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Aerospace

Aerospace manufacturing is a high-technology industry that produces aircraft, guided missiles, space vehicles, aircraft engines, propulsion units, and related parts. The industry comprises government and private industries that perform the institutional roles of end-users, suppliers and manufacturers. The Philippines aims to become a hub for manufacturing and aftermarket services in the aerospace and aviation industries in the ASEAN region.

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Proximity to OEM companies

Three major original equipment manufacturing (OEM) companies are located in the Philippines that manufacture actuators, galleys, airframes and sub-assemblies.

Source: BOI

Aerospace export growth at 42%

The Philippine aerospace industry is one of the fastest-growing industries in the Asia-Pacific region, with exports growing by 42 percent from 2012 to 2016.

Source: BOI

US$ 2.57 Billion worth of exports

The aerospace industry aims to generate $2.57 billion worth of aerospace parts and components exports and employ around 15,000 people.

Source: BOI

The aerospace industry in the Philippines is one of the fastest-growing industries in the Asia-Pacific region, with exports growing by 42 percent from 2012 to 2016 [78]. The Philippines is a developing player across the aerospace industry value chain, with mockups capabilities in aerospace parts manufacturing, aircraft maintenance and repair (MRO) and offers training in aviation, aerospace, and engineering [76]. The Philippines is supplying the world’s largest aircraft manufacturers various aerospace parts [79]. The Philippines’s MRO companies can service various models of aircraft from different manufacturers, and the country’s large value of importation of aircraft and aerospace parts is a good indication of a growing MRO segment in the country [79]. MRO companies in the country also offer a wide range of services from maintenance, fleet management, engineering support, inventory support and cabin reconfiguration. This includes servicing the largest commercial plane in the world, the Airbus A380. The country’s MRO companies have official approvals from the US, Europe, Cayman and Australia [79].

Opportunities and
advantages

According to BOI, the aerospace industry roadmap aims to generate $2.57 billion worth of aerospace parts and components exports and employ around 15,000 people by 2022 [80].
Leveraging on the strengths and capabilities of allied industries such as automotive, electronics and IT-BPM, the Philippines can further grow the country’s capabilities in aerospace [76].
Government efforts to modernize the armed forces, increase the number of routes and develop airport infrastructure are also seen to boost the demand for aerospace industry in the country [81].
There are 39 active aviation schools in the country that can support the growing demand in aerospace and aviation in the region. These schools offer programs ranging from pilot training, aviation/aeronautical engineering, avionics and aircraft technician. In 2018, the Philippines had more than 6,000 licensed pilots and 4,000 student-license holders [81].
The Philippines is located in a strategic location and could make the country serve as a potential vital link in the aerospace industry value chain [76]. The Philippines is considered as an ideal hub because it is equidistant (4-hour travel time) from all major Asian countries such as Thailand, Korea, Japan, Guam, Vietnam, Hong Kong, Singapore, Brunei, Malaysia, Shanghai and Xiamen in China, and Taiwan [80].
The growth and expansion of domestic airlines such as Philippine Airlines (PAL) and Cebu Pacific (CEB) are contributing to the development of the industry [76].
Government efforts to modernize the armed forces, increase the number of routes and develop airport infrastructure are also seen to boost the demand for aerospace industry in the country [81].
The Philippines is host to three aerospace Original Equipment Manufacturers (OEMs) producing for the requirements of commercial aircraft industry, across a wide range of products: flight control actuation systems, interiors, fit-out, galleys and equipment [80].
The Philippines is also host to two major MRO brands catering to the requirements of the commercial aviation industry, both domestic and international. Recent expansion of the industry includes investments in hangars that can accommodate MRO services to widebody aircrafts [80].
The creation of the Association of Aerospace Industries of the Philippines (AIAP) is a positive factor in solidifying the initiatives for the growth and development of the aerospace industry because it presents a collective voice in helping shape the government policies and incentives affecting this sector [76].

Featured Companies

Jamco Philippines, Inc. Jamco Philippines, Inc. was established in June 2011 as a joint venture between Jamco America Inc. and Jamco Corporation. The company is headquartered in a 5900 square meter facility located in the Berthaphil V Industrial Park on Gil Puyat Ave within the Clark Freeport Zone of Pampanga, Philippines. The primary purpose of the company is the business of manufacturing commercial aircraft interior components and subassembly parts for the parent companies, Jamco Corporation and Jamco America. Products include machined parts and panel assemblies installed on Jamco interior monuments. The expansion of business in the Philippines is mostly to meet increased capacity needs due to programs such as the Boeing 787 Aircraft. Jamco Philippines, Inc. is committed to providing the highest quality parts to meet stringent Jamco aerospace requirements at reasonable prices. The Jamco Group continues to look for opportunities to bring parts in house to Jamco Philippines thus increasing the part control and lowering cost for the entire Jamco Group [82].

Moog Controls Corp. Moog is a worldwide designer, manufacturer, and integrator of precision motion control products and systems. Moog’s high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, industrial machinery, wind energy, marine applications, and medical equipment. The Moog headquarters is in East Aurora, NY. [83] In 1984, Moog Controls Corporation was registered and affiliated with PEZA in Baguio City, Philippines. Currently located in two campuses, one for the Aircraft Group specializing in servo valves and actuation systems for commercial aircraft applications and another for the Industrial Group specializing in high performance motion control solutions combining electric, hydraulic, and hybrid technologies for industrial applications. The company has grown from 24 employees to over 1000 employees spread across its 7.5 hectare campus inside the Baguio Special Economic Zone [83].

Applied Machining Corporation Applied Machining Corporation is a Philippine-based company established in 2010, that started its commercial operation in June 2011. It was established as an expansion of Nito Seiki Manufacturing Corp. to cater the growing export market hence with emphasis on the aerospace industry and performance racing parts. Located in Laguna Technopark Inc. Annex, Biñan, Laguna and has more than 400 employees, the company specializes in producing performance racing parts and aerospace industry needs [84].

Famous Secret Precision Machining Inc. Famous Secret Precision Machining Incorporated (FSPMI) is an ISO 9001- and AS 9100-certified [85] machining company that provides high quality engineered and machined components for aerospace, automotive, and industrial including other high-tech industries, and assemblies of light sport aircraft. Established in 1994 as a manufacturer of simple components for bicycle and liquefied petroleum gas tanks with one CNC machine, the company has expanded to 250 CNC machines operated by over 400 engineering professionals and operators in its 3.5 hectare facility in Silang, Cavite [86].

Sources

[76] Aerospace Industries Association of the Philippines & Philippine Board of Investments. (n.d.). Securing The Future of Philippine Industries: Aerospace. Industry Gov Ph.

https://industry.gov.ph/industry/aerospace/

[77] Department of Foreign Affairs Philippines. (2016, February 23). PHL Aerospace Industry Prepares to Take Off; PH Joins Singapore Airshow for the first time. Republic of The Philippines Department of Foreign Affairs.

https://dfa.gov.ph/dfa-news/news-from-our-foreign-service-postsupdate/8583-phl-aerospace-industry-prepares-to-take-off-ph-joins-singapore-airshow-for-the-first-time-2

[78] Department of Trade and Industry. (n.d.). PH gears up as recognized partner in MRO, aerospace manufacturing in Aspac region, holds Aeromart Summit in Clark to showcase immense capabilities of industry. Republic of the Philippines Department of Trade and Industry.

https://www.dti.gov.ph/archives/news-archives/ph-gears-up-as-recognized-partner-in-mro-aerospace-manufacturing-in-aspac-region-holds-aeromart-summit-in-clark-to-showcase-immense-capabilities-of-industry/

[79] Magkilat, B. (2018, June 11). PH gears up MRO, aerospace manufacturing in Asia Pacific. Manila Bulletin.

https://mb.com.ph/2018/06/12/ph-gears-up-mro-aerospace-manufacturing-in-asia-pacific/

[80] MANUFACTURING INDUSTRIES SERVICE (MIS) – BOARD OF INVESTMENTS. (2017, February). AEROSPACE. Philippine Board of Investments.

https://boi.gov.ph/wp-content/uploads/2018/02/Aerospace-May-2017.pdf

[81] Mercene, R. (2018, October 19). PHL aerospace industry export grew 42% from 2012 to 2016–DTI chief | Recto Mercene. BusinessMirror.

https://businessmirror.com.ph/2018/10/19/phl-aerospace-industry-export-grew-42-from-2012-to-2016-dti-chief/

[82] Jamco Philippines. (n.d.). About Jamco.

http://www.jamcophilippines.com/story.html

[83] Moog Inc. (n.d.). Investor FAQ.

https://www.moog.com/investors/investor-faq.html

[84] Applied Machining Coporation. (n.d.). About us.