D&L sees brighter 2027 amid global risks
After weathering a difficult year marked by geopolitical tensions, volatile oil prices and supply disruptions, D&L Industries Inc. sees a potential turnaround in 2027 as easing global pressures offer manufacturers some breathing room.
But for D&L President Alvin Lao, the optimism remains guarded, with the scars of ongoing conflicts, looming climate risks and domestic political uncertainty threatening to complicate the recovery.
“The good news, it looks like, after the blue tsunami at the U.S. midterm elections, there’s finally a light at the end of the tunnel on when the war with Iran might end,” Lao told reporters at a recent press conference.
The recent US midterm elections have raised hopes of a possible resolution to the conflict with Iran, while Brent crude oil prices have fallen by around 20 percent in the past week.
A stronger peso has also provided some relief from import costs, giving manufacturers more room to navigate an otherwise challenging operating environment.
These developments, Lao said, offer “a lot of reason to be optimistic about next year.”
Still, an end to the conflict would not necessarily mean an immediate return to normalcy.
“But you never know. We can’t relax yet,” Lao cautioned, noting that “the reality is, even if the war ends, for a lot of raw materials, a lot of these manufacturing plants in the Middle East were destroyed. Those plants will take years to rebuild.”
The damage threatens to prolong shortages of key industrial materials, including ethylene, helium, aluminum and urea, while the continuing Russia-Ukraine war has further strained global supply chains.
Lao warned that the ongoing El Niño phenomenon, potentially the strongest in a century, could peak in the first or second quarter of 2027, adding another layer of uncertainty for industries dependent on agricultural commodities.
Closer to home, the approaching 2028 presidential elections could provide an economic boost, with election-related spending expected to begin picking up in the second half of next year.
Yet the same political landscape that could stimulate spending also carries risks for business confidence.
“Every time there are political issues, business kind of freezes. Our political situation could get a lot worse (if the conflict between Marcos and Duterte groups intensifies).”
“So, there are a lot of reasons to think that things will hopefully get better. But you never know. This is the Philippines,” Lao said.
Against this uncertain backdrop, D&L is keeping its growth ambitions intact while holding off on firm earnings projections for 2027.
The company has shown resilience despite the difficult business environment, posting a 32 percent increase in third-quarter profit that helped lift its earnings by 15 percent in the first nine months of 2026.
Rather than wait for external conditions to improve, D&L is sharpening its focus on higher-margin products and overseas markets to sustain its earnings momentum.
The company continues to invest in research and development to expand its specialty product portfolio and attract new customers, while stepping up efforts to grow exports and maximize the additional capacity of its new Batangas manufacturing facility.