HIGHLIGHTS

National Capital Region leads in number of manufacturing establishments

The number of manufacturing establishments with average total employment (ATE) of 20 or more workers reached 5,899 in 2003. Food manufactures except beverages dominated the sector with 960 establishments or 16.3 percent of the total. Wearing apparel ranked second with 700 establishments (11.9%) while chemical products followed with 378 establishments (6.4%).

2. Almost half (47.3%) or 2,789 of the manufacturing establishments with ATE 20 or more were located in the National Capital Region. A far second was CALABARZON with 1,343 establishments (22.8%). Central Visayas and Central Luzon accounted for 539 (9.1%) and 519 (8.8%) establishments, respectively. (See Figure 1)

Wearing apparel employs most number of workers

In 2003, employment of manufacturing establishments with ATE of 20 or more registered a total of 979,885. Of this number, 976,711 or 99.7 percent were paid employees while the remaining 0.3 percent were working owners and unpaid workers

Wearing apparel employed the most number of workers with 143,355 or 14.6 percent of the total. Electronic components came second with 135,333 employees (13.8%). Food manufactures except beverages followed with 125,336 employees (12.8%). (See Figure 2)

At the regional level, CALABARZON registered the largest number of workers with 417,065 or 42.6 percent of the total. This was followed by National Capital Region and Central Visayas with 275,042 workers (28.1%) and 102,612 (10.5%), respectively. MIMAROPA posted the least number of workers with only 198 or 0.02 percent of the total.

Petroleum products pay more to employees

Total compensation paid by manufacturing establishments with ATE of 20 or more amounted to P136.9 billion in 2003. This translates to an average annual compensation of P140,153 per employee. Among industries, petroleum products paid the highest annual average compensation of P788,793 per employee while wood and wood products paid the lowest at an average of P74,861 per employee. Eleven (11) industries reported annual average compensation of more than P150,000 per employee. (See Table A)

Table A. Average Annual Compensation per Employee by Industry: 2003

Electronic components generate highest revenue and incur highest cost

In 2003, total revenue earned by manufacturing establishments with ATE of 20 or more amounted to P2,233.9 billion. As one of the leading export industries, electronic components registered the highest earnings of P378.8 billion (17.0%). Food manufactures except beverages placed second with P324.8 billion (14.5%). (See Figure 3)

Total cost excluding compensation incurred by manufacturing establishments with ATE 20 or more amounted to P1,826.7 billion in 2003. Electronic components incurred the highest cost of P325.0 billion or 17.8 percent of the total. Food manufactures except beverages followed with operating expenses of P267.2 billion (14.6%).

Value of output amounts to P2,240.9 billion

Value of output generated by manufacturing establishments with ATE 20 or more was estimated at P2,240.9 billion in 2003. Electronic components contributed the highest in terms of output value (17.0%), amounting to P380.7 billion. Food manufactures except beverages followed with P325.8 billion (14.5%).

At the regional level, CALABARZON contributed nearly half (43.3%) of the sectors value of output estimated at P971.1 billion. National Capital Region followed with an output value of P504.2 billion (22.5%). (See Figure 4)

Petroleum products generate highest value added

Total value added for manufacturing establishments with ATE 20 or more was estimated at P547.9 billion in 2003. Among industries, petroleum products contributed the highest at P77.8 billion or 14.2 percent of the total value. Electronic components followed closely with value added estimated at P75.5 billion (13.8%). Food manufactures except beverages placed third with P70.9 billion or 12.9 percent of the total value added.

Gross addition to fixed assets reaches P101.7 billion

Gross addition to fixed assets in 2003 of manufacturing establishments with ATE of 20 or more reached P101.7 billion. Electronic components contributed 27.0 percent of the gross addition to fixed assets amounting to P27.5 billion. Food manufactures except beverages was the second highest with P15.0 billion (14.8%).

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 BEVERAGESs industry.

EXPLANATORY TEXT

Introduction

The 2003 Annual Survey of Philippine Business and Industry (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 2003.

Response Rate

The total sample for manufacturing establishments with average total employment (ATE) of 20 or more is 4,116 with a response rate of 95 percent.

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.

Employmentrefers to the total number of persons who worked in or for the establishment as of November 15, 2003. 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 employers 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 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 producers 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).

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.

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.

Change in total inventories, as a derived indicator, is computed as the value of ending inventory less the value of beginning inventory.

Symbols Used
- Zero

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
                 Manila, Philippines