The Philippine cement industry is expected to post flat to slightly lower growth this year as slower government infrastructure spending continues to weigh on demand, according to the Cement Manufacturers Association of the Philippines (CeMAP).
CeMAP president Reinier Dizon said the group’s initial assessment points to a possible single-digit decline in cement volume sales this year, although the industry has yet to finalize its forecast.
“We haven’t quantified it yet,” Dizon said. “But what we can say is there’s no increase this year. Likely, it’s a decline, within single digits.”
Dizon said tighter government budget controls and stricter spending procedures have slowed construction activity, particularly infrastructure projects that heavily drive cement demand.
“The spending is constrained,” he said, noting that contractors and suppliers are also feeling the impact of delayed project disbursements.
He expressed hope that infrastructure activity would rebound toward the end of the second quarter or early third quarter as agencies resume project implementation.
Industry estimates show the government accounts for around 40 percent of cement and construction material demand in the country, underscoring the sector’s heavy reliance on public infrastructure spending.
Despite the softer outlook, Dizon said cement manufacturers continue to invest in operational efficiencies and selective capacity expansion projects. Some firms are also optimizing plant operations by maximizing output from facilities closer to key markets to help manage costs amid weaker demand.
The industry is also continuing discussions with the government on safeguard measures covering imported cement products.
