Despite successive downturns in the local economy because of the Covid-19 pandemic in 2020, construction companies in Central Luzon continue to register with the government in the first semester of 2021 to be able to implement essential government and private construction projects in the region.
Based on a report of the Construction Industry Authority of the Philippines (CIAP) window in Region 3, from January to June 2021, a total of 41 construction companies in Central Luzon applied for a new Philippine Constructors Accreditation Board (PCAB) license.
Aside from this, a total of 364 construction companies processed their renewal of PCAB licenses with the CIAP Window stationed at the DTI Regional Office III, while 23 companies upgraded their licenses. The figures are significantly promising compared to the whole year of 2020, where there were only 188 construction companies that renewed their license and 76 companies applied for new PCAB licenses. Last year, 22 construction companies also upgraded their PCAB licenses.
The Philippine construction industry continues to be a bright spot in business despite the pandemic. In total, the industry contributed 16.6% of the Gross Domestic Product of the country in the second quarter of 2021. In the same period, Philippine gross domestic product (GDP) posted an 11.8% growth, according to the Philippine Statistics Authority (PSA).
The construction industry is one of the main contributors to the growth together with manufacturing, wholesale and retail trade as well as repair of motor vehicles and motorcycles.
Among the major economic sectors, industry recorded the fastest growth at 20.8%. This was followed by services with a growth of 9.6 percent. Agriculture, hunting, forestry and fishing (AHFF) registered a negative 0.1% growth.
Construction posted the highest growth rate for the quarter at 25.7% followed by manufacturing at 22.3%. Other industry sectors which recorded positive growth were electricity, stream, water and waste management at 9.8% and mining, quarrying with 0.8%.
The construction industry likewise substantially contributed 69.6 percent to overall capital investments or gross capital formation (GCF) in the country. Construction share to GDP by expenditure is equivalent to 16.6%. Amidst the pandemic, the construction industry placed second with 1.7% points as one of the top contributors to GDP growth for Q2 2021, together with manufacturing which had 3.9 percentage points and wholesale and retail trade with 1.0 percentage points.
The share of construction to total employment of 45.075 million as of June 2021, was equivalent to 9.6%. The construction industry continues to provide job opportunities, employing on the average a total of 4.337 million workers.
