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Aug 08, 2023

Die and mold sector now at 75

THE Philippine Die and Mold Association (PDMA) expects to regain the local industry’s prepandemic production levels no later than 2025. PDMA President George Ong told reporters recently that the

THE Philippine Die and Mold Association (PDMA) expects to regain the local industry’s prepandemic production levels no later than 2025.

PDMA President George Ong told reporters recently that the industry is already 75 percent to 80 percent of prepandemic level of production.

Ong said demand is still weak, especially in China. The manufacturing export industry has been “down” and this has also affected Philippine-based industries, including the die and mold industry.

“Well, very hard to say [when we will recover to prepandemic levels]but I hope that by next year, that’s the projection 2024 or 2025. Maybe mid-year na. So probably if not [by the] end of 2024, maybe mid-year of 2025,” Ong said.

Ong said his company as a wholeis around 90 percent recovered from the pandemic. He said it is possible that by the end of the year, they may already reach their prepandemic levels.

He said the industry has also received help from the government to recover from the pandemic. The Metal Industry Research and Development Center (MIRDC), he said, has “done a lot to help the MSMEs [micro, small, and medium enterprises] to recover.”

“The government as a whole, they offered let’s say loans to MSMEs as long as they qualify; they offer loans during those lean production times so that people won’t be laid off,” Ong said.

Still, he added, “I think it should be fine, getting better, you know [how in] pandemic time [that’s quite] rock bottom, so I think everybody is on…recovery [mode]. Some are faster, some are probably a little bit slower,” he added.

In a recent speech, Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga said the Die and Mold Industry has been a crucial component of the economy. Based on Peza data, Panga said there were 4,372 die and mold firms operating in ecozones. He said the industry is Peza’s biggest investors, accounting for 65 percent of the exports from the economic zones.

Panga also noted that Peza registered a total of 285 projects engaged in the die and mold sector that generated, as of June 2023, about P23.491 billion in cumulative investments and created 35,487 direct jobs for our Filipino workers.

These projects contributed to Peza’s consistent positive performance, with investments this year already totaling P97.163 billion, three times larger compared to the same period last year, he noted.

“We owe our success to PDMA and ecozone developer and locator companies, and our industry partners for the strong commitment to promoting a thriving business environment and in driving sustainable development, skills improvement, and job generation particularly in the ecozones,” Panga said.

The industry’s contribution is vital to the growth of domestic and export manufacturing in the country, he added.

Its steady growth over the years is helping position the Philippines as a reliable source of high-quality molds and dies, catering to both domestic and international markets.

He noted that the semiconductor-electronics, automotive, and aerospace sectors benefited from the integration of local die and mold companies into the ecozone value chain.

“Your industry is critical as it is considered a backbone of not only the small and medium enterprises [SME] but an essential pillar in industrial development,” Panga said.

“It is said that the design and manufacture of dies and molds represent a significant link in the entire production chain because nearly all mass-produced discrete parts are formed using processes that employ dies and molds,” he added.

Efforts to grow the die and mold industry include the recent collaboration with the Korean government, which provided a $6.3-million grant for manpower training in CNC machining, precision tooling, mold designing, and production of various dies and molds.

Through the program, Panga said Peza can help grow the metals, plastics and engineering sectors that serve the requirements of downstream manufacturing companies as well as the local and export core-manufacturing industry.

The grant was extended to the DOST-MIRDC, DTI-BOI, and PDMA on the establishment of the Mold and Die Technology Support Center (MTSC) at the Cavite Economic Zone.

Panga said the Philippine Die and Mold Industry and Peza enjoy a long partnership that started in the 1990’s when Peza was created on February 25, 1995 by virtue of RA 7916.

The law envisioned the creation of a government body that would champion and accelerate Philippine Industrialization through the ecozones.