According to a report from Procore, a construction management software company, the Philippines’ construction industry remains optimistic about its prospects despite ongoing challenges in the sector caused by the pandemic.

The report, titled “How We Build Now,” was written by Procore in collaboration with independent research company YouGov. It revealed that expectations for growth in the local construction industry over the next 12 months remained positive, despite the prevailing headwinds.

The survey included responses from 1,644 individuals across Asia and the Pacific, with a focus on Australia, Malaysia, New Zealand, and the Philippines.

Data provided by Procore Technologies, Inc. indicated that 80% of business leaders in the sector anticipate an increase in the number of projects they undertake this year. Additionally, 83% of respondents expressed optimism about the upward trend in the value of projects in 2023.

However, the local construction industry in the Philippines is still grappling with the effects of the pandemic in 2023. The sector continues to face challenges, particularly concerning rising costs and inflation due to supply chain bottlenecks.

Fumin Rianto, associate director at YouGov, stated that these challenges have compelled construction industry leaders in Southeast Asia to focus on local supply chains rather than relying heavily on global ones. During a press conference on Tuesday, Rianto highlighted the increasing preference for local supply chains among businesses in the region.

Procore’s survey, which included 303 industry leaders from the Philippines, emphasized that costs remain a major concern for these decision-makers. It revealed that 46% of respondents in the Philippines anticipate increasing costs of raw materials and equipment over the next 12 months. Additionally, 35% find it challenging to secure competitive bids with sustainable profit margins.

These findings come at a critical juncture for the sector, where the adoption of technology could lead to increased revenue and efficiency gains. However, some business leaders exercise caution due to the lingering challenges.

Rianto shed light on the cautious approach taken by Asian construction businesses, as 40% of respondents expressed reservations about adopting new technologies. He explained that there is a tendency to adopt a wait-and-see approach and follow the lead of industry pioneers.