Local and international enterprises in the Philippines strategically choose to locate inside an industrial park. Many businesses who are looking for storage facilities consider why it is preferable to select industrial spaces located in these real estate sites as the logistics sector in the nation continues to expand.
The Philippine Economic Zone Authority is in charge of managing the nation’s more than a hundred parks, which are categorized as special economic zones. These are typically found in nations with comparative labor and logistics cost advantages.
Due to its comparative advantages and prospects, including its affordable labor, vibrant local sales market, skilled labor that speaks English, and management effectiveness, the Philippines has emerged as a prime relocation location.
The following are some of the top perks of setting up operations inside a Philippine industrial park.
Special Economic Zone Incentives
These zones offer a variety of perks to businesses that operate within, including tax holidays, reduced tax rates, duty-free importation of machinery and raw materials, and streamlined customs processes. These incentives can give a competitive advantage and greatly reduce operational costs.
When put together, the tax breaks and duty exemptions offered in economic zones enable investors to operate with just modest initial financial outlays. Locating at a top Philippine economic estate may become much more appealing whenever these are combined with the cost-saving advantages.
Investment Opportunities
It is not surprising to see new establishments being built around the Philippines given the increase in industrial property developments and real estate over the past 20 years or so. Small, medium, and large operations with comparable-sized requirements can all fit in this region. It is beneficial to businesses looking for foreign investment since it gives the credibility and capacity that investors need.
Centralized Support Infrastructure
Enjoy exclusive full assistance in terms of the local resources and utilities that can be conveniently accessed, allowing for smoother operations and greater efficiency. This involves ground control, water, electricity, and security.
Electric Grid
Buildings inside these zones demand more energy to run than other buildings. They have a separate, independent electrical grid that supplies energy at a sufficient voltage. This ensures there are no power interruptions or electricity rationing and is conducive to successful and stable operations.
Water Supply and Wastewater Treatment
Warehouses inside are encouraged to have their own water supply and wastewater treatment facilities. This creates sustainability and lessens the damaging effects of production and manufacturing on the environment.
Security and Fire Protection
Security and fire protection are also provided. The community is barricaded so property damage and vandalism are under control. With on-site employees and concerned authorities, risk reduction and management are also secured.
Ground Management Team
The most prestigious provides a dedicated ground management team as an extra service and amenity. Companies are given a management staff to assist with the management and upkeep of common buildings and infrastructure.
Skilled Workforce
There’s an adequate number of skilled, English-speaking workers in the Philippines. Considering the concentration of firms and industries in one location, industrial parks tend to attract a skilled labor force. This makes it simpler for companies to find qualified workers with the required knowledge. They may also work with nearby educational institutions to offer training courses that are specifically designed to meet their needs.
Proximity to Major Ports and Airports
Ideally situated close to important ports and airports, this gives easy access to international markets. Due to their close proximity, import and export activities have lower transportation costs and shorter lead times. Businesses may interact with suppliers and consumers both domestically and abroad, move goods and raw materials with efficiency, and more.
Networking and Collaboration
Businesses can participate in a thriving community. The proximity within the park encourages networking and cooperation. Sharing of information, partnerships, and future corporate alliances are made easier, which promotes greater innovation, market expansion, and resource sharing.
Regulatory Support
Establishments around the area benefit from reduced rules and administrative procedures. The governing bodies in charge of these parks offer support services and assistance in obtaining licenses and permits. This regulatory support provides assistance when navigating legal requirements with fewer bureaucratic complexities.
Support Services
Lastly, support services are frequently provided to help businesses with their operations. These services could include assistance with administration, legal and accounting matters, recruitment, marketing and advertising activities, and access to common resources like training facilities or conference rooms. Utilizing these support services can simplify administrative tasks and improve corporate operations.
Key Takeaway
The Philippines’ industrial parks provide benefits like special economic zone incentives, dependable infrastructure, access to skilled labor, proximity to major transportation hubs, networking opportunities, regulatory support, support services, and security. These can help with operational effectiveness, cost savings, market access, and growth.