More manufacturing hubs to rise in PH: JLL Philippines

With China’s manufacturing industry bulging at the seams, more companies are looking towards moving some of their operations back to Philippine shores, according to management firm Jones Lang Lasalle (JLL) Philippines.

The news came from JLL Philippines chair Lindsay Orr, who said there were manufacturing companies interested in moving their operations back to the Philippines after they left because of the Asian Financial Crisis.

“Before the Asian financial crisis, we had a strong manufacturing base, (but) because of labor laws and other issues, a lot of it closed down and went to places like China, which had a lower cost base,” Orr said.

According to Orr, foreign manufacturers were looking to spread out their production and the Philippines is one of the locations they’ve looked at.

“What we’re seeing now, is that a lot of that industry – foreign owned industry that went to China, is probably now a bit too top-heavy in China, so they’re looking for to diversify a little bit and get some of their operations out of China,” Orr said.

Companies that are especially interested in moving their manufacturing operations were those from the automotive sector. This could mean more jobs for Filipinos, as most of the country’s labor force has been seen as unfit for the fast-rising business process outsourcing (BPO) sector.

“The BPO sector really focuses on the better educated sector, part of it. You really need to find jobs for those people who don’t have the college or university education and that’s where manufacturing and, of course, agriculture will come into place,” Orr said.

“So we’ll see more manufacturing. We’ll see a lot of warehousing and distribution companies start up in the Philippines,” Orr said, adding that CALABARZON remains a key point of interest for manufacturing companies, given its proximity to Manila’s port area as well as the presence of multiple industrial parks.

Bulacan and Clark also had potential as locations for future manufacturing hubs.

 

Source: www.jll.com.ph, The Philippine Star