SGS to double revenues by 2020

Leading testing, inspection and certification company SGS Philippines Inc. is targeting to double its revenues by 2020, banking on the rising demand for their services amid increased infrastructure spending in the country and the economic integration within the ASEAN region.

SGS Philippines managing director Ariel Miranda told reporters the company aims to grow at about 20 percent annually over the next five years, essentially doubling its revenues by 2020.

“It’s a five-year growth plan, expanding 20 percent (top line) year-on-year. That means doubling the company in five years,” Miranda said.

Without citing figures, the company official said SGS would increase its investments in the Philippines through augmenting its labor force, diversifying its services and expanding its presence in the Philippines.

Currently, SGS Philippines has offices and laboratories in Metro Manila, Subic and Cebu.

“We plan to expand further south in Mindanao, which we still don’t have at the moment, and probably further north like in Baguio or the northern area in Luzon,” Miranda said.

He said the company seeks to tap the food sector in Mindanao, particularly the micro, small and medium enterprises (MSMEs) in the region.

“I think Mindanao is an area wherein there is growth in terms of food manufacturing. We’re looking at Cagayan De Oro, Davao and General Santos,” Miranda said.

“We want to look at the MSMEs, which I think the services that we provide can help them grow and compete in the ASEAN market and globally,” he added.

According to Miranda, the ASEAN economic integration, as well as globalization, could count as an engine for growth for SGS as it translates to an increased demand in services that assure quality, security, hygiene and standards of products and processes.

He said SGS has partnered with the Department of Trade and Industry to conduct awareness seminars for MSMEs on the need for quality inspection, specifically for agricultural and food products.

The company also plans to forge tie ups with big corporations to help bring their trainings and services to smaller businesses as these players get their raw materials from the MSMEs.

Miranda also noted the potential of SGS’ industrial segment due to the increased infrastructure spending in the country.

“Construction is growing, the industry is growing in the Philippines, so we expect a lot of growth in the industrial business line,” he said, adding SGS’ industrial line was expected to grow at about 40 percent this 2016.

However, Miranda also expressed his concern amid uncertainties in the mining industry which is the second largest business segment of SGS.