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    The Philippine: Construction Industry

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    fritz molino
    The Philippine construction industry plays an important economic role. It has a high output multiplier, meaning it has strong forward and backward linkages throughout the economy. Construction accounts for a large percentage of the country's gross value added. It also has a high average growth rate. The industry includes residential and non-residential building construction as well as civil engineering works like roads, bridges, and utilities. It relies on inputs from other sectors and its activities support many downstream industries.

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    The Philippine: Construction Industry

    Uploaded by

    fritz molino
    90 views7 pages
    The Philippine construction industry plays an important economic role. It has a high output multiplier, meaning it has strong forward and backward linkages throughout the economy. Construction accounts for a large percentage of the country's gross value added. It also has a high average growth rate. The industry includes residential and non-residential building construction as well as civil engineering works like roads, bridges, and utilities. It relies on inputs from other sectors and its activities support many downstream industries.

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    Construction Industry

    Original Title

    Construction Industry

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    The Philippine construction industry plays an important economic role. It has a high output multiplier, meaning it has strong forward and backward linkages throughout the economy. Construction accounts for a large percentage of the country's gross value added. It also has a high average growth rate. The industry includes residential and non-residential building construction as well as civil engineering works like roads, bridges, and utilities. It relies on inputs from other sectors and its activities support many downstream industries.

    Copyright:

    © All Rights Reserved
    90 views7 pages

    The Philippine: Construction Industry

    Uploaded by

    fritz molino
    The Philippine construction industry plays an important economic role. It has a high output multiplier, meaning it has strong forward and backward linkages throughout the economy. Construction accounts for a large percentage of the country's gross value added. It also has a high average growth rate. The industry includes residential and non-residential building construction as well as civil engineering works like roads, bridges, and utilities. It relies on inputs from other sectors and its activities support many downstream industries.

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    © All Rights Reserved
    of 7

    The Philippine

    Construction Industry
    Construction Industry Philippine Standard Industry Classification (PSIC) 2009
    Section F: Construction Industry
    F41: Construction of F42:Civil Engineering F43: Specialized Construction
    Buildings Works
    Roads, Rails, Bridges Demolition and Site
    Residential Buildings Motorways, streets, roads Preparation
    Single Family House
    Bridges, tunnels
    Multi-Family Buildings Railway, subways, airfield Demolitions

    High-Rise Buildings runways Earth-moving, drilling


    Drainage building
    Utilities
    Non-Residential Buildings Long distance pipeline, Installations
    communication and power lines
    Electrical Installation
    Water and main line construction
    Buildings for Industrial Prod’n Plumbing, Heat, Air Conditioning
    Irrigation, reservoirs, sewers, water
    Hospitals, Schools, Offices well drilling Installation
    Hotels, Stores, Malls, Restaurants, Other Installations
    Parking
    Airport Buildings
    Others
    Industrial facilities Completion and Finishing
    Warehouses
    Interior, Exterior Designing
    Religious Buildings Ports, Waterways, etc.
    Furniture, doors, tiles, painting
    Inputs Production Process Products Forward
    A. Agriculture, Fishery and Forestry Linkages
    (e.g. lumber) Planning/ Development
    Government
    B. Mining and Quarrying Buildings
    (e.g. aggregates) • Residential
    • Non-residential
    Ownership of
    C. Manufactured Materials
    (e.g. cement, steel, fabricated metals)
    Design/ Engineering Dwellings

    D. Electricity, Gas, Steam and air- Banking


    conditioning supply

    E. Water supply, sewerage Procurement Civil Agribusiness


    Engineering
    H. Transport & Storage • Roads, Rails,
    Bridges Real Estate
    • Utilities
    Food, Beverage,
    L. Real Estate Activities Construction Service • Others
    Tobacco
    M. Professional, technical, scientific
    services Communication
    (e.g. architectural, engineering
    Operations and Specialized
    services, other technical services)
    Management Works Water
    • Site Preparation and
    N. Administrative and support Demolition Electrical
    services activities • Installation Machinery
    (e.g. rental of equipment without • Completion and
    driving operator) Finishing
    Technology Wholesale and
    Corporate Governance Retail Trade
    S. Other Services
    Construction Value Chain (Indicative Average for All)

    Labor
    Raw Materials [15-20%] Project Management
    Equipment
    [30-35%] [15-20%] Net
    [10-15%]
    Income
    Margin
    Administrative Overhead and HQ Support [8-10%] 8-15%
    Transport and Logistics [10-15%]
    Design [2-3%]

    “Other Cost of Doing Business (Political Capital?)” [?-? %]


    Source: PSA, Annual Survey of Establishments 6
    Relative Importance of Economic Sectors Construction is
    important in all 3
    aspects:
    3
    Manufacturing
    1. High Value of
    2.75 Output
    Output Multiplier (2006)

    2.5 Construction
    2. High Output
    Other Multiplier
    2.25 Transportation, Services
    Agriculture Communication, Storage 3. High Growth
    Mining
    2

    1.75
    Domestic Trade
    1.5
    Public Admin
    1.25 Real Estate &
    Utilities Finance
    Business Services
    1
    0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11%
    Ave. Growth Rate (2012-2017)
    * Size of bubble by Gross Value Added in 2017
    7
    Relative Importance of Economic Sectors
    2.75
    Output Multiplier (2012)

    Manufacturing Construction
    2.50
    Tourism &
    Transport & Other Services
    2.25 Communication

    2.00
    Agriculture
    Domestic Trade

    1.75 Mining

    Public Admin
    1.50 Finance Real Estate &
    Business Services
    Utilities
    1.25
    0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11%
    Ave. Growth Rate (2012-2017)
    * by Gross Value Added in 2017
    Construction is top 2 generator of national output per P1 investment
    8

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