Bosch bullish on Philippines operations

MANILA, Philippines - Global technology and services supplier Bosch expects continued growth of its business in the Philippines after closing  2016 with sales of $56 million or an increase of 13 percent year on year.

Bosch said the increase in profit was driven by the robust growth of the Philippine construction, automotive and manufacturing industries, along with rising consumer spending power.

“With double-digit business growth for the third consecutive year, the Philippines earns a bright spot in Southeast Asia as one of the best performing markets for Bosch. We continue to see many opportunities here,” said Andrew Powell, managing director of Bosch in the Philippines.

The company’s headcount in the country likewise rose 16 percent to 530 associates last year, driven by the expansion of its geographical footprint as well as its product and solutions portfolio.

In order to increase customer proximity, Bosch said it has continuously strengthened its footprint in the Philippines in the past years.

“We aim to continue our expansion efforts outside of Metro Manila to be within reach of our customers in key provincial areas, and we are already looking at potential new locations,” Powell said.

In 2016, the company inaugurated its newest business hub in Cagayan de Oro, its third outside of Metro Manila.

The business hub seeks to address the rapid development in the Mindanao region, providing showroom, sales, training, and after-sales support for Bosch products and solutions across every business division that is present in the Philippines.

“As the Philippines’ third fastest-growing city, CDO’s vibrant manufacturing industry offers significant opportunities for Bosch to market its innovations to the local customers,” the company said.

Powell said all of Bosch business divisions present in the Philippines have performed well last year with power tools continuing to be the company’s strongest contributor to sales.

The division’s revenue was fueled by heavy demand for its contractors’ choice mid-price product range, as well as for cordless tools for both professional users and hobbyists.

Launched in 2015, the contractor’s choice portfolio has been expanded from seven to 11 models.

Its automotive aftermarket division, meanwhile, achieved a double-digit increase in sales, making 2016 its strongest year yet, according to the company.

“Committed to bringing more products and services closer to the market, particularly in Visayas and Mindanao, the division continues to strengthen its distribution network across the Philippines,” Bosch said.

Starting July, Bosch said its Philippine unit would be ushering in new leadership with the appointment of Richard Walker as the company’s new managing director, while Powell will be assuming a new role as managing director of Bosch in Indonesia.