What are the benefits of the industrial sector in the Philippines?

  1. A Significant Contribution To The Country’s GDP
  2. High-Quality Job Generation and Provides Long Term Employment
  3. Attracts Many Foreign Companies


Through the years, more and more multinationals and international businessmen are beginning to discover the advantages of investing in the Philippines. Aside from the country’s strategic location, abundant natural resources, and diverse culture, another component that invites a high level of investment is its secondary sector. Specifically, the industrial sector in the Philippines.

This division usually receives raw products from the primary sector and utilizes them to construct finished commodities. These are then either purchased by consumers or sent for further processing. Some examples of these are industries such as the automobile, chemical, consumer electronics, and brewing industries.

This sector remains to be one of the Philippines’ greatest competitive standpoints, and today we’ll be tackling all about its potential in the country. Scroll down to read about the performance of the industrial sector in the Philippines.


A Significant Contribution To The Country’s GDP

A person drawing an increasing graph

Along with agribusiness, manufacturing is one of the major industries in the Philippines. According to the Philippine Board of Investments (BOI), way back in the years 2008 to 2013, the local manufacturing industry grew faster than the average growth rate of ASEAN’S manufacturing sector. It developed two times more than the global average. And, according to these units by Trading Economics, the GDP of the country from manufacturing alone progressed highly to 877543.97 PHP million in the first quarter of 2020. This compares to 622014 PHP million in the fourth quarter of 2019.

Lastly, the industrial sector also increases government revenue from the supply of goods for both external and internal markets. Exports, another great feature of the Philippines, provide great foreign exchange.


High-Quality Job Generation and Provides Long Term Employment

Workers lined up to get their temperature taken

The stability of the economy leans on the capability to secure employment and present a safe and secure workplace for employees. In 2019, 18.39% of employees were active in the industrial sector. Currently, the manufacturing industry employs more than 3.2 million individuals in the workforce.

Aside from this, the manufacturing industry in the Philippines is versatile because of its highly extensive linkages as well. It doesn’t only benefit its sub-sectors exclusively, but also with other industries. There is stimulating progress in other sectors. For instance, it promotes more active logistics and service sectors. Additionally, increasing manufacturing activity forms a spillover impact of generating more demand from the agriculture and resource-based industries.

Manufacturing has produced quality and gainful employment for both university and vocational graduates. It brings in newer technologies, which can result in the introduction of quality jobs, skills, and expertise in the country.

Lastly, the industrial sector has excellent workplace benefits. Companies strive to create workplaces like industrial estates to provide a hospitable and convenient area for employees. As a result, it reduces employee turnover.

Take P&G as an example. During the COVID-19 pandemic, they managed to work on a skeletal workforce in their plant in Cabuyao, Laguna while still producing a high number of products. Employees are more ingrained to work when they are taken care of safely and securely.


Attracts Many Foreign Companies

Cebu Light Industrial Park (CLIP)

Science Park of the Philippines, the nation’s leading private industrial estate developer, has become the key building block to developing many of the country’s principal manufacturing plants since 1989. In fact, the Hermosa Ecozone Industrial Park located near Bataan held a worth of P6.8bn ($134.3m) for investments. Today, they have around 800 hectares of superior industrial estates spread across six locations:

These economic and industrial zones are one of the top reasons why the country has drawn the attention of many foreign corporations. International businesses are looking to relocate their production from their traditional base to the Philippines. Because here, investors gain the benefit of agglomeration, inter-relatedness, infrastructure, support facilities, increased employment opportunities, mutual cooperation, and low investment. These factors will sustain the growth of the industrial sector for years to come.


Key Takeaway

The industrial sector in the Philippines is part of the many reasons why the country holds such a competitive advantage even during the COVID-19 pandemic. Just take a look at the contribution to the economy, the quality job generation, and the world-class quality industrial parks it boasts.

Looking to grow your business in the Philippine industrial sector? Click here to collaborate with us! Our industrial parks are strategically located, registered as an ecozone with PEZA tax incentives, and enjoy the one-stop-shop for your corporation’s convenience!

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