Staying in business

(The Philippine Star) Updated December 27, 2010 

Firecracker manufacturers told the secretary of health to mind other matters such as dengue and rabies, as they vowed to stay in business despite the “Iwas Paputok” campaign. Consumers also continue to ignore warnings about the risks of handling firecrackers, often preferring items with explosives so powerful they have been banned. But demand has steadily declined, and manufacturers must adapt to shifting trends if they want to stay in business.

Economic considerations are driving away many consumers. In the totem pole of holiday spending priorities, fireworks come last for many Filipino families. People would rather spend on food than splurge on a “Judas belt” or a “fountain” priced at P300 that might turn out to be a dud. Those who still spend on fireworks to greet the New Year are increasingly turning to imported products, which are perceived to be of better quality, adding to the woes of local manufacturers.

Concern about product safety is further dampening demand. If the “Iwas Paputok” campaign of the Department of Health has gained ground, it is because Filipinos have seen enough grievous injuries resulting from the mishandling of firecrackers or from defective products. The risk of developing tetanus from a New Year’s Eve firecracker-related wound has added to product safety concerns.

If manufacturers want to stay in business, they must address all those concerns. They might also consider overseas markets as domestic demand shrinks. People around the world use fireworks to celebrate various occasions throughout the year. Several countries are meeting that demand, exporting fireworks and improving quality control to meet product standards in markets overseas. Philippine manufacturers have been in this business for decades and should be able to compete.

A law on fireworks manufacturing and sale, passed several years ago, aimed to regulate the industry and promote quality control. Some progress has been achieved since the passage of the law, but more needs to be done. As in any business, the industry must be prepared to reform or perish.