^{Photo: Shell’s Technical Services provide useful insights that help prevent breakdowns and reduce maintenance spending, empowering fleets to operate smarter, safer, and more sustainably.}

Philippine manufacturers are navigating a period of structural pressure. Energy costs remain elevated, regulatory requirements are expanding, and reliability has become a frontline operational concern as firms push equipment harder to remain competitive. While the sector recovered from the pandemic-era contraction—when output fell by nearly 10%—growth has been uneven, and cost competitiveness continues to lag behind regional peers.

According to Shell Pilipinas, the manufacturing sector recorded a 9.8% contraction during the pandemic. While manufacturing output rebounded with around 4.9% annual growth in 2023, the Philippines continues to trail other ASEAN economies in value-added depth, supply-chain integration, and overall cost competitiveness.

Financial constraints remain a major factor. According to survey data cited by Shell, 42% of small enterprises and 33% of medium-sized enterprises are credit-constrained, limiting their ability to invest in maintenance, modernization, and energy-efficient technologies.

“Manufacturers today operate in a landscape defined by energy costs, sustainability expectations, and the need for consistent reliability,” said Kerchieval Balingit, Head of Technical Services at Shell Pilipinas. “Our work helps them lower operating costs not just through our products, but through smarter, data-driven maintenance and energy-aligned operations.”

Energy efficiency has become a growing operational priority. According to Department of Energy (DOE) data, the industrial sector—including manufacturing—accounts for about 25% of final energy consumption in the Philippines. DOE figures also show that 9,278 firms are registered as Designated Establishments under the Energy Efficiency and Conservation Act, requiring energy audits, annual reports, and formal energy-management practices. 

Businesses have responded with PHP 6.8 billion in energy-efficiency investments, including smart controls, variable-frequency drives, and on-site renewable energy installations.

Turning lubrication into a performance and cost advantage
Within this policy and cost environment, Shell Pilipinas has positioned effective lubrication management as a practical lever for improving reliability and controlling operating costs.

According to Balingit, there are two primary pathways to reducing total cost of ownership: selecting the most appropriate lubricant for each piece of equipment and implementing disciplined lubrication management practices across operations.

“With productivity as a top priority, manufacturers aim to minimize unplanned downtime and extend maintenance intervals,” he told Power Philippines. “As machinery operates under higher temperatures, greater power density, and elevated pressures, ensuring the right lubricants and lubrication strategies becomes critical.

Shell’s lubricants portfolio is backed by more than thousands OEM approvals and recommendations, supported by localized technical expertise. Programs such as Shell LubeExpert embed Shell advisers directly within client operations. According to Shell, on-site audits and system optimizations have, in some cases, identified up to 30% savings in lubrication-related maintenance budgets, while extending equipment life and reducing unplanned downtime.

Digital diagnostics further strengthen preventive maintenance. Tools such as Shell LubeAnalyst allow oil condition monitoring, early detection of equipment wear, and optimized oil-drain intervals.

^{Shell LubeAnalyst is Shell’s oil-condition monitoring service that analyzes lubricant samples to assess equipment health, contamination, and wear, and provides maintenance recommendations.}

“Our diagnostic tools help detect and prevent problems before they escalate,” Balingit said. “This predictive approach supports reliability, lowers energy use, and improves overall operational efficiency.”

Reliability, sustainability, and long-term competitiveness

Shell frames lubrication efficiency as a sustainability enabler. Balingit said improved lubrication practices help lower energy use, reduce lubricant consumption and disposal, and extend asset life—lessening the environmental impact of premature equipment replacement. 

“Low emissions and high reliability are not contradictory goals—they strengthen one another,” said Balingit. “Our solutions support manufacturers as they pursue both cost efficiency and environmental accountability.”

In the Philippines, Shell has also highlighted collaborations integrating renewable energy into industrial operations, showing how efficiency and decarbonization can advance together. Training initiatives such as Shell LubeCoach build local technical capability, embedding best-practice lubrication and reliability disciplines within plant teams.

According to Balingit, Shell Pilipinas plans to expand its technical service capabilities in the Philippines as part of its broader ASEAN strategy. Priority sectors include renewable-energy equipment, advanced electronics and semiconductor assembly, and high-precision automotive manufacturing.

By combining global R&D, localized technical expertise, digital tools, and alignment with national energy and sustainability priorities, Shell Pilipinas positions itself as more than a lubricant supplier—serving as a long-term partner to help Philippine manufacturers become more reliable, efficient, and future-ready.

^{Shell LubeOptimiser is Shell’s end-to-end on-site solution designed to help companies address common challenges, such as simplifying operations, reducing downtime, and protecting equipment.}

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About Shell Pilipinas Corporation 

For 112 years, Shell in the Philippines continues to power the nation’s progress through its growing network of mobility stations, robust B2B partnerships and expanding Non-Fuels offers, enabled by its integrated supply chain and strong corporate governance. Shell also supports local communities through the Pilipinas Shell Foundation Inc. (PSFI) by providing programs on access to energy, health, safety, education, and livelihood development. For more details on Shell Pilipinas Corporation, visit www.shell.com.ph. 

About Shell Lubricants

For 19 years in a row, Shell Lubricants has been serving quality and premium lubricant products and solutions that offer our customers from different B2B and B2C applications a myriad of lubrication solutions and services that help with their regular lubrication needs. #YouCanBeSureofShell