PH gears up MRO, aerospace manufacturing in Asia Pacific

The Philippines is gearing up to be recognized partner in aircraft maintenance, repair, and overhaul (MRO) and aerospace manufacturing in the Asia Pacific region as it showcased the local aerospace industry’s capabilities at the recent Aeromart Summit in Clark Field, Pampanga.

Trade Undersecretary for Industry Development and Board of Investments (BOI) Managing Head Ceferino Rodolfo cited the country’s competencies in the aerospace sector in his keynote at the summit held in the former American airbase.

The country’s MRO companies are led by Lufthansa Technik and SIA Engineering Philippines also services various models of aircrafts from different manufacturers and airline operators such as Philippine Airlines and Cebu Pacific Air and the country’s large value of importation of aircrafts and aerospace parts is a proof of the growing MRO segment in the Philippines. Philippine MRO companies have authority approvals from the United States, Europe, Cayman, and Australia.

“A lot of Philippine industries are well-known globally, such our strong information technology-business process management (IT-BPM), electronics and creative industries. However, regrettably, the Philippine aerospace industry is not one of those we are known for. It is not because we are not good at it, but simply because most have not even heard that we have an aerospace industry. This has to change from here,” said Rodolfo.

The event, he said, creates greater awareness on the country’s capabilities as a reputable supplier of the world’s largest aircraft manufacturers like Airbus and Boeing with aerospace parts ranging from flight control actuation systems to galleys and interior fit-outs.

Data showed that the Philippine aerospace industry is among the fastest growing industries in the AsiaPacific Region, with exports growing by 42 percent annually from 2012-2016, translating into a significant 30-place increase in the country’s rank in the PWC Aerospace Manufacturing Attractiveness Index of 2017.

Europe and the Americas the biggest export destinations, at 45.8 percent and 40.8 percent share to total exports of aerospace parts in 2016, respectively. Asia Pacific accounts for 12.8 percent share. Exports of aerospace parts include OEM (original equipment manufacturing) parts such as flight control actuation systems, interiors, galleys and equipment, panels, and lavatories for the global commercial aircraft industry.

“The Philippines has the right people to grow the aerospace industry. We are also strategically located in the Asia-Pacific where we are also among the fastest growing economies. Our competences in allied industries provide for a solid base to further develop and expand current capabilities in aerospace,” he said.

The human capital in the Philippines has one of the highest capacities in the East Asia and the Pacific region, the highest among ASEAN based on the 2017 Global Human Capital Report. With around 700,000 graduates annually, more than 10 percent are engineering graduates.

“Our large population base and educated workforce provides for good base to further develop our competencies in aerospace. Companies in the Philippines have long seen the value of investing in Filipino talent as it among the top in terms of percentage of firms offering formal training programs for their employees,” he said.

The Aeromart Summit Clark Plenary Conference served as a platform to discuss the various topics and facets on the aerospace industry. Attended by hundreds of industry stakeholders, private companies, and government representatives, the conference had four sessions.