PHILIPPINE construction executives had positive views of the industry’s outlook over the next 12 months, due to the strength of the economy, according to a survey conducted by construction management software company Procore Technologies.
The survey findings were released in a report, “How We Build Now: Technology Trends Shaping and Shifting Construction – Southeast Asia 2023,” which found that 95% of construction executives in the Philippines cited the “fast-moving economy and continuation of the current administration’s modernization efforts.”
According to the report, 80% of Philippine respondents are expecting an increase in the number of projects over the next 12 months, while 83% see projects of higher value.
The report said the most-cited challenges by the construction industry executives were increasing raw material and equipment costs (46%); securing competitive bids and tenders at sustainable margins (35%); dealing with trade contractors, contracts, and payments (35%); staff management (32%); and increasing productivity to manage project volume (32%).
Procore commissioned independent research company YouGov to conduct the survey online between Jan. 31 and Feb. 22. The respondents were 876 construction industry executives from Singapore, Malaysia, and the Philippines.
“Industry confidence is resilient in the face of challenging market conditions, and expectations for growth are stronger in 2023,” YouGov Associate Director of Research Fumin Rianto said at a media briefing in Makati City on Tuesday.
Overall, the survey found that 88% of executives in the three countries expressed confidence in market conditions ahead, lower than the 94% posted a year earlier due to weakening confidence in Malaysia.
“Driving this optimism was expectations for the increase in both the number (73%) and value of projects (71%) over the same period,” Procore said in a statement.
Procore found that 39% of Southeast Asian respondents are rethinking their contracting models to protect margins, while 37% are considering new payment methods, such as early payments at lower margins.
“A focus on risk management has become more important, especially in light of persistent challenges such as the increased cost of raw materials and equipment (44%) and winning competitive bids and tenders at a sustainable margin (32%),” Procore said. — Revin Mikhael D. Ochave