Despite the country suffering in deep recession, the local warehousing and logistics industry continues to be the ‘saving grace’ of the Philippine economy, real estate and brokerage firm KMC Savills said.
In a report, KMC shared that the sector steadies the property market as it is geared towards the increased need for warehouses, distribution centers, and industrial lots that can support different business operations in the country and in a global scale.
Meanwhile, the transportation and storage remain an important factor in the growth of the economy, consistently accounting for around 4% of the Philippine GDP. KMC data also shows that the Philippines’ overall Logistics Performance Index (LPI) have improved, buoyed by progress in infrastructure and economical pricing of international shipments. The country has also jumped 11 places and ranked 60th in the World Bank’s LPI.
Investment pledges for the transportation and storage sector grew nine-folds in the previous year as demand for highly specialized cold storage for COVID-19 vaccines increases.
The country is also expected to benefit from relocating manufacturing companies which are eyeing cheaper lease rates in Southeast Asian countries. KMC forecasts that the booming e-commerce industry will continue to drive logistics leasing demand throughout the year as the pandemic accelerates the shift to omnichannel retailing.
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