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The industry has not also extensively penetrated the tourism industry. In general, food processed in the region is the only prominent product in support of the tourism industry. Crafts sold as souvenir items for tourists are still produced in other parts of the country and even abroad. Most of the machineries and equipment for tourism facilities were likewise imported. Although the manufacturing industry is a major employer in the region, having absorbed 49 percent of the total employees of the Industry sector, the industry has inherently suffered from a dearth of technical support personnel not because they are unavailable but primarily due to less competitive salaries and wages. Large manufacturing companies are also confined to the basic processing of the region’s raw materials due to the lack of research and development and more comprehensive market studies. Further, the high cost of domestic shipping have inhibited these companies to embark into innovative ventures. As a result, micro and small manufacturing firms have been forced to imitate the production lines of big manufacturing firms instead of providing support in the form of production of components/inputs. The absence of forward linkages of their product has limited micro and small manufacturing forms to generally family businesses.
Construction The construction industry of Davao Region experienced an impressive growth of 19.6 percent and provided employment to 33 percent of the Industry sector workers in 2009. The sharp increase in the industry’s growth was largely due to the boom in private property development and public infrastructure projects. In 2008, total investments for private construction reached P6.2 billion or roughly 37 percent of the total investments in the region that was estimated at P16.8 billion. The following year, the total value of private construction both for commercial and residential purposes climbed to P8.8 billion or about 56 percent of the total investments of P15.8 billion. Construction for commercial purposes that included shopping malls, an information technology (IT) park, and warehouses was placed at P4.9 billion or about 56 percent of the total value of private construction. Meanwhile, the rise in the value of public construction was largely due to the frontloading of budget for infrastructure development as stipulated in the Economic Resiliency Plan (ERP). The industry provided the basic off-site and on-site facilities that supported the vibrant tourism industry of the region. The improvement of these facilities, however has not been able to cover all existing and potential tourist spots in the region. Hence, tourism investors prefer to confine themselves to traditional tourism winners within Davao City and its peripheries, particularly IGACOS. The increase in the demand for consumer products in Davao Region, fueled partly by a steady rise in the regional population size and an increasing preference for more luxurious living in the urban areas, has encouraged investors to establish more shopping malls in the cities of Davao, Tagum, Panabo, and Digos. Middle rise residential units and condominiums have sprouted in Davao City as the value of land spiraled upward. The spread of industrial firms outward north and south of Davao City has invariably pulled up the value of real estate in these areas.
Mining The mining industry is among the priority industries covered under Davao Region’s industry cluster strategy. The region contributed 8.65 percent to the country’s GVA in Mining, 6th overall nationwide. However, after leading the Mindanao mining output during the early years of the past plan period; Davao Region has recently dropped to second, next to Caraga Region. Despite an erratic growth during the period 2004-2008, with the industry contributing only 3.26 percent to the region’s GRDP Davao Regional Development Plan, 2011-2016