Philippines Advanced Manufacturing

Advanced manufacturing refers to the integration of cutting-edge technologies into production processes that lead to increased productivity, reduced waste, and improved product quality. In the Philippines, there are several sectors where advanced manufacturing may contribute significantly to the growth of the country’s economy, including in electronics, food processing, automotives, and pharmaceuticals.
 
Based on World Bank data, manufacturing contributed, on average, 18% to the country’s Gross Domestic Product (GDP) from 2018 to 2022. In recent years, the Philippines has been taking proactive steps to boost the advanced manufacturing sector through initiatives such as the Manufacturing Resurgence Program, which seeks to reinvigorate and expand industry capacity and competitiveness through a host of innovative strategies, like improving interagency collaboration, reducing the cost of transportation and logistics, and resolving supply chain gaps. Further, the Comprehensive Automotive Resurgence Strategy (CARS) program provides fiscal and non-fiscal incentives to auto manufacturers to attract investments. In 2021, the Philippine government launched the Advanced Manufacturing Center (AMCen), a research center for additive manufacturing (i.e., 3D printing). 
  
Key drivers of industry growth include the Philippines’ abundant supply of human resources, such as engineers, technicians, and IT professionals, as well as priority investments in infrastructure development, including transportation and logistics. However, the country must still overcome a number of challenges, such as skills mismatch, supply chain bottlenecks, and high input costs. 
 
Advanced manufacturing in the Philippines continues to evolve along an upward trajectory, driven by government support, a skilled workforce, and strategic advantages. While challenges exist, ongoing investments in infrastructure and a commitment to Industry 4.0 position the Philippines as a promising destination for advanced manufacturing. 

U.S. companies interested in specific ways to begin developing these opportunities in advanced manufacturing should contact Easter Villanueva at Easter.Villanueva@trade.gov.