Manufacturing

Manufacturing comprises more than half of the Philippines's industrial sector and accounts for almost a quarter of the country's Gross Domestic Product (GDP). From an annual growth rate of 5.4% in 2012, the manufacturing sector grew by 10.5% in 2013 and 8.1% in 2014.

Manufacturing industries have higher employment, income and output multipliers relative to the agriculture and services sectors. Manufacturing also promotes stronger inter-industry and inter-sectoral linkages, firm productivity, technological development and innovation. As such, the growth of the manufacturing industry improves the upgrading and diversification in the agricultural sector, as well as drives demand for higher value-added services. Taking all these into consideration, the Philippines is accelerating the manufacturing sector's competitiveness towards the achievement of sustainable and inclusive development in the country.

  1. Vision of the Industry
  2. Goals and Strategies
  3. Economic Contribution and Growth Performance
  4. Industries

01

Vision of the Industry

Globally Competitive Manufacturing

The vision is to create a globally competitive manufacturing industry with strong forward and backward linkages to serve as hubs in the regional and international production networks of automotive, electronics, garments and food and supported by well-managed supply chains.

Targets: manufacturing contribution of 30% of total value added and 15% of total employment

02

Goals and Strategies

Roadmap for Structural Transformation

Short-run (2014-2017) Goals:

  • maintain competitiveness of comparative advantage industries
  • strengthen emerging industries
  • strengthen capacity of existing industries

Medium-run (2018-2021) Goals:

  • shift to high value added activities
  • investments in upstream or core sectors
  • link and integrate manufacturing with agriculture and services industries
  • create a manufacturing innovation ecosystem

Long-run (2022-2025) Goals:

  • continue technology upgrading to maintain a globally competitive and innovative manufacturing industry

 

Strategic Actions and Complementary Measures

To achieve the above goals, the following strategic actions are pursued:

  • Address gaps/linkages in industry supply chains
  • Expand the domestic market base to allow industries to attain scale economies and export
  • Design human resource development and training programs to improve skills and establish tie-ups with universities and training institutions
  • Support SME development through establishment of common service and incubation facilities
  • Support innovation and R&D activities
  • Promote green growth: green industry, use of clean technologies in industrial production, greater resource and energy efficiency, improved water and waste management
  • Pursue aggressive promotion and marketing programs to attract more foreign direct investments especially those that would bring in new technologies.
  • Continue to address the high cost of power and domestic shipping, smuggling and implementation of measures to streamline and automate government procedures and regulations.
  • Adopt a more competitive exchange rate.

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03

Economic Contribution and Growth Performance

Manufacturing Growth Performance

The average growth of the manufacturing sector, in terms of gross value added, has been steadily increasing since the 1990s. From 1991 until 2000, the sector grew on the average by 2.5%. Average growth picked up to 4.1% from 2001 to 2010. This further increased to 7.1% in recent years (2011 to 2014), which is higher than the average growth rates of GDP and the entire industry sector amounting to 6.0% and 6.4%, respectively.

At the sub-sectoral level of the manufacturing industry, all segments- consumer goods, intermediate goods and capital goods – have manifested positive average value added growth rates in the 1990s, the 2000s and the early 2010s. In the 1990s and 2000s, the capital goods segment had seen the most rapid average value added growth rate, driven primarily by the double-digit growth rates of the electrical machinery products during the 90s and of the basic metal industries in the 2000s. Meanwhile, from 2011 to 2014, the intermediate goods segment has shown the strongest average value added growth rate driven by the double digit growth rates of the print and publishing sector and the chemical industry.

Value Added Growth Performance of Manufacturing and its Sub-sectors (in percent; at constant 2000 prices)

Year 1991-00 2001-10 2011 2012 2013 2014 2011-14
Gross Domestic Product 3.0 4.7 3.9 6.6 7.2 6.1 6.0
INDUSTRY Sector 3.0 4.2 2.3 6.5 9.3 7.5 6.4
Manufacturing 2.5 4.1 4.7 5.4 10.3 8.1 7.1
Consumer Goods 1.8 4.6 7.3 10.3 5.7 9.5 6.5
Food manufactures 1.8 5.9 3.1 6.9 4.4 6.8 4.8
Beverage industries 2.3 3.8 17.2 4.4 -0.3 25.1 8.8
Tobacco manufactures 1.2 -9.7 -18.8 -0.2 -2.7 -5.1 -5.9
Footwear, wearing apparel 1.5 -2.0 3.9 39.0 11.9 -3.4 8.5
Furniture and fixtures 2.0 6.2 94.8 38.7 41.8 24.8 34.7
Intermediate Goods 1.6 2.4 4.3 3.8 31.4 6.9 8.4
Textile manufactures -4.6 0.8 -2.3 -0.5 -12.1 15.0 -0.6
Wood and cork products -4.0 -2.7 -8.7 18.1 -9.2 0.6 -1.0
Paper and paper products -0.7 0.6 14.6 -4.5 -8.2 6.3 1.4
Publishing and printing 1.4 0.6 -5.6 1.8 -5.9 88.7 13.5
Leather and leather prod. 5.3 -4.8 nd nd nd nd nd
Rubber products -2.2 1.1 7.6 8.1 3 5.7 3.9
Chemical & chemical prod. 2.5 4.4 18.1 4.0 97.8 3.3 21.7
Prod.of petroleum & coal 3.7 2.6 -9.1 -3.9 -14.7 14.3 -1.2
Non-metallic mineral prod. 2.1 5.0 2.9 15.1 10.1 -2.8 5.4
Capital Goods 6.2 5.5 0.2 0.1 6.9 7.5 4.4
Basic metal industries -1.8 13.1 -0.6 -18.1 51.1 -0.2 7.3
Metal industries 0.1 5.3 6.7 0.1 -0.9 46.2 9.6
Machinery except electrical 5.9 -0.5 2.7 8.6 6.2 22.3 7.5
Electrical machinery 13.2 5.7 0.4 -0.7 7.2 5.5 5.2
Transport equipment 2.4 7.5 -6.4 12.3 -19.9 7.1 0.5
Miscellaneous manufactures 4.9 7.9 12.5 -6.8 -10.7 -0.7 1.2

*nd= no data | Source of basic data: National Accounts of the Philippines, Philippine Statistics Authority.

 

Manufacturing Value Added Contribution to GDP

The manufacturing value added contribution has been quite steady since the 1990s. From an average share of 24.3% from 1991 to 2000, the sector’s average value added share from 2001 to 2010 slightly decreased to 23.7%. From 2011 to 2014, the average manufacturing value added contribution further decreased to 23%.This decline is also shared by the overall industry sector, given that the manufacturing sector accounts for almost 70% of the entire industrial sector’s gross value added. Meanwhile, the agriculture sector has experienced a diminished value added contribution over the years, whereas the services sector has seen a tremendous increase in its value added share over time.

At the sub-sectoral level, the consumer products segment has been the largest contributor to the total manufacturing value added since the 1990s. The food manufacturing industry has been consistently the single biggest component of this segment, with a contribution of more than 35% from the 1990s until the early 2010s. With regard to the consumer goods and capital goods segments, the former had a bigger share in the total value added as compared to the latter, during the 1990s and 2000s. However, during the 2011 to 2014 period, the latter has started to overtake the former in terms of value added share percentage. Within the intermediate goods segment, the chemical industry has manifested significant increases in its share, while the petroleum products sector has shown significant decreases over time. For capital goods, the electrical machinery sector has shown consistent increases in its value added share and it has been the biggest component of the capital goods segment since the 1990s until 2014.

Value Added Contribution (in percent)

Year 1991-00 2001-10 2011 2012 2013 2014 2011-14
Agriculture, Fishery, Forestry 20.8 18.9 11.5 11.1 10.4 10.0 11.0
Services 42.4 48.0 56.4 56.9 56.8 56.7 57.0
Industry 34.1 33.1 32.1 32.1 32.8 33.3 33.0
Manufacturing 24.3 23.7 22.4 22.1 24.6 23.2 23.0
Consumer Goods 50.0 51.0 48.0 50.0 47.8 48.4 48.6
Food manufactures 36.0 40.0 37.0 38.0 36.1 35.6 36.7
Beverage industries 4.0 4.0 4.0 4.0 3.8 4.4 4.1
Tobacco manufactures 3.0 1.0 0.4 0.4 0.3 0.3 0.4
Footwear, wearing apparel 6.0 4.0 3.0 3.0 2.6 2.3 2.7
Furniture and fixtures 1.0 1.0 3.0 4.0 5.0 5.8 4.5
Intermediate Goods 35.0 27.0 20.0 20.0 22.9 22.7 21.4
Textile manufactures 3.0 2.0 2.0 2.0 1.7 1.8 1.9
Wood and cork products 2.0 1.0 1.0 1.0 0.9 0.8 0.9
Paper and paper products 1.0 1.0 1.0 1.0 0.8 0.8 0.9
Publishing and printing 2.0 1.0 1.0 1.0 0.5 0.9 0.9
Rubber products 1.0 1.0 2.0 2.0 1.5 1.5 1.8
Chemical & chemical prod. 6.0 6.0 7.0 7.0 12.0 11.4 9.4
Products of petroleum & coal 17.0 14.0 4.0 4.0 2.8 3.0 3.5
Non-metallic mineral prod. 3.0 2.0 2.0 3.0 2.7 2.4 2.5
Capital Goods 13.0 19.0 29.0 27.0 26.7 26.5 27.3
Basic metal industries 2.0 3.0 2.0 2.0 2.0 1.9 2.0
Metal industries 2.0 2.0 1.0 1.0 0.9 1.2 1.0
Machinery except electrical 1.0 1.0 3.0 3.0 1.4 1.6 2.3
Electrical machinery 6.0 12.0 21.0 20.0 20.6 20.1 20.4
Transport equipment 1.0 1.0 2.0 2.0 1.7 1.7 1.9
Miscellaneous manufactures 2.0 3.0 4.0 3.0 2.6 2.4 3.0

Source of basic data: National Accounts of the Philippines, Philippine Statistics Authority.

 

Employment Performance

Total manufacturing employment has grown on the average by 0.8% from 2001 to 2013. Of the manufacturing sub-sectors, the food and beverages sector, electrical machinery manufacturing sector, and transport equipment manufacturing industry have the highest average employment growth rates of more than 2%. Meanwhile, the sub-sectors whose total employment has contracted, on the average, from 2001 to 2013 are the tobacco, textile, publishing and printing, basic metal, fabricated metal, and non-electrical machinery manufacturing industries. Employment in miscellaneous manufactures has also decreased over the years.

Employment Figures (in ‘000)

Year 2001-08 2009 2010 2011 2012 2013 2011-13 Average Growth, 2001-13
Manufacturing 3641 3599 3763 3818 3784 3822 3757 0.8%
Consumer Goods 2245 2193 2268 2296 2317 2359 2287 0.7%
Food and Beverage 691 740 779 784 840 880 805 2.4%
Tobacco manufactures 12 10 12 12 13 12 12 -0.8%
Footwear, wearing apparel 553 470 488 479 504 533 495 0.1%
Furniture and fixtures 130 116 119 122 139 118 123 0.0%
Intermediate Goods 654 708 729 737 673 664 702 1.1%
Textile manufactures 205 149 141 162 148 152 150 -3.2%
Wood and cork products 289 334 357 365 317 293 333 2.0%
Paper and paper products 48 45 45 49 50 49 48 1.8%
Publishing and printing 80 73 78 82 55 56 69 -2.2%
Rubber products 63 73 71 67 72 79 72 1.9%
Chemical & chemical prod. 79 85 83 80 82 93 85 1.1%
Products of petroleum & coal 6 4 5 5 6 5 5 0.3%
Non-metallic mineral prod. 90 94 90 89 91 89 91 1.7%
Capital Goods 628 609 669 687 672 674 662 1.3%
Basic metal industries 52 47 42 44 45 56 47 -0.3%
Metal industries 146 139 149 144 151 131 143 -0.6%
Machinery except electrical 73 69 68 64 19 16 47 -8.5%
Electrical machinery 297 286 339 352 380 396 351 4.6%
Transport equipment 60 68 71 83 77 75 75 2.5%
Miscellaneous manufactures 114 89 97 98 122 125 106 -0.7%

Notes: *Sub-sectoral classification used reconciles the 1994 and 2009 PSIC to ensure data compatibility and continuity from 2001 to 2013. No data available for pre-2000 years and for 2014. | Sources: Yearbook of Labor Statistics (1980-2000) and Current Labor Statistics (2001-2002), Bureau of Labor and Employment Statistics, Department of Labor and Employment. Labor Force Survey, Philippine Statistics Authority.

 

Employment Contribution

The manufacturing employment contribution to total employment has been declining since the 1990s. From an average share of 10% from 1991 to 2000, the sector’s average share from 2001 to 2010 slightly decreased to 9.1%. From 2011 to 2014, the average manufacturing employment contribution further decreased to 8%. This trend in the manufacturing sector is shared by the overall industry sector, given that manufacturing accounts for more than half of the entire industrial sector’s total employment. Meanwhile, the agriculture sector has experienced a diminished employment contribution over the years, whereas the service sector has seen a tremendous increase in its employment share over time.

At the sub-sectoral level, since the 2000s, the consumer goods segment has been the largest contributor to total manufacturing employment. Its share of more than 45% has been fairly steady from 2001 to 2013. The food manufacturing industry has been consistently the single biggest component of this segment, with an average contribution of more than 20% (from 2001 to 2010) and and 25% (from 2011 to 2013). The second biggest contributor to manufacturing employment is the intermediate goods segment, with an average share of 28.8% (from 2001 to 2010) and 27.1% (from 2011 to 2013). It is followed by the capital goods segment, with an average share of 24.8% (from 2001 to 2010) and 22.8% (from 2011 to 2013), and by the miscellaneous manufactures sector with a 3.7% average share for both time periods.

Employment Contribution (in percent)

Year 1991-00 2001-10 2011 2012 2013 2014 2011-14
Agriculture, Fishery, Forestry 43.2 36.1 33.0 32.1 31.1 30.8 32.0
Services 40.9 48.8 52.1 52.5 53.4 53.7 53.0
Industry 16.0 15.1 14.9 15.4 15.6 15.6 15.0
Manufacturing 10.0 9.1 8.3 8.3 8.3 8.1 8.0
2001-2010 2011 2012 2013 2011-2013
Consumer Goods 46.4 45.4 48.1 48.8 47.4
Food and Beverage 23.6 25.5 27.0 27.9 26.8
Tobacco manufactures 0.4 0.4 0.4 0.4 0.4
Footwear, wearing apparel 18.1 15.6 16.2 16.9 16.2
Furniture and fixtures 4.3 4.0 4.5 3.7 4.1
Intermediate Goods 28.8 29.2 26.4 25.8 27.1
Textile manufactures 6.5 5.3 4.8 4.8 4.9
Wood and cork products 10.1 11.9 10.2 9.3 10.4
Paper and paper products 1.6 1.6 1.6 1.6 1.6
Publishing and printing 2.6 2.7 1.8 1.8 2.1
Rubber products 2.2 2.2 2.3 2.5 2.3
Chemical & chemical prod. 2.7 2.6 2.6 2.9 2.7
Products of petroleum & coal 0.2 0.2 0.2 0.2 0.2
Non-metallic mineral prod. 3.0 2.9 2.9 2.8 2.9
Capital Goods 24.8 25.5 21.6 21.3 22.8
Basic metal industries 1.7 1.4 1.5 1.8 1.6
Metal industries 4.9 4.7 4.9 4.2 4.6
Machinery except electrical 2.4 2.1 0.6 0.5 1.1
Electrical machinery 10.1 11.4 12.2 12.5 12.1
Transport equipment 2.1 2.7 2.5 2.4 2.5
Miscellaneous manufactures 3.7 3.2 3.9 4.0 3.7

Note: *Sub-sectoral classification used reconciles the 1994 and 2009 PSIC to ensure data compatibility and continuity from 2001 to 2013. No data available for pre-2000 years and for 2014. | Sources: Yearbook of Labor Statistics (1980-2000) and Current Labor Statistics (2001-2002), Bureau of Labor and Employment Statistics, Department of Labor and Employment. Labor Force Survey, Philippine Statistics Authority.

 

Labor Productivity

Labor productivity has increased significantly for all major industries of the country from the 1990s until the early 2010s. From the 1990s until the 2000s, labor productivity for the agriculture, services, and industry sectors has grown by an average of 24.1%, 8.2%, and 16.8%, respectively. Meanwhile, from the 2000s until the early 2010s, labor productivity for the sectors has respectively grown by an average of 10.4%, 15.6%, and 18.2%. From 1991 until 2013, the industry sector has the highest labor productivity. It is followed by the services sector and then by the agriculture sector, which has the lowest labor productivity among the three.

The labor productivity for the manufacturing sector has grown by an average of 25.5% from the 2000s until the early 2010s. At the sub-sector level, the labor productivity for the various manufacturing segments- consumer goods, intermediate goods, and capital goods – have also grown consistently over the years. Across all years, the capital goods segment has the highest labor productivity, followed by the intermediate goods segment and then by the consumer goods segment. The miscellaneous manufacturing segment meanwhile has the lowest labor productivity. Furthermore, the petroleum and coal sector has the highest labor productivity among all sub-sectors across the years on the average, while the wood and cork products sector has the lowest.

Labor Productivity Measured in Terms of Gross Value Added (in Philippine pesos; constant 2000 prices)

Year 1991-00 2001-10 2011 2012 2013 2011-13
Agriculture, Fishery, Forestry 42,086 52,221 55,420 57,799 59,706 57,642
Services 144,390 156,222 172,033 181,227 188,715 180,658
Industry 258,456 301,797 342,486 353,725 373,831 356,681
Manufacturing nd 145,700 181,400 176,900 190,100 182,900
2001-2010 2011 2012 2013 2011-2013
Consumer Goods 31,700 40,500 42,300 43,400 42,100
Food and Beverage 60,200 70,500 70,200 69,900 70,200
Tobacco manufactures 109,200 40,400 37,200 37,900 38,500
Footwear, wearing apparel 7,800 70,00 9,200 7,600 7,900
Furniture and fixtures 12,400 32,200 39,300 64,100 45,200
Intermediate Goods 34,300 35,700 40,600 53,600 43,300
Textile manufactures 19,100 19,000 20,700 17,400 19,000
Wood and cork products 5,400 3,500 4,800 4,400 4,200
Paper and paper products 23,100 28,900 27,000 25,500 27,100
Publishing and printing 11,800 9,900 15,100 14,300 13,100
Rubber products 24,900 32,600 32,800 29,400 31,600
Chemical & chemical prod. 81,700 114,300 115,900 202,600 144,200
Products of petroleum & coal 1,055,400 1,016,100 813,500 855,400 895,000
Non-metallic mineral prod. 26,400 37,100 41,700 47,000 41,900
Capital Goods 50,000 55,600 56,900 60,800 57,800
Basic metal industries 45,800 58,800 47,100 56,600 54,200
Metal industries 8,300 10,000 9,500 10,600 10,000
Machinery except electrical 28,100 31,100 105,400 134,500 90,300
Electrical machinery 80,500 83,100 77,300 79,900 80,100
Transport equipment 33,800 35,600 43,100 35,500 38,100
Miscellaneous manufactures 27,900 49,600 37,100 32,300 39,700

Notes: *nd= no data / *Sub-sectoral classification used reconciles the 1994 and 2009 PSIC to ensure data compatibility and continuity from 2001 to 2013. No data available for pre-2000 years and for 2014. | Sources: Yearbook of Labor Statistics (1980-2000) and Current Labor Statistics (2001-2002), Bureau of Labor and Employment Statistics, Department of Labor and Employment. Labor Force Survey, Philippine Statistics Authority.

 

04

Industries

Aerospace
The Philippine aerospace industry aims to make the country a major hub for manufacturing of original equipment manufacturing (OEM) parts and allied services, such as maintenance, repair and overhauling (MRO), for the global commercial aircraft industry.

Auto Parts
The vision of the auto parts industry is to strengthen the position of the Philippines as a significant automotive player in the medium-term and become a regional hub for vehicles and parts in Asia supported by a strong domestic supplier base.

The industry's objectives are: (1) to develop an internationally competitive and viable automotive parts industry, in terms of product range, price, quality, and on-time delivery; (2) to enhance value added and local capabilities in the automotive parts industry through improvement of processes, technology and human capital; and (3) to promote export-oriented parts and components manufacturers.

The industry targets are:

· CKD local content: 46% in 2013 to 68% in 2019-2020 (based on CKD production of 170,000 units in 2014-2015 to 330,000 in 2019-2020)
· Domestic OEM sales of P43 billion in 2014
· Domestic aftermarket sales of P183 billion in 2014
· Export sales of US$6 billion of international quality parts in 2015
· Employment of 150,000 (parts and assembly) and 50,000 in allied industries
· Taxes and duties of P50 billion

Automotive
The automotive manufacturing industry aims to make the Philippines a competitive manufacturing base of motor vehicles and parts and components, serving both the domestic and export markets, and a global hub for automotive-related human resource development and process outsourcing.

The industry seeks to have a 70:30 CKD:CBU market share ratio by achieving full capacity utilization and achieving a 150% increase in nationwide capacity by 2022.

Its objective is to generate an additional P41 billion in investments, P151 additional production in related in related sectors, create 70,000 new jobs, and resume export operations.

For its development, the industry recommends the application of selective but wide application of fiscal incentives (to offset its cost handicaps) and implementation of industry-wide non-fiscal policy support measures (to nurture the domestic market).

Biodiesel
The Philippine biodiesel industry aims to be a global provider of sustainable biodiesel. It advocates for greener fuel for a cleaner Earth.

By 2030, the industry hopes to:

 Maximize the contributions of indigenous biofuels in the country’s energy mix towards self-sufficiency and better environmental conditions;
 Establish the Philippines as a leader in sustainable biofuels feedstock development, technology generation, and market development;
 Harmonize research, development, demonstration, and commercialization efforts;
 Coordinate efforts towards the creation of new applications and markets for biofuels;
 Update national incentives and regulatory requirements to encourage production and use of biofuels; and
 Improve the quality of life of coco farmers and other workers in related and allied areas of work.

Ceramic Tiles
The Philippine ceramic tile industry envisions itself to have efficient, competitive and environment-friendly manufacturers with sustainable and profitable operations, contributing to society and to the country's economic growth.

It seeks to maintain and sustain its competitiveness, its products to be the preferred choice of local consumers, level up the industry's concern for the environment while ensuring its profitability.

Chemicals
The Philippine chemicals industry aims to engage in transforming the nation’s basic resources into a wide range of higher value products that serve domestic as well as global market needs with the best customer value. It is committed to attracting, developing and retaining the best talents who will be at the forefront of product and process innovations while adhering to sustainability and Responsible Care principles. By relentlessly improving products and processes, it will achieve sustainable growth and thus, contribute to the nation’s inclusive growth and socio-economic development.

The industry has agreed to pursue its vision that emphasizes the following goals: (1) the creation of a wide range of products with the best customer value; (2) satisfying domestic demand and becoming a leading contributor to the Philippine export basket; (3) promotion of a high level of workforce productivity; (4) becoming innovative, both in products and processes; (5) developing and managing the industry sustainably to protect the natural assets on which the industry depends; and (6) becoming competitive as an industry so as to provide benefits to the Philippine economy and to the Filipino people.

The industry envisions itself as a major player in the region by 2016. By 2022, it should have established itself as a leading exporter, and it should have developed a strong foothold in the global market by 2030.

To realize these targets, the industry seeks to implement a triple gear recommendation with the following pillars: (a) creation of Engineering and Science Advanced Technology Program (EnSAT) to develop the technical and scientific skill of Filipinos, (b) setting legislative policies that are based on sound technical and scientific studies that take into account the total system in which the chemical industry operates, and (c) establishment of the chemical industry cluster to enable cost-efficiency in production of chemical products. The government is considered as the major stakeholder in the three gears, where it serves the role as the enabling mechanism that will allow for smooth implementation of the recommended programs.

Copper
The Philippine copper industry envisions a sustainable and fully-integrated copper industry in the country from mining to downstream manufacturing, where value is maximized, together with the development of the several domestically manufactured copper-using commodities such as wiring harness, high efficiency motors and appliances that will serve both the local and global markets.

It is envisioned that in the upstream, one to two large world class copper mines (particularly Tampakan) are developed and starts production. At midstream, a revival of investor interest in the production of copper wire rods and the establishment of a copper rod casting facility. And at the downstream, development of new copper products that will link with the wire harness industry, as well as information gathering, research, forums, studies, and the like are conducted to explore the possibility of venturing into new copper applications.

In the short-term (by 2016), the specific milestone would be the establishment of a venue for industry stakeholders to work together in support of the roadmap aspirations. Within the medium-term (by 2022), the key goals are further increase in the production of copper concentrates as the one or two new mines start operations. Over the long-term (by 2030), the linkage between local mining and smelting is established; there is near self-sufficiency in copper rods; and the development of higher value copper products for both local and the global markets are in full steam.

The vision of a fully integrated copper industry by 2030 is to be fulfilled by the operation of select world class copper mines, development of a wire rod casting facility, and promotion of higher value copper products.

E-Vehicles
The Philippine electric vehicle (e-vehicle) industry aims to have a nation where the use of electric vehicles is highly promoted, encouraged, and supported by its government and society in order to develop a transportation landscape that is one with the environment, ecologically and economically.

The Electric Vehicle Association of the Philippines (EVAP) aspires for the establishment of a national development program for electric vehicles that is anchored on the existing Motor Vehicle Development Program for the automotive industry. This is to be implemented in four (4) phases of within a ten-year-period. The first phase (2013) is the launch of the program, including technology upgrading needed by the industry; the second phase (2014 to 2015) involves the build up of the local market and enhancement of its production capacity; the third phase (2016 to 2018) will be for local and export market expansion, together with horizontal and vertical integration with the local automotive industry; and the fourth phase (2019 to 2023) will be the full integration, regional and global, developmental evolution in technological advancement and market size up.

Towards this, the industry seeks to pursue operational and regulatory reforms; strengthen the automotive policy environment; address industry supply chain gaps; and implement market development strategies.

Electronics
The Philippine semiconductors and electronics industry is the largest contributor to the country's manufacturing sector. In 2013, the industry accounted for 41% of total exports, brought in US$ 918 million-worth of foreign and domestic investments, and employed 2.2 million workers. The potential for the industry remains high, as member firms intend to move to higher value-added manufacturing to meet global demand. These companies plan to improve current production capacities, to expand current research and development and design capabilities, and to further develop the labor force over the next several years.

The industry is working to drive up the semiconductor and electronics manufacturing index of the country by identifying customers' needs, understand suppliers' baseline, develop relevant capabilities, match industry supply and demand, and conduct periodic assessment of its performance. In addition, the industry recommends that the government continue with its scholarship program for operators and technicians, improving the country's business environment, conducting R&D capability development, and aggressively promoting local industries and SMEs through investment missions abroad.

Furniture
The Philippine furniture industry aims to be the global design innovator or hub for products using sustainable materials by 2030, with thriving domestic and international markets and a competitive and motivated labor force.

To achieve this, the industry shall focus its programs on four (4) key development factors: 1) product development, 2) marketing, 3) capacity building and 4) advocacy. Under product development, the goal is to have access to markets with the government support to institutionalize a budget for trends gathering, forecasting and sharing; upgrade design education through early introduction of design awareness appreciation and information and training assistance for design students and professional designers and manufacturers; and establish sustainable and environment-friendly raw materials and establish supply hubs for semi process and raw materials from local and imported sources. Under advocacy, the objective is to build the group to be a strong force with a unified voice, strongly influence all appropriate sectors, and build support infrastructure to continue the gains. Under marketing, the targets are to make the Philippine furniture top of mind in Asia, to sell to traditional markets, and simplify marketing strategy to align furniture design to customer needs in local, glocal and global markets. Under capacity-building, the industry seeks to have a sustainable supply of raw materials; provide readily available skilled manpower to the industry; and to ensure availability of advanced and cost-effective machineries / equipment and production processes.

Towards the above goals, the industry intends to intensify promotions in non-traditional markets; establish links with foreign posts to address immediate buyer inquiries and seek their assistance to promote the industry abroad; organize focused offshore business matching programs; intensify product development programs to cover material manipulation, library of material sources, and development of design collections; implement continuous skills training; establish regional development programs to expand the subcontractor base of manufacturers; establish furniture quality standards; and institutionalize management education programs by linking design and manufacturing courses in selected schools.

Iron and Steel
The Philippine iron and steel industry is a critical component in achieving inclusive economic growth and sustainable development. The industry provides necessary inputs for the construction of infrastructure, power generation and distribution, transportation facilities and vehicles, manufacturing machinery and equipment - all of which are vital for a nation’s long-term growth. The industry’s outputs are utilized by both commercial and industrial enterprises, such as electronics, appliance manufacturing, and shipbuilding, among others.

The Philippine iron and steel industry aims to contribute to the country's sustainable development by manufacturing world-class products for the industry and society, and sees itself as a majority producer of high-quality and safe steel products for domestic users by 2030. This is achieved when the industry is able to supply 70% of the tonnage of required apparent steel consumption.

To achieve this, the industry recommends the implementation of measures that would reduce the costs of importing raw materials and losses of revenue due to unfair competition; reduce electricity costs; reduce logistics costs; encourage investment in the industry; enlarge the pool of workers for the industry; make the sector more attractive for local and foreign investors through ISO accreditation; answer the need for a set of consistent and timely delivered industry data; complement the implementation efforts of the BOC and DTI provincial standards monitoring teams; and help companies upgrade their capacities continuously.

Metalcasting
The Philippine Metalcasting Industry envisions itself to be at par with the best in the world, engineered, molded, and shaped by the Philippine Metalcasting Association, Inc. (PMAI) as a widely recognized and highly regarded institution for dependability. It will always be entrepreneurial in spirit and truly Filipino in heart and mind.

The industry aims to supply majority of the domestic requirements for cast products, contributing to the development of downstream industries such as the equipment manufacturing sector; achieve significant export activity supplying high –value –added cast products; develop a highly productive workforce and a culture of innovation capable of integrating the latest technologies in the improvement of products and processes; and contribute to the protection of the environment through high waste recycling and high energy efficiency.

Motorcycle
Initially based upon the investments of Japanese manufacturing corporations, the Philippine motorcycle assembly and production industry has developed rapidly with the participation of more local companies carrying technical licensing agreements with foreign brands. This development of the motorcycle industry has come from the great demand for motorcycles in the local market and the government’s policy of promoting and attracting foreign investment.

From the four pioneer members, participation has increased to twenty eight companies, including Chinese, Taiwanese, Thai, Malaysian and Indian brands. Nevertheless, Japanese brands, which have vastly invested in the country, continue to hold the dominant market position with 80% of market share.

Natural Health Products
The Philippine natural health products (NHP) industry envisions itself to be sustainable, inclusive, and globally competitive, known for the dedication and passion of its stakeholders in consistently providing safe, innovative, superior quality, effective and affordable natural health products that nurture both people and animal’s health in every market served.

In line with this vision, the industry is determined to build a unique range of natural health products through the effective and efficient use of the country’s natural resources. This effort is directed toward continuous improvement, and with respect for diversity and active involvement of all stakeholders through strong forward and backward industry linkages. With the adoption of technologies and processes at par with other countries, the industry will be known for producing superior quality, safe, effective and affordable natural health products, and will be committed to creating jobs, empowering and giving equal economic opportunity and uplifting the condition of small Filipino farmers and farmholders especially in the countryside.

Towards this, the industry intends to adopt, harmonize and align the proposed Philippine NHP standards and certification systems with international standards; initiate a National Research and Development Agenda for Philippine NHP; design a strategic NHP Raw Material and Production Master Plan; conduct continuous product development; identify and target possible markets through consolidated strategic marketing programs for each of the indentified export markets; and build the capacity of relevant industry stakeholders.

Paper
The Philippine paper industry seeks to attain the capability to serve all major pulp and paper requirements of the country and develop high-value and quality pulp and paper products in the long-term, in a manner that is internationally competitive and environmentally-sustainable.

Its goals are:
- To improve the country’s wastepaper recovery and recycling rate;
- To upgrade the levels of manufacturing technologies and environmental performance of local paper mills;
- To establish local sources of pulp, based on sustainably-managed tree plantations and non-wood fibers from agricultural wastes and annual crops; and
- To enable the local mills in achieving economic competitiveness and thus, contribute to poverty alleviation and national development.

Petrochemicals
The Philippine petrochemicals industry aims, In the short- to medium-term, to secure and provide the vital resin requirements of the entire country in a competitive, efficient and timely manner so as to catalyze sustainable and dynamic manufacturing activities fueling growth across all user-industries. In the medium- to long-term, it seeks to harness the tremendous potential of the entire petrochemical streams (over 2,000 industrial/chemical products), which should provide a formidable backbone for Philippine industrialization.

The industry's objective is to achieve self-sufficiency in strategic resin supply and increase the petrochemical sector’s contribution to total Philippine GDP from Php 44 B in 2010 to Php 113 B in 2018 and Php 215 B by 2025 through the progressive integration of upstream, midstream and downstream components of the sector. Such progressive integration will involve the entry into various other petrochemical branches that will provide exponential value addition in different industries, spurring domestic and export growth and potentially contributing up to 5-10% of GDP by 2025.

Towards this, the industry recommends the enforcement of anti-smuggling measures to eradicate substandard and illegal petrochemical products in the local market, implementation of reforms to ease doing business, and update the industry masterplan to rationalize location and and logistical network of upstream-midstream-downstream facilities in a closely-linked value chain.

Plastics
The Philippine plastics industry envisions itself to be a proactively adaptive downstream industry that is able to fully supply the growing and changing demands of the domestic and export market, create employment opportunities with a positive well-informed on the environmental image and perception.

Its goals are:
o Satisfy the domestic demand and be a leading contributor to the Philippine export basket.
o Promote a high level of workforce productivity.
o Be innovative in process
o Develop a sustainable industry mindful of our limited/finite resources.
o Promote/ develop/ strengthen the plastics recycling industry.
o Create a wide range of innovative products with the best consumer value.

Rubber
The Philippine rubber industry aims to propel domestically-produced rubber products to become a key contributor to Philippine economic development by transforming the industry to produce world-class, competitive and high quality rubber products.

It seeks to achieve this by (1) upgrade manufacturing skills, (2) adopting technical and market standards, and (3) linking with both the local and export markets.

Tool and Die
The Philippine tool and die industry aims to be a locally-dominant, globally-competitive, and self-sustaining industry.

By locally-dominant, the industry hopes for its favorable reception in the Philippine market, i.e., a state where locally produced tool and die products are strongly patronized by the domestic market over imported ones. By being globally competitive, industry seeks to develop its ability to offer products and services which are comparable in terms of quality and price with its competitors. By self-sustaining, the industy targets to operate on its technical, market and financial merits and not on artificial support.

The industry's goals are:
- To increase the number of skilled and competent personnel as well as enhance the current level of technical skills of local tool and die manufacturers;
- To enhance the capabilities of the local industry by supporting modernization and meeting the technological requirements of the tool and die stakeholders; and
- To reduce, if not eliminate, demand for internationally outsourced products and services by developing local suppliers of production inputs (e.g. raw materials, equipment, ancillary and maintenance services).