Philippine building boom will boost Mitsubishi Electric elevator, aircon sales
MANILA, NNA - The Philippine affiliate of Mitsubishi Electric Corp. is optimistic that sales of its elevators and air conditioners in the country will enjoy higher growth, stimulated by the construction boom and increasing population.
Ramoncito Ocampo, President of International Elevator and Equipment, Inc. (IEE), who expects the elevator market to grow five to ten percent each year, hopes to sell 1,000 to 1,500 units yearly.
In a phone interview on Wednesday, Ocampo reported IEE had achieved 10 to 20 percent in sales over the past five years. It continues to thrive as a market leader for elevators and escalators in the Philippines, with roughly a 30 to 40 percent share.
“The elevator market is still growing because there are still a lot of buildings coming up,” he told NNA on the sidelines of a news briefing on Nov. 7.
The building industry expanded by 16.3 percent in the July-September quarter of this year, driven by the surge in private construction, according to government data. The take-up rate for office space also rose with developers launching new office buildings.
Property consultant Colliers Philippines expects 1 million square meters of new office space to be launched yearly from 2019 to 2021 in Metro Manila, mainly due to the expansion in offshore gaming activities and business process outsourcing.
Itsuo Arakawa, Executive Vice President of IEE, which also distributes Mitsubishi air conditioners, believes population growth in the Southeast Asian country would also help push demand for them.
Arakawa added that the company might consider setting up an aircon plant in the country if investment incentives are attractive.
IEE was established in the Philippines in 1969, with Mitsubishi Electric owning a 30 percent stake before it became a majority shareholder. Beginning with sales of elevators and escalators, the business expanded to include air conditioners in 1978.