With the falling peso constricting budgets, forklift users are refurbishing machines to save money, boosting the forklift repair and maintenance industry.

Jane de la Cruz, spokesman for RR Hydraulics Inc, which repairs forklifts, said the company expected increased forklift repair, maintenance and rehabilitation work this year.

Ms de La Cruz said the average cost of a total forklift rehabilitation and repair was 200,000 pesos (USD4,000). She was optimistic the repair business would be sustained this year, despite competition with 20 companies which offered repair and maintenance services.

Yale Trak Philippines Inc, the exclusive distributor of Yale forklifts in the Philippines, says 2002 was one of its best years.

But marketing vice-president Lerio Escano admitted war in Iraq could affect forklift demand and put further pressure on the foreign exchange rate and economy.

He would not reveal the company's 2002 sales figures.