CEBU CITY – The province of Cebu possesses the unique capability to manage complete manufacturing processes, from initial design to final export, and can scale these operations significantly. However, to truly compete in higher-value international markets, it must confront ongoing weaknesses in execution, financing, and production discipline. This was the central message from creative director and exporter Butch Carungay.
Strengths and Challenges for a Design Hub
Speaking at the Cebu International Investments Summit on January 13, 2026, Carungay highlighted Cebu's advantageous position. He pointed to the province's deep history in global trade and its multigenerational manufacturing base as solid foundations. These elements, he argued, enable Cebu to shift its focus from being a center for low-cost production to becoming a leader in sophisticated, design-driven exports.
"Cebu can deliver end to end, from design to export, and it can scale — but only if we are honest about both our strengths and our challenges," Carungay stated during his address. He emphasized that the local design capability is not merely about aesthetics. It is fundamentally tied to market understanding, material knowledge, cost control, and manufacturability, with numerous firms already creating prototypes and small batches destined for the global stage.
The Scaling Hurdle: Documentation, Finance, Compliance
Despite this strong foundation, Carungay identified a critical bottleneck. Many Cebu-based companies hit a wall when attempting to move from successful small-batch production to consistent, repeatable manufacturing at a larger scale. He cited three primary obstacles: weak documentation processes, constraints in financing, and inconsistent export compliance.
"Scaling fails when companies are forced to jump too fast," Carungay explained. He noted that Cebu's real competitive advantage lies in its institutional memory, embodied by fourth- and fifth-generation manufacturers who have navigated sustainable expansion before. This expertise is a vital asset for the province, which holds the prestigious UNESCO City of Design title and aims for value-added manufacturing.
Priorities for a Stronger Value Chain
To fortify Cebu's manufacturing ecosystem, Carungay outlined a clear set of recommendations. These priorities are designed to build a more resilient and competitive value chain:
- Fostering early-stage innovation in materials and product development.
- Creating incentives specifically for pilot production runs.
- Strengthening systems for manufacturing execution and quality assurance.
- Improving market access and providing targeted fiscal support linked directly to compliance, digitalization, and export readiness.
He was firm that support should not be indiscriminate. "These should not be blanket giveaways," Carungay said. "Incentives should reward execution and value addition, not just volume."
Ultimately, Carungay positioned reliability and flawless execution as the core pillars for Cebu's future competitiveness. By mastering these, the province can solidify its role as a premier regional hub for both manufacturing and design, fully equipped to serve demanding global markets.
