Philippines construction market bullish

Research from business intelligence specialist Timetric suggests that the market for infrastructure construction is growing fast in the Philippine. Timetric’s data shows that infrastructure accounted for 37.3% of the country’s construction sector and was worth US$9.6 billion in 2012. The market grew at a Compound Annual Growth Rate (CAGR) of 12.12% and is expected to reach a CAGR of 8.19% by 2017, having been boosted by the need to repair flood damage that occurred in 2012. The country’s construction ind
September 3, 2013 Read time: 2 mins
Research from business intelligence specialist 7472 Timetric suggests that the market for infrastructure construction is growing fast in the Philippine. Timetric’s data shows that infrastructure accounted for 37.3% of the country’s construction sector and was worth US$9.6 billion in 2012. The market grew at a Compound Annual Growth Rate (CAGR) of 12.12% and is expected to reach a CAGR of 8.19% by 2017, having been boosted by the need to repair flood damage that occurred in 2012.

The country’s construction industry is highly dependent on imports of construction machinery. Several mega infrastructure projects are underway at present. The 6316 National Economic and Development Authority launched an $8.3 billion flood management plan to improve drainage systems, river capacities and flood ways in Manila and neighbouring areas due to flooding in 2012. The plan is expected to be implemented in phases through to 2035.  

Despite this, the Philippines has one of the lowest ratios of investment in physical infrastructure to GDP in Southeast Asia; consistently below 3% compared to the regional average of 5%.  Lack of adequate infrastructure has been a deterrent for businesses trying to enter the Philippine market. The new government initiatives are expected to support the expansion of the infrastructure construction market over the forecast period.
Finance & Funding

For more information on companies in this article

Related Content

  • Infrastructure expansion will boost world growth
    October 11, 2013
    A report published by HSBC suggests that global infrastructure-related trade growth will double worldwide economic expansion and will triple in size by 2030. The report also suggests that Brazil and Mexico will drive the rise in imports and exports of infrastructure-related goods in Latin America, according to Business News Americas. HSBC said that between 2013 and 2030, infrastructure-related trade looks set to grow at an average of 9%/year. It will also see a rise in its share of overall merchandise trade
    Read More
  • High demand for German-made construction machinery
    February 14, 2018
    The German construction equipment industry is in the middle of a boom, according to data from the country’s equipment manufacturing body, the VDMA. A new report highlights that turnover and incoming orders saw a double-digit increase in 2017 and Germany manufacturers are starting 2018 with a high degree of optimism. According to the VDMA figures, the German construction equipment industry ended 2017 with turnover of €10.8 billion– an increase of 15% compared to the previous year. It is the fourth
    Read More
  • Value of UK construction projects up 67.1% in past year
    January 24, 2014
    The value of construction projects in the UK has shot up by 67.1% in the last year, according to a new report. New project contracts awarded in December 2013 totalled €7.31 billion (£6 billion), compared to €4.38 billion (£3.6 billion) in the same month in 2012. The infrastructure sector proved to be an area of significant growth last month, with the total value of projects awarded reaching €2.68 billion (£2.2 billion), a 10.6% increase from November 2013 and a huge 101.6% year-on-year growth.
    Read More
  • Freedonia: Global off-road equipment demand to rise 5.4% in 2021
    May 10, 2021
    Freedonia reports that global off-road equipment demand is to rise 5.4% to US$439 billion in 2021.
    Read More

Highlighted Content