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The Philippines prepare for increased construction activity following Typhoon Yolanda

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World Cement,

Reconstruction projects are set to result in strong growth for the construction sector in the Philippines over the coming year. The Philippine Contractors Association (PCA), which has been heavily involved in the clean-up operations following the typhoon, has predicted that construction activity will contribute to almost half of the countries economic expansion in 2014, with construction projects in 2014 likely to total P400 billion (US$9.17 billion).

Investment in the development of housing and infrastructure will be the main drive for the construction sector, as both remain in short supply following Typhoon Yolanda. Local press has reported that around 7 – 11 million people were affected by the hurricane that has caused approximately US$15 billion worth of damage, with around 3900 dead and 600 000 left homeless. Growth during 4Q13 has fallen from 7.1% to 4.1% y/y compared to 4Q12.

The Subdivision and Housing Developers Association has also reportedly called upon the construction industry to develop around 1 million new houses by 2016. Due to this, demand for building materials such as cement, concrete, steel and timber is set to remain strong.


The Philippine cement industry will benefit from the increase in construction activity. The Cement Manufacturers Association of the Philippines (CeMAP) noted that sales of cement were still higher than those in the same period in 2012, despite a sluggish market during the rainy season. CeMAP reported that the group’s six members, Cemex, Holcim, Lafarge, Northern Cement Corporation, Pacific Cement Philippines, Inc. and Taiheiyo Cement Philippines, Inc., saw an increase of 9.2% y/y in cement sales, which rose to 4.8 million t in 3Q13. Furthermore, cement manufacturers produced 18.4 million t of cement in 2012, an increase of 17.5% compared to 2011.

Edited from various sources by Rosalie Starling

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