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2016 Annual Survey of Philippine Business and Industry (ASPBI) - Construction Sector with Total Employment of 20 and Over : Preliminary Results

Reference Number: 2018-344
Release Date: 12 December 2018

Construction of buildings industry leads in terms of number of establishments

The preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) revealed that there were 1,064 establishments with total employment (TE) of 20 and over and engaged in Construction in the formal sector of the economy.

Among industry groups, construction of buildings recorded the most number of establishments with 396 which accounted for 37.2 percent of the total. This was followed by construction of roads and railways with 262 establishments or 24.6 percent share. Electrical, plumbing and other construction installation activities came third with 235 establishments or 22.1 percent. On the other hand, demolition and site preparation recorded the least number with only five establishments or 0.5 percent to the total.

Figure 1 shows the distribution of Construction establishments with TE of 20 and over by industry group in 2016.

Among regions, National Capital Region (NCR), with 547 establishments or 51.4 percent of the total, led the regions in terms of the number of establishments. CALABARZON ranked second with 122 establishments or 11.5 percent and Central Luzon came third with 88 establishments or 8.3 percent.

Figure 2 shows the regional distribution of Construction establishments with TE of 20 and over in 2016.

 

Construction of buildings employs the highest

Construction establishments with TE of 20 and over employed a total of 295,922 workers in 2016. Of the total employment, 295,398 or 99.8 percent were paid employees and the rest were either working owners or unpaid workers.

Industry-wise, construction of buildings with 111,610 (37.7%) workers reported the highest number of workers. This was followed by construction of roads and railways with 90,164 (30.5%) workers. Electrical, plumbing and other construction installation activities with 58,662 (19.8%) workers placed third.

Figure 3 shows the distribution of employment for Construction establishments with TE of 20 and over by industry group in 2016.

NCR, having the most number of establishments, employed the bulk of workers numbering to 209,912 or 70.9 percent of the total. Central Visayas with 20,559 (6.9%) and CALABARZON with 17,724 (6.0%) workers followed.

 

Construction of other civil engineering projects pays the highest average annual compensation

Total compensation paid in 2016 by Construction establishments with TE of 20 and over amounted to PHP65.6 billion, indicating an average annual compensation of PHP221,943 per employee.

Construction of other civil engineering projects paid the highest average annual compensation amounting to PHP447,657 per employee. This was followed by demolition and site preparation with employees receiving an average annual pay of PHP292,980. Construction of roads and railways placed third at PHP252,320 average annual pay per employee.

Figure 4 displays the average annual compensation of employees for Construction establishments with TE of 20 and over by industry group in 2016.

At the regional level, six regions reported average annual compensations that were higher than the national average in 2016. These were:

• Bicol, PHP788,938

• SOCCSKSARGEN, PHP478,138

• Eastern Visayas, PHP337,290

• Davao Region, PHP275,289

• Cagayan Valley, PHP258,394

• NCR, PHP229,787

 

Construction of buildings industry generates the highest value of output

Total value of output generated by Construction establishments with TE of 20 and over amounted to PHP402.4 billion in 2016.

By industry, value of output generated by construction of buildings worth PHP185.8 billion accounted for more than two fifths (46.2%) of the total for the sector. This was followed by construction of roads and railways with an output share of PHP125.1 billion or 31.1 percent and electrical, plumbing and other construction installation activities with PHP52.5 billion or 13.0 percent.

Figure 5 shows the distribution of value of output for Construction establishments with TE of 20 and over by industry group in 2016.

Among regions, NCR shared the biggest value of output amounting to PHP281.1 billion or 69.9 percent of the total. This was followed by CALABARZON and Central Visayas with output values of PHP21.1 billion (5.2%) and PHP19.5 billion (4.8%) respectively.

 

Construction of buildings industry spends the most

Total expense, including compensation for construction with TE of 20 and over, amounted to PHP369.6 billion in 2016.

Among industries, construction of buildings incurred the highest expense amounting to PHP170.3 billion or 46.1 percent of the total. Construction of roads and railways placed second with PHP117.3 billion or 31.7 percent. Electrical, plumbing and other construction installation activities placed third with a total expense of PHP45.1 billion or 12.2 percent.

In 2016, NCR was the highest spender among regions with estimated expense of PHP260.1 billion (70.4%). This was followed by CALABARZON and Central Visayas spending PHP19.9 billion (5.4%) and PHP18.0 billion (4.9%), respectively.

 

Electrical, plumbing and other construction installation activities industry records the highest return

Income per expense ratio for Construction establishments with TE of 20 and over in 2016 was recorded at 1.12, indicating that for every peso spent, PHP1.12 was realized in terms of income.

Among industries, electrical, plumbing and other construction installation activities registered the highest income per expense ratio of 1.28, followed by construction of buildings, construction of utility projects; and other specialized construction activities with 1.11 income per expense ratio each. Construction of roads and railways registered 1.09 income per expense ratio.

Among regions, Negros Island Region (NIR) recorded the highest return of 1.33 income per expense ratio. Eastern Visayas and Cagayan Valley followed with income per peso expense of 1.24 and 1.19, respectively.

 

Construction of buildings industry is the top contributor to value added

Value added generated by Construction establishments with TE of 20 and over reached PHP149.8 billion in 2016.

Construction of buildings was the top contributor to value added with PHP58.8 billion or 39.3 percent of the total. This was followed by construction of roads and railways with PHP50.1 billion or 33.5 percent and electrical, plumbing and other construction installation activities with PHP25.4 billion or 17.0 percent.

By region, NCR contributed the biggest share with PHP109.4 billion or 73.1 percent of the total value added. This was followed by Central Luzon and Central Visayas with respective value added of PHP6.8 billion (4.5%) and PHP 6.4 billion (4.3%).

 

Construction of other civil engineering projects industry is the most productive

Labor productivity, which is the ratio of value added per worker, was estimated at PHP506.1 thousand per worker for establishments with TE of 20 and over.

Construction of other civil engineering projects generated the highest labor productivity of PHP733.9 thousand per worker, among industries. Demolition and site preparation followed with PHP564.1 thousand per worker. Construction of roads and railways came third with PHP556.2 thousand per worker.

Among regions, the most productive was Bicol generating PHP1,417.1 thousand value added per worker. SOCCSKSARGEN followed with PHP1,048.0 thousand value added per worker and Eastern Visayas placed third with PHP790.3 thousand value added per worker.

 

Construction of roads and railways posts the highest gross addition to tangible fixed assets

Gross addition to tangible fixed assets, (capital expenditures less sale of fixed assets, including land), acquired by the sector amounted to PHP7.1 billion in 2016 for establishments with TE of 20 and over.

Construction of roads and railways acquired PHP4.1 billion worth of gross addition to fixed assets or 58.2 percent of the total. Construction of buildings followed with PHP2.0 billion or 28.4 percent. Electrical, plumbing and other construction installation activities and construction of other civil engineering projects, both had PHP0.5 billion or 7.7 percent share to total gross addition to tangible fixed assets.

Regional profile showed that NCR reported the highest gross addition to tangible fixed assets valued at PHP3.3 billion or 47.0 percent of the total. Central Luzon and Northern Mindanao followed with PHP0.7 billion or 10.0 percent each. Central Visayas placed third with PHP0.6 billion or 9.1 percent.

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
(Director II)
Officer-in-charge
Sectoral Statistics Office

 

 

 


TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2016Annual Survey of Philippine Business and Industry (ASPBI) for the Construction sector (Sector F) for establishments with total employment (TE) of 20 and over.

The 2016 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2016.

The survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment which is as of November 15, 2016.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2016 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.

 

Legal Authority

The conduct of the 2016 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

 

Scope and Coverage

The 2016 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

• Agriculture, Forestry and Fishing (A)

• Mining and Quarrying (B)

• Manufacturing (C)

• Electricity, Gas, Steam, and Air Conditioning Supply (D)

• Water Supply; Sewerage, Waste Management and Remediation Activities (E)

• Construction (F)

• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)

• Transportation and Storage (H)

• Accommodation and Food Service Activities (I)

• Information and Communication (J)

• Financial and Insurance Activities (K)

• Real Estate Activities (L)

• Professional, Scientific and Technical Activities (M)

• Administrative and Support Service Activities (N)

• Education (P)

• Human Health and Social Activities (Q)

• Arts, Entertainment and Recreation (R)

• Other Service Activities (S)

However, three (3) sectors of the 2009 PSIC are not covered. These are:

• Public Administration and Defense; Compulsory Social Security (Section O)

• Activities of Households as Employers; Undifferentiated Goods and Services Producing Activities of Households for Own Use (Section T)

• Activities of Extra-territorial Organization and Bodies (Section U)

The survey was confined to the formal sector of the economy, which consists of the following:

• Corporations and partnership

• Cooperatives and foundations

• Single proprietorship with employment of 10 and over

• Single proprietorships with branches

Hence, the 2016 ASPBI covered only the following economic units:

• All establishments with total employment of 10 and over; and

• All establishments with total employment of less than 10, except those with Legal Organization = 1 (Single proprietorship) and Economic Organization = 1 (Single establishments), that are engaged in economic activities described according to the 2009 Philippine Standard Industrial Classification (PSIC)

 

Frame of Establishments

The frame for the 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

 

Unit of Enumeration

The unit of enumeration for the 2016 ASPBI is the establishment.

 

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization relates to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.

Industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its TE as of a specific date.

This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of December 31, 2015 was used for the 2016 ASPBI.

 

Methodology

Sampling Design

The survey utilized stratified systematic sampling with 3-digit or 5-digit PSIC serving as the industry strata and employment size as the second stratification variable.

For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level (sub-class) of the 2009 PSIC serves as the industry domain.

Estimation Procedure for Establishments with TE of 20 and Over

a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections A, C, E, F, G, H, I, J, K, L, M, N, P, Q, R and S.

The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region

where:

s         = denotes the non-certainty employment strata in TE of 20 and over

p         = 1, 2...18 regions (geographic domains)

Xspj    = value of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

j          = 1, 2, 3...nsp establishments

Wspj   = weight of the jth establishment in non-certainty employment strata in TE of 20 and over for an industry domain in each region

Nsp    = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

nsp    = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

The estimate of the total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region

where:

c        = denotes the certainty employment strata in TE of 20 and over       

p        = 1, 2...18 regions (geographic domains)

Xcpj   = value of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

j         = 1, 2, 3..., mcp establishments                                                

mcp   = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

c. Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic  for the industry domain in each region (geographic domain) was obtained by aggregating the estimated for all employment strata 

(non-certainty and certainty) in the same industry domain,

where dp denotes the industry domains in each region

National level estimate of the characteristic by industry domain were obtained by aggregating separately the estimates  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factors, and (n/n') was multiplied with the sampling weight (W) of each of the sampling unit. The sampling

weight which is defined as N/n was recomputed as

Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Where:

Nsp     = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

n'sp     = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)

 

Response Rate

Response rate for Construction sector for establishments with TE of 20 and over was 77.0 percent (644 out of 836 establishments).This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 27 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2016.

 

Limitation of Data

Only the formal sector was covered in the survey.

 

Concepts and Definitions of Terms

Establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.

Economic Activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2016.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, Pag-IBIG etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.

Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts, and allowances, including duties and taxes but excluding subsidies.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

Expense refers to cost incurred by the establishment in an enterprise’s effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used; fuels, lubricants, oils and greases, electricity and water purchased, and industrial services done by others.

Value added is gross output less intermediate input. Gross output is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and all other expense.

Value of output represents the sum of the receipts from revenue from main activity, income from industrial services done for others, goods sold in the same condition as purchased  less the cost of goods sold and value of fixed assets produced on own account.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in Inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Subsidies refer to special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.