The Philippine aerospace industry is optimistic it can hit its target export revenue of $2.5 billion by 2022, as it gears up to become a respectable player in the Asia-Pacific region by banking on a resounding interest from investors to expand operations in the country.
Trade Undersecretary Nora K. Terrado said local aerospace manufacturers are ready to supply the growing global demand for aircraft parts and mechanisms. This, after domestic producers participated in a two-day summit in Clark, Pampanga, where they had the opportunity to reach to international clients through business-to-business meetings.
“Philippine aerospace and aviation companies are ready to absorb the robust global demand for aircraft operations and aerospace parts manufacturing. As the exhibition was a great opportunity for the local companies to meet, know and know each other’s capabilities with their global counterparts and discuss where they can converge and be partners, we expect these positive developments into sealed business deals and, subsequently, translate to more export earnings for the country,” Terrado said.
According to the Board of Investments, the summit is able to gather 64 foreign companies, 51 local firms, 13 embassies and chambers, six schools, four domestic industry associations and three foreign industry associations. The participants range from aerospace and aviation industry suppliers, subcontractors, exhibitors with selling capabilities or services in sales, marketing, business development and technical promotion, as well as buyers, contractors, decision-makers seeking commodities or capabilities for the supply chain, procurement purchasing, engineering, fabrication and research.
Should local aircraft parts makers grow further, this will lead to more employment for Filipinos and revenue for the government, according to Terrado. “The growth of the aerospace industry will mean more export earnings for the country and more quality jobs for Filipinos,” she said.
As of present, local aerospace firms are able to manufacture parts for major firms, such as France-based Airbus and United States-based Boeing. The sector’s exports continue to expand by the minute, and had shown generally positive outlook over the past few years.
The industry posted a compounded annual growth rate of 4.2 percent from 2012 to 2016. In 2016 Europe and the Americas are the country’s biggest export destinations for aircraft parts with shares of 45.8 percent and 40.8 percent, respectively, while the Asia Pacific accounted for 12.8 percent.
Local aircraft parts makers are currently capable of exporting original equipment manufacturing parts. This includes flight control actuation systems, interiors, galleys and equipment, panels and lavatories for global commercial aerospace firms.