Industry insiders see upturn in construction sector
The domestic construction industry is poised for a modest rebound this year as the government ramps up its major infrastructure projects and with sustained support for small and medium contractors who were most affected by the global pandemic.
This is the outlook of the Philippine Constructors Association (PCA) which includes highest-rated construction companies in the country, plus small and medium enterprises (SME) and suppliers through its chapters and affiliates nationwide.
According to PCA president Wilfredo Decena, the construction sector will contribute strongly to the recovery of the domestic economy this year after slumping 26 percent last year, sending the national gross domestic product (GDP) to a steep 9.5 percent year-on-year drop.
Fitch Solutions recently upgraded its growth forecast for the Philippine construction sector to 9.5 percent this year, near to its average 10 percent annual growth before the Covid-19 crisis that battered economies around the world in 2020.
Decena said that timely public spending on infrastructure would boost the industry despite soft private construction investments as the national government has allocated a sizeable P1.1 trillion of the P4.5 trillion national budget this year to infrastructure projects.
As part of the ten-point industry trends and challenges discussed during the meeting, Decena called for the prompt payment of contractors, especially the SME, since they were already absorbing extraordinary costs related to Covid-19.
Also identified as among the top trends in the construction industry this year are the acceleration of digitization and other emerging technologies to increase efficiency and productivity, and the move towards sustainable infrastructure which is not just green but also resilient.