The Philippines in the Aerospace Global Value Chain

This report uses the Duke CGGC Global Value Chain (GVC) framework to examine the role of the Philippines in the global aerospace industry and identify opportunities for the country to upgrade. The Philippines is a newcomer to the growing global aerospace manufacturing industry. Although the country has been host to a major flight controls manufacturer since 1985, the industry really only began to expand within the past five to ten years. During this recent period (2007-2014), the country has rapidly ramped up its aerospace manufacturing exports, reaching US$604 million in 2014 and more than tripling employment. The industry now employs 3,000 full time and 3,000 part time workers. Although still a very small player, accounting for less than 0.15% of the global industry, this incipient growth is promising. Both foreign firms and local suppliers that have established operations in the industry have already achieved some degree of upgrading within a short timeframe. These include expanding the product lines served, obtaining essential process certifications and upgrading beyond basic assembly operations to undertake additional manufacturing processes such as machining as well as initiating procurement and engineering functions in country.

The Philippines in the Chemical Global Value Chain

This report uses the Duke CGGC global value chain (GVC) framework to examine the role of the Philippines in the global chemical industry and identify opportunities for the country to upgrade. The Philippine chemicals sector is growing rapidly alongside economic expansion and a revival in manufacturing. By 2013, the chemicals sector as a whole accounted for 6.7% of GDP. Chemicals exports reached US$2.2 billion in 2014, approximately 3.5% of the country’s export basket. The sector’s expansion has outpaced both global and regional trade; with a compound annual growth rate of 13% since 2007, three times as fast as global exports, and twice as fast as Asian regional exports. Participation in the export market is based primarily on commodity products in the oleochemicals and petrochemicals sub-sectors. Within these segments, exports are driven by a small number of products, with the top 10 accounting for approximately threequarters of all exports. While the country is a small player in the global chemicals trade, accounting for just 0.2% of exports in 2014, it has generally been successful in carving out a presence in these niche products, and is one of the global leaders in most of its top product categories.