MANILA, Philippines - The Philippine aerospace industry’s revenues could hit $2.5 billion by 2022 from just $150 million in 2010 given the growing aviation market as well as government support, the Aerospace Industries Association of the Philippines (AIAP) said.
“We want to grow (our revenues) as a country to something like $2.5 billion in 2022, maybe even more because we see, we know the potentials of this market is really growing,” AIAP auditor Willie Estoque told reporters following the presentation of the group’s industry road map at the Board of Investments yesterday.
Estoque sees the potential to increase revenues of the local aerospace industry which is involved in the production of aircraft parts and interiors, given the growing global aviation market.
As of 2010, Estoque noted that the world’s original equipment manufacturer market for aircraft was valued at $335 billion.
At present are three key players in aerospace manufacturing present in the country which are: MOOG Controls Corp., B/E Aerospace and Jamco Aerospace, Inc.
Increasing the local aerospace industry’s revenues however, would require more investments as the production of some aircraft parts need high capital.
“To get the $2.5 billion, we would like to siphon some of the product lines that (key players here) do in their global facilities,” Estoque said.
The Philippines is currently at the bottom of the list among its peers in Southeast Asia in terms of investments made in the aerospace industry, with the funds poured in the country amounting to only $200 million as of 2010.
The investment made in the local aerospace industry is below Indonesia’s $234 million, Thailand’s $234.4 million, Malaysia’s $1 billion and Singapore’s $4.6 billion in the same year.
“The amount of investments we make is proportionate to the revenues we make,” Estoque said.
To encourage more investments to be made in the industry, he said government support would be needed in the form of supply chain integration by encouraging the development of local businesses to conform to aerospace standards as well as implementation of programs on training.
He said the conduct of investment missions and grant of incentives would also allow the country to attract more investments in the aerospace industry.