Industry Focus >>Philippines, the Automotive FastenerExport Giant in ASEAN and 2022
Statistics
菲律賓-東盟汽扣出口大國及2022貿易分析●Introduction ●In recent years, the Philippines has silently but steadily asserted itself as a dominant player in the automotive fastener export market
within the ASEAN region. The archipelagic nation, traditionally recognized for its natural beauty and diverse culture, is now making waves
as a key contributor to the automotive supply chain. Despite being a relatively small player in the global automotive industry, the Philippines
has carved a niche for itself in the production and export of automotive fasteners.

Hardware & Fastener Components - no.61/2024●

Philippine Export of Automotive Fasteners to the World ●

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

70,387

41,111

36,20635,70429,28946,816

149,020

164,918

106,956

142,690

140,290

YoYGrowth-42%-12%-1%-18%

60%

218%

11%-35%33%-2%

Numbers are in 1,000 USD
The above table presents a comprehensive overview of the annual world imports from the Philippines in thousand USD from 2012 to2022, along with the corresponding growth rates.

Overall Trend

Recovery and Peaks• A notable decrease in 2013 (-42%) marked a significant decline in
Philippine automotive fastener export compared to the previous year.

The Philippines experienced a remarkable recovery in 2017,
marked by a substantial increase in world imports. The peak in2018, with a 218% growth rate, suggests a period of increased
fastener producers’ activities and global demand for Philippine
automotive fasteners.

• Subsequent years witnessed varying trends, with significant growths
in 2017 (60%) and 2018 (218%), reaching 149 million USD.

Periods of Decline and GrowthRecent Trends and Stability• The years 2013, 2014, 2015, and 2016 saw a decline in Philippine
automotive fastener export, reflecting economic and trade dynamics
during those periods. The most substantial decline occurred in2013, attributed to various factors impacting international trade.

In the most recent years (2020-2022), the above table indicatesa fluctuating pattern, with a decrease in 2020 followed by asubsequent increase in 2021, only to decrease slightly in 2022.

080 惠達雜誌Industry Focus >>Despite the fluctuations, the overall trend suggests a level of stability in recent years, with a marginal 2% decrease in 2022
compared to 2021. The negative growth in 2020 (-35%) can be associated with the global economic slowdown caused by the COVID-19
pandemic, affecting trade worldwide. The subsequent recovery in 2021 and the slight decline in 2022 indicate the resilience of thePhilippines in navigating challenging economic environments.

What Happened in 2018
In 2018, Philippine automotive industry faced significant challenges, marking a departure from seven years of notable growth. The decline
in car sales during that year was primarily attributed to various factors, including the implementation of the revised new vehicle excise tax aspart of the TRAIN law. This adjustment led to higher inflation rates and a weakening peso, creating unfavourable conditions for the domestic
automotive market. Amidst these challenges, fastener manufacturers found themselves in a predicament. The automotive market, once arobust driver of their production, experienced a downturn. Faced with the imperative to sustain operations and maintain production levels,
fastener manufacturers turned to export as a viable solution. Unable to halt their manufacturing processes, exporting automotive fasteners
became a strategic choice to navigate the complexities of the domestic automotive landscape in 2018.

●Philippine Export of Automotive Fasteners to the ASEAN ●

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2,244

333

260

195

385

239

1,776

1,082

760

981

2,356

YoY
Growth-85%

-22%

-25%

97%

-38%

643%

-39%

-30%

29%

140%

Numbers are in 1,000 USD
The above table provides insights into the annual values of automotive fastener exports from the Philippines to ASEAN, measured inthousand USD. The corresponding growth rates highlight the evolving trends in this specific trade relationship over the analyzed period.

Initial Growth and Subsequent
DeclineHardware & Fastener Components - no.61/2024

The analysis began in 2012 withan export value of 2,244 thousand
USD; however, from 2013 to 2015, a
substantial decline occurs, with negative
growth rates of -85%, -22%, and-25%, respectively. This period reflects
challenges or shifts in the regional
automotive fastener market.

Recovery and PeakA notable recovery is observed in 2016,
marked by a 97% growth rate, signallinga resurgence in the demand for Philippine
automotive fasteners within ASEAN. The
peak of this growth trajectory occurred in2018, with an impressive 643% growth,indicating a significant rebound and apotential shift in market dynamics.

Fluctuations in Recent Years

Exceptional Growth in 2022

Subsequent years (2018-2020) witnessed fluctuations withnegative growth rates, suggesting potential challenges or shifts indemand within the ASEAN market during this period. The year
2021 marked a positive turn with a 29% growth, indicating arenewed interest in Philippine automotive fasteners.

The most remarkable upswing occurred in 2022, witha growth rate of 140%, reaching an export value of 2,356
thousand USD. This outstanding growth might be attributed tovarious factors, such as increased demand, market dynamics, or
strategic business initiatives.

082 惠達雜誌Industry Focus >>Factors Influencing Trends

What Happened in the Peak Times

The fluctuations in growth rates highlight the sensitivity of automotive fastener exports
to various factors, including economic conditions, regional market demands, and potential
shifts in the automotive industry.

2016: In 2016, vehicle sales in Thailand
and Indonesia collectively reached 2
million units, driven by heightened
local demand, increased purchasing
capabilities, and substantial investmentsfrom Japanese automotive firms.

Potential Opportunities and Challenges
The positive growth in 2021 and the exceptional surge in 2022 suggest potential opportunities
for the Philippine automotive fastener industry within the ASEAN market. Monitoring factors that
contributed to the outstanding growth in 2022 can provide insights into potential opportunities
and challenges that may shape future trade dynamics.

2018: Within the ASEAN region, passenger
vehicle sales experienced a remarkable
compound annual growth rate of 10.2
percent, surging to 3.1 million units in2018 from 1.5 million units in 2011.
Concurrently, commercial vehicle
sales demonstrated robust growth atan annual rate of 9.8 percent, reaching
1.6 million units in 2018 compared to780,000 units in 2011 (source: AAF).
This upward trajectory underscores theexpanding automotive market in theASEAN region, propelled by factors
such as rising consumer affluence andstrategic investments.

Hardware & Fastener Components - no.61/2024

2021-2022: In the period spanning from2021 to 2022, automotive
companies embarked on ajourney of recovery following
the unprecedented challenges
posed by the global COVID-19
pandemic. Initially hit hardby disruptions in production,
supply chain constraints, anddampened consumer demand,
the automotive industry
gradually regained its footing,that it is caused to improve
Philippine fastener export.

084 惠達雜誌Philippine automotive fastener producers
have earned a reputation for reliability andquality within the ASEAN region, standingout as trusted entities in the automotive
manufacturing landscape. Renowned for theircommitment to precision engineering andadherence to international standards, thesecompanies have become key contributors to
the global automotive supply chain. Theirconsistent delivery of high-quality fasteners
has solidified their standing as reliable
partners, garnering recognition both within theASEAN community and on the world stage.
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Article by Behrooz Lotfian