Construction industry’s modernization to boost resilience amid trade uncertainties

The Philippine construction industry can improve its resilience amid ongoing global trade uncertainties by modernizing its operations and strengthening domestic supply chains.

“The tariff shifts introduced by US President Donald J. Trump have triggered ripple effects across global supply chains, affecting everything from raw materials to technology imports,” Vitaly Berezka, regional spokesperson for APAC (Asia-Pacific) at Austrian construction technology firm PlanRadar, said in an e-mail. “For the Philippine construction and property sectors, the most immediate risk lies in rising costs and potential delays tied to sourcing construction inputs.”

“The imposition of reciprocal tariffs by President Trump has certainly brought headwinds to the local construction industry. These tariffs will disrupt the construction supply chain, and hence might impact availability, lead times and pricing of imported construction materials,” Jason C. Valderrama, president and chief executive officer at construction firm JCV & Associates, said.

According to Mr. Berezka, the Philippines has an opportunity to position itself as a regional innovation hub as global firms rethink supply chains.

“By accelerating investment in digital infrastructure and construction technology, the country can increase project efficiency, attract forward-thinking investors, and strengthen its long-term resilience,” he said.

Local construction firms should push for digitalization to let them adapt to evolving global conditions accordingly, Mr. Berezka said.

“Embracing construction technologies like AI-powered platforms, cloud-based documentation, and digital twins will provide the visibility and flexibility needed to adapt in real-time to supply chain or regulatory shocks.”

In particular, they can adopt property technology or “proptech” platforms and digital construction tools, he said.

Construction-related technologies could also help these companies optimize procurement, automate workflows, and reduce material waste, he added.

AI is becoming a “powerful equalizer” in the construction industry amid the global uncertainties, he said, adding that using AI for predictive analytics can help construction managers anticipate delays or cost overruns and automate risk detection.

AI can also streamline reporting and compliance, which is crucial amid shifting regulatory and trade landscapes, Mr. Berezka said.

“Diversifying supplier bases and investing in local supply chains can reduce vulnerability to external tariff policies and logistical constraints. The Philippines has an opportunity to grow its internal capacity while still attracting international partnerships,” he added.

Mr. Valderrama said that with muted US demand for construction materials likely to lead source markets to consider exporting to the Philippines to skirt the higher tariffs, the Philippines must ramp up the development and completion of key infrastructure projects, address the housing backlog, and elevate the country’s manufacturing sector.

The construction industry must also widen its in-country and offshore supply pool, pursue vertical integration, utilize technologies, and adopt modern construction methods and sustainability practices, he said.

Mr. Berezka likewise said that industry players must collaborate with the government on long-term infrastructure plans to incentivize innovation and create a stable regulatory framework that encourages digital adoption and sustainable development.

“Resilience in this era will depend not just on withstanding disruption, but on using it as a catalyst to modernize and evolve. The future belongs to construction ecosystems that are digitally enabled, operationally agile, and strategically diversified.”

Source: Business World

Longest road mountain tunnel nears completion.

The Department of Public Works and Highways (DPWH) has entered a significant stage in the construction of the 2.3-kilometer twin-tube tunnel—soon to be the longest road mountain tunnel in the Philippines—serving as a key feature of the 45.5 kilometer, four-lane Davao City Bypass Construction Project (DCBCP).

This flagship infrastructure is being undertaken in line with President Ferdinand R. Marcos Jr.’s Build Better More program, which aims to modernize the country’s transport network and support inclusive development, under the broader vision of Bagong Pilipinas - a new and better Philippines.

According to DPWH Senior Undersecretary Emil K. Sadain, the DCBCP has recently completed a major milestone, as the north and south portal ends of the northbound tunnel were finally connected.

Located at the challenging mountainous terrain, DCBCP will offer motorists a safer and more efficient alternative route, effectively decongesting traffic within Davao City and enhancing regional connectivity.

In his report to DPWH Secretary Manuel M. Bonoan, Undersecretary Sadain noted that the construction breakthrough of the northbound tunnel, along with the ongoing excavation works for the remaining 202 meters of the southbound tunnel—which is now 91 percent completed—marks significant progress in this strategic infrastructure project.

Financed through a combination of a loan agreement with the Japan International Cooperation Agency (JICA) and local government funds, the DCBCP spans from Barangay Sirawan in Toril, Davao City to Barangay J.P. Laurel in Panabo City. Once completed, it is expected to drive economic growth, improve logistics, and connect communities - key goals under Bagong Pilipinas.

On April 11, 2025, Senior Undersecretary Sadain led an inspection of the road mountain tunnel under Contract Package (CP) I-1, covering 10.7 kilometers and now 58.7 percent completed by the Shimizu-Ulticon-Takenaka joint venture. He was joined by UPMO-Roads Management Cluster 1 Project Director Benjamin A. Bautista, UPMO-Bridges Management Cluster Project Director Rodrigo I. Delos Reyes, and Stakeholders Relations Service Director Randy R. Del Rosario.

The team also evaluated the progress of CP II-1, which includes several bridges being constructed by the CavDeal/WECI/Coastland Joint Venture, with support from UPMO Project Managers Joselito B. Reyes, Ricarte Mañalac and Emmanuel Regodon, Project Engineers Juan M. Diña Jr. and Oliver Angeles, and Engrs. Earl Nicholas F. Rada and Divina B. Bulan.

The locally funded portions of the bypass road under CP II-1 and CP II-2 are now 72.83 percent and 63.89 percent completed, respectively. CP II-1, spanning 2.54 kilometers and valued at P4.33 billion, features a 1.3-kilometer four-lane road and seven bridges, with completion targeted in the first quarter of 2026. Meanwhile, CP II-2—a 3.52-kilometer road section worth P4.60 billion—is slated for completion in the third quarter of 2026.

Other segments under CP I-2 and CP I-3 are also progressing steadily while Package II-3 will soon start its procurement activities.

Once completed, the Davao City Bypass will reduce travel time between Toril and Panabo City from 1 hour and 44 minutes to just 49 minutes, stimulating economic activity, expanding business opportunities, and boosting tourism across Davao Region and Mindanao—concrete steps toward building a Bagong Pilipinas.

Source: Philippine Resources

Applying AI in the construction sector

The construction industry, long vital to economic development, faces numerous challenges that have driven the need for innovation. These problems range from inefficiency, safety concerns, and cost overruns to environmental impact and resource limitations. Climate change and its devastating impact on our built environment are the key issues that have led to the development and application of these transformative technologies in construction. In response, design and construction professionals, with the aid of artificial intelligence (AI) and advanced building materials, have produced groundbreaking solutions.

Slow project delivery. From design to execution, construction is a complex process involving numerous stakeholders, tight schedules, and a large amount of logistical coordination. Its projects are notorious for delays, budget overruns and inefficiency. Delays due to unforeseen problems, material shortages and human error are common, leading to cost escalations and missed deadlines.

AI has been a game-changer in addressing inefficiency. With predictive analytics, it can help the construction team foresee potential delays, enabling project managers to proactively resolve issues. AI-driven tools optimize schedules and resource allocation, improving overall project timelines. On the materials side, innovations like 3D printing have sped up construction processes, while self-healing materials reduce the need for costly repairs, ensuring the structure's durability over time.

A global labor shortage confronts the construction industry with many skilled workers aging out of the industry and a lack of younger workers entering the field. This shortage is exacerbated by construction work's physically demanding nature, which deters many potential workers. Moreover, labor costs continue to rise as demand outstrips supply.

AI-driven robotics and assistive technologies offer an efficient alternative to human labor, making their task easier, safer and more efficient. AI-equipped robots and drones can perform repetitive tasks like bricklaying, surveying and material transport, reducing the reliance on human workers. 3D printing allows for the rapid production of building components, optimizing the need for skilled manual labor while ensuring high precision and reduced errors. As a result, AI and automation help maintain productivity levels despite the shrinking labor force.

Safety concerns. The construction industry is one of the most dangerous sectors, with a high number of fatalities and injuries occurring on job sites. Accidents result from improper safety protocols, human error and hazardous working conditions, leading to legal liabilities and increased insurance costs.

Assistive and proper tools help improve safety by minimizing potential hazards before they result in accidents. AI-based systems can analyze real-time data from construction sites, such as worker movement patterns, weather conditions, and machinery malfunctions, to provide safety alerts and suggest corrective actions. AI-equipped drones can inspect hard-to-reach areas, reducing the need for workers to access dangerous zones. Advanced building materials like impact-resistant glass and self-healing concrete contribute to the buildings' structural integrity, minimizing the risk of damage during construction or after their completion.

Environmental impact. The construction industry is a major contributor to environmental degradation. The extraction of raw materials, high energy consumption, and waste generation are significant issues. Buildings consume a considerable amount of energy over their lifespans due to heating, cooling, and other operational demands, contributing to carbon emissions and environmental harm.

AI can help professionals design to optimize resource use, reduce waste, and ensure that projects are more energy-efficient. By leveraging AI algorithms, construction companies can do the same while lowering costs. Advanced building materials like smart glass, high-performance insulation and photovoltaic materials can reduce energy consumption in buildings, making them more sustainable. The use of recycled materials in construction, such as recycled steel and bio-based concrete, helps minimize the industry's carbon footprint.

Rising costs of construction materials. The rising costs of raw materials such as steel, wood, concrete and other natural material resources have made construction more expensive. They are driven by supply chain disruptions, geopolitical factors, inflation and resource scarcity. The increased prices of essential building materials result in higher project costs and make it harder for construction companies to remain competitive.

AI technology can help reduce material costs by optimizing the use of resources and minimizing waste. It can analyze data and suggest ways to cut down on material consumption while maintaining structural integrity. New materials like the development of 3D printing, self-healing concrete and other faux materials provide more cost-effective, long-lasting solutions. Ty help reduce the overall amount of maintenance, weight and repairs required during a building's lifespan, mitigating the impact of rising raw material prices.

Construction projects often have a lot of errors and suffer from quality issues due to poor workmanship, design flaws, and material defects. These issues can result in structural problems, costly repairs and delays. Ensuring consistent quality control across large-scale projects is a significant challenge.

AI tech can help detect errors early on in the construction process by analyzing data from sensors, construction logs and building models. By monitoring real-time progress, it can identify deviations from the planned design and suggest corrections, ensuring higher quality control. Advanced building materials like nanomaterials and high-performance concrete improve the structural integrity and durability of buildings, ensuring they meet higher standards and reducing the need for repairs.

Complexity in design and building customization. As architectural designs become more complex, traditional construction methods struggle to meet the demand for innovative and customized buildings. Designers often face limitations in terms of material properties, structural stability and aesthetic challenges in trying to push the boundaries of architectural creativity.

The AI-driven Building Information Modeling (BIM) allows for more advanced and accurate designs by automating repetitive tasks, optimizing spatial layouts, and ensuring regulatory compliance. It facilitates the use of complex materials like 3D-printed components and customized nanomaterials, which are flexible and can be tailored to meet a design's specific needs. This technological synergy allows for greater creativity in construction while maintaining structural integrity and cost-effectiveness.

Long-term performance

Building lifespan and maintenance challenges. Many construction projects face significant challenges related to the long-term performance and maintenance of buildings. Cracks, wear-and-tear, corrosion, and other forms of degradation can reduce the lifespan of structures, increasing maintenance costs and reducing building safety. Inefficient post-construction operations and maintenance can also be costly and time-consuming.

The development of self-healing materials and smart materials has been a breakthrough in addressing long-term building maintenance. Self-healing concrete automatically seals cracks as they form, reducing the need for frequent repairs. AI technology can monitor building conditions over time: by using sensors and data analysis to detect early signs of wear or failure, it allows for preventative maintenance and extends the lifespan of buildings. It also helps design professionals in creating resilient, sustainable green buildings.

The construction industry is grappling with several critical challenges, from inefficiency, labor shortages, environmental sustainability, to rising material costs. AI and Advanced Building Materials have emerged as vital solutions to these issues. AI is streamlining operations, improving project management and enhancing safety, while Advanced Building Materials are contributing to more sustainable, durable and energy-efficient construction practices. Their innovations are setting new standards for the construction industry.

Together, they are shaping a smarter, greener and more efficient construction industry by improving efficiency, reducing costs and enhancing safety. They are enabling the construction of more sustainable, durable and innovative structures — one that can meet the challenges of a rapidly urbanizing world.

As these technologies continue to evolve, they will play an increasingly important role in overcoming the many obstacles facing the construction industry, which then will be able to deliver better, more resilient and environmentally friendly infrastructure for future generations.

Source: Business World