National Capital Region led in number of manufacturing establishments
The number of manufacturing establishments with average total employment (ATE) of 20 or more workers reached 6,397 in 2001. Food except beverages dominated the sector with 1,093 establishments or 17.1 percent of the total. Wearing apparel ranked second with 791 establishments (12.4 percent) while chemical products followed with 398 establishments (6.2 percent).
Almost half (48.9 percent) or 3,127 of the manufacturing establishments with ATE of 20 or more were located in the National Capital Region. CALABARZON followed with 1,318 establishments (20.6 percent). Central Luzon and Central Visayas accounted for 566 (8.8 percent) and 543 (8.5 percent) establishments, respectively. (See Figure 1)
Food except beverages employed most number of workers
In 2001, employment of manufacturing establishments with ATE of 20 or more registered a total of 942,215. Of this, 937,378 or 99.5 percent were paid employees while the remaining 0.5 percent were working owners and unpaid workers.
Food except beverages, which was the leading industry group in terms of number of establishments, employed the most number of workers with 144,436 or 15.3 percent of the total. The wearing apparel industry came second with 135,518 employees (14.4 percent). Electronic components followed with 121,495 employees (12.9 percent). (See Figure 2.)
On the regional level, CALABARZON registered the largest number of workers with 331,576 or 35.2 percent of the total. National Capital Region followed with 314,676 workers or 33.4 percent. MIMAROPA posted the least number of workers with only 501 or 0.05 percent of the total.
Petroleum products paid more to employees
Total compensation paid by manufacturing establishments with ATE of 20 or more amounted to P116.2 billion in 2001. Average annual compensation was estimated at P123,987 per employee. Petroleum products paid the highest annual average compensation of P639,823 per employee while recycling of metal and non-metal waste and scrap paid the lowest at an average of P59,105 per employee. Twenty-one (21) industry groups reported annual average compensation of more than P100,000 per employee. (See Table 1.)
Table 1. Average Annual Compensation per Employee by Industry: 2001
Electronic components highest revenue earner
Total revenue or sales reported in 2001 by manufacturing establishments with ATE of 20 or more amounted to P1,807.5 billion. Electronic components generated the highest revenue of P313.4 billion (17.3 percent). Food except beverages followed closely with P305.8 billion (16.9 percent). (See Figure 3.)
Electronic components also incurred highest cost
In 2001, total cost excluding compensation incurred by manufacturing establishments with ATE of 20 or more amounted to P1,420.2 billion. Electronic components incurred the highest cost of P256.8 billion or 18.1 percent of the total. Food except beverages followed with P221.5.0 billion (15.6 percent) worth of expenses.
Value of output amounted to P1,795.8 billion
Value output of manufacturing establishments with ATE of 20 or more amounted to P1,795.8 billion in 2001. Electronic components contributed 17.3 percent of the total output amounting to P309.9 billion. Food except beverages placed second with P304.4 billion (17.0 percent).
About 43 percent or P772.1 million of the sector?s gross value of output was generated by CALABARZON. National Capital Region followed with P447.7 million output value (24.9 percent). (See Figure 4.)
Food except beverages generated highest census value added
Census value added for manufacturing establishments with ATE of 20 or more yield P602.9 billion in 2001. Among industries, food except beverage contributed the highest at P117.2 billion or 19.4 percent of the total value. Electronic components followed with P95.1 billion worth of census value added (15.8 percent). Chemical products placed third with P57.6 billion or 9.5 percent of the total value.
Gross addition to fixed assets reached P60.0 billion
Gross addition to fixed assets in 2001 of manufacturing establishments with ATE of 20 or more reached P60.0 billion. Electronic components contributed 34.1 percent of the gross addition to fixed assets amounting to P20.5 billion. Food except beverages bagged the second highest with P7.7 billion (12.9 percent).
Change in total inventories amounted to P6.9 billion
Change in total inventories in 2001, as derived from the inventory reports of manufacturing establishments with ATE of 20 or more, added up to P6.9 billion. More than half (51.2 percent) or P3.6 billion of the change in total inventories were in the food except beverages industry.
The 2002 Annual Survey of Philippine Business and Industry (2002 ASPBI) is a continuing activity of the National Statistics Office which aims to collect information on the structure and trends of economic activities in the entire country. The collected data from the industrial and non-industrial sectors refer to calendar year 2001.
The total sample for manufacturing establishments with average total employment (ATE) of 20 or more is 2,837. The response rate was 92.0 percent of total samples. Included are imputed questionnaires for non-responding samples.
Definition of Terms
Economic activity or business is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). The main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Employment refers to the total number of persons who worked in or for the establishments as of November 15, 2001. Total employment includes paid employees and unpaid workers.
Paid employees are all persons working in the establishment receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.
Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.
Total compensation includes salaries and wages and employer?s contribution to SSS/GSIS, and the like.
Salaries and wages are payments whether in cash or in kind, prior to deductions for employees' contribution to SSS/GSIS, withholding tax, and the like, to all employees. Included are total basic pay, overtime pay, and benefits.
Employer's contribution to SSS/GSIS, and the like refers to payments made by the employer on behalf of the employees. Examples are employer's contributions to SSS/GSIS, Employees Compensation Commission (ECC), Philhealth, PAG-IBIG, and others.
Revenue or Sales include cash received and receivable for goods sold and services rendered. For manufacturing, total receipts include value of products sold, value of industrial services done for others, value of goods for resale, interest/dividend income and other revenue. Valuation is at producer's prices (ex-establishment), net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods and services received by the establishment from other establishment of the same enterprise are valued as though purchased.
Value of output represents the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods bought and sold in the same condition, fixed assets produced on own account and change in inventories (ending less beginning of finished products, work-in-process and goods for resale).
Census value added represents the difference between the value of output and total costs of materials and supplies consumed, fuels purchased, electricity purchased, industrial services done by others and good purchased and resold.
Subsidies are all special grants in the forms of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.
Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.
Capital expenditures for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or done on own account.
Gross additions to fixed assets as a derived indicator, is equal to capital expenditures less sale of fixed assets, including land.
Change in total inventories as a derived indicator, is computed as the value of ending inventory less the value of beginning inventory.
Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost based on market prices at indicated dates.
Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Detailed Statistical Tables
The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.
Source: National Statistics Office