EDITOR’S DESK

Given the Filipino creativity and ingenuity in the area of designs and craftsmanship, it should be no brainer for the Philippines to become the darling of the furniture business, particularly in the export market. Sadly, this industry has so much difficulty taking off.

Low-key furniture magnate Rene Simbulan, founder and chairman of the Philippine’ largest interior fit-out works company – Simbulan Enterprises – has seen the ups and downs of the domestic furniture industry.

As far as Simbulan can see, the Philippine furniture industry is at a loss. It is neither here nor there as imports from China, Indonesia and Malaysia flood the market. There is a good domestic market though, but the local industry can simply be overwhelmed by the presence of cheap imports.

He lamented the lack of support from the government and lack of financing for small enterprises. He also blamed the poor productivity among furniture manufacturers, who could not compete in terms of scale to mass-produced furniture pieces from China.

But he emphasized that the Philippines excels in designs and craftsmanship and urged that players should compete in this category for the high-end market with higher value added and better pay. It should stay away from mass production because it cannot compete in terms of scale, productivity, and cost.

Simbulan, an electronics and communication engineering graduate, started making furniture from his garage for a friend’s house. Little did he know that the small business offers great potential in achieving his goal to earn his first million before reaching the age of 30.

Simbulan is a son of orphaned parents, who did not even finish high school but managed to provide for their three children. His mother was street smart and his father was a technical guy, who worked as pump operator of a water service company. 

As a young boy, he accompanied his mother to Divisoria and scrambled for a bus seat to ensure they had space for their merchandise going home. By sheer grit and tenacity, his mother evolved from the sari-sari store to the manufacturing of shoes, slippers and garments.;

From his humble beginnings in 1976 as a backyard furniture maker, his business expanded rapidly to become the Simbulan Group of Companies. It is now the country’s premier designer, builder, and manufacturer of quality furniture and comfortable living spaces. It specializes in project management, interior fit-out works and manufacturing of furniture, furnishings and builder’s wood works on a turn-key basis.

He handles 20 projects at any given time with contracts hitting more than a billion pesos. His projects ranged from small residential to five-star hotels and most luxurious developments in the country. He also exported to 17 countries before the pandemic. 

His company employs around 2,000 direct and indirect employees, designers and skilled craftsmen at his furniture factory in Baliwag, Bulacan.

Simbulan, whose factory was twice gutted by huge fires in 2006 and 2021, almost lost his shirt. The first fire cost him over ₱150 million when furniture pieces for a high end hotel in Makati burned to ashes the night before they were set for delivery plus the ensuing Asian financial crisis and the second fire with more than ₱200 million in damages. But each time, he emerged a lot stronger.

Thus, he urged industry players to help themselves and each other. He would also like to see a more organized furniture manufacturers chamber with a solid agenda and strategy on how to get there.

What actually makes his business resilient is not largely due to the presence or the absence of government support, but his strategy to excel by adopting a holistic approach in putting people first, focusing on their whole being.

First, he believes in developing the technical aspect to ensure his staff can work efficiently and productively. 

In fact, he is expanding his operation by investing around ₱200 million to ₱300 million for the acquisition of new machineries to automate their production processes. 

But part of this expansion is developing his people, stressing the need to develop the right aptitude and attitude to be able to mould good leaders. His most trusted people are now part of the company’s second generation of leaders.

Part of the skills set of workers, he said, is knowing and establishing their self-confidence as these are necessary ingredients to drive growth.

His company also observes the highest form of ethics. “That is our culture,” he said while lamenting the erosion of this culture and values that Filipinos used to hold dear. 

When these values are properly inculcated it can result in very high productivity. Equipment and machineries can only augment production volume, he said, but a well motivated employee can produce more. 

In other words, the equipment and technical skills will come handy once the soft skills are there. 

The successful businessman, who is also a motivational speaker, never misses an opportunity to impart his wisdom. Simbulan likes to indulge even for just a couple of young listeners in his favorite barbershop.

Don’t be misled by his low-key demeanor and down to earth appearance, he is made of the better stuff.

Speaking of better stuff, the Manila Bulletin is celebrating its 124th anniversary, a company formed by over a century of corporate culture, values and traditions – things that do not grow old. Mabuhay ang Manila Bulletin! 

(Bernie Cahiles-Magkilat is the Business Editor  of Manila Bulletin.)