The Philippine construction industry is expected to continue to grow over the forecast period (2016–2020). Industry growth will be supported by the country’s development plan, Vision 2021, as well as population growth, urbanization, and favorable government policies with regards to public-private partnership (PPPs).
The government is seeking help from foreign investors to modernize its dilapidated infrastructure. In 2015, the Asian Development Bank (ADB) sanctioned a loan of US$600.0 billion for this purpose. In 2014, the government revitalized its PPP model and issued more infrastructure contracts.
In real terms, the industry will post a compound annual growth rate (CAGR) of 9.22% over the forecast period.
-This report provides a comprehensive analysis of the construction industry in the Philippines. It provides:
-Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in the Philippines using construction output and value-add methods
-Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
-Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
-Analysis of key construction industry issues, including regulation, cost management, funding and pricing
-Detailed profiles of the leading construction companies in the Philippines
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-The residential construction market is expected to benefit from government efforts to construct low-cost housing units under various social housing schemes. Due to urbanization, demand is increasing rapidly. According to government estimates, around 346,000 extra units are required annually. To bridge the gap between demand and supply, the government has announced various social housing programs: the Pag-IBIG Affordable Housing Program, the Community Mortgage Program (CMP), the Core Housing Program, the Abot-Kaya Pabahay Fund Developmental Loan Program (AKPF – DLP), and the Slum Upgrading Program.
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-In September 2015, the government announced plans to construct a 36.0km Light Rail Transit (LRT) lines by 2020, for an investment of PHP107.6 billion (US$2.4 billion). There are also plans to construct a passenger terminal building for the Clark International Airport (CIA), for an investment of PHP15.4 billion (US$343.8 million) to accommodate 46.0 million passengers annually by 2025
-The Philippines is highly dependent on imports to meet its energy requirements. Due to the high costs associated with generating electricity and the scarcity of crude oil resources, the government is unable to provide a sufficient supply to rural parts of the country. To reduce its reliance on imported energy and to provide sustainable electricity supply, the government is focusing on developing renewable energy sources.
-A rise in inbound tourist arrivals, coupled with an increase in Business Process Outsourcing (BPO) companies, is expected to fuel the growth of commercial construction market over the forecast period. Initiatives such as ‘It’s More Fun in the Philippines’ and ‘Visit the Philippines 2016’ are helping the government to attract more tourists.
-The government’s commitment to developing an adequate education system will drive the growth of institutional construction market over the forecast period. In its 2015 budget, the government increased its spending on education by 18.6%.
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-Assess business risks, including cost, regulatory and competitive pressures.
-Evaluate competitive risk and success factors.
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