THE cost of construction materials in the country have increased drastically, said Barry Paulino, executive director of Philippine Contractors Association Inc. (PCA) and general manager of Philconstruct Events, Exhibitions, and Conferences Corp (PEECC).
In an interview with Sunstar Davao on September 10, Paulino said the Increase in the price of materials is one of the major problems the contractors and stakeholders of the industry are currently facing.
Paulino said the higher costs are driven by the increase of crude oil prices caused by the conflict between Russia and Ukraine, as well as the current dollar denomination that affected the cost elements regarding the importation of resources.
“All construction companies around the world are reeling from this devastating effect of fuel prices. Pati manufacturing tataas because they need fuel to produce (Even manufacturing will increase costs because they need fuel to produce),” Paulino said.
Based on the Philippine Statistics Authority’s (PSA) Construction Materials Wholesale Price Index (CMWPI) as of June 2022, the annual rate of CMWPI in the National Capital Region (NCR) increased to 8.9 percent which was the highest rate since October 2008.
During the same period last year, the annual rate was 2.2 percent.
In PSA’s report, the higher rate was mainly driven by the higher increment in reinforcing and structural steel at 16.5 percent. It is followed by G. I. Sheet at 14.6 percent, and PVC pipes at 11.2 percent.
Other commodity groups also saw an uptick, including fuels and lubricant at 48.4 percent, electrical works at 8.7 percent, plumbing fixtures and accessories/waterworks at 7.6 percent, painting works at 6.2 percent, and hardware at 5.7 percent.
Concrete products and cement also increased at 5.2 percent, plywood at 5.1 percent, sand and gravel at 4.7 percent, Doors, jambs, and steel casement at 2.2 percent, and Tileworks, 0.7 percent.
Paulino said the construction industry hopes that the private and public sectors can address the impediment of the industry, especially since the prices are unlikely to go down anytime soon.
“Hangga't meron tayong problema sa (As long as we have a problem in) Europe, we're not looking at the not so bright future but we're coping... That's why we are continuously talking to implementing agencies like the Department of Public Works and Highways, the Department of Transportation, and the Department of Trade and Industry. Hopefully, we can sit down and find solutions to these problems,” Paulino said. (ICM)