Cebu Construction Boom Boosts American Standard's Sales

CEBU CITY, July 6 Asia Pulse - Growth in Cebu's construction industry, brought about by the entry of more residential and commercial developments, has drummed up sales volumes for a US-based manufacturer of bathroom and kitchen fixtures.

"Cebu is our biggest market," said Junefer Llena, American Standard account manager for the Visayas.

Retail distribution has contributed a bigger chunk of the brand's total sales in the Visayas but wholesale demand figures are not too far off.

Llena said the demand for bathroom and kitchen fixtures has tripled in the area where retail sales account for 60 per cent and the corporate market at 40 per cent.

Cebu registered more than 100 per cent increase in demand for American Standard products last year compared to that in 2005 owing to the renovations and expansions of major hotels and resorts in preparation for the 12th Association of Southeast Asian Nations (ASEAN) Summit last January, he said.

"The construction sector as a whole is increasing. Not only in Cebu but across the country," Llena said.

Nationwide, American Standard sales registered a 34 per cent increase in the second half of this year, compared to the same period in 2006.

With the economic boom the country is experiencing today, Llena said 80 per cent of the company's total sales is generated in the luxury product segments.

"This means that there's one Filipino customer who is willing to buy an American Standard labeled bath tub for P500,000 (US$10,841)," he said.

Llena said that with the strengthening of the peso against the dollar, imported construction fixtures such as those by American Standard has attracted an increasing number of customers, specifically high-end hotels, resorts and condominiums.

The company's dramatic increase in sales volume is also attributed to the high dollar remittances coming from the overseas Filipino workers, who are constructing or renovating their houses.

Llena said the increase in building construction for business process outsourcing companies is also a major factor in the company's growth.

The company used to operate a manufacturing plant for sanitary wares in the Philippines but transferred to Vietnam and China in 2004 due to high production costs.

(PNA)

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