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the reputation of the Philippines as a new center for
high-technology industries solidifies, foreign firms
are having less qualms about setting up there. The days
of excessive red tape and delays in decision-making
by local authorities seem to be over, according to the
positive reports of new entrants to the market. Given
the position of the United States as the Philippines’
biggest trading partner, it is not surprising that US
firms are prominent among those taking advantage of
a dedicated workforce, attractive incentives and good
facilities on offer in the growing number of industrial
parks throughout the islands.
The
American giants Intel and Texas Instruments compete
for space in the processing zones, with Asian counterparts
such as Japan’s Toshiba and Taiwan’s Acer.
Local firms are setting up shop to meet the spiraling
demand for components from foreign manufacturers. The
asset most commonly cited by American firms as the reason
for their success in the Philippines is its workforce.
While other Asian producers are coping with labor shortages
and rising wage costs, the Philippines can offer plentiful,
low-wage labor. US computer leviathan NCR has been present
in the Philippines for decades. It installed the first
computer system in the country back in 1963. “NCR’s
success in the Philippines can be attributed to the
high productivity and dedication to customer satisfaction
of its world-class workforce,” the firm says.
And
there is more than just talk. NCR was confident enough
in local talent to invest heavily in training and facilities
for its workers. Texas Instruments has been undertaking
a US$ 100- million expansion of its Filipino operation
and says it is committed to investment in staff training.
Don Mika, President of Texas Instruments Philippines,
told BusinessWeek magazine last year that his more than
2,000 workers were the best educated and most easily
trained that he has seen in over twenty years in the
company’s factories around the world. Satisfaction
with the quality of the workforce and cordial labor
relations are common themes in reports from US firms
in the high-tech sector and in other industries.
With
the economic outlook set fair for the medium term, it
is likely that more US firms will join those already
established in the country.
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