Monday, March 03, 2008 Davao traders see boom in construction industry
BUSINESS leaders see a boom in the construction industry of Davao as more infrastructure projects are in the pipeline for the next three years.
Engineer Ramon Allado, president of Allado Construction Company-Southern Philippines Construction Core Group, revealed in a briefing during the opening of the 2nd International Building Materials, Interior Products, Construction Equipment and Services Exhibition that with government spending in infrastructure more projects are coming in Davao Region.
The three-day construction show held at SM City Event Center was concluded Sunday. Mostly multinational companies with offices in Metro Manila participated the event.
Allado admitted that the industry is heavily dependent on government spending particularly on infrastructure where some P2-P3 billion will be allocated starting this year for various projects to include roads and bridges, which will complete the needed links within the island of Mindanao.
But he said there is the other side of construction that is growing as many individual constructions of residences are on the rise mostly commissioned by overseas Filipino workers.
"There is a rise of growth especially in real estate whether it be socialized, medium, or high-end residences. And this is beyond government spending," he said.
He also said the boom in the construction industry is now felt in the region, especially that all big time contractors in Manila are now in Davao City.
He mentioned among others the ongoing projects in the city being undertaken, among others, by Robinsons in Bajada, the Ayala Land that is developing a ten-hectare area along JP Laurel Avenue, Davao Motor Sales in Lanang, the Consunji Group that is building two condominium structures along Ecoland, Filinvest Land Inc. that is planning seven single medium rise condominiums in Ecoland, and Crown Asia Group of Companies that continue to build both medium and high-end residences.
"The boom is here and will be there for the next five years depending on the political situation and peace and order here," he said.
He also said that when the peace agreement will soon be reached this will be an added boost to the industry.
"And hopefully with both the peace and order and political stability the boom of the industry could last for the next 20 years," he said.
Davao City Chamber of Commerce and Industry, Inc. (DCCCII) chair Simeon Marfori urged the construction sector to revisit its approach of the industry.
He said the sector should look at the cost to business but rather as a service.
"Whatever is constructed is after all made for the people and whatever you construct is for the benefit of the consumer," he said.
He said they should look at the work that could be affordable or perhaps engage in a profit sharing scheme saying the contractors also must engage in the continuing training of workers like in carpentry, plumbing, and masonry. Workers if given the skills have the opportunity to engage in better paying jobs.
He also offered the idea for the construction industry to consider cross contracting rather than the traditional sub-contracting even as he said that they create new niche in the industry so that more work will be added.
He encouraged the sector to build more partners rather than clients and more communities rather than structures.
