Builders optimistic on economy

By Mia A. Aznar

Sunday, December 16, 2012

IF A survey on construction stakeholders is to be used as a gauge, the construction industry in the Philippines will continue to do well, with most construction professionals anticipating improvement on their workload for the next 12 months.

The market sentiment survey conducted by BCI Asia-Philippines consisted of 94 respondents from different regions of the country, 39 percent of which were based in the National Capital Region and 11 percent each from Central Visayas and North Luzon.

The rest were spread out from Eastern and Western Visayas, Central and Southern Luzon, and Northern and Southern Mindanao.

Sixty percent of the respondents were architects while the rest were contractors, developers and subcontractors. Forty-six percent were from companies consisting of between 11 and 100 employees while 43 percent were from companies with less than 10 employees.

Asked to describe their workload last October, responses yielded positive results, 45 percent saying their workload is “fair” and 27 percent saying their workload is “very good.”

In Central Visayas, 70 percent considered their workload fair while 17 percent thought their workload is very good. None of the respondents considered their workload poor or very bad.

Compared to their workload 12 months before, 32 percent felt they have roughly the same workload while 43 percent said they had a “somewhat better” workload. Twelve percent reported having significantly better workload. However, 13 percent said they had a somewhat worse workload.

But in Central Visayas, none of the respondents reported negative responses. Eleven percent said their workload was significantly better and 44 percent said it was somewhat better. Another 44 percent said it was roughly the same.

Improvements

Asked to assess their workload progress in the next 12 months, respondents are optimistic, with 70 percent anticipating improvements. The report stated the greatest expectation for future work is found in Western and Central Visayas, Mindanao and North Luzon.

Some 22 percent in Central Visayas said their workload will significantly improve while 52 percent expect it to somewhat improve. Twenty-six percent said their workload will stay roughly the same, but none of the respondents felt that their workload will deteriorate.

The survey also sought to ask how market conditions made an impact on their project stages. Overall figures suggested that the current market conditions have a positive impact on the five stages--concept, design, documentation, tender and in post-tender or construction stage.

As for the impact on different project categories, the figures indicated that publicly-
funded projects were still considered to be the most negatively-affected while commercial and single residential projects stand out with positive ratings.

Respondents predicted an increase in building opportunities, with 62 percent believing there will be growth. In Central Visayas the figure was even higher at 80 percent.

As for their staff members, 50 percent have decided to keep their existing staff while 28 percent will be adding to their staff. Twenty-two percent plan to reduce their staff members. In Central Visayas, 57 percent will be retaining their staff, 29 percent plan on making additions while 14 percent will be reducing.

Development approval

The researchers asked respondents to rate influential factors in sector development.

Majority griped that the effort and time to get development approval as the top variable holding back construction development. They also cited overall business sentiment, overall consumer sentiment, cost of raw materials, availability and cost of finance and counter-productive government legislations as some factors holding back growth.

Asked what supporting initiatives they want from the government, they highlighted anti-corruption measures and improved infrastructure as the top priority. In Central Visayas, 90 percent cited anti-corruption and 60 percent wanted the government to improve infrastructure and simplify documentation. Some 15 percent also cited skilled migration as a problem they wanted the government to address.

Majority also expect prices of selected construction goods to increase.