Cement industry sees prospects improving with signing of budget

By Justine Irish D. Tabile, Reporter

CEMENT manufacturers said the timely signing of the budget is clearing up some uncertainty over infrastructure spending in 2026, after many projects underwent stricter review following last year’s corruption scandal.

Cement Manufacturers Association of the Philippines, Inc. (CEMAP) President John Reinier H. Dizon told reporters.: “We are cautiously optimistic.”

“It is a good sign that the national budget was approved, I think that is important. And I understand that the Philippine Contractors Accreditation Board (PCAB) is in place; that is crucial for public infrastructure,” he added.

Last year, the PCAB temporarily stopped issuing licenses after its board resigned in the wake of the government’s investigation into corruption in public infrastructure projects.

“There was a little bit of a lull in the last quarter; now that (the budget) is in place, fingers crossed, we just need to build confidence,” he said.

“Once the government projects kick in, I think that will also (revive private construction),” he added.

He said government projects have a multiplier effect on the housing and commercial segments.

Housing and commercial will be stimulated “once they build the roads and all the necessary infrastructure,” he added.

He said the industry’s fundamentals remain promising due to strong demand for infrastructure and housing.

“It is only January, so let’s see. Usually, the construction peaks around March and April,” he said.“Hopefully the demand grows. Right now, we are not seeing it yet. We have seen a little bit of decline, particularly in the last quarter,” he added.

Last year, he said demand for cement was estimated to have declined by 2-3%.

“As for the industry’s trajectory — we should be tracking gross domestic product (GDP). As GDP grows, construction should also grow,” he added.