Construction growth will be the most impressive of all sectors

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Part of Business Day Special Report

Title
Construction growth will be the most impressive of all sectors
Language
English
Year
1975
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In Copyright - Educational Use Permitted
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Thursday, September 11, 1975 Page 19 ■r <• Construction growth Will most impressive of all sectors The construction sector will provide the much needed push for the country’s economic growth in 1975. Projections of Business Day Research place the growth of the construction sector at 14.5 per cent (1967 prices). Although slightly lower than the 1974 expansion of 15 per cent, construction growth in 1975 will still be the most impresive of all the sectors of the economy. Aggregate value of goods and services to be produced by the construction sector this year is estimated at million (at 1967 prices), representing an increment of P154 million from the level of Pl,064 million registered last year. 3 Forecasts on the performance of the sector in 1975 - . are heavily dependent on the assumption that there will be no marked increase in the prices of oil and oil-based products during the remaining months of the year. i I ci ii ■> . vpr,218 II t J II II I II II Infrastructure A big boost to construction activities during the year H is the increased government funding of its infrastructure program. The government’s public works program for the fouryear period ending with FY 1979 has a budget of P38.78 billion. Infrastructure has a total funding of P23.26 billion in local currency and P2.07 billion in foreign exchange. Capital investment requirements of the infrastructure program in FY 1976 amounts to P8,009.7 million ($1 = 7.50), peso requirement is P5,603.8 million that of foreign exchange, $320,786 million. Of the total infrastructure investment requirements of FY 1976, transportation and telecommunication are the main beneficiaries with 30 per cent or P2,435 million. Allocations are: Pl,819 million for highways; Pl68 million for airports and airways; P245.9 million for portworks; P161 million for railways; and P40 million for telecommunications. Next biggest is power and electrification with an allocation of P2,074 billion. ii I i ii 41 II II •I*: ii II II II 11 II II II Power has Pl,654 million and rural electrification, P420 million. Total investment requirements of water resources foi FY 1976 amount to about Pl ,963 while social infrastructure has a programmed cash requirement of P735.9 million. P800 million are earmarked for miscellaneous and other special projects. Roads To accelerate the economic growth and thereby improve the living conditions in the rural areas, the Department of Public Works scheduled the release of P60 illion starting last August. This amount is appropriated (or the construction and improvement of farm-tomarket or barangay or feeder roads in the rural areas. These roads will facilitate the transfer of farm produce from the production areas to the market centers. The prominence of economic activities in the construction sector can be seen from the fact that while almost all industry areas resorted to employment cut(Continued to page 20) II * I II I II Like the sea. Reclaimed by man. Ecologically planned. Laid out to suit man's needs. This is the Manila Cavite Coastal Road & Reclamation Project. Sixteen hundred hectares of land. A monument to man’s ambition. And his creativity. To live. Better. Soon . . . in 12 years. w ii ii II II II II II I M II II II II II / a - . • - M II X f* J V '’A" . '•/' Category ■ ■ 4 X •>s I •V : ft •:< «s n ** '1 1 r JA'' Ms ■-■'Z r KZ;?.' V.V. V., s 'A> s&:?i > 'x<y> '1 -Z-’fi > << * * z (< < • • **• • X' . 4BT' * •Jv’ • • • * • •. I z V ?'.>i ’zS .* V. ' V. '«« A Z , • rr J T, • * •X-.v.• • * • • >X ?'.< a , « « a » • a • • / • • * • • z»? ¥ ■i A ; * 1 * u £ ’ *• >> • * • ii <-y SfcvX 3/ •ar • «* • « r •;»v . ** ■ • « a z i I I ✓: ANNUAL INFRASTRUCTURE PROGRAM, FY 1976 CAST INVESTMENT REQUIREMENT (In thousands) ANNUAL REQUIREMENT Total In ($ - P7.50) (2 & 3) Local Currency P (2) Foreign Exchanges (3) %•< SSW* V A. Transportation & Telecom Highways Airports & Airways Portworks Railways Telecommunications . Water Re sou rces Irrigation Water Supply & Sewerage Flood Control & Drainage C. Power & Electrification Power Rural Electrification D. Social Infrastructure I i: School Buildings National Buildings Hospital & Sanitaria Shore Protection R HU E DP I TA F Other P. W. Projects Misc & Other Special Projects TOTAL T •1 ■ ■iaaj ?x» ;-’4 LX ,W>$ 54^ X. > I P2,436,486 1,819,295 168,449 246,929 161,612 40,200 1,963,366 1,094,822 2,029,555 1,551,936 145,949 201,417 93,804 36,450 1,265,484 712,630 54,124 35,648 3,000 5,935 9,041 500 93,061 50,959 v pW'F" LAND DEVELOPMENT • ■F MINING • AGRO-INDUSTRIAL • BUILDING AND HOUSING* UTILITIES • TRANSPORT • PROJECT MANAGEMENT • 283,396 145,711 18,358 585,148 2,074,750 1,654,628 420,122 735,941 377,707 92,648 101,899 6,070 37,616 21,000 100,000 407,143 873,603 676,981 196,622 729,633 377,707 92,648 101,899 5,070 31,309 21,000 100,000 oo 800,1 P8,009,731 705,661 P5,603,836 R H U — Rural Health Units EDPITAF - Education Project Implementation Task Force Source: NEDA 23,734 160,153 130,363 29,800 841 41 12,617 $320,786 MAJOR FIELDS OF ACTIVITY • WATER RESOURCES • INDUSTRIAL CONSTRUCTION • INDUSTRIAL REFRIGERATION • SERVICES • FEASIBILITY STUDIES • ESTATE PLANNING • GEODETIC ENGINEERING*FOUNDATION AND GEOLOGY* HYDRAULIC ENGINEERING * COST ESTIMATES * SPECIFICATIONS • EQUIPMENT LEASING • TIRE RECAPPING • CONSTRUCTION • INDUSTRIAL AND PROCESS PLANTS • HIGHWAYS • MARINE • QUARRYING* BUILDING* MECHANICAL* ELECTRICAL • REFRIGERATION • PROCESS PLANTS • AGGREGATES • CONCRETE • ASPHALT • CEMENT • FABRICATION • STEEL • CONCRETE • TIMBER • FACILITIES MANAGEMENT • TOLL EXPRESSWAY OPERATIONS • UTILITIES • INDUSTRIAL ESTATES • HOTELS • BUILDINGS * k Buendia Avenue. Makati. Rizal Thursday, September 11, 1975 9 FOUR-YEAR INFRASTRUCTURE PROGRAM FY 1976-FY 1979 CAST INVESTMENT REQUIREMENT (In thousands) Category Total in P ($1 = 7.50) (2&3) ( 1 ) A. Transport P11,408,085 1. Highways 2. Airports & Airways 3. Portworks 4. Railways . Telecommunications C. Water Resources 9,047,700 818,231 644,732 877,422 500,738 1,875,870 Total 4-Yaar Requirement Local Currency Foreign Exchange / I (2) (3) P8,975,445 $324,352 1. Irrigation 2. Water Supp. & Serv. 3. Flood Control Drge. D. Fbwer & Electrification 4,030,113 2,522,068 2,323,689 13,609,256 7,550,550 431,981 512,175 480,739 187,950 6,071,380 I 2,715,123 1,328,173 2,028,084 4,045,549 1. Power 2. Rural Electrification E. Social Infrastructure 12,390,545 1,218,712 2,719,503 1,215,043 475,012 343,368 30,200 263,635 22,245 370,000 1,665,878 625,71 179,160 41,000 200,000 320,000 50,000 3,575370 469,679 2,609,538 1,215,043 475,012 343,36 30,200 171,715 4,200 370,000 1,374,690 436,845 91345 26,000 200,000 320,000 50,000 I 199,620 51,500 20,341 42,891 41,705 * 373,932' 175,332 159,186 39,414 1,275,161 1,175,290 99,871 14,662 12,256 2,406 I le first semester of per cent more irere employed in struction sector to the second 1974 levels, and er cent more to the period from • June in 1974. •I* 3r which will furn tribute to the ’ the sector is the hike in real estate year. Real estate Ireater Manila will >rd high of P49.3 an BF according to made by demand for housing by middle income earners and the Central Bank’s rediscounting privilege of up to 40 per cent of housing mortgage papers to thrift institutions (savings banks and savings and loans associations) are expected t give uscle to the real estate industry this year. dded boost is the government’s to ii An II If P500 marked Hi: ■ Increased investments With the expansion in construction activity, an increased number of firms which will engage in construction is expected. The total number of new stock corporations in this sector during FY 1974-75 was 259, an increase of 72.7 per cent over last year’s total of 188 firms. Combined authorized capital of these new firms stood at more than P687.81 million, registering an ini •4 ANNUAL INFRASTRUCTURE PROGRAM, FY 1976 CASH INVESTMENT REQUIREMENT (In thousand Pesos) TRANSPORTATION & TELECOMMUNICATION (P2.435.185) 27% -1 POWER & ELECTRIFICATION (P2.074.750) 26% crement of 178 per cent over last year‘s level. Similarly, actual paid-up capital stood at P47.29 million, recording an expansion of 172 per cent from last year’s *■ total. More hotels, resort facilities and condominium firms during the year will likewise accelerate the growth of the construction sector. During \ FY 1974-75, 69 new firms in the hotel trade registered with the Securities and : change Commission. This is 91.7 per cent higher than last year’s 33 new firms. h cFinancing Recent moves to facilitate financing of construction projects, especially in lowcost housing, will increase the tempo of activity in the sector. • J I j f I, The Social Security System provides housing loans for its members who re regular employees in private enterprises. The SSS allows a member to borrow up to 90 per cent of the cost of the house. Amoritizations are spread out over a 25-year period. To insure availability of more financing for housing7 r projects, the National Economic and Development ) Authority is currently at work on the development of the secondary mortgage market. Similarly, financial institutions may be required to allocate a certain portion of their portfolio holdings to real estate mortgage. Private construction As government construction activities move at a faster pace, the private sector is expected to follow the same trend this year. The number of private building permits in the Philippines for 1975 is projected to level at 21,676, about 30 per cent higher than last year. Similarly, floor area is estimated to expand by 48 per cent, reaching a total of 3,668,000 sa. meters in 1975. ►: i * 250,000 250,000 P38,799,329 $2,068,637 P23,264,552 Source: NEDA (Continued to page 22) •1^ J 25,183 11,642 2, WATER RESOURCES (P1.963.366) I I P800?180 MISCELLANEOUS & OTHER SPECIAL PROJECTS / As prices of construction materials and labor move 38,825 1. School Buildings 2. Nat'l Bldgs. 3. Hosp. & Sanitaria 4. Shore Protection 5. R H U 6. EDPITAF 7. Other P.W. Proj. F. Misc. Projects 1. EPZA 2. PADAP 3. LLDA 4. Misc. Pre- Eng'<5 Studies 5. Other De. Eng'g. Row 6. Tondo Roreshore 7. P. W. Cont' Price Adjustment TOTAL “ 8,009,731 Page 22 business Day Thursday, September 11,1975 *9 I upward as a result of the adjustment in fuel prices, total value of private building construction for 1975 may grow by 77 per cent from the previous year’s value of P996.966 million, to reach Pl,774 million in 1975. The bulk of private building construction activity in the Philippines will be concentrated in Manila and suburbs as floor area and value of building constructions are estimated to amount to 2,087,000 sq. meters and Pl, 34 2.6 million respectively. Compared to last year, total floor area of buildings constructed in 1975 will expand by 52 per cent while value is projected to increase t a higher 94 per cent. Other chartered cities are likewise expected to exhibit growth in private building construction. Total floor projected at sq. meters while value is at P431.6 million, a growth of 43 per cent and 41 per cent respectively over last year. I Construction materials The prices of construction materials will exert a very big influence on the performance of the construction sector this year. If no significant increase in the prices of construction materials ensue during the remaining months of the year, the growth of this sector is expected to be impressive. However, any significant increase in the price of oil and oil products during the year is expected to affect the prices of construction materials and result in the slackening of the growth of the construction sector. « •II 1973 January February March April May June July August September October November December PERMIT VALUATION OF PRIVATE BUILDING CONSTRUCTION IN GREATER MANILA AND OTHER CHARTERED CITIES (Floor Area in Thousand Square Meters; Value in Thousand Pesos) 1973 - 1975 Total, Philippines Manila & Suburbs Other Chartered Cities Number of Permit 20,66; 2,0 I w w oo 1,898 2,121 1,699 1,928 1,781 1,482 1,552 1,611 1,811 1,505 1,192 Floor Area Value Number f Permit Floor Area Value Number of Permit Floor Area Value area is 1,577,0 II 11 o 2,655 207 25 305 214 246 194 152 180 o 22 307 182 182 609,450 42,126 54,080 70,125 41,863 64,799 41,516 33,257 57,749 52,886 59,282 42,923 48,844 » cj ,331 773 29 998 696 841 705 . 547 635 584 702 595 433 1,470 112 175 211 120 156 110 73 102 122 203 93 103 395,317 27,532 41,103 54,673 26,985 46,868 28,030 19,675 23,682 26,936 39,029 27,235 33,569 12,330 1,315 1,069 1,123 1,003 1,087 1,076 935 917 1,027 1,109 910 759 1,069 95 83 93 93 f) oo o 3 79 78 106 104 «9 79 194,130 14,594 12,976 15,452 14,878 17,951 13,486 13,581 14,067 25,950 20,233 15,687 15,275 1974 January February March April May June July August September October November December 16,645 1,718 1,310 1,359 1,413 1,723 1,165 1,24 1,290 1,375 1,379 1,325 1,340 o 2,477 219 193 211 199 200 202 215 173 193 242 180 250 996,966 61,581 66,520 60,470 68,215 66,841 91,872 112,253 65,858 81,129 97,593 72,273 158,361 6,667. 603 536 557 602 744 418 506 466 590 586 57 481 ( ) 1,370 101 97 120 118 105 116 125 85 99 151 90 163 690,369 32,432 41,550 41,593 49,898 45,088 66,812 85,292 37,094 53,521 61,679 44,261 131,149 Q O o Q O o 1975 January February March April May June July August September October November December 21,676 1,683 1,466 1,545 1,742 1,840 1,778 1,822 1,868 1,914 1,960 2,006 2,052 3,66 356 351 245 288 260 236 303 310 31 326 334 341 o o 1,774,273 255,573 201,346 91,405 110,215 101,842 o 104,35 143,544 146,762 149,980 153,198 156,416 159,634 July to December 1975 are Business Day projections Source: NCSO L x ■ • 4 I I o ,701 650 554 662 734 845 606 730 74 766 784 802 820 (J 2,087 221 231 132 161 144 112 171 175 179 183 187 191 1,342,61 217,606 173,170 61,814 68,843 66,861 o 71,080 107,424 110,004 112,584 115,164 117,744 120,324 £4 A A A1 A )A A 3 FRIED. KRUPP MASCHINENFABRICK BUCKAU LURGI GESELLSCHAFT NUC NORDDEUTSCHE UEBERSEEGESSELLSCHAFT MACHINENBAU • w k * ■ STAR MACHINERY COMPANY HEMPEL'S MARINE PAINTS Machinery and Equipment of proven quality and outstanding performance. • Fried. Krupp GmbH. • Maschinenfabrick Buckau R. Wolf A.G. • Norddeutsche Ueberseegessellschaft in Hamburg m.b.H. • Mak Machinenbau GmbH • Lurgi Gesellschaft. • Hempel’s Marine Paints • Star Machinery. We at RODOZA TRADING CO., INC. carry all these trademarks and many others. Because of their proven excellence. Helping develop Philippine industries: In wood, automotive, shipping, shipbuilding coconut oil, pharmaceutical and chemical production. Railway equipment. Mining. Sugar. Individual machinery and equipment for all industries. I •»* L*! • X \ 1 * 1 w | » • * * I We plan, supply and install complete industrial plants. And their individual components. ill ■r-.E**'jMaadafl it* ■. • £•/ V • > < S • TRADING COMPANY, INC. • 4th Floor, Oledan Building Ayala Avenue, Makati, Rizal 86-51-51 86-53-53 1 Reach, Inc. 9,97 1,115 774 02 11 979 747 742 824 785 793 747 859 1,105 11 95 91 81 94 86 89 o8 94 92 90 7 o 306,597 29,149 18,970 18,877 18,316 21,753 25,060 26,961 28,764 27,609 35,914 28,012 27,212 12,975 1,033 912 883 o 1,00 995 1,172 1,092 1,120 144 1,176 1,204 1,232 Q o 1,577 135 120 114 127 116 124 131 135 13 142 146 149 ri o 431,650 37,967 28,176 29,592 41,372 34,981 o 33,27 36,119 36,757 . 37,395 38,033 38,671 39,309 .4 z 1 The flame and the minerals. The seal is symbolic of Filipino workers' efforts and indigenous materials that are fused together to make glass. The seal symbolizes Republic Glass ... now the new profile in the economic picture. Today, with Filipino ownership, Republic Glass participates actively in the economic mainstream contributing its Efforts, in its own modest way, to the fulfillment of our national aspirations. * » The New Profile „ in the. Economic Frame SALES OFFICE: MADRIGAL BLDG., AYALA AVE. MAKATI, RIZAL TELS. 88-13-11 TO 88-13-20 PLANT OFFICE: PINAGBUHATAN,PASIG, RIZAL