Market Trends of Philippines Building System Components Industry
This section covers the major market trends shaping the Philippines Building System Components Market according to our research experts:
Government’s Build, Build, Build (BBB) Program Impacting the Building System Components Market in Philippines
- The Build! Build! Build! (BBB) program is the centerpiece program of the Duterte administration that aims to usher the “Golden age of infrastructure” in the Philippines. Lack of infrastructure has long been cited as the “Achilles’ heel” of Philippine economic development.
- The BBB program seeks to accelerate public infrastructure expenditure from an average of 2.9 % of gross domestic product (GDP) during the Aquino regime to about 7.3 % at the end of the Duterte administration. This will cost around PHP 8 trillion to PHP 9 trillion from 2016 to 2022, to address the huge infrastructure backlog in the country.
- The BBB program is anchored on the implementation of 75 infrastructure 5 flood control projects, 4 energy facilities, and 3 social infrastructure.
- These IFPs, which have a combined indicative cost of PHP 2.2 trillion, are high-impact projects intended to help bring down production costs in the country, facilitate the efficient movement of goods and people, improve rural incomes, encourage countryside development, and create 1.7 million jobs by 2022.
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Light Metal Frame is Accounting Largest Market Share
- Demand for the light metal frame and light steel frame market mainly concentrates on two aspects: One is engineering construction, mainly for the renovation and construction of workshops, etc.
- In the Philippines, the light metal frame accounts for 70% in engineering construction and 30% in non-residence or the building under 2-story. In many industrially developed countries, such as the United States, Japan, the United Kingdom, and Australia, etc., the steel structure residence has been already popularized.
- The usage ratio is expected to grow in the non-residential sector, as the current government’s projects are mostly into improving the country’s infrastructure. Industrial buildings are majorly expected to capture more market opportunities soon.
- Fundamental to offsite construction, light steel is ideal for an array of building applications from housing to medical, commercial, and leisure sectors. Typically used in building structures, steel framing may be used in panelized or volumetric systems, as well as hybrid structures. Light steel's lightweight, airtightness, and thermal benefits make it a frequently specified material across all sectors.
