The Philippines is positioning itself for a broader role in the global aviation industry as a major hub for the manufacture of original equipment manufacturer parts (OEM) and allied services for the commercial aircraft sector.
The local aerospace manufacturing industry sees its revenues growing to $1.429 billion by 2022 from $385 million in 2013. As it continues to build international capability and expand markets with government support, the industry expects to generate an additional 8,300 jobs by that year, an increase of 350 percent from the 2,200 jobs recorded in 2013.
These were the projections made by the Aerospace Industries Association of the Philippines (AIAP) as it and the Electric Vehicle Association of the Philippines (EVAP) presented their respective industry roadmaps to stakeholders during the 9th Trade and Industry Development (TID) Updates held July 24 at the Board of Investments in Makati.
“The Aerospace Manufacturing Industry Roadmap proposed the long-term goal of establishing the Philippines as a major hub for manufacturing of original equipment manufacturer parts and allied services like maintenance, repair and operations (MRO) for the global commercial aircraft industry,” AIAP director Willie Estoque said during the presentation.
Last year, the industry earned an estimated $385 million in revenues and employed some 2,200 Filipinos who provided support and services to various economic activities.
Estoque said the government can help the aerospace manufacturing industry by clearing administrative bottlenecks, improving tax and investment incentives, providing training and development in process capabilities to bridge the supply chain gaps, and supporting industry accreditation to international standards such as AS9100 and Nadcap.
AS9100 is the international management system standard for the Aircraft, Space and Defense (AS&D) industry, while Nadcap refers to the National Aerospace and Defense Contractors Accreditation Program.
The Philippine aerospace industry had its beginnings in 1941 when Philippine Airlines (PAL), then a government corporation, marked its first flight and made the Philippines one of the pioneers in Asia’s aviation industry.
The industry later grew and expanded into aerospace parts manufacturing in the 1980s. There are currently three key players in domestic aerospace manufacturing: MOOG Control Corp., B/E Aerospace and Jamco Aerospace Inc.
Meanwhile, the electric vehicles industry projects P4.44 billion domestic electric vehicle sales by 2015, about 20 times higher than last year’s P214.2 million.
The industry intends to create an environment where the use of electric vehicles is highly promoted, encouraged and supported by both the Philippine government and society that would lead to eco-friendly and efficient transportation.
To achieve this, the industry roadmap focuses on program development, local market build-up, production capacity enhancement, local and export markets expansion, and full integration of electric vehicles in both the local and regional automotive industries.
According to its roadmap, the industry seeks support in the implementation of policies that will attract investments, create a more predictable business environment, establish industry clustering and value chain, enhance competitiveness measures, and integrate resources.
TID Updates aims to inform and update the public and stakeholders on the various industry roadmaps to identify the gaps in the supply and value chains as well as needed policies to support global competitiveness of the country.
To date, 29 roadmaps have been submitted to the BOI, and of the 29 submitted, 24 are complete and five are still drafts. Technical Working Groups (TWG) composed of private and public industry champions have also been convened to facilitate the roadmap implementation.
The sectoral roadmaps are the building blocks of the Manufacturing Industry Roadmap (MIR) and the Comprehensive National Industry Strategy (CNIS).
The 29 sectors with completed roadmaps are aerospace, automotive, automotive parts, biodiesel, cement, ceramic tiles, chemicals, copper and copper products, electric vehicles, electronics, furniture, iron and steel, IT-BPM, manufacturing, mass housing, metalcasting, motorcycles, natural health products, petrochemicals, plastics, pulp and paper, retirement, rubber products, and tool and die. The roadmaps for jewelry, bamboo, coco coir, creative industries and gold are still drafts.