Industrial parks are becoming a more common scene in today’s business landscape. They have existed for decades but have only been recently in the spotlight of policymakers and the public. Although they have been around for a while, most Filipinos are still not aware of what industrial parks are, how they work, and why we should care about them.
In fact, the Clark Industrial Park, Hermoza Ecozone, has just been recently developed. And it promises to provide more opportunities for both the local economy and international companies.
With this, the Philippines has the right environment to grow its manufacturing and industrial sectors by building industrial parks. Industrial parks can significantly contribute to the country’s growth as they provide the right conditions and facilities needed to support the manufacturing and industrial sectors.
What is an Industrial Park?
An Industrial Park is a section of a city that has been designated, planned, and zoned for industrial development rather than residential or commercial needs. The allotted area may contain oil refineries, ports, warehouses, distribution centers, factories, and other industrial facilities. These parks can help bring companies together that provide services and features that complement each other.
Why are Industrial Parks important to the economy?
Industrial parks allow combining production, transportation, and storage facilities in the same area. Ideally, the mix of businesses complements each other in terms of services and features. Therefore, the relationship benefits the companies that occupy space there.
For example, industrial parks near ports can provide access to commodities and finished products. These products can be then transported to industrial hubs for distribution by another company.
Cranes and other heavy lifting equipment services can be used to transfer cargo to trucks. If not, the shipment can be stored at warehouses within the industrial park. Basically, all of these services owned and operated by different companies create a healthy economic ecosystem.
How suitable are Industrial Parks for the Philippines?
Let’s talk about location. With the Philippines’ economic boom, more urban areas are being developed. However, the rapid growth of urbanized areas congests the country’s capital. You can see this in major cities such as Manila, where its citizens suffer from traffic congestion, pollution, and more despite being the most urbanized city in the country.
Industrial parks help decongest the country’s capital by focusing on turning an allotted area into an industrial and commercial center. With this, there are minimal interruptions in traffic and maximum work efficiency.
The location of the Philippines is one of the most advantageous areas in the Southeast Asian region. The Philippines is surrounded by many countries, which provides more international business opportunities. And since the Philippines is an archipelagic country, there are a lot of ports and strategic locations that can enable companies to distribute products throughout much quicker.
How can Industrial Parks impact the Philippines’ future?
Develop and Support Local Industries
One of the economic benefits of industrial parks is that they help bolster industries already well established locally in a country. Some of these industries have grown to become some of their countries’ biggest contributors. But with globalization and international trade, there are still new kinds of businesses learning how to work hand-in-hand with them. Global companies and other forms of business can support the local economy in more ways than one. The introduction of domestic and foreign-based companies alike can help push industrial development forward, as they can provide support.
Create new opportunity
Along with the development and support of local companies, industrial parks can bolster the creation of new businesses and industries. Since the Philippines is a developing country, there are still a lot of companies that have something new to offer in the country. Industrial parks promote industrial growth by forming partnerships with the government, local, and international businesses.
Industrial parks offer a lot of benefits. They give industries the space they need to grow while also helping companies sustain that growth over time. An industrial park provides an excellent platform where enterprises can build up long-term relationships with investors and buyers alike. With their readily-made infrastructure, industrial parks help reduce companies’ emergency costs and general cost of operations. With this, companies can put more energy into production without worrying about building maintenance!
Industrial parks are vital to the Philippines’ economy, and they are a significant factor in the country’s growth. They provide jobs and infrastructure, attract businesses and investment to the area, and encourage the development of new industries. They are also great for local governments, providing them with a steady stream of tax revenue.
As the country is expected to improve its economy in the next few years, industrial parks will always be needed. For instance, the Clark Industrial Park continues to gather local and international investors and generate positive economic growth. This led to Clark quickly becoming one of the fastest developing areas in the country.