Industrial Sector

• The Philippines is composed of 3 main sectors: AGRICULTURE (primary sector), INDUSTRY (secondary sector), and SERVICE (tertiary sector)
• As the country becomes industrialized

  The focus moves from agricultural to the industry, and eventually to the service sector
• Sectors and their percentage share of GDP

  • Agriculture, Hunting, Forestry, And Fishing (2019: 9.2%, 2020: 10.2%, 2021: 9.6%, 2022: 9.6%, 2023: 8.6%)
  • Industry (2019: 30.4%, 2020: 29.2%, 2021: 29.9%, 2022: 29.2%, 2023: 29.1%)
  • Service (2019: 60.4%, 2020: 60.7%, 2021: 60.5%, 2022: 61.2%, 2023: 62.3%)
• Industry


  • The process of producing goods by using machinery and factories
  • Industrialization is the transformation from a primarily agricultural society into one based on the manufacturing of goods
• Privatization


  The transfer of ownership of government owned and controlled corporations (GOCCs) to private individuals or corporations
• The Fourth Industrial Revolution is a term used to describe the current trend of automation and data exchange in manufacturing technologies
• Philippine manufacturing continues to have low technology utilization with most companies still transitioning from Industry 2.0 to Industry 3.0
• Rapid global inflation is clouding the outlook for sustained manufacturing growth in the Philippines
• The constraint placed by international sanctions on Russian export of cobalt, a key input in the production of batteries, provides opportunities for the Philippine mining and manufacturing industries
• The Philippines has a competitive cost of labor, but lacks skilled workers
• Skills gap


  A fundamental mismatch between the skills that employers rely upon in their employees, and the skills that job seekers possess
• Government Programs Supporting the Industry Sector

  • Industry Development Council (IDC)
  • Oil Deregulation Law (RA 8479)
  • Micro-financing for MSMEs
  • Shared Service Facilities
  • One Town, One Product (OTOP)
  • Investment Priorities Plan (IPP)
• The Industry Development Council (IDC) is mandated to coordinate government initiatives in support of the development of the industry sector