Philippine fireworks industry has its roots in Bulacan since 1867. From then on, the said industry slowly thrived for growth. Factories were built from all over the province later on. After the banning of fireworks-making during Martial Law, RA 7183 – an act regulating the sale, distribution and use of firecrackers and pyrotechnic devices and also known as firecrackers law – was passed on 1992.
In 2005, it is reported that the local pyrotechnics industry player feared the incursion of imported and smuggled fireworks products to the country, for it might bear huge losses for the industry. Mr. Neptali Guballa, then the president of Philippine Pyrotechnics Manufacturers and Dealers Association Inc. (PPMDAI) – an organization that works for the growth and development of the pyrotechnic industry and its members, said that the trading in and smuggling of pyrotechnics is not only very alarming to the local fireworks industry but also a mockery to Philippine laws.
The downfall continued, and on 2008 the PPMDAI assessed that the pyrotechnic industry is facing its worst year since 1993. Local manufacturers moderated their production of outputs as a result of the rigid competitions from the sales of smuggled firecrackers products in the local market. The association in cooperation with the Philippine National Police worked hand in hand on solving the anticipated downfall of the industry.
By 2010, Trade Union Congress of the Philippines reported that the P500-million domestic fireworks industry continues to flourish and endure the influence of the smuggled firecrackers and the rivalry among foreign products on the market. The local manufacturers state that the craftsmanship and the ability to adapt to the shifting trends of the Filipinos are what make the industry alive.
Last year, 2012, the general manager of Filstar Pyrotechnics, Mon Ramos said their sales increased up to 30% compared to 2011 sales. Also John Lee, LF fireworks’ founder, stated that demand on firecrackers will always be there for it’s a traditional exercise and that demand increases because the population gets bigger and bigger.
But in spite of the growing demand and increasing sales, the Philippine pyrotechnics industry continues to get bad reputation in the market. Legal manufacturers believed that it’s the unlawful manufacturers and suppliers to blame for the said kind of reputation and for dragging the industry down. The number of recorded injuries caused by firecrackers, a week before 2013 New Year celebration, scaled to 44 compared to last year’s 43. 80% of which were caused by Piccolos. In total, 931 firecracker injuries were reported during this year’s New Year festivities.
Background of the Study
On March 31, 2009, the Bureau of Product Standards (BPS) and Department of Trade and Industry (DTI) of the Philippines released a Technical Barriers to Trade (TBT) Notification which specifies requirements for the construction, performance and labeling of the fireworks and certain items of ancillary equipment. It is applicable to fireworks for sale to the general public, for indoor and outdoor use (i.e., classes 1, 2 and 3 as classified in PNS 1220, Part 1).
Class 4 fireworks, i.e. fireworks which are incomplete and/or which are not intended for sale to the general public, are excluded. Clause 3 shells supplied without a mortar tube are also excluded.
Furthermore, this notification is for the safety of all consumers using fireworks in celebration of any festivities as well as of those persons involved in the manufacturing and engaging business related to fireworks. In line with this, the researchers aspire to improve the quality of fireworks – in terms of its construction and performance – manufactured in the country. Also the researchers seek to manufacture pyrotechnics that are in compliance with the standard set by the government.
This conceptual framework discusses the flow of the study to be taken. The study uses the system approach. The system approach is the interdependence of objects and their attributes. The input contains the leading variables which have been gathered from the set of respondents. This includes the demographic profile of the respondents, BPS and DTI notification, and procedures in the production of fireworks from different manufacturers.
The second frame contains the method and procedures used to analyze the variables stated. Unstructured interview from the manufacturers as well as surveys in form of written questionnaires will be directly given to the producers. Also, observation on the construction process will be held. Finally, after the data will be transformed into information, we will be using financial ratios, as well as statistical analysis which will be composed of frequency distribution, analysis of variance, etc.
The third frame is the output. It contains the policy recommendations that the researchers wanted to suggest for the improvement of the construction and performance of fireworks in the country and also for the enhancement of the product’s competitiveness globally. Lastly, for the awareness on the proper construction and usage for the safety of all consumers using fireworks as well as of those persons involved in the manufacturing and engaging business related to fireworks.
Statement of the Problem
1.What are the characteristics of the following types of fireworks? 1.1Roman Candle
2.Testing for the ratio of defects of the manufactured fireworks. 3.What are the demographic profile of the respondents in terms of the following: 3.1 Age
3.3 Civil Status
3.4 Educational Attainment
3.5 Nature of Business
3.6 Years of Experience
4.What are the factors that affect the performance of the fireworks? 5.What are the safety measures practiced in the construction of fireworks? 6.What are the operational practices in the production of fireworks? 7.What are the costs of the materials used?
Scope and Limitation
This study focuses on the construction and performance of fireworks in the country including the safety measures done by different manufacturers in compliance with the Philippine National Standards.
The researchers are to analyze the status of the businesses of each of the respondents. Its main objective is to ascertain and assess the cost and production practices of Fireworks manufacturers in pursuance of the “Department Administrative Order No. 13, Series of 2008” as seen in the WTO.org under technical barriers to trade. TO BE CONTINUED. It includes the classes of fireworks with the requirements of proper construction and execution of each type.
All of these are limited to the standard stated in the Philippine National Standards. With the financial ratios, costs obtained from unstructured interview will be limited to the items needed to determine the initial capitalization, profit margin, inventory turnover and no. of days in inventory. This study will enable the consumers to have a better understanding on the proper handling of fireworks and as well as to the manufacturers to improve their practices in meeting the required standards. .
Significance of the Study
This study was conducted to provide information that will help the following individuals and organizations:
National Government Officials. This study will incite the National Government to motivate the production of fireworks in the country and increase interest on it to support our own products. Local Government Officials. Through this study, the local government unit will be informed of the present problems faced by the fireworks industry produced in their locality.
Academe. The university can benefit from the results of the research as this would establish greater credibility and reliability of different researches done by different students of the university.
Other Researhers. The result of this study may inspire other researchers to conduct further studies which reflects the current and timely issues of the society.
Researchers. This study will raise our knowledge as well as enhance our level of awareness in providing suitable solutions o the problems encountered by the Philippine market. Additionally, it would give us enough knowledge as regards to the standard set by the local or international government and how we may be able to comply with these as we engage and establish our own businesses in the future.
Definitions of Terms
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter includes related literature and studies from local and foreign settings. This gave the researchers a concrete direction on how the problem may be solved.
Synthesis and Relevance of the Reviewed Literature
This chapter discusses the research method used, population of the study, descriptions of the respondents, research instrument, data gathering procedure, and statistical treatment of data.
Research Method Used
Population of the Study
Descriptions of the Respondents
Statistical Treatment of Data