Real estate boom fuels growth in construction

CEBU, Philippines - With the continuing construction boom evident in the province and in the country, the manufacturing sector projects the same growth in its supply of construction, finishing and furnishing materials. Worldwide Steel Corporation President Walter Ong said during a press conference that the construction industry in Cebu is growing as seen with the increasing demands for commercial and housing units.

He added that such growth is driven by the business process outsourcing sector and the remittances from Overseas Filipino Workers abroad.

He also noted that the manufacturing industry remains bullish with the development from these factors in the coming years since there is a notable demand for the construction of buildings and units for the residential and private sectors.

“We would still continue to see the construction boom in the Philippines,” he stated.

According to the latest report from the National Economic and Development Authority, the IT/BPO industry projected a growth average rate of 46 percent annually and in Cebu alone, the outsourcing revenues in 2005 was recorded more than US$200 million and increased to US$1.3 billion in 2011.

Moreover, the remittances of Overseas Filipino Workers also grew by 7.2% last year and 5.4% in the first quarter of 2012 in which 30-40% of remittances are invested in real estate properties.

However, Ong cited that prices of the construction materials are still dependent on the prices in the world market.

He said that for instance, the prices for cement is also booming but is more stable compared to the prices for steel bards which are “very volatile”.

Ong said that in line with the objective to serve its customers better, the Worldwide Steel Group is collaborating with its sister company, Worldwide Home Depot, wherein clients can avail of Worldwide Steel products at factory prices without travelling to its main office at Mandaue City.

“As years passed by, we have engaged to manufacturing and other construction materials and we see the need to have a complete product line. We stress here at Worldwide that we do not sacrifice quality for lower prices. Giving out substandard products would not be fair for our customers. We believe that we are here to help Filipinos build communities that would last for generations,” he stated.

Worldwide Home Depot President Ann Marjorie Ong Yang, on the other hand, said that a bigger and complete store of materials is required to accommodate the construction boom, thus expanding the Worldwide Home Depot – South from 500 square meters to 4000.

“We want to integrate everything from structural to furnishing items. We are looking for what they need and serving it out to them as much as possible,” she said.

Although the company has not been active yet in its promotion for green construction, she admitted that there is already a rising demand for items used for the green building concept since customers are becoming more conscious to have Leadership in Energy and Environmental Design-certified buildings.

Meanwhile, she said that there are added services that Worldwide Home Depot has to offer to provide further convenience to its customers such as the Home Club wherein a member can avail of appliances through the accumulation of points from purchasing items in the shop and the Designers’ Lounge wherein customers can confer with their architects and contractors and are provided with free Wi-Fi connection, coffee and iced tea and massage.

The lounge, Yang added, also has the Design Simulation Software which can help the end-users visualize the look they like applying the products available in the store and mix-match their choices within the program given their raw file of their dimensions.

She also revealed that there are already plans of expansion for the company but may be fully realized by next year or on 2014.

Currently, Worldwide Home Depot has two outlets in N. Bacalso Avenue, Cebu City and Carcar City while its factory outlet and main office is located at Sacris Road Ext., Mandaue City and The Tile Shop at A.S. Fortuna St., Mandaue City.

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