Construction Industry to Rebound in 2021
With many infrastructure projects ongoing, the construction industry is set to make a comeback this year.
According to the Philippine Constructors Association (PCA) President Wilfredo Decena, the construction companies can contribute greatly to the recovery of the economy after going down 26% last year, bringing the national gross domestic product (GDP) to a steep 9.5% year-on-year drop.
Recently, Fifth Solutions increased its growth forecast for the construction industry to 9.5% this year, near the 10% growth pre-pandemic.
Decena said that what would contribute to the growth of the economy is timely spending on infrastructure, in spite of the private construction investments, with the national government allocating P1.1 trillion of the P4.5 trillion national budget.
In the PCA regular meeting, he said, “We are hearing of contractors, particularly the small and medium companies, being unable to close any projects at this time. Public investments need to fill the gap until investor confidence is restored.”
Decena also added that contractors should immediately pay since they were already shouldering the costs of any COVID-issues.
The PCA also said that they should rethink the supply chain conditions, and work on the spiralling costs of materials, as well as the possible entry of foreign contractors in the country - which would eventually displace Filipino contractors.
“This is happening while other countries have taken steps to protect and support their local industry amid the global pandemic,” Decena said.
PCA also said that it is further expanding its knowledge and skills program to address the challenges of a shortage of skilled labour and that its members should continue following safety protocols.