Local cement manufacturers may employ 4 lakh Filipinos by 2030
The Philippines is expected to witness a nationwide increase in cement demand. In fact, in the past five years, the volume of cement imports entering the Philippines grew by about 295 percent per annum, soaring from just 3,558 metric tons in 2013, to as much as 3.4 million metric tons for the first three quarters of 2018.
As local cement manufacturers look to meet this increased demand of cement and expand their capacity, they may hire some 4, 00,000 Filipinos, directly and indirectly, by 2030 should a favorable business environment and enough government support enable them to sustain growth.
According to CeMAP’s data for every one million tons of additional production capacity needed, a total of 4,500 to 6,500 jobs can be created.
Cirilo Pestano, executive director of CeMAP said, “The figure does not include those of the new players yet. If everyone is accounted for and if all new plants materialize as announced, we will see more jobs created across the value chain. But there are a number of requisites to realize the most ideal future for the sector.”
While in the short to medium term, incumbent cement manufacturers mulling up to 17 million tons in added capacity can translate to more than 1,10,000 jobs, there is a strong support government the local industry needs to realize its full potential.
“For the local industry to realize its full potential, we need to have temporary trade safeguards against cement imports in place,” says Pestano.
At present the industry is estimated to provide direct jobs to more than 42,000 workers and has contributed to a further 1,25,000 indirect jobs in ancillary industries and the local employment will add to the sector’s already massive P155-billion contribution to the country’s GDP and its P21-billion contribution to tax revenues.
CeMAP considers the favorable market conditions of the local cement industry to help create better opportunities for Filipino countrymen. Growth and development of the industry will ensure more jobs for locals, who otherwise go for job opportunities to other countries, which also widen the country’s trade deficit.