Construction in the Philippines - Key Trends and Opportunities to 2024

Construction in the Philippines - Key Trends and Opportunities to 2024

Summary

The Philippine construction industry expanded by 9.4% in real terms in 2019, this was preceded by an average annual growth of 10.9% during the preceding four years. Growth during the review period (2015-2019) was driven by the continuous spending on large-scale transportation and energy projects under the Build, Build, Build (BBB) program.

Although the overall spending on infrastructure remained strong in 2019, a delay in approval of the 2019 budget and the 45-day ban on public works - due to the prohibition of disbursement of public funds and materials - had an impact on the country’s investment on infrastructure in the first half of the year.

In March 2019, the government launched the Philippine Construction Industry Roadmap 2020-2030, with an aim to increase the construction industry’s contribution to the Philippine economy from PHP2.3 trillion (US$44.1 billion) in 2018 to PHP130 trillion (US$2.5 trillion) by 2030. Furthermore, it will also increase the job opportunities for construction from four million in 2018 to seven million by 2030.

Forecast-period growth will be driven by public and private sector investments in transport, energy and educational infrastructure projects. In January 2020, the government approved the PHP4.1 trillion (US$77.4 billion) National Budget for the Fiscal Year (FY) 2020, which is 12% higher than the FY2019 budget of PHP3.7 (US$70.2 billion). The government plans to increase the country’s spending on infrastructure from the current 5% of GDP to over 6% by 2022. In October 2019, the government increased the number of flagship infrastructure projects under the BBB program from 75 to 100. Of this total, 38 projects are expected to be completed and 22 to be partially operational by 2022.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 7.92% over the forecast period, according to GlobalData.

However, the outbreak of the ongoing Coronavirus in China is expected to affect the country’s tourism and exports, thereby hurting its economy in 2020. Chinese tourists account for over a fifth of the total foreign tourist arrivals in Philippines. Following the outbreak in February 2020, the Philippine government imposed a travel ban on foreigners traveling from China, Hong Kong and Macau.

GlobalData’s Construction in the Philippines - Key Trends and Opportunities to 2024 report provides detailed market analysis, information and insights into the Philippine construction industry, including -
- The Philippine construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Philippine construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in the Philippines. It provides -
- Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in the Philippines, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.