What are the key considerations for investing in industrial parks during COVID?
- Think long term
- Consider the location of the industrial park
- Diversify your portfolio
- Review your investment goals
Global industrial markets have suffered from the health and socio-economic consequences brought on by COVID-19. The pandemic threatened not only global health and economies but also investments — creating uncertainty among the best-laid plans of investors. Fortunately, there is an optimistic outlook as vaccines are being rolled out and as societies begin to emerge from the economic shock. That being said, we’ve rounded up the key considerations for investing in industrial parks during COVID.
Undoubtedly, investing in an industrial park in the Philippines remains one of the best choices as they steadily provide numerous benefits for locators and serve as a major contributor to business development. The pandemic indeed produced ripple effects on the industrial sector as reflected through factory closures, salary cuts, unemployment, and supply stresses. If you’re constantly checking on your investment portfolio, you might be overwhelmed given the highly volatile market. Keep in mind that creating rash decisions during this time can negatively impact your investment further.
Stay informed and continue reading on to learn more about the considerations for investing in industrial parks during COVID.
Think Long Term
Similar to other businesses, industrial parks are expected to face challenges such as supply chain disruptions and maintaining workforce safety. The good news is, those who ride out the lows and keep their investments in industrial parks are still expected to gain the most returns when the economy recovers once again. In nature, industrial parks are conducive for garnering high investment value because of the following reasons:
- Its sole purpose is to be complementary to light and medium industry production and manufacturing
- Complete and integrated infrastructure (independent and sustainable electric grids, stable water supply and treatment systems, security, in-house fire protection, employee transportation, telecommunication services, private roadways, ground management teams)
- Built in special economic zones that offer mutually beneficial incentives for businesses and investors
There is a greater reward when it comes to long-term investing in industrial parks. Despite the global pandemic, these specialized infrastructures remain to be one of the best investment choices capable of building resilience and providing value in the future.
Consider The Location Of The Industrial Park
Some industrial parks prove to be better located than others, strategically speaking. The COVID-19 pandemic caused supply chain disruptions given the travel restrictions. For this reason, you might want to look more into industrial parks that are conducive for ease of transportation.
Take the SPPI Hermosa Ecozone Industrial Park in Bataan as an example. Seated in the heart of Clark, the industrial park is only a few hours away from Manila. To be exact, it takes only 2.5 hours to arrive in the area. With the current government administration’s Build, Build, Build program, more highway projects being built will make the industrial park even more accessible in the near future. In addition, the nearby Clark International Airport provides easy access to major Asian regions such as Taipei, Hong Kong, Singapore, Beijing, Tokyo, and Seoul.
An industrial park with a strategic location is highly attractive for international partnerships and global importing or exporting operations.
Diversify Your Portfolio
The key to smart investing in industrial parks during COVID-19 is to diversify your portfolio. There is some truth to the old saying “don’t put all your eggs in one basket”. With so much volatility in the market today, it would be wise to spread your investments and minimize risks. This also avoids being exposed to low returns.
A good way to go about this is by investing in multiple industrial park locations. These locations must be able to slowly build resilience despite the pandemic. Every investor should also keep up-to-date with the latest market trends. There are a plethora of trusted sources supplying information on how industrial parks are operating at the moment.
Review Your Financial Goals
During the pandemic, there may be unprecedented events that have impacted your finances. For example, if you have businesses, you might need to cash out some of your investments for short-term expenses. Review your financial goals to make sure your investments align with them. If you are looking to gain long-term value, industrial parks are a foolproof investment choice.
Key Takeaway
In this article, we have put together four considerations for investing in industrial parks during COVID that will ultimately stimulate your investment portfolio and its long-term value.
Interested in investing in an industrial park? Science Park of the Philippines (SPPI) prides itself in building state-of-the-art industrial parks in the Philippines. We have locations nationwide including in Bataan, Makati, Batangas, Cebu, and more. With complete infrastructure, highly trained on-ground teams, and comprehensive client services, we aim to provide the best value for your investment. We facilitate the day-to-day needs of our locators to improve their operations and resiliency during COVID-19.
We will be happy to provide any additional information you may require on investing or living in the Philippines. Click here to inquire about SPPI projects today!
