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Machinery and Equipment

The Philippine construction and agricultural sectors are major contributors to the increased demands for local and imported machinery and equipment in the Philippines. The Philippine machinery and equipment industry includes the manufacture of machinery and equipment that act independently on materials either mechanically or thermally or perform operation on materials (such as handling, spraying, weighing or packing), including their mechanical components that produce and apply force, and any specially manufactured primary parts.

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42.4% Net Sales Value

The net sales value of the machinery and equipment industry has increased to 42.4% in the first quarter of 2022 compared to previous year.

Source: PSA

38.03 billion PHP Gross Value

The gross value added generated from the manufacturing of machinery and equipment except electrical equipment in the Philippines amounted to around 38.03 billion Philippine pesos.

Source: Statista

7.02% CAGR Growth by 2028

The construction equipment market in the Philippines is estimated to grow at a CAGR of 7.02% by 2028.

Source: Market Research

The Philippine construction and agricultural sectors are major contributors to the increased demands for local and imported machinery and equipment in the Philippines. [198][199] The Philippine machinery and equipment industry includes the manufacture of machinery and equipment that act independently on materials either mechanically or thermally or perform operation on materials (such as handling, spraying, weighing or packing), including their mechanical components that produce and apply force, and any specially manufactured primary parts. This category includes fixed and mobile or hand-held devices, regardless of whether they are designed for industrial, building and civil engineering, agricultural or home use. The manufacture of special equipment for passenger or freight transport within demarcated premises also belongs to this industry. It also includes other special purpose machinery whether or not used in a manufacturing process, such as fairground amusement equipment, automatic bowling alley equipment, etc. [200]

According to the Philippine Statistics Authority, the machinery and equipment industry in the Philippines are classified in two: general purpose machinery and special-purpose machinery. General purpose machinery includes engines and turbines, fluid power equipment, pumps, compressors, taps and valves, bearings, gears, and driving elements, ovens, furnaces and furnace burners, lifting and handling equipment, office machinery and equipment (except computers and peripheral equipment), power-driven hand tools, and other general-purpose machineries like gas generators and air-conditioning machines. Special-purpose machinery includes agricultural and forestry machinery, metal-forming machinery and machine tools, metallurgy machinery, mining machinery, quarrying and construction machinery, food beverage and tobacco processing machinery, textile, apparel and leather production machinery, and other special-purpose machineries like paper pulp machinery and semiconductor manufacturing machinery.[201] [202]

Opportunities and
advantages

  • The net sales value of the machinery and equipment industry has increased to 42.4% in the first quarter of 2022 compared to previous year. The gross value added generated from the manufacturing of machinery and equipment except electrical equipment in the Philippines amounted to around 38.03 billion Philippine pesos. [208]

  • The Philippine Center for Postharvest Development and Mechanization (PHilMech) is gradually pushing for the development of the country's farm machine industry amid the country's agriculture sector accelerating its adoption of mechanization through the Rice Competitiveness Enhancement Fund (RCEF). It aims to develop the local farm machine industry to improve their manufacturing capabilities and quality of their products. Such a project will upgrade the capabilities of local manufacturing that will create jobs in the countryside. The project also includes the fabrication of farm machinery parts in partnership with local farm machine manufacturers and foreign machine manufacturers. [199]

  • The construction equipment market in the Philippines is estimated to grow at a CAGR of 7.02% by 2028. In 2021, the earthmoving equipment segment accounted for the largest share of 58.5%. The transport infrastructure and construction projects in the Philippines boost the demand for construction machinery and equipment. Ease of trade due to free trade agreements also supports the distribution of construction equipment in the Philippines. The earthmoving equipment market is expected to grow strongly through 2028, owing to rising government investments in highway, metro, and airport construction projects, and expansion in the construction, transportation, and renewable energy sectors. Industrial growth is expected to drive the demand for construction equipment such as forklift & telescopic handlers used in the manufacturing industry. Small-scale construction and redevelopment projects are expected to increase the demand for backhoe loaders, bulldozers, and trenchers, and other construction equipment. [198]

New Product Opportunities

Thermometers, hydrometers etc.

HS Code
9025 HS4

Sewing machines

HS Code
8452 HS4

Liquid crystal devices

HS Code
9013 HS4

Machines n.e.c.

HS Code
8479 HS4

Instruments for measuring properties of liquids or gases

HS Code
9026 HS4

Machines for assembling electric lamps

HS Code
8475 HS4

Watch movements, complete

HS Code
9108 HS4

Clock movements, complete, unassembled

HS Code
9110 HS4

Ball or roller bearings

HS Code
8482 HS4

Drafting tables and machines

HS Code
9017 HS4

Musical instruments, electric

HS Code
9207 HS4

Pumps, compressors, fans, etc.

HS Code
8414 HS4

Appliances for thermostatically controlled valves

HS Code
8481 HS4

Machines for working materials by laser and similar means

HS Code
8456 HS4

Machines with grinding stones for finishing metal

HS Code
8460 HS4

Apparatus and equipment for photographic laboratories, n.e.c.

HS Code
9010 HS4

Spark-ignition reciprocating internal combustion piston engines

HS Code
8407 HS4

Parts of motorcycles or wheelchairs

HS Code
8714 HS4

Computers

HS Code
8471 HS4

Lathes for removing metal

HS Code
8458 HS4

Parts suitable for use with spark-ignition engines

HS Code
8409 HS4

Sound reproducing apparatus

HS Code
8519 HS4

Time switches

HS Code
9107 HS4

Featured Companies

  • Hitachi Asia Ltd. Philippines Consisting of 150 individual companies and supported by the diversity and passion of 38,000 employees, Hitachi Asia Ltd. has offices across 7 ASEAN Countries as of March 2021. Hitachi Group in Asia delivers the Asian operations of the global Hitachi Group. Incorporated in 1996, Hitachi Asia Ltd. Philippines Branch (HAS-PH) provides solutions catering to the diverse needs of its customers in the Philippines. HAS-PH markets a wide range of products and services for various industry sectors like power generation systems, transmission and distribution systems, heavy industrial equipment, industrial components and equipment as well as elevators and escalators. It also supports the sales of the company’s premium range of refrigerators. Hitachi has a long history in providing reliable construction machinery in creating a more comfortable and advanced society, with an array of excavators, wheel loaders, dump trucks, compaction equipment and cranes. Hitachi works towards building efficient construction machinery equipped with technologies that reduce environmental impact such as electric-hydraulic excavators that have zero exhaust emissions and fuel-efficient hybrid excavators. [203] [204]

  • Kubota Philippines, Inc. Kubota Corporation was born in Osaka, Japan - a country known and trusted for its technological innovations. What first started as a little foundry for daily commodities in 1890 became one of the leading manufacturers for agricultural machinery. Since then, it has branches in over 120 different countries around the world. But what drove Kubota is its advocacy for ecological sustainability and food security. Kubota believes in the abundance of Philippine farms and its environmental duty to them. Full of determination, it landed on the Philippine shores in the 1960s bringing multipurpose diesel engines. It then introduced durable and superior tractors, combine harvesters, and transplanters to our local farmers. Now known as Kubota Philippines Inc. (KPI), KPI continues to improve the country's agricultural productivity through the introduction of their various farming products. Kubota stayed rooted in its passion to protect the environment and the livelihood of farmers. That's why KPI, from distributing tractors to promoting humanitarian activities, became one of the most trusted distributors of agricultural machinery in the Philippines. [205]

  • Ada Manufacturing Corporation (ADAMCO) Ada Manufacturing Corporation (ADAMCO) is a 100-percent Filipino-owned company engaged in manufacturing and distributing agricultural equipment. It is part of the Ropali Group of Companies, which has a presence in banking, real estate and the motorcycle industry. ADAMCO began its business by manufacturing hand tractors in the 1970s as part of Ropali Trading until it became an independent company in 1999. In 2010, the demand for rice combine harvesting equipment spurred a boom in the acceptance of modern agricultural technology in the Philippines, an event which led to the nationwide expansion of ADAMCO. The use of rice combine harvesters helps the farmers maximize their earnings by decreasing harvesting losses and conversely, increasing their production yield, thus increasing their income without increasing their production area. ADAMCO sells rice combine harvesters, four-wheel tractors, rice transplanters, rice and corn threshers, corn shellers, small gasoline and diesel engines, trailer beds, and other small farm equipment. ADAMCO also offers 100-percent genuine and complete spare parts of the equipment it sells. In 2014, the Ropali Group of Companies entered into a joint venture with Yanmar Corporation of Japan for the distribution of its own brand of rice combine harvester in the Philippines through ADAMCO's stores. Today, ADAMCO is the largest dealer of Rice Combine Harvesters in the Philippines, with over 50% share of the units sold. It has over 30 branches and extension outlets across the Philippines. [206]

  • Atlas Copco Philippines Atlas Copco is an industrial company established in 1873 and based in Stockholm, Sweden, with approximately 43,000 employees and customers in more than 180 countries. Atlas Copco (Philippines) Inc. was established in 1967 in Manila. The company’s head office is located at Laguna Technopark, Biñan, Laguna with branch offices around the country. The company serves various industries including the electronics, semiconductors, construction, cement, agriculture, mining, automotive, food & beverage and general manufacturing segments. Some of their products include construction equipment, portable compressors and light compaction equipment, compressed air, vacuum pumps and gas equipment sales and rental, industrial tools and assembly systems. Atlas Copco turns industrial ideas into leading edge technology in air, power and flow solutions like dewatering pumps, handheld tools, high-pressure boosters, light towers, mobile compressors and power generators, across all different industries like construction, emergency relief, events, manufacturing, mining, power plants, oil and gas, petrochemical, water well, utilities, among others. [207]

Sources

[198] Arizton Advisory and Intelligence & Market Research. (2022, February 23). Philippines Construction Equipment Market - Strategic Assessment & Forecast 2022–2028. Market Research.

https://www.marketresearch.com/Arizton-v4150/Philippines-Construction-Equipment-Strategic-Assessment-30884266/

[199] Gomez, E. J. (2022, June 1). Agency pushes devt of local farm machines. The Manila Times.

https://www.manilatimes.net/2022/06/02/business/agribusiness/agency-pushes-devt-of-local-farm-machines/1845859

[200] Philippine Statistics Authority. (n.d.-a). 2019 Philippine Standard Industrial Classification (PSIC) | Philippine Statistics Authority.

https://psa.gov.ph/classification/psic2019/?q=psic/section/C

[201] Philippine Statistics Authority. (n.d.-b). 2019 Philippine Standard Industrial Classification (PSIC) | Philippine Statistics Authority.

https://psa.gov.ph/classification/psic2019/?q=psic/group/281,

[202] Philippine Statistics Authority. (n.d.-c). 2019 Philippine Standard Industrial Classification (PSIC) | Philippine Statistics Authority.

https://psa.gov.ph/classification/psic2019/?q=psic/group/282

[203] Hitachi. (2022, June 22). About Us : Hitachi in Asia.

https://www.hitachi.asia/about-us/

[204] Hitachi. (n.d). Hitachi Group Companies in Asia.

https://www.hitachi.asia/wp-content/uploads/2022/01/brochure.pdf

[206] AdamCo. (n.d.). About AdamCo.

https://adamco.ph/about-us

[207] Atlas Copco. (n.d.). Atlas Copco – Home of industrial ideas.

https://www.atlascopco.com/en-ph/about-atlas-copco/group

[208] Statista. (2022, February 2). GVA of machinery and equipment manufacturing Philippines 2019–2021.

https://www.statista.com/statistics/758460/machinery-and-equipment-manufacturing-value-added-philippines/