MANILA, July 24 (PNA) — The country’s aerospace industry has presented their roadmaps during the 9th Trade and Industry (TID) Updates in Makati City Thursday.
As presented by the Aerospace Industries Association of the Philippines (AIAP), the aerospace industry targets the country to be the major manufacturing destination for original equipment manufacturer (OEM) parts and maintenance, repair, and operations (MRO) for global commercial aircraft industry.
The AIAP eyes to integrate the value chain of the industry in the country in order to reduce production cost by about 19 percent.
The aerospace industry’s value chain include raw materials, machining, special processing, chemical or metallurgical testing, fine machining, assembly, and packaging and delivery.
However, only machining, assembly, and packaging and delivery are being done in the Philippines.
Raw materials are imported by the country from United States, Canada, United Kingdom, Singapore, and Europe while special processing, chemical or metallurgical testing, and fine machining are done in Singapore.
In order to achieve the integration of the value chain in the country, the industry needs production and process capability including investments in high-end machine tools and metrology equipment, fine machining, heat treat, gear manufacturing, non-destructive inspection (NDI) and metallurgical testing, general functioning testing for compliance to aerospace requirements, and chemical test compliant to aerospace requirements.
The industry also needs to integrate the supply chain by having raw materials, toolings and chemical supply and distribution here.
AIAP noted that in order to address these challenges government’s support in the following areas are needed:
–enhance training and education in areas relevant to the processes needed in the integration of supply chain here;
–continuous promotion to attract investments from the global players in the aerospace industry;
–improvement of policies and incentives to support the aerospace industry; and
–clearing administrative bottlenecks.
When this roadmap will be fulfilled, AIAP projected the local aerospace industry here to create a revenue of US$ 10.332 billion from 2013 until 2022.
The industry leader also eyes to increase job generation by almost 300 percent in 10 years. (PNA)