Cement Industry Growth Expected in the Philippines for 2014

So far in 2014, the Philippines have already seen robust construction and high government spending. Over the last three years, there has been a 6 to 7% growth in the nation's industry for the past three years, with a 5.9% growth in sales just last year.

The Philippines saw the highest growth percentage in 2012: 17.5%, which was the highest growth in 15 years. 18.4 million tons of cement were sold that year, as compared to 2011's 15.6 million tons. Though 2012's sales spike can be attributed mostly to projects being run by the government and other private sectors, it is thought that there is enough momentum to carry the growth into 2014 as there are now other infrastructure projects under way as well as a budget increase by the Department of Public Works and Highways.

Whenever the industry sees such a big increase in demand, the local cement industries need to accommodate it. Companies in the Philippines are allocating large portions of their budget in order to finance the additional millions of metric tons that will likely be needed for building projects this year. In the past, more drastic measures had to be taken, such as when Seament Holding had to invent floating terminals for countries with high cement demands and no means of importation.

Aside from its own growth, the Philippines is becoming a huge market for cement due to other nearby cities growing quickly: Western Visayas, Mindanao, and Northern Luzon. The more construction in nearby areas, the more the Philippines as a whole can grow -- a high demand creates room for new opportunities. It's quite an energy-intensive venture, which will provide a challenge for the small country, but it's one worth investing in for the long run.