2015 cement sales rise 14.4% on infra spending

CEMENT SALES last year increased 14.4% to 24.36 million tons largely driven by a big increase in the public sector budget for infrastructure and the private sector confidence in the administration, the industry association said.

“When you have confidence in government you invest more,” said Ernesto M. Ordoñez, president of the Cement Manufacturers’ Association of the Philippines, in a phone interview yesterday. “You’re inclined to believe in a secure future, so you build more commercial buildings and residential houses.”

He said that the other growth drivers were the weather, with reduced rains during the year, and lower interest rates that resulted in more housing projects being developed than in the previous year. Sales in 2014 was recorded at 21.3 million tons.

In the fourth quarter alone, he said that cement sales increased by 16.7% to 6.08 million tons from 5.21 million tons in the same period in 2014.

Mr. Ordoñez said that businesses expect the trend to continue in 2016, an election year.

“The basics are still there — inflation is good, interest rate is good, monetary policy is good,” he said.

He added that investors have factored in the changed in leadership, and that this would not have a big impact on their expansion and investment plans.

In its Web site, the association listed six of the country’s biggest cement manufacturing groups as its members.

It also cited active participation in cement consumer associations, including the Philippine Concrete Industry Association, Ready Mix Concrete Association and the Philippine Constructors Association. —