The Philippines is gearing to become a reputable partner in aircraft maintenance, repair, and overhaul (MRO) and aerospace manufacturing in the Asia Pacific region, with exports in the sector seen to reach P135 billion by 2022.
Indeed international clients and buyers signified their intention to establish business partnerships with their local counterpart at the recent Aeromart Summit Clark Philippines Exhibition, held in Clark Field, Pampanga.
Trade Undersecretary for industry promotion and Board of Investments (BOI) governor Nora Terrado said, “Philippine aerospace and aviation companies are ready to absorb the robust global demand for aircraft MRO operations, and aerospace parts manufacturing. As the exhibition was a great opportunity for the local companies to meet, know, and show each other’s capabilities with their global counterparts and discuss where they can converge and be partners, we expect these positive developments into sealed business deals and subsequently, translate to more export earnings for the country.”
Terrado made the comments after witnessing some of the business-to-business (B2B) meetings during the two-day international exhibition that also underscored the investment and outsourcing opportunities in the Philippines and served as a platform to expand the reach of local aerospace industry players with global clients through B2B deals.
“The growth of the aerospace industry will mean more export earnings for the country and more quality jobs for Filipinos,” she added.
About 64 foreign companies, 51 local companies, 13 embassies and chambers, six schools, four local industry associations, and three international industry associations from a range of aerospace and aviation industry suppliers, sub-contractors, exhibitors with selling capabilities or services in sales, marketing, business development, and technical promotion as well as buyers, contractors, decision-makers seeking commodities or capabilities for the supply chain, procurement, purchasing, engineering, fabrication, and research & development participated in the Aeromart Summit Exhibition.
Local companies currently produce parts for major aerospace manufacturers like French company Airbus and US-based Boeing.
Meanwhile, Trade Undersecretary for industry development and BOI managing head Ceferino Rodolfo said the summit generated greater awareness on the country’s capabilities as a significant supplier of the world’s largest aircraft manufacturers like Airbus and Boeing with aerospace parts ranging from flight control actuation systems to galleys and interior fit-outs.
“A lot of Philippine industries are well-known globally, such as our strong information technology-business process management (IT-BPM), electronics and creative industries.
However, regrettably, the Philippine aerospace industry is not one of those we are known for. It is not because we are not good at it, but simply because most have not even heard that we have an aerospace industry. This has to change from here,” said Rodolfo.
Rodolfo added the country’s MRO companies led by Lufthansa Technik and SIA Engineering Philippines also services various models of aircraft from different manufacturers and airline operators such as Philippine Airlines and Cebu Pacific Air, and the country’s large value of importation of aircraft and aerospace parts is a proof of the growing MRO segment in the Philippines. Philippine MRO companies he said, have authority approvals from the United States, Europe, Cayman, and Australia.
Data showed that the Philippine aerospace industry is among the fastest growing sectors in the Asia-Pacific Region, with exports growing by 42 percent annually from 2012-2016, translating into a significant 30-place increase in the country’s rank in the PWC Aerospace Manufacturing Attractiveness Index of 2017.