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How Your Business Can Benefit from an Industrial Park in the Philippines

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entrance sign of industrial park in the philippines

Industrial parks are a relatively understated development in the real estate world. If you aren’t aware of what an industrial park is, put simply, it is a zoned area that carries the purpose of industrial development. Industrial parks in the Philippines have been growing in popularity thanks to the ever-growing and dynamic national economy that has driven up demand for better and more specialized infrastructures.

As both local and foreign companies begin to understand how being situated in an industrial park can benefit their purposes, industrial parks in the Philippines are becoming bigger and more numerous. If you have a business that is related to light or heavy industries such as construction, large-scale product manufacturing, or any other related enterprise that makes use of machinery and large buildings, then continue reading to find out how you and your company can benefit as well.

Industrial parks have a complete and integrated infrastructure

aerial shot of industrial park in the philippines

One of the biggest advantages that being situated in an industrial park can give you is its complete and integrated infrastructure. It is the main reason why industrial parks were created in the first place: to provide an environment that is conducive to the successful operation of industries. Not only do industrial parks give you the space you need for your business, but it also has many useful features as well.

Electric grid

The first feature that industrial parks boast is independent electric grids that supply factories and plants the energy that they need to operate properly. As heavy industries are somewhat energy-intensive, consistent and high levels of electricity are needed at all times.

An independent electric grid is a great solution to this kind of energy requirement because it doesn’t have to be connected to the same grid that other areas are connected to such as residential and other urban areas. Factories and plants are then not subject to the same rate and level of electrical distribution that houses and other smaller infrastructures are subjected to. Since small infrastructures have smaller requirements, they get a relatively lower level of distribution. The costs and rates of the said consumption requirements are also scaled properly to make it profitable for electricity providers.

If huge industrial companies that require a lot of energy are subject to the same circumstances then not only are they at a disadvantage, but they will also be faced with the same problems and setbacks other areas are faced with such as power outages and electricity rationing — problems that some businesses may not afford to deal with.

With an independent electric grid, the right amount of energy is distributed properly to the companies in the industrial park and consistent output can be more or less guaranteed.

Water supply

Aside from electricity, water also gets the same kind of treatment in an industrial park. Water is another resource that many businesses need copious amounts of to carry out their daily operations. Since wastewater is a common by-product of many industrial processes, water treatment is also needed to keep things sustainable.

With a dedicated water supply and treatment system, businesses in industrial parks get to enjoy a consistent, renewable, round-the-clock supply of water.

Security and fire protection

Since there are many chemical and mechanical processes happening at any given moment in a factory or plant, the risk of accidental fires will always be there. That being said, adequate fire protection is required by the law so that large-scale accidents can be avoided. In moments where an actual fire happens, firefighters have to react quickly so that the fire doesn’t escalate and end up causing more damage. Industrial parks have firefighters on standby at all times to guarantee a quick response.

Beyond mere fire protection, general security is also another added benefit of industrial parks. Burglaries, sabotage, and vandalism are not out of the realm of possibility, which is why a dedicated and responsive security system is also a staple feature for an industrial park.

Ground management team

Only the best industrial parks offer their own highly trained ground management team as an added service and feature to complement the complete infrastructure. A management team is assigned to companies to help handle the administration and maintenance side of things. On-site managers and their teams handle environmental management and community building. They are also in charge of coordinating the operations of enterprises located in the park with regulatory agencies, enterprises can continue their operations without any problem.

Industrial businesses are incentivized to relocate to an industrial park

aerial view of an industrial park in the philippines

While integrated features, infrastructure, and physical space are already good incentives on their own for companies to relocate to an industrial park, there are also added incentives in terms of other aspects.

Special Economic Zone

Many industrial parks are deemed as special economic zones (SEZ). Special economic zones in a given country aren’t subject to the same business and trade laws that the rest of the country is subject to. While special economic zones are created to encourage more foreign investment, local businesses can seek to benefit as well. Examples of policies that apply to SEZs in the Philippines include income tax holidays, exemptions from wharfage dues, export tax, and simplified customs procedures.

Meaningful and consistent benchmarking

Another incentive you have for relocating to an industrial park is that you will have the opportunity to observe the business processes of other companies and locators in the industrial park and use them as a benchmark. By doing this, you can improve your own operations and production strategies.

Benchmarking is a welcome practice among competitors and similar businesses because it helps drive up the quality of the products and services offered. In an industrial park where only respectable businesses can be found, the opportunity for meaningful and consistent will be present.

Industrial Parks reduce the social and environmental impacts from other areas

Light industry & science Park IV entrance area

Given the nature of light, medium and heavy industries and all it entails; it is safe to say that there are also undesirable byproducts that come with its operation. This is more apparent when it comes to environmental aspects.

Pollution

With the burning of fossil fuels and continuous water usage, there is no avoiding the production of elements that are bad for the environment. These by-products are usually pollutants that come in the form of emissions that consist of carbon dioxide, methane, and nitrous oxide. Chemically contaminated water also results from the usage of water for certain production processes.

Outside of an industrial park setting, these pollutants can make their way to residential areas and affect people’s quality of life. Companies are starting to become conscious of the effects that their operations have on the community they are situated in. This is why industrial parks are highly beneficial for multiple industries because it provides an area where negative social and environmental impacts are reduced.

The Philippine Advantage

Portrait of pensive Filipino engineer working in his office

Now that you understand the advantages that industrial parks provide for your business, you next have to understand why an industrial park in the Philippines specifically is an even better proposition.

Filipinos are some of the best workers

There are a number of reasons as to why Filipinos are great workers not only for the purpose of industrial parks but also in general. The first reason is that much of the Filipino workforce is literate and educated enough to be competent laborers and employees. Filipinos are also well-versed in English and easy to train thanks to a relatively consistent educational background. It also helps that the culture of hospitality and friendliness has instilled an open and amicable nature among the Filipino people.

There is also a noticeable burgeoning generation of young people that provide a healthy labor supply. This makes finding young, eager, and competent workers easier when compared to other countries.

The Philippines has business-friendly policies

Beyond the Filipino people, the government itself offers business-friendly policies toward foreign investors. A prime example of this is the possibility of foreigners owning 100% of their business (given that they meet the requirements declared by the government). Investors’ basic rights are also guaranteed such as the right to remit profits and pay foreign obligations. Finally, investment procedures are also simplified.

Convenient government policies mixed with the environment that an industrial park in the Philippines can provide culminate in an environment that is conducive to success for both local and foreign business ventures.

The Philippines is a strategic location

Looking at the country’s geographical location relative to the rest of the world, there appear to be merits that come with setting up a business in the Philippines. If you look at the world map, the Philippines can be seen as a central location if you want to access the rest of Southeast Asia with East Asia and Australia being relatively close as well.

There are many avenues for CSR

The Philippines, being an ever-growing country in terms of economy and population, still has so much potential left to actualize. A big part of achieving this actualization is taking social development seriously. With that in mind, Corporate Social Responsibility (CSR) must always be on the mind of any organization and industrial parks are no exception.

Take the ICCP Group Foundation, Inc. (IGFI) as an example. The IGFI is the social development arm of the ICCP Group of Companies, the same group that operates the Science Park of the Philippines, one of the leading developers of industrial parks in the Philippines. They are responsible for developments such as the Hermosa Ecozone Industrial Park, which is a Bataan technology park.

The IGFI incorporates many different CSR programs that provide value to the communities they are helping to develop in different parts of the Philippines. Chief among these programs are waste management campaigns in elementary schools in Cebu, Immersion programs for senior high school students in the different industrial parks, and tree and vegetable planting in all the partner-schools of the IGFI.

Companies who are interested in increasing their CSR efforts will do well to situate their operations in an industrial park that has already established many different CSR programs. Not only can companies help, but they will also have the chance to also develop their own passion for corporate social responsibility.

Reap the benefits of having an integrated industrial infrastructure in the Philippines with Science Park

Now that you’ve read all the great things that come with operating in an industrial park in the Philippines, what better way for you to do it than with Science Park! Our industrial parks located across the country such as the Light Industry and Science Park series of industrial parks and the Hermosa Ecozone can provide all the benefits listed above and more.

Thanks to our organization’s experience and major accomplishments, your company is guaranteed to be in one of the best environments and locations possible. Just ask some of our most well-known locators such as Epson, Unilever, Pepsi, P&G, and Jotun. Aside from that, our skilled and hardworking Filipino workforce can and will surely provide the type of service your company needs.

If you are looking for some of the most excellent industrial parks in the Philippines, then consider Science Park. We can help your company develop better processes. Invest in a Subic industrial park such as the Hermosa Ecozone Industrial Park.

Click here to see a list of all of our industrial property developments. If you have any questions, concerns, or are interested in investing in the Philippines, please click here to contact us. We’ll be more than happy to respond and accommodate anything that we can help you out with. Lastly, please click here to see the answers to some frequently asked questions regarding us and our industrial property developments.

 

 

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