Construction of buildings leads in terms of number of establishments
The 2017 Annual Survey of Philippine Business and Industry (ASPBI) preliminary results revealed that there were 1,013 establishments with total employment (TE) of 20 and over which were engaged in construction in the formal sector of the economy. This represents a 4.9 percent decrease from the 1,065 establishments recorded in 2016. (Table A)
Among industry groups, construction of buildings recorded the most number of establishments which accounted for 35.1 percent of the total. (Figure 1)
Among regions, National Capital Region (NCR) with 522 establishments or 51.5 percent of the total, led in terms of the number of establishments. CALABARZON ranked second with 123 (12.1%) establishments, followed by Central Visayas with 79 (7.8%). (Table 2)
Construction of buildings employs the highest
The total employment in 2017 for establishments with TE of 20 and over was estimated at 280,709 workers, a decrease of 5.2 percent from the 296,032 workers in 2016. Of the total employment, 99.9 percent were paid employees and the rest were working owners or unpaid workers. (Tables A and 1)
Industry-wise, construction of buildings with 113,416 (40.4%) workers reported the highest number of workers. (Figure 2)
Region-wise, NCR, having the most number of establishments, employed the bulk of workers numbering 196,544 or 70.0 percent of the total. CALABARZON and Central Visayas followed with 18,196 (6.5%) and 17,792 (6.3%) workers, respectively. (Table 2)
Construction of other civil engineering projects pays the highest average annual compensation
The total compensation paid by construction establishments with TE of 20 and over was PHP71.1 billion in 2017, an increase of 8.4 percent from the PHP65.6 billion posted in 2016. (Table A)
The sector’s total compensation in 2017 translates to an average annual compensation of PHP253,445 per employee. At the industry level, construction of other civil engineering projects paid the highest average annual compensation amounting to PHP310,932 per employee. (Figure 3)
At the regional level, Bicol region registered the highest average annual compensation of PHP717,718 per employee. This was followed by SOCCSKSARGEN (PHP688,912), Eastern Visayas (PHP277,978) and NCR (PHP265,026). These top four regions exceeded the national average annual compensation in 2017. (Table 2a)
Construction of buildings generates the highest value of output and incurs the highest intermediate expense
Total value of output generated by construction establishments with TE of 20 and over amounted to PHP436.8 billion in 2017. This represents an increase of 8.5 percent from the value of output generated in 2016 amounting to PHP402.7 billion. (Table A)
By industry, value of output generated by construction of buildings contributed the highest with PHP208.1 billion, accounting for almost half (47.6%) of the total. (Figure 4)
By region, NCR shared the biggest value of output amounting to PHP300.9 billion or 68.9 percent of the total. This was followed by Central Luzon and CALABARZON with output values of PHP21.4 billion (4.9%) and PHP20.8 billion (4.8%), respectively. (Table 2)
Meanwhile, total intermediate expense incurred by construction establishments with TE of 20 and over amounted to PHP259.3 billion in 2017. This represents an increase of 8.6 percent from the intermediate expense incurred in 2016 amounting to PHP238.8 billion. (Table A)
Among industry groups, construction of buildings incurred the highest expense amounting to PHP126.4 billion or 48.7 percent of the total. (Figure 4)
Across regions, NCR incurred the highest intermediate expense of PHP179.3 billion (69.2%). This was followed by CALABARZON (4.9%) and Davao Region (4.5%). (Table 2)
Construction of roads and railways and construction of buildings post the highest return
The income per peso expense generated by the sector stood at 1.14 in 2017. Compared with the 2016 income per peso expense of 1.12, this is lower by 1.8 percent. This indicates that for every peso spent in 2017, PHP1.14 was realized in terms of income. (Table A)
By industry, construction of roads and railways, and construction of buildings recorded the highest income per peso expense, each at 1.15. At the regional level, Northern Mindanao recorded the highest return of 1.69. (Table 1a and 2a)
Construction of buildings is the top contributor to value added
Total value added generated by Construction sector with TE of 20 and over was estimated at PHP161.5 billion in 2017. This represents a 7.6 percent growth, from the PHP150.1 billion value added reported in 2016. (Table A)
At the industry level, construction of buildings was the top contributor to value added with PHP72.0 billion or 44.6 percent share to total. This was followed by construction of roads and railways (PHP56.7 billion or 35.1%) and electrical, plumbing and other construction installation activities (PHP14.6 billion or 9.0%). (Table 1)
At the regional level, NCR contributed the biggest share with PHP107.7 billion or 66.7 percent of the total value added. This was followed by Central Luzon and Northern Mindanao with respective value added of PHP9.6 billion (5.9%) and PHP8.6 billion (5.3%). (Table 2)
Construction of other civil engineering projects is the most labor productive
Labor productivity, defined as the ratio of value added to total employment, was estimated at PHP575,409 per worker in 2017. This value was higher by 13.5 percent than the recorded labor productivity of PHP507,120 per worker in 2016. (Table A)
Construction of other civil engineering projects generated the highest labor productivity of PHP767,571 per worker, among industries. (Figure 5)
Bicol Region, with PHP1.5 million value added per worker, was the most labor productive among regions. Northern Mindanao followed with PHP1.3 million value added per worker and SOCCSKSARGEN placed third with PHP1.2 million value added per worker. (Table 2a)
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for the Construction sector (Sector F) for establishments with total employment (TE) of 20 and over.
The 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 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 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 level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2017 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 2017 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 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 ASPBI is the establishment.
Taxonomy 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 which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 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. TE refers to the total number of persons who work in or for the establishment.
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 31 December 2017 was used for the 2017 ASPBI.
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 17 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
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1, 2...17 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
c = denotes the certainty employment strata in TE of 20 and over
p = 1, 2...17 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
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 for Construction sector for establishments with TE of 20 and over was 84.6 percent (626 out of 740 establishments). This includes receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 21 establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment’s report, out-of-scope, and out of business in 2017 were not included in the generation of statistical tables.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definition of Terms
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.
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.
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.
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.
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.
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.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
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.
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.
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.
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.
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.
Total employmentis the number of persons who worked in for the establishment as of 15 November 2017.
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.
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.