Cebu's hardware and building materials sector is preparing for a significant but temporary surge in demand for essential construction supplies following the dual calamities of a powerful earthquake and destructive typhoon that recently struck the province.
Immediate Market Response to Natural Disasters
Maria Cynthia Pascual, director for product development at Cebu Oversea Hardware Inc., confirmed that demand for cement, steel, roofing, tiles, and finishing materials has already begun increasing as both households and commercial developers initiate repair and reconstruction projects.
"The market is now experiencing an artificial surge because of the calamities," Pascual stated, emphasizing the temporary nature of this demand spike.
The northern region of Cebu experienced a 6.9 magnitude earthquake on September 30, followed five weeks later by Typhoon Tino, which resulted in over 200 fatalities across the island province.
Robust Supply Chain Preparedness
Pascual assured that Cebu Home and Builders Centre, operating under the Oversea Builders Group with operations spanning Luzon and the Visayas, maintains "robust and well-stocked" logistics and inventory systems designed to handle the anticipated demand increase without supply disruptions.
The company benefits from multiple distribution hubs and warehouses supporting its Visayas network. Unlike the devastating impact of Typhoon Odette, which severely damaged critical infrastructure including power lines, communication networks, roads, and seaports, Typhoon Tino left key transportation links operational.
Ports remained functional throughout the recent disasters, ensuring continuous flow of goods and materials to affected areas.
Pascual noted that many Cebu residents, particularly those severely affected by the twin disasters, are likely to allocate their 13th-month pay and bonuses toward essential home repairs. "Given the inherent resilience of Cebuanos, we will bounce back quickly," she expressed optimistically.
Long-term Market Outlook and Price Considerations
While disaster-related purchasing is expected to normalize within several months, Pascual cautioned that broader supply chain pressures could persist longer term.
"An increase in prices is inevitable," she acknowledged, "But it will be driven by exchange rates and raw material availability, not by disaster-related demand."
The construction industry outlook remains strong beyond the immediate rebuilding phase, with price movements primarily tied to external factors including the peso-dollar exchange rate and economic conditions in China, which serves as a major source of raw materials and finished goods.
Additional factors that could influence prices include production constraints in China and global fuel costs. Import tariffs resulting from US-China trade tensions also affect costs, though Philippine regulations such as ICC and PS mark requirements help prevent the influx of substandard materials into the market.
Despite these challenges, the industry maintains a positive trajectory. Estimates indicate the Philippines will require approximately P12.6 billion worth of finishing materials in 2026, while Cebu alone is projected to generate P480 billion in construction activity through 2028, including major infrastructure projects under the Department of Transportation.
The company is currently coordinating with non-government organizations on relief and reconstruction initiatives, including partnerships to provide prepaid construction material vouchers to affected families. This continues their previous support for rebuilding programs with provincial governments following earlier disasters.
