Accelerating the Philippine Construction Industry via Digital Transformation 

To learn more about the role of digital transformation in the development of the construction market in the Philippines, read more here.

August 2022 , by Noah Imson

According to an August 2022 industry report by Procore Technologies Inc., data from a survey consisting of 259 Philippine-based construction firms reflected that 82% of respondents had taken steps to digitally transform. The same report also found that 98% of construction companies are optimistic about the outlook of the domestic construction market—thus, digital transformation and its innovative solutions are expected to accelerate the growth of the Philippine construction industry in the near future.
Digitalization Growth Construction in the Philippines
Philippine construction firms have been trending toward developments that focus on promoting digital transformation within the country. The construction industry has benefitted heavily from doing so by being the primary developers of infrastructure projects like cellular towers, or even creating commercial spaces that facilitate the entry of companies offering digital services.

Recently, Philippine construction firms have found success in projects dealing with digital transformation. This August 2022, a subsidiary of global telecommunications infrastructure group Two Thirty Three Holdings, CREI Philippines, set into motion a 600-cellular tower construction project worth approximately 70 million USD. 

Meanwhile, construction developments centered on digital transformation have also promoted further growth in areas beyond the National Capital Region, specifically in Western Visayas. As reported by the Philippine News Agency, local towns in Antique—a province in Western Visayas—are expected to see an increase in jobs as call center agencies have begun renting out commercial real estate spaces in the vicinity.

Given that the Philippine construction industry continues to explore projects that involve digital transformation, several advantages will present themselves, namely: (1) bolstering the growth of the domestic construction market, (2) growing the local economy, and (3) strengthening the digital transformation agenda at a national level. 

Fostering Construction Industry Collaboration
To capitalize on the influx of activity within the construction industry in the Philippines, both the public and private sectors should continue to seek out projects in which they can collaborate. In the YCP Solidiance white paper “Partnering for Success in Saudi Arabia Construction,” a framework for collaboration between the government and private construction companies was discussed. Specifically, the Kingdom of Saudi Arabia (KSA) developed a framework that sought to create a favorable environment for foreign contractors. This approach was also developed with regional growth drivers in mind, most importantly, the KSA’s goal of diversifying away from an oil-reliant economy as outlined in the Saudi Vision 2030 initiative.

While the conditions of the KSA and the Philippines’ construction markets differ, the framework can still be adapted and refocused to a Philippine context by focusing on the goal of leveraging digital transformation. Given that the Philippines has aimed to accelerate nationwide digital transformation in previous years, the government can draft a framework that entices both domestic and international construction firms that specialize in projects related to digital transformation.

Moving forward, as the Philippines continues to explore digital transformation and related projects, the opportunity for investment in the construction market will only continue to increase. Moreover, if the Philippine government can create a more favorable environment that emphasizes collaboration between the public and private sectors, the construction market will experience further growth. In the coming years, expect the Philippine construction industry to play a major role in digital transformation, and vice versa.

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