Local cement manufacturers posted a 10.7-percent increase in sales to 13.2 million tons in the first six months of the year as the government continues to ramp up infrastructure spending, while the private sector continues to engage heavily in construction activities.
Ernesto Ordoñez, president of the Cement Manufacturers Association of the Philippines (Cemap), said in a text message that the growth rate seen in the first half was better than the “moving average increase of 10 percent in the last five years; 8 percent for the last 10 years; and 5 percent for the last 15 years.”
“The primary reasons for the robust growth [in cement sales] are the huge budget increase of the Department of Public Works and Highways; continued private sector confidence in government which motivates cement use; and the relatively conducive weather,” Ordoñez explained.
For the second quarter alone, cement sales rose by 8.8 percent to 6.76 million tons from the 6.21 million tons sold by local manufacturers in the same period last year.
The private sector remained the biggest customer of cement manufacturers as about two thirds of the cement being sold in the country are being taken up by companies for their construction projects, while the remaining one third is taken up by government agencies for public works. Specifically, Ordoñez earlier noted that private sector construction value constituted the majority of the total at 76 percent, while public construction value accounted for 24 percent.