The pandemic hit all nations around the world, including the Philippines. After the attack of the pandemic, the construction business Philippines is now expected to grow again in 2021. This industry is expected to grow at the annual average rage which is 8.3% until 2024.
Before the pandemic, the construction industry in the Philippines was the fastest growing industry in the Philippines. But now, it is expected to contract by 9.2% in 2020. The amid lockdown measures disrupted the construction activities in the Philippines in the second quarter of 2020.
The Philippines’s Construction Sector is Recovering
Complete halt that happened in the second quarter was not the only issue that must be faced by the construction sector. The output of this construction sector is also affected by the reallocation of the government resources in order to address the current issues and crisis.
According to logistics in the philippines in June 2020, the authorities decided to reduce the infrastructure spending by 15.8% for the rest for 2020. This is because the funding is being realigned to tackle the main issue which is the pandemic. But in the middle of May 2020, the construction work resumed.
The resumption of the projects of infrastructure is supposed to be the key driver in the economic revival. The BB programme or Build, Build, Build programme was planned before the pandemic. There was USD 18.9 billion allocated for the program.
Opportunities in Construction Business Philippines
The Philippines’ construction industry is still expected to record the CAGR of 18.2% and reach up to PHP 2,221.2 billion by 2024. The industry of residential construction increased at a CAGR of 9.7% in value terms during 2015 to 2019.
The construction market in commercial building is also expected to record at the CAGR of 19.1% in value terms over the forecast period. In 2019, the estimation for the infrastructure construction was PHP 929.7, posting the CAGR of 11.7% during the review period.
The growth is expected across various sectors, including institutional sector, industrial sector, commercial sector, and residential sector. However, it seems like the growth of those sectors is still impacted because of the economic downturn that is caused by the outbreak.
Reasons to Expand to Philippines
Before you start expanding to the Philippines, there are considerations you need to know. It is crucial to understand the market opportunity, key trends, industry dynamics, and key drivers across more than 40 market segments as well as sub-segments of the infrastructure construction and building industry.
Also, consider the value and volume data. Get a more detailed understanding of the market, both from the volume and value by the units and activity perspective for the forecast period and historical period. Then develop market specific strategies. Strategies are needed to expand and grow.
–You need to identify the growth segments and then target the specific opportunities in order to formulate the right strategy. Then assess the specific key trends of the market as well as the risks and drivers in the construction business Philippines. Finally, you will be successful in expanding to the Philippines.