D&L cautiously optimistic on 2027 prospects
D&L Industries Inc. is cautiously betting on a better business environment for next year following the US midterm elections, though El Niño and local political tensions continue to pose risks, its top executive said.
“The good news, it looks like, after the blue tsunami at the US midterm elections, there’s finally a light at the end of the tunnel on when the war with Iran might end,” D&L president Alvin Lao told reporters.
Analysts have said that the big win of Democrats could put an end to the months-long war between the United States and Iran.
He said the price of Brent crude oil dropped by around 20 percent last week, while the local currency gained more ground against the US dollar, fueling the market’s optimism.
However, the official also acknowledged the lingering issues caused by the bombing attacks in the Middle East, with a lot of manufacturing plants of raw materials destroyed.
The raw materials include ethylene, helium, aluminum and urea used for the production of fertilizer.
The Ukraine-Russia war has also affected the flow of other raw materials.
Lao likewise noted the potential impact of the ongoing El Niño, which is seen peaking towards the first half of 2027.
The D&L executive also said that while spending could get a boost from the 2028 presidential elections in the Philippines, a political ruckus could dampen momentum.
“Every time there are political issues, business kind of freezes. Our political situation could get a lot worse,” he said.
“So, there is a lot of reasons to think that things will hopefully get better. But you never know. This is the Philippines,” Lao added.
