Businesses in Central Luzon are bracing for the disruptions brought about by climate and regulatory changes that have affected their operations in 2025.
Thus said Elizabeth Carlos-Timbol, president of the Metro Angeles Chamber of Commerce and Industry (MACCII) recently.
She stressed that climate-related disruptions have affected supply chains, logistics, agriculture, and tourism last year.
“We see that these challenges will likely continue in 2026, especially climate-related disruptions affecting supply chains, logistics, agriculture, and tourism. We are preparing to overcome the challenges this year although the MACCII members have already started implementing mitigations and green initiatives last year,” Timbol said.
She added that they will remain vigilant on global concerns on energy, food price, and policy disruptions. “We will monitor electricity costs, , food price swings, possible policy or regulatory changes, and overall business and consumer confidence."
Timbol said that in the Philippines, the year 2025 was marked by economic uncertainty and uneven demand.
“There were high interest rates raising borrowing costs and making expansion and working capital harder, especially for MSMEs. Weather disruptions like typhoons and flooding also affected operations and supply chains. Slower and more closely scrutinized government infrastructure disbursements further tempered confidence in the second half of the year,” Timbol explained.
According to her, the mostly-hit sectors are those in the construction and public-works related suppliers. She said they were heavily affected as slower infrastructure releases created project delays and weaker pipelines.
Timbol added that consumer-facing sectors like retail, food services, and discretionary goods faced softer demand as households became more cautious.
She also said that logistics, transport, and import-reliant manufacturing also felt pressure from higher operating costs, disruptions, and global and forex-related risks.
Timbol said MACCII members became more disciplined by closely managing cash flow, planning inventories better, and strengthening collections.
“Many of us diversified suppliers, renegotiated contracts, and offered more flexible pricing or product options, while accelerating digital selling and customer engagement. Members also leaned on the Chamber for shared learning, referrals, and collaboration to sustain operations and protect jobs,” she said.
On a positive outlook for 2026, Timbol said that inflation eased late in 2025 and rate cuts began, which may gradually support activity through lower borrowing costs and improved cash flow.
Timbol said the sectors expected to expand include logistics, warehousing, cold chain and fulfillment, tourism and experience-based services, health and wellness, digital services, and agri value-adding enterprises.
“Markets are more demanding because buyers are more value-conscious, compare options quickly, and expect speed, clear pricing, dependable delivery, and reliable after-sales support. In B2B, requirements are higher, with stronger focus on compliance, documentation, professionalism, stable supply relationships, and predictable timelines,” Timbol said.
In Central Luzon, especially the Clark-Pampanga corridor, Timbol said fast growth is expected in ICT, data centers, and the broader digital ecosystem as demand for connectivity, cloud, cybersecurity, and enterprise digital solutions rises.
“Agri-logistics, food hubs, and cold storage are also positioned to expand as supply chains modernize, with related gains for warehousing and transport services. Construction and allied services should benefit as large-scale projects move into active development, supporting a wider ecosystem of opportunities,” she added.