Name: Manufacturing

Icon: /photos/committee/icon/11/icon-manufacturing.png

Content: <p>With an economy largely driven by the services sector, the Philippines’ major sources of growth have become more diversified in recent years. The expansion of manufacturing activities is a clear manifestation of this structural change as it outpaced the growth of the country’s services sector within the last four years.</p> <p>While service-related economic activities have traditionally buoyed the Philippine economy during the past decades, the economic contribution of the manufacturing industry has become more notable since 2013. From 1999 to 2012, services registered an average quarterly growth of 5,5%, while manufacturing grew at an average of 4%. However, from 2013 to 2016, the average quarterly growth of the sector hovered around 8,1%, while services registered an average of 6,6%.</p> <p>From 2010 to 2015, the manufacturing sector contributed €14,2 billion in gross value added (GVA) reaching €52,1 billion GVA at current prices and growing an average of 7,3% per annum, nearly double the annual growth rate of the previous decade. More importantly, manufacturing labor productivity gained a huge 30% increase (based on GVA current prices) from 2010 to 2014 after plateauing in previous decades.</p> <p>Foreign direct investments (FDIs) in manufacturing, excluding reinvestments and debt instruments reached €2,8 billion in the last five years. In 2015, approved FDIs reached €2,6 billion. The availability of natural resources such as copper, gold, and nickel has lured foreign companies in mining and metals processing, representing 20% of manufacturing-related FDIs from 2009 to 2013.</p> <p>Estimated to have expanded by 7–8% to €25,1 billion in 2015, the Philippine semiconductor and electronics industry also accounts for the majority of the country’s exports, led by large foreign investors such as Amkor, Canon, Samsung, Sunpower, and Texas Instruments, among others. Companies have also invested in unprocessed and processed tobacco, given the country’s strong agricultural base.</p> <p> </p> <p><a href="http://www.epbn.ph/publications/download?file_name=EPBN_Business_Primer_Teaser_-_Manufacturing.pdf&amp;id=17">Click here to download A Brief Overview of the Philippine Manufacturing Industry »</a></p>

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