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Expansion of Business

Company has been in the business for more than a decade and through those years, it has gained all the potentials to expand its business. They may introduce new products. They may take existing product to a new market. Also, some other companies, big or small, may want to be partnered with them as they see its potential.

Economic Growth of the Philippines

As the government targets a growth of 7 percent in the economy, the second quarter of 2015 now records a growth of 5.6 percent in the Philippine economy through strong performance of industry and services sectors and sound government spending. This made the Philippines to be the third highest among Asia's major economies following China and Vietnam.

According to Socio-economic Planning Secretary Arsenio M. Balisacan, the 5.6 percent second quarter growth is "respectable," and makes the Philippines still an attractive market with strong economic fundamentals.

"Although slightly below the government’s target, it is important to ensure that the growth momentum is sustained," said Balisacan, who is National Economic and Development Authority (NEDA) chief. He further added that this reflected the Philippines' "resiliency from the prevailing weaknesses of the global economy."

The government still continues to look forward for the advancement of the Philippine economy. Barclays regional economist Rahul Bajoria said in an email to Agence France-Presse, "Overall, despite the cut in our growth forecast, we expect the Philippines to continue to outperform the other ASEAN economies, with the country set to be the fastest growing economy among the major ASEAN economies for a third consecutive year in 2015,"

Boom in Automobile Sale

In the first quarter of 2015, the Philippine automobile industry recorded vehicle sales of 62,822 units compared to 51,722 units sold in the previous year. This is an increase of 21.6 percent.

The commercial vehicles segment accounted for 60 percent of total sales for the same period and contributed 37,831 units which is equivalent to a 12.6-percent growth rate compared to the sales recorded in the same period last year. Trucks and buses showed 69 percent growth with 706 units sold compared to last year’s year-to-date sales of 419 units.

“With this performance, the industry is confident that it will reach its 310,000 sales volume target for the entire year as sales is expected to peak up in the coming months,” said Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) president Rommel Gutierrez.

Material Handling Industry

2015 is another competitive year for material handling industry. This industry is engaged in transferring goods within factories or warehouses with the aid of mechanical devices like forklifts.

In 2015, it is expected that there will be more robots on the job. Automatic forklifts will be performing their job even without the aid of human operations. Improved safety and productivity and more efficient data assessment and management tool are also the trends in 2015. These all will be in automation. Like the invention of automatic height-adjusting carts which enable operators to work at optimal heights without the aid of electrical, hydraulic or pneumatic hook-ups. So as technology in material handling continues to level up, business owners are also encouraged to do the same. One of them is to upgrade their forklifts and other accessories which includes industrial batteries used in forklifts.

Threat

Negative Balance of Trade

According to Philippine Statistics Authority, in June 2015, industrial machinery and equipment is the fourth top Philippine imports from all countries with 39.2% of growth from the previous year. Imports also increased by 22.6% due to positive performance of six out of the top ten major imported commodities of the month including industrial machinery and equipment. This increase results to a deficit of $554.79 million in the balance of trade goods (BOT-G) in the Philippines.

Negative Shift in Exchange Rates

A country's balance of trade is the value of deducting imports from the exports. If the result is positive, the country is said to have a favorable balance of trade. If the difference is negative, the country has a trade gap, or trade deficit.

Trade balance has an impact in supply and demand for a currency. When a country has a trade surplus, demand for its currency increases because foreign buyers exchange more of their home currency in order to buy its goods. On the other hand, a trade deficit increases the supply of a country’s currency and could lead to devaluation if supply greatly exceeds demand.

Accordingly, balance of trade in the Philippines shows a trade deficit which may increase the supply of Philippine Peso and may likewsise lead to devaluation.