A slowdown in Philippine construction industry is felt this year following the infrastructure boost directed by former President Gloria Macapagal-Arroyo during the last year of her term.
It was during 2009 that most of the roads, buildings, and other infrastructure projects were implemented following the directive of the previous administration.
The Arroyo administration submitted a record P1.5 trillion national budget proposal in 2009, representing a 7.5% increase on the previous year.
This led to an estimated growth for the Philippines¡¯ construction sector in 2009 of 2.9% in real terms.
Even the country¡¯s leading cement manufacturer Holcim Philippines, Inc. felt the highest demand growth last year. However, demand slowed down following the completion of these government infrastructure projects.
Holcim Mindanao Regional Head William C. Sumalinog bared that total consumption decreased by 18 percent last May 2010 as compared to May 2009.
"A big driver of demand comes from government infrastructure projects. So we really expect a slowdown of demand after last year¡¯s infrastructure boost," said Sumalinog.
Holcim operates in four major plants: in La Union, in Bulacan, in Davao City, and in Misamis Oriental.
The plants account for a total installed clinker production capacity per year of 7.2 million metric tons and annual cement production capacity of 8.7 million metric tons.
It employs over 1,400 employees in four plants spread across the archipelago. It has a 40-year old history that dates back to its beginnings in Hi Cement Corporation, Davao Union Cement Corporation, Bacnotan Cement Corporation and Alsons Cement Corporation.
Despite the expected demand slowdown, the company is still optimistic to reach targets with the active construction activities on the side of the private sector.
