CEMENT sales grew by 8.8 percent in the second quarter of 2016 compared to the same period a year ago, credited to continued demand from public and private construction activities.
Ernesto Ordoñez, president of the Cement Manufacturers’ Association of the Philippines (CEMAP), told reporters on Tuesday the increase in the budget of the Department of Public Works and Highways (DPWH) fueled the sales, coupled with the government’s aggressive stance to increase infrastructure spending from 5 percent during former President Benigno Aquino III administration to 7 percent of gross domestic product under President Duterte.
The DPWH, as has been the trend in recent years, is one of the top agencies with the biggest proposed budget for 2017 at P 58.6 billion, second only to the requested allocation of the Department of Education.
“Second-quarter cement sales were at 6.7 million tons, which is 8.8 percent more than the second quarter of 2015 sales of 6.2 million tons,” Ordoñez said in a text message.
For the first half, the overall increase in sales is at 10.7 percent, with local manufacturers selling 13 million tons compared to 11.9 million tons in the first semester of 2015.
The first-semester sales grew at a faster pace than that notched in the same period, in recent years.
“The first-semester increase is better than the moving average increase of 10 percent for the last five years, 8 percent for the past 10 years and 5 percent for the last 15 years. The primary reasons for the robust growth are the huge DPWH budget; the continued private-sector confidence in government which motivates cement use; and the relatively good weather conducive to construction activities,” Ordoñez said.