Manufacturing: Powerhouse fueling PH economic growth

The June 2025 Standard & Poor's Global report highlights a significant rebound in Philippine manufacturing, signaling renewed investor confidence and stronger domestic and global demand.

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This resurgence provides a unique opportunity. Manufacturing can serve as a powerful engine for inclusive economic growth, raising incomes, diversifying the economy, and linking industry with agriculture and services.

According to the Philippine Statistics Authority (PSA), the industry sector—which includes manufacturing, construction, mining, and utilities—accounted for 29.5 percent of GDP in the first quarter of 2025. While that figure captures more than just manufacturing, it underscores the industrial base's crucial role. The recent uptick in manufacturing output—visualized in PSA's closely watched monthly purchasing managers' index (PMI) and quarterly growth contributions—signals that factories are once again driving economic momentum.

Increased investments in electronics, automotive parts, and food processing are rolling out of both public and private coffers. Aside from generating factory jobs, manufacturing creates multiplier effects across logistics, utilities, retail, and maintenance—as each factory worker supports an ecosystem of demand. This translates not only to more employment but higher household incomes, especially in provincial areas.