2003 and 2005 Annual Surveys of Philippine Business and Industry (ASPBI) Manufacturing for Establishments with Average Total Employment of 20 and over : Comparative Statistics

Reference Number: 

303

Release Date: 

Tuesday, November 27, 2007

Number of establishments grows by 11.1 percent

The total number of manufacturing establishments with average total employment (ATE) of 20 and over covered in the 2005 ASPBI registered 6,554. This reflected an increase of 11.1 percent from the 5,901 establishments covered in 2003. Food except beverages accounted for the largest share with 17.8 percent (1,167 establishments) of the total. Wearing apparel comprised the second largest group with 12.1 percent (791 establishments). This was followed by chemical products and publishing and printing with 6.2 percent and 6.0 percent, respectively, of the total.

The National Capital Region (NCR) registered the highest number of establishments with ATE of 20 and over at 2,944 (44.9%) in 2005. The combined regions of CALABARZON and MIMAROPA recorded 1,548 establishments while Central Luzon registered 617 establishments. Central Visayas recorded the largest count in the Visayas area, numbering 651 establishments. In the Mindanao area, Davao region registered the most number, with 184 manufacturing establishments.

Total employment reaches 1.03 million workers in 2005

Manufacturing establishments with average total employment (ATE) of 20 and over generated a total employment of 1,025,814 in 2005, which reflected an increase of 3.9 percent from the total employment of 986,921 in 2003. Of this, 99.6 percent were paid employees while the rest were working owners and unpaid workers.

Industrywise, wearing apparel (PSIC D18) employed the most number of workers with 159,272 or 15.5 percent of the total in 2005. Food except beverages (PSIC D15 except D155) ranked second with 147,663 workers (14.4%). This was followed by electronic components (PSIC D321-D323) with 136,223 workers (13.3%). Distribution of employment by industry group is shown in Figure 3.

Regionwise, the combined regions of CALABARZON and MIMAROPA dominated nearly half (41.1%) of the total employment, numbering 422,024 workers. NCR, placing second, reported 270,869 employees or 26.4 percent to the total. Central Visayas and Central Luzon followed with 122,280 (11.9%) and 107,122 (10.4%) employees, respectively. Distribution of employment by region is shown in Figure 4.

P1.1 million average annual pay for petroleum products sector

In 2005, total compensation paid to employees by manufacturing establishments with ATE of 20 and over amounted to P167.4 billion or equivalent to an average annual income of P163,748 per paid employee.

Among industries, petroleum products paid the highest compensation with average annual pay of P1.1 million per employee in 2005. Other top-paying industries that surpassed the sector's average annual compensation are shown in the following table:

Average Annual Compensation in Top-Paying Industries with
ATE of 20 and over by Industry: 2005

 

Industry

Annual Compensation
per Employee (PhP)

 

Petroleum products

1,087,088

Other transport equipment

355.669

Chemical products

314,252

Beverages

296,782

Tobacco products

228,261

Basic precious and non-ferrous metals

218,197

Non-metallic mineral products

210,642

Motor vehicles

206,179

Electronic components

185,600

Medical and optical instruments, watches and clocks

180,237

Rubber products

175,431

Food except beverages

172,924

Machinery and equipment,nec.

169,020

 

Electronic components is still the top grosser in 2005

In 2005, total revenue or sales generated by manufacturing establishments with ATE of 20 and over amounted to P2,949.1 billion, registering a growth of 31.4 percent from P2,244.1 billion in 2003. Among the industry groups, electronic components earned the highest revenue amounting to P461.1 billion (15.6%). Food except beverages followed closely with P456.2 billion earnings (15.5%). Petroleum products placed third with an income of P337.0 billion (11.4%).

At the regional level, the combined regions of CALABARZON and MIMAROPA recorded the highest revenue with P1, 343.1 billion, or 45.5 percent of the total. NCR was the next highest earner with P571.1 billion (19.4%), followed by Central Luzon with P391.6 billion (13.3%). The combined earnings of the regions comprised more than three-quarters (78.2%) of total manufacturing revenue.

Electronic components is also the highest spender

Total costs excluding compensation incurred by manufacturing establishments with ATE of 20 and over was estimated at P2,434.1 billion, registering an increase of 32.6 percent from P1,835.5 billion in 2003. Electronic components also incurred the highest cost amounting to P403.2 billion or 16.6 percent of the total. Food except beverages incurred the next highest cost at P368.7 billion.

The top regions in terms of cost incurred were the combined regions of CALABARZON and MIMAROPA (P1,071.5 billion), NCR (P474.3 billion) and Central Luzon (P340.1 billion). The combined cost incurred by these regions comprised more than three-quarters (77.5%) of the total.

Revenue per peso cost slightly declines by 0.8 percent

Revenue per peso cost, excluding compensation, of manufacturing establishments with ATE of 20 and over was estimated at P1.21, slightly lower by 0.8 percent from P1.22 in 2003. Revenue per peso cost indicates that for every P1.00 spent, manufacturing industries earned P1.21.

Value of output continues to expand

Value of output of manufacturing establishments with ATE of 20 and over was estimated at P2,912.2 billion in 2005, representing an increase of 28.6 percent from P2,263.9 billion in 2003. The combined output value of the top ten (10) industries comprised 76.0 percent of the total output of manufacturing sector. The electronic components sector remained to be the top contributor to manufacturing output followed by food except beverages; petroleum products; office, accounting and computing machinery; chemical products; motor vehicles; electrical machinery and apparatus, n.e.c.; beverages; non-metallic mineral products; and basic iron and steel. Figure 6 presents the top grossers in value of output for manufacturing establishments in 2005.

Regionwise, the combined regions of CALABARZON and MIMAROPA generated the highest output valued at P1,328.7 billion in 2005, which is nearly half (45.6%) of the total output value of the entire manufacturing sector. This was followed by NCR and Central Luzon with P562.9 billion (19.3%) and P387.8 billion (13.3%), respectively. Altogether, the three regions accounted for 78.3 percent of the total output value of the manufacturing sector.

Food except beverages tops in terms of value added

In 2005, total value added (VA) for manufacturing establishments with ATE of 20 and over registered an increase of 21.7 percent to P684.8 billion from P562.7 billion in 2003. Food except beverages maintained its lead with value added at P106.4 billion. Other industries in the list of top grossers were petroleum products (P93.6 billion); electronic components (P81.8 billion); chemical products (P53.9 billion); office, accounting, and computing machinery (P38.0 billion); beverages (P33.9 billion); electrical machinery and apparatus, n.e.c. (P33.0 billion); non-metallic mineral products (P27.0 billion); and wearing apparel (P25.6 billion). The combined value added of these industries accounted for more than two-thirds or 72.0 percent of the total value added of manufacturing.

At the regional level, the combined regions of CALABARZON and MIMAROPA contributed the largest share to value added at 49.6 percent (P340.0 billion) of the total. This was followed by NCR at P145.6 billion or 21.3 percent. Central Luzon posted far third at P69.4 billion or 10.1 percent, followed by Central Visayas at P44.8 billion or 6.6 percent.

The ratio of value added to employment in 2005 was estimated at P667,604 per worker for total manufacturing. This represented an increase of 17.1 percent from the P570,199 per worker in 2003. At the industry level, petroleum products retained its lead with the highest value added of P62.0 million per worker.

Value added ratio (VAR), which is the proportion of value added to value of output, for manufacturing establishments with ATE of 20 and over slowed down to 23.5 percent in 2005 from 24.9 percent in 2003. The table below presents the top industries in terms of value added ratio.

Value Added Ratio of Top Industries for Manufacturing Establishments
with ATE of 20 and over: 2005

 

Industry

Value Added Ratio (%)

 

Recycling of metal

73.8

Medical and optical instruments, watches and clocks

43.3

Beverages

40.2

Wearing apparel

38.5

Tanning and dressing of leather

35.0

Tobacco products

34.2

Miscellaneous manufacturing

33.2

Non-metallic mineral products

32.9

Publishing and printing

30.5

 

Gross addition to fixed assets decreases

Gross addition to fixed assets registered a value of nearly P95.0 billion in 2005, lower than the P102.5 billion reported in 2003. Electronic components posted the highest at P21.9 billion or 23.1 percent of the total. Food except beverages followed next with P15.2 billion or 16.0 percent, while chemical products registered P7.1 billion or 7.4 percent in gross addition to fixed assets.

The combined regions of CALABARZON and MIMAROPA recorded the highest gross addition to fixed assets at P39.6 billion. Central Luzon ranked next with P13.4 billion, followed by NCR which posted P12.3 billion. Altogether, these regions comprised 68.6 percent of the manufacturing sector's gross addition to fixed assets.


EXPLANATORY TEXT

Introduction

The comparative statistics are taken from the final results of the 2003 Annual Survey of Philippine Business and Industry (2003 ASPBI) and the 2005 Annual Survey of Philippine Business and Industry (2005 ASPBI). The 2003 and 2005 ASPBI are the 37th and 38th in the series, respectively, of annual surveys of establishments conducted by the National Statistics Office. The surveys are a comprehensive collection and compilation of statistical information pertaining to business operations of establishments designed to bring forward adequate statistics on the structure and trends of economic activity in the whole country. The data constitute reliable bases in the formulation of policies and economic development plans by the government and private concerns.

Response Rate

The total sample for manufacturing establishments with average total employment (ATE) of 20 and over for the 2005 ASPBI is 4,981 with a response rate of 95 percent. The 2003 ASPBI has about the same response rate for a total of 4,116 sample establishments. However, the reports that were actually included in the tabulation comprised good, consolidated, partially accomplished reports and reports that were imputed based on other sources such as financial statements (SEC), Monthly Integrated Survey of Selected Industries (MISSI), Quarterly Survey of Philippine Business and Industry (QSPBI), etc.

Definition of Terms

Manufacturing establishment refers to a plant engaged in manufacturing, processing, fabricating or finishing products, mechanically or manually, including the assembly of the component parts of manufactured products and the substantial alteration, reconstruction or repair or special type of goods. It includes shop, factory, bakery, millwork, distillery, refinery, cannery, abbatoir, brewery, foundry, and tannery.

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). It is the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

Employment refers to the total number of persons who worked in or for the establishment as of November 15 of the survey year. Total employment includes paid employees and unpaid workers.

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 are employees on sick leave or maternity leave, on paid vacation leave, on strike; directors of corporations and executives working for pay; managers and other officers of the same category; working owners receiving regular pay; apprentices and learners receiving pay; and other employees receiving regular pay.

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 gross salaries and wages and employer's contribution to SSS/GSIS, etc.

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.

Revenue includes cash received and receivable for goods sold and services rendered. Valuation is at producer 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 is at market price including taxes and other charges, net of 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 sold in the same condition as purchased, fixed assets produced on own account and change in inventories (ending less beginning of finished products, work-in-process and goods for resale).

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 refer to tangible and intangible assets acquired and for use of the establishment and expected to have a productive life of more than one year. These include land, buildings, other structures and land improvements, transport equipment, machinery and equipment, computer software and databases, and other fixed assets.

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 on own account. Fixed assets received from other establishments belonging to the same enterprise are valued as though purchased.

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

Inventories refer to 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 (market) prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Change in total inventories is computed as the total value of ending inventory less the total value of beginning inventory.

Symbols Used - Zero

Detailed Statistical Tables Detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 6th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 713-70-67.

 


Source:   Industry Statistics Division
              National Statistics Office
              Manila, Philippines

 

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