by Lorie Ann A. Cascaro
Even if most people in Manila still think that Davao City, or Mindanao for that matter, is not the kind of place to settle down in, or put up a business, because of peace and order issues, Manila businessmen think otherwise. “A businessman is a businessman,” said chief executive officer of Global-link MP Events International Patrick Lawrence Tan.
He said that when a businessman sees an opportunity to make profits, he will definitely grab it.
And so the old impression of Mindanao does not bother Manila-based businessmen. This was proven by Manufacturing Technology Davao, Mindanao’s largest exhibition of industrial equipment, factory automation, hardware products, power tools, material handling, welding technology, accessories, etc..
Incorporating the Davao Food Expo, The Total Office Products and Services (TOPS) Show Davao, and Woodmach Davao, this grandiose exhibition was held last May 27-29 at the convention hall of Bangko Sentral ng Pilipinas, Davao City.
Two days before the event, Tan told Davao media during a press conference that Manila-based exhibitors were excited to come because they believe Mindanao is really an untapped market and has huge potentials businesswise. He said majority of the 60 to 70 exhibitors were Manila-based with the rest based in Davao city. He said one-third of the exhibitors were new to the market while two-thirds were already firmly established and joined the exhibit to introduce new products or put up offices in the city.
Tan said Manila-based exhibitors have the impression that businessmen in Mindanao are straightforward. “If there is a need and the product is available, they would definitely invest in it,” he said, adding that it is really a matter of educating them and supplying what they need. He also cited the fact that 95% of the products on exhibit were imported.
Thus, to address the needs of various markets here was the main objective of the exhibit which featured some 70 to 80 machines on display According to Tan, the purpose of the event was basically “to invite people, let them understand the products and that they are available, and who can supply them.”
Knowing already what products to sell to their target markets, Tan said, the exhibitors were hoping to sell the equipment here because shipping them back to Manila is expensive and doubles the cost of the products. Tan recalled that during their last exhibit in Davao City, three or four years ago, 20% of the total sales were direct from the exhibition ityself.
Two-pronged
Tan said the bottom line for Manila-based exhibitors was to make business in Davao City. “They feel that using the show as a conduit for them to come here and meet local businessmen is their easiest access,”
“They do business in two ways. Either to find distributors of their products here, or put up their own offices in the city,” Tan added. Having conducted such an exhibition here for the fourth time, Tan bared that there were success stories of the shows, like “people tying up with other people and friends becoming competitors.” Those who fell along the way were people supplying the wrong, or not locally acceptable, products.
In the previous shows, Tan said most exhibitors merely brought along catalogues and brochures because they still need to talk to specific clients as to what they needed. To ensure sales of the products in the next shows, they conducted studies. That’s why, he said, they were ready this time around. The exhibition has in fact doubled in size compared to the past exhibits.
Power Problem
“It was not publicized in Manila,” Tan said when asked about the exhibitors’ reaction to the power problem in Mindanao. He added that exhibitors of manufacturing technology are “allergic” to brownouts.
It’s hard to sell equipment in a location where there is frequent power interruptions. No businessman would invest In a machine that will not be utilized for productivity and speed due to long, frequent brownouts.
Secretary Jesus Dureza of Mindanao Development Authority said in his welcome remarks during the opening ceremony of the Manufacturing Technology Davao exhibit on May 27 that the power problem in Mindanao is being addressed with great focus alongside the best efforts of partners, especially the big players in industries. “If power is not adequate, no investor will come,” he added, underscoring the prioritization of energy sources.
He assured the businessmen that “the dangerous plunge of water level in Lake Lanao had been arrested.” But, they were informed by the experts, he said, that “even if rain starts coming today or in June, we still need those rains until December to normalize the water level of the Lanao reservoir.”
Considering that 51% of power supply comes from hydro electric plants, Dureza said, businessmen can take advantage of the low cost of power in Mindanao.
Manufacturing and construction
The industry in Mindanao is not very specific. A lot of things are still growing or expanding so one cannot just focus on one thing. This is what Tan and the Global-Link believe in. But, Tan said, manufacturing, information and communication technology (ICT) and construction are their target markets in Mindanao.
“Manufacturing is our call. It’s our main brand. That’s how we started. In every economy, the manufacturing and construction sectors are the first to move,” he said. Helping small manufacturers grow, as they are the potentials for big markets, is one objective of the recent Davao exhibit. He emphasized that the equipments were designed for the Mindanao market at at affordable costs.
He added that for construction, they are still bringing in the right products because it is still an infant industry. But, he was glad to announce that big contractors will be coming in the city for their press conference in June “because they will be heavily investing here.”
Further, Tan expressed difficulty in selling IT-based products because they quickly become outdated. But Davao City as ICT hub, remains a big market for these products.
