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Transcript of Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz
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Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz
hotdogs
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Manufacturing and its definition
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The word manufacture comes from the Latin manus (hand) and facere (to make).
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Manufacturing is the use of machines, tools and labor to make
things for use or sale.
Manufacturing and its definition
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Manufacturing and its definition
The term may refer to a range of human activity, from handicraft to high tech.
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But is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.
Manufacturing and its definition
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Manufacturing and its definitionAmong the most important manufacturing industries are those that produce aircraft, automobiles, chemicals, clothing, computers, consumer electronics, electrical equipment, furniture, heavy machinery, refined petroleum products, ships, steel, and tools and dies.
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Manufacturing in the Tropics
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Manufacturing in the Tropics
Economic Status of Tropical Countries relative to Temperate Countries
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Temperate:JAPAN• 2nd technologically advanced country in the world• Small defense allocation (1% of GDP)• Based on PPP – 3rd largest economy in the world after USA and China• Big debt (170% of their GDP)• 2 notable characteristics: close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force.• Industrial sector is highly dependent on imported materials• Agricultural sector is also focused on
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GDP - real growth rate:
-0.7% (2008 est.)country comparison to the world: 206 2.3% (2007 est.)2% (2006 est.)
GDP - per capita (PPP):
$34,000 (2008 est.)country comparison to the world: 37 $34,200 (2007 est.)$33,400 (2006 est.)note: data are in 2008 US dollars
GDP - composition by sector:
agriculture: 1.5%industry: 26.3%services: 72.3% (2008 est.)
Labor force:
66.5 million (2008 est.)country comparison to the world: 9
Manufacturing in the Tropics
Labor force - by occupation:
agriculture: 4.4%industry: 27.9%services: 66.4% (2005)
Unemployment rate:
4% (2008 est.)country comparison to the world: 48 3.8% (2007 est.)
Budget:
revenues: $1.72 trillionexpenditures: $1.788 trillion (2008 est.)
Public debt:
173% of GDP (2008 est.)country comparison to the world: 2 164.3% of GDP (2004 est.)
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Manufacturing in the Tropics
USA•Most technologically powerful economy in the world•Business firms in US have greater flexibility than their counterparts in West Europe and Japan•Advanced in technology•Just recently, Pres. Obama signed a bill providing an additional $787 B to create jobs and make the economy recover
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GDP - real growth rate:
1.1% (2008 est.)country comparison to the world: 172 2% (2007 est.)2.8% (2006 est.)
GDP - per capita (PPP):
$46,900 (2008 est.)country comparison to the world: 10 $46,800 (2007 est.)$46,300 (2006 est.)note: data are in 2008 US dollars
GDP - composition by sector:
agriculture: 1.2%industry: 19.2%services: 79.6% (2008 est.)
Labor force:
154.3 million (includes unemployed) (2008 est.)country comparison to the world: 4
Manufacturing in the Tropics
Labor force - by occupation:
farming, forestry, and fishing 0.6%, manufacturing, extraction, transportation, and crafts 22.6%, managerial, professional, and technical 35.5%, sales and office 24.8%, other services 16.5%note: figures exclude the unemployed (2007)
Unemployment rate:
7.2% (December 2008 est.)country comparison to the world: 91 4.6% (2007 est.)
Budget:
revenues: $2.524 trillionexpenditures: $2.978 trillion (2008 est.)
Public debt:
60.8% of GDP (2007 est.)country comparison to the world: 24 65% of GDP (2004 est.)
Industries:
leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining
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Manufacturing in the Tropics
United Kingdom•1 of the 5 trillion dollar economies in West Europe•Agriculture is intensive and highly mechanized•Government has greatly reduced public ownership
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GDP - real growth rate:
0.7% (2008 est.)country comparison to the world: 188 2.6% (2007 est.)2.9% (2006 est.)
GDP - per capita (PPP):
$36,500 (2008 est.)country comparison to the world: 32 $36,400 (2007 est.)$35,500 (2006 est.)note: data are in 2008 US dollars
GDP - composition by sector:
agriculture: 1.3%industry: 24.2%services: 74.5% (2008 est.)
Labor force:
31.23 million (2008 est.)country comparison to the world: 18
Manufacturing in the Tropics
Labor force - by occupation:
agriculture: 1.4%industry: 18.2%services: 80.4% (2006 est.)
Unemployment rate:
5.6% (2008 est.)country comparison to the world: 69 5.3% (2007 est.)
Population below poverty line:
14% (2006 est.)
Budget:
revenues: $1.056 trillionexpenditures: $1.214 trillion (2008 est.)
Public debt:
52% of GDP (2008 est.)country comparison to the world: 34 39.6% of GDP (2004 est.)
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Manufacturing in the Tropics
Agriculture - products:
cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish
Industries:
machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer good
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Manufacturing in the Tropics
Tropical:
PhilippinesGDP - real growth rate:
3.8% (2008 est.)country comparison to the world: 108 7.1% (2007 est.)5.3% (2006 est.)
GDP - per capita (PPP):
$3,300 (2008 est.)country comparison to the world: 163 $3,200 (2007 est.)$3,100 (2006 est.)note: data are in 2008 US dollars
GDP - composition by sector:
agriculture: 14.7%industry: 31.6%services: 53.7% (2008 est.)
Labor force:
36.81 million (2008 est.)country comparison to the world: 17
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Labor force - by occupation:
agriculture: 35%industry: 15%services: 50% (2008 est.)
Unemployment rate:
7.4% (2008 est.)country comparison to the world: 95 7.3% (2007 est.)
Population below poverty line:
30% (2003 est.)
Household income or consumption by percentage share:
lowest 10%: 2.4%highest 10%: 31.2% (2006)
Manufacturing in the Tropics
Budget:
revenues: $27.05 billionexpenditures: $28.58 billion (2008 est.)
Public debt:
56.3% of GDP (2008 est.)country comparison to the world: 32 74.2% of GDP (September 2004 est.)
Agriculture - products:
sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish
Industries:
electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing
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Manufacturing in the Tropics
General Types of Manufacturing in the Tropics
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Manufacturing in the Tropics
mostly agricultural in nature• Fruits and fruit products• From livestock• Timber Products
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Fruits and Fruit ProductsPineapple Products : juice, canned, candied, furniture
Manufacturing in the Tropics
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Fruits and Fruit ProductsMango Products: purees, dried, juices
Manufacturing in the Tropics
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Fruits and Fruit ProductsCoconut: furniture, jam, biscuits, oil, etc.
Manufacturing in the Tropics
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Fruits and Fruit ProductsSugarcane: rum, sugar, cane ethanol
Manufacturing in the Tropics
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Sample Countries
Pineapple Producers
Manufacturing in the Tropics
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Sample Countries
mango ProducersArea harvested of mangoes as of 2007
Country Hectares
India 2 143 000
China 445 000
Thailand 285 000
Indonesia 266 000
Pakistan 215 000
Mexico 200 000
Philippines 181 000
Nigeria 126 500
Brazil 89 800
Guinea 82 000
Vietnam 52 000
Bangladesh 51 000
Manufacturing in the Tropics
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Sample Countries
mango Producers
Manufacturing in the Tropics
Top Ten Mango Producers of 2007
Country Production in Tonnes
India 13501000
Pakistan 1719180
People's Republic of China 3752000
Mexico 2050000
Thailand 1800000
Indonesia 1620000
Brazil 1546000
Philippines 975000
Nigeria 734000
Vietnam 370000
Earth 33445279
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Top Ten Coconuts Producers — 11 June 2008
Country Production (Tonnes)
Philippines 17000000
Indonesia 15580000
India 9400000
Brazil 2770554
Thailand 1705446
Vietnam 962000
Sri Lanka 954000
Papua New Guinea 677000
Malaysia 568000
Myanmar 370000
World 54716444
Sample Countries
coconut Producers
Manufacturing in the Tropics
Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Devision
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Sample Countries
sugarcane Producers
Manufacturing in the Tropics
Top Ten Sugarcane Producers — 11 June 2008
Country Production (Tonnes)
Brazil 514,079,729
India 355,520,000
People's Republic of China 106,316,000
Thailand 64,365,682
Bangladesh 60,142,000
Pakistan 54,752,000
Mexico 50,680,000
Colombia 40,000,000
Australia 36,000,000
United States 27,750,600
Philippines 25,300,000
World 1,557,664,978
Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Devision
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From LivestockBeef Jerky, milk
Manufacturing in the Tropics
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Sample CountriesTropical part of Australia, Philippines
Manufacturing in the Tropics
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From TimberLogs, sawn wood, veneer, plywood
Manufacturing in the Tropics
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Sample CountriesBrazil, Burma, Sri Lanka, Singapore
Manufacturing in the Tropics
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Climate, Soil and Vegetation,
and the Manufacturing Sector
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Climate, Soil and Vegetation, and the Manufacturing Sector
CLIMATE•aggregates of weather
over a span of time•elements: temperature,
pressure, wind, precipitation•considered an economic
resource-‘dualistic’ influence on
economic conditions
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Climate, Soil and Vegetation, and the Manufacturing Sector
CLIMATE AND MANUFACTURING
1. climate affects the type of good to manufacture/process [nature of industry]
- tropical countries: plenty of raw materials
- mostly agricultural [primary] product - manufacturing- concerned with the processing of agricultural
or primary products [for export and domestic
consumption]-most tropical countries
are agricultural
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Climate, Soil and Vegetation, and the Manufacturing Sector
2. climate affects manufacturing locations
According to Riefler and Lamphear (1980)a. effect to people’s behavioral patterns: “people
variable” i. role of climate: amenity orientation ii. industries are highly attracted to places
with high amenities - more favorable climate: more people would migrate to that
place - industries would emerge as the result; services (tertiary
industries) also emerge
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Climate, Soil and Vegetation, and the Manufacturing Sector
b. economic costs: energy costs- firms become more ‘climate-
oriented’ as energy costs become higher
- industries tend to move toward places with climates favoring their ‘craft’
- food processing industries: colder climates
- lumber industries: tropical climates
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Climate, Soil and Vegetation, and the Manufacturing Sector
3. climate affects [investment flows] developments in manufacturing - tropical climate: not conducive for economic development [Ezeala-Harrison (1996)]
- restricts economic development” - presence of torrential rains and
destructive storms- dehydrating effect of heat: drains
physical and mental efforts in production
- industrial activity [manufacturing]: indicator of economic development
- Most tropical countries are considered as developing countries with the exceptions of Singapore and Hong Kong.
- Singapore: island city-state- Hong Kong: former British colony
SOURCESEZEALA-HARRISON, F. 1996. Environmental Issues and Development. In: Economic development: theory and policy applications by Ezeala-Harrison, F. 1996. Greenwood Publishing Group. Pp. 209-211 RIEFLER, R. & LAMPHEAR, F.C. 1980. Climate and Manufacturing Location. US Department of Commerce. Retrieved October 1, 2009. In: http://www.jrap-journal.org/pastvolumes/1980/v14/14-2-4.pdfChapter Sixteen: Manufacturing. [Hand-outs in Geog133]
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Climate, Soil and Vegetation, and the Manufacturing Sector
Soil
Pros• The soil in the tropics is very fertile and thus
manufacturers have capitalized on this and several plantations have been built. – Terra preta
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Climate, Soil and Vegetation, and the Manufacturing Sector
SoilExamples • Coffee plantations
– Coffee is an important necessity commodity. With over 500 billion cups consumed every year.
– Most of the production of coffee is produced in the tropics most notably in Brazil where 2.59 millions in metric tons are produced.
• Tobacco/Cigar manufacturing– Good example are Cuban cigars in cuba– Tobacco plantations and then hand cigars
are made in a factory.
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Climate, Soil and Vegetation, and the Manufacturing Sector
Soil
Cons• Soils in the humid tropics are normally highly acidic
and nutrient poor; decomposition is rapid because of high temperatures, high humidity and frequent heavy rains.
• Approximately a third of all tropical soils are too acidic to support traditional food crops. These highly acidic tropical soils represent the largest untapped arable land left in the world, and therefore more productive utilization of these lands is key to expanding the world food supply.
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Climate, Soil and Vegetation, and the Manufacturing Sector
vegetationPros
• The tropics has lush vegetation and abundant of raw materials that is beneficial for manufacturing.
Examples•Timber used for manufacture of woodwork
and construction materials.•Several tropical plants which has various
uses ranging from medicine to household shampoos and such.
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Climate, Soil and Vegetation, and the Manufacturing Sector
vegetationCons
• As said most of the tropics (especially in the rainforests) it is impossible to establish any type living.
• Manufacturing requires lots of capital and since most of the countries in the tropics are considered “poor” then manufactures are mostly owned by foreigners.
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Manufacturing in the Philippines
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Status of the manufacturing sector of the philippines relative to nearby
countries
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Manufacturing in the Philippines
Manufacturing accounts for roughly 71% on the average of industry output and 24.6% of gross domestic product (GDP) for the period
1986-2007.
Source: ADB, SDBS Key Economic Indicators Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
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Source of basic data: NSCB – I-Stat online.
Growth of Gross Domestic Product and Manufacturing (%)
The growth of manufacturing gross value added (GVA) spiked at 5.8% in 2005. Thereafter, while growth
in GDP has been on the upswing to a resurgent high of 7.2% in 2007, manufacturing was on a downslide to 3.4%,
lower than its 3.5% growth posted in 2002.
Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
Manufacturing in the Philippines
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Among selected Asian countries, the Philippine manufacturing share to GDP for the period 2000-2006 was one of the lowest,
marginally higher than Vietnam and does not even come close to that of Indonesia.
Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
Manufacturing in the Philippines
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Almost 90% of total Philippine exports are manufactured goods highlighting the dependence of the country on manufactured
good for exports.
Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
Manufacturing in the Philippines
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Jobs generated in the manufacturing sector grew by 1.3% per annum on the average over the period 1996-2006. However, as
a percentage of total employment, the share of manufacturing went down from 10.3% in 1997 to 9.3% in 2006.
Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
Manufacturing in the Philippines
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Except for Vietnam, the share of manufacturing employment to total employment of all comparator countries declined for the period 2000-2006. The Philippines consistently has one of the
lowest shares.
Source: Facts in Figures
Congressional Planning and Budget Department
House of Representative July 2008
Manufacturing in the Philippines
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Manufacturing in the Philippines
History1880 (last years of Spanish Era): food, tobacco, and beverages1900-1940: agricultural products (sugarcane and coconuts), the manufacture of apparel, and the production of ceramics, cement, glassware, and wooden and rattan furniture1960: manufacturing accounted for 20 percent of the gross domestic product (GDP)1970 and 1972: the Export Incentive Act, and the Export Processing Zone project1980: protection of the domestic manufacturing aimed at import
substitution1992: ASEAN free trade
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Manufacturing in the Philippines
Did you know? •Manufacturing which account for about 20.7% of total GDP felt the crunch of the global crisis as it declined by 7.3%.• Manufacturing is the second most important economic sector after services, employing 9.8 percent of the labor force and contributing 22 percent of the GDP in 1998.• Over 60 percent of the manufacturing establishments are still concentrated in the Manila area and the southern Luzon region.• Foreign direct investment, an important source of funding and technology for manufacturing, is low compared with countries such as Malaysia and Thailand.
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Manufacturing in the Philippines
Manufacturing Industry
Food manufacturing BeveragesTobacco Products TextilesFootwear and wearing apparel Leather
productsPaper and paper products Publishing and
printingPetroluem products Chemical
productsRubber and plastic products Non-
metallic mineral productsBasic metals – ron and steel
Fabricated metal productsMachinery excluding electrical Electrical
machineryTransport equipment Furniture
and fixturesMiscellaneous manufactures
Source: http://www.census.gov.ph/data/sectordata/datamfg.html
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Manufacturing in the Philippines
TOP 3 industries
Electronic components earned the highest revenue amounting to P461.1 billion (15.6%)
Food except beverages followed closely with P456.2 billion earnings (15.5%)
Petroleum products placed third with an income of P337.0 billion (11.4%).
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Manufacturing in the Philippines
More on Electronics Semiconductors have traditionally been the main output of the Philippines electronic industry and in 2005 they accounted for 51% of total production with computer equipment and parts accounting for 34%In 2008, there was a 5.6% fall in production of electrical machinery (including semiconductors), mainly due to soft external demand in the second half.
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Manufacturing in the Philippines
More on Food Manufacturing The food manufacturing sector in the Philippines is highly-concentratedThe largest food manufacturing companies in the Philippines are San Miguel Corporation and Purefoods Corporation (1990’s)On average, the top four firms in the food manufacturing sector accounted for 63 percent of total revenues in 1978 and about 72 percent in 1994, representing an increase of 14 percent.
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Manufacturing in the Philippines
More on petroleum industry Top three oil refineries in the Philippines are Petron, Shell and Caltex
Petron, our state-owned company, accounts 52 percent of the industry’s refining capacityPetron Corporation is the Philippines' leading refiner, marketer, and distributor of
petroleum-based productsPetron's two principal shareholders, each of which hold 40 percent of the company, are the Philippine government's Philippine National Oil Company and Saudi Aramco, based in Saudi Arabia. The remaining 20 percent of the company's shares are listed on the Philippine Stock Exchange and are held by more than 200,000
shareholders. However, at mid-2003, the Philippine government was considering selling its 40 percent stake in the company in a move to drive down the country's budget deficit.
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Manufacturing in the Philippines
Top Manufacturing Zones
ManilaNorthern MindanaoIligan: steel, fertilizers and other chemicals, and cementCagayan De Oro: a steel plant and a pineapple processing factory that
cans pineapples for a nearby plantationDavao: plywood and lumber mills, furniture firms, food processing plants, and cement factories
Cebu: rattan furniture, shell craft industry
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Manufacturing in the Philippines
Sources:
http://www.bookrags.com/research/manufacturing-industryphilippines-ema-04/
http://www.census.gov.ph/data/sectordata/datamfg.htmlwww.census.gov.ph/data/sectordata
http://dirp4.pids.gov.ph/ris/pjd/pidspjd01-1retailfood.pdfhttp://www.fundinguniverse.com/company-histories/Petron-
Corporation-Company-History.html
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OPEN FORUM Free Trade vs. Protection of Local Products