Cement manufacturers in the country said they are ready to meet an expected increase in demand due to a rise in the construction of government infrastructure projects.
"Our member-firms are in the process of increasing our capacity to meet the current demand for cement in response to a challenge to have better road networks to spur economic growth, particularly in the business and tourism sectors," said Cement Manufacturers' Association of the Philippines president Ernesto Ordo.
He said demand for cement and construction materials was rising because of the 21-percent increase in the infrastructure budget of the Public Works Department and the private sector construction and real estate boom this year.
While demand is increasing, a top executive of a CeMAP member firm said rising production costs "are limiting the likelihood of price reductions" within the foreseeable future.
"Costs are increasing at a level above inflation, but prices have not increased by the same amount over the past three years. As a result, industry margins are gradually declining, which is a concern for all cement manufacturers," he said.
Rising demand for cement was noted due to the increasing share of concrete in road construction.
Public Works reported earlier that 81 percent of the national roads in the country had been paved. Of those paved, about one-half of the roads are concreted and 28 percent are in asphalt.
Over the last few years, approximately 80 percent of the new national roads are made of concrete due to its tested high durability, environment-friendly characteristics and longer life span.
Concrete paving is generally preferred because of its durability, thus the minimal need for repair and resistance to extreme weather and torrential rains that the country often experiences. Tests done on concrete revealed that it is not easily washed away with water and its lighter surface deflects heat thus minimizing "heat island" effects.
