Companies across Central Luzon are fortifying their operations against a continuing wave of climate-related and regulatory disruptions that significantly impacted their performance throughout 2025 and are expected to persist into the new year.
Reflecting on a Challenging 2025
According to Elizabeth Carlos-Timbol, president of the Metro Angeles Chamber of Commerce and Industry (MACCII), the past year was defined by economic uncertainty and uneven demand across the Philippines. High interest rates increased borrowing costs, creating particular difficulties for Micro, Small, and Medium Enterprises (MSMEs) seeking expansion or working capital.
Extreme weather events, including typhoons and severe flooding, directly hampered operations and crippled supply chains. Furthermore, a slowdown in government infrastructure spending, coupled with stricter scrutiny of disbursements, dampened business confidence notably in the latter half of 2025.
Sectors tied to construction and public works were among the hardest hit, experiencing project delays and weakened pipelines due to the sluggish release of infrastructure funds. Consumer-facing industries, such as retail, food services, and non-essential goods, also faced softer demand as Filipino households tightened their budgets.
Logistics, transportation, and manufacturing firms reliant on imports grappled with elevated operating costs, supply chain interruptions, and volatility in global markets and foreign exchange rates.
Building Resilience and Adaptation
In response to these multifaceted challenges, MACCII members adopted a more disciplined approach to business management. Timbol highlighted that firms focused intently on managing cash flow, optimizing inventory planning, and strengthening their collection processes.
Adaptation strategies became widespread. Many businesses diversified their supplier networks, renegotiated existing contracts, and introduced more flexible pricing or product options. A significant acceleration in digital selling and customer engagement initiatives was also observed.
"Members also leaned on the Chamber for shared learning, referrals, and collaboration to sustain operations and protect jobs," Timbol stated, emphasizing the role of business community support.
Outlook and Growth Sectors for 2026
Despite the hurdles, there are positive signals for 2026. Timbol noted that inflation showed signs of easing towards the end of 2025, and the beginning of interest rate cuts could gradually stimulate economic activity by lowering borrowing costs and improving cash flow for businesses.
The Chamber anticipates expansion in several key areas, including:
- Logistics, warehousing, and cold chain fulfillment
- Tourism and experience-based services
- Health, wellness, and digital services
- Agricultural value-adding enterprises
Timbol pointed out that modern buyers are more value-conscious and demand speed, transparent pricing, dependable delivery, and reliable support. In business-to-business dealings, there is a heightened focus on compliance, documentation, professionalism, and stable supply relationships.
For Central Luzon, specifically the Clark-Pampanga growth corridor, rapid development is forecast in Information and Communication Technology (ICT), data centers, and the broader digital ecosystem, driven by rising demand for connectivity, cloud services, and cybersecurity.
"Agri-logistics, food hubs, and cold storage are also positioned to expand as supply chains modernize, with related gains for warehousing and transport services," Timbol added. "Construction and allied services should benefit as large-scale projects move into active development, supporting a wider ecosystem of opportunities."
Moving forward, MACCII will maintain vigilance on global concerns regarding energy, food price volatility, and potential policy disruptions, continuously monitoring factors that influence business and consumer confidence in the region.
