure Quantity/Monthly

Shorts DPR 15,495,888
- DZN 13,358,688
- SET 546,000
Trousers DPR 129,000
- DZN 19,439,180
- PRS 336,000
- SET 640,000
Overalls & Coveralls DZN 4,652,119
- KGM 2,287,792
- SET 657,500
Shirts DZN 27,777,488
- KGM 18,000
- YDK 6,000
Polo/Blouses DZN 15,600,249
- KGM 44,000
Pyjamas & Sleepwear DPR 105,000
- DZN 6,278,235
- KGM 228,000
- SET 749,000
Bathrobes, Dressing Gowns DZN 944,781
& Housecoats SET 200,000
Dresses DZN 14,131,967
- SET 161,500
- YDK 3,600
Skirts DZN 67,093,558
- SET 136,000
Athletic Suits DPR 422,000
- DZN 6,511,830
- SET 4,439,000
Underwear DZN 13,608,160
- KGM 120,000
- SET 600,000
Brassieres DZN 2,949,383
Foundation Garments DZN 268,417
Swimwear DZN 2,491,100
- KGM 171,945
Gloves made of textile DPR 1,891,500
- DZN 1,279,002
- KGM 200,000
- PRS 3,016,200
Gloves not made of DPR 489,000
textile DZN 43,617
- PRS 118,000
Hosiery DPR 544,400
- DZN 737,000
- PRS 7,177,800

IV. FACTORS OF PRODUCTION

a. Raw Materials

The raw materials needed in the production of garments are

yarn, fabrics, garment accessories (buttons, thread, zipper,
 rivets, etc.) and packaging materials (poly bags, corrugated
boxes, etc).

Majority of the exporters import fabrics, accessories and

packaging materials either directly (thru letter of credit) or under
consignment.

Major sources of yarns and textiles are Taiwan, Hong Kong,

Republic of Korea, Japan, US, China, Indonesia, Thailand and
United Kingdom. As for garment accessories and packaging
materials, major sources are Japan, USA, Hong Kong, Republic
of Korea and China.

b. Labor

The industry has ample supply of labor. Qualified workers are

abundant and can easily be trained to handle the machinery and
equipment used in the production process.

The manufacturer-exporters also avail of the services of

subcontractors to perform some of the processes in garment
production such as sewing, embroidery, printing, dyeing,
knitting, pressing, finishing and packing.

c. Technology

The industry has realized the importance of automation in

improving productivity. The use of computerized machinery and
equipment such as the CAD/CAM, machine attachments and
barcode tickets has enhanced the manufacturing processes and
has lowered manpower requirements and supervising time
needed. The manufacturers' costs have been dramatically
reduced, quality and speed of delivery has improved and the
trust of buyers has been gained.

V. HISTORICAL EXPORT PERFORMANCE (5 YEARS)

A. Exports by Product
 PHILIPPINE EXPORTS OF GARMENTS
1996 to 2000
FOB Value In Million US Dollars

1996 1997 1998 1999 2000 Average

VALU % VALU % VALU % VALU % VALU % Growth,
E SHARE E SHARE E SHARE E SHARE E SHARE %
TOTAL RP 20,543 100.00 25,228 100.00 29,496 100.00 35,033 100.00 38,078 100.00 16.80
EXPORTS
TOTAL 2,754 13.41 2,888 11.45 2,770 9.39 2,767 7.90 3,084 8.10 2.12
GARMENTS

Apparel 2,250 81.70 2,329 80.64 2,224 80.29 2,238 80.88 2,515 81.55 1.58
Non-apparel 315 11.44 348 12.05 422 15.23 429 15.51 485 15.73 8.82
Textiles 189 6.86 211 7.31 124 4.48 100 3.61 84 2.72 (2.46)

Source: Philippine Trade Statistics, National Statistics Office (NSO)

B. Exports by Market

PHILIPPINE EXPORTS OF GARMENTS

1995 to 1999
FOB Value in Million US Dollars

1996 1997 1998 1999 2000 Average

VALUE % VALUE % VALUE % VALUE % VALUE % Growth,
SHARE SHARE SHARE SHARE SHARE %
TOTAL 2,754 100.00 2,888 100.00 2,770 100.00 2,767 100.00 3,084 100.00 2.12
GARMENTS
TOP FIVE 2,118 76.91 2,285 79.12 2,342 81.55 2,449 88.51 2,723 88.29 4.7

1. United 1,636 59.40 1,829 63.33 1,998 72.13 2,111 76.29 2,334 71.68 1.4
States
2. Japan 192 6.97 176 6.09 119 4.30 112 4.05 113 3.66 0.8
3. G. Britain 108 3.92 112 3.88 85 3.07 100 3.61 120 3.89 2.75
4. Germany 126 4.58 109 3.77 84 3.03 75 2.71 90 2.92 (7.2)

5. Canada 56 2.03 59 2.04 56 2.02 51 1.84 66 2.14 3.3

OTHERS 636 23.09 603 20.88 428 15.45 318 11.49 361 11.71 (8.8)

Source: Philippine Trade Statistics, National Statistics Office (NSO)