Profile of manufacturing establishments with ATE of 20 and over

The 2006 Census of Philippine Business and Industry (CPBI) covered a total of 5,024 establishments with average total employment (ATE) of 20 and over.

Majority of the establishments with ATE of 20 and over, or 84.3 percent, were private corporations, followed by manufacturing establishments having their legal organization as single proprietorship (13.9%). The remaining, comprising of 1.79 percent, were cooperatives, partnerships and government corporations.

In terms of employment size, 43.1 percent of the total establishments had an employment size of 20-49, followed by establishments having employment size of 50-99, 100-199 with 22.0 percent and 15.5 percent of the total, respectively. About 3.1 percent of the establishments had an employment of 1,000 and over workers.

About 39.0 percent or 1,957 manufacturing establishments with ATE of 20 and over were concentrated in the National Capital Region (NCR). Neighboring regions of NCR, the CALABARZON (Region IV-A) and Central Luzon (Region III) were home to 1,357 and 501 establishments, respectively. In the Visayas, the largest establishments count was registered in Central Visayas (Region VII) with 536 establishments. Davao Region recorded the most number of manufacturing establishments in the Mindanao area with 155. Figure 1 displays the regional distribution of establishments with ATE of 20 and over.

Plastic products manufacturers account for the biggest number of establishments

The preliminary results of the 2006 CPBI reported a total of 5,024 manufacturing establishments with ATE of 20 and over or a decrease of 32.5 percent from the 7,450 establishments recorded during the 2000 CPBI with reference year of 1999.

Of the total count of manufacturing establishments with ATE of 20 and over, plastic products dominated the sector with 276 or 5.5 percent. The other industries in the top five (5) in terms of the number of establishments were:
 

• Women's and girls' and babies' garment (4.7%)
• Printing (4.1%)
• Bread, cakes, pastries, pies and similar perishable bakery products (3.7%)
• Semi-conductor devices and other electronic components (2.6%)

There were ten (10) industry classes which recorded the least number of manufacturing establishments with ATE of 20 and over. These were:
 

• Sugar
• Muscovado sugar not carried on the farm
• Articles of fur
• Wooden coffin
• Gold and precious metal
• Ovens furnaces and furnace burners
• Partition shelves, lockers and offices and store fixture
• Plastic furniture
• Doll and doll garments
• Artificial flower, fruits and foliage

Semi-conductor devices and other electronic components generated the highest employment

In 2006, manufacturing establishments with ATE of 20 and over generated a total employment of 973,178 or a 10.7 percent decrease from the 1.08 million workers recorded during the 2000 CPBI.

By industry class, semi-conductor devices and other electronic components recorded the highest employment count, numbering 114,855 or 11.8 percent of the total. Women's, girls' and babies' garments which employed 68,895 workers, ranked second. Computers, computer peripheral equipment and accessories placed third with 63,796 workers. Figure 2 shows the distribution of employment by industry class in 2006.

Average annual salaries and wages is P165.7 thousand per employee

Total salaries and wages paid in 2006 by manufacturing establishments with ATE of 20 and over amounted to P160.8 billion, which translates to annual average salaries and wages of P165.738 per employee. This average annual salary is 65.4 percent higher compared with P100.2 thousand recorded in the 2000 CPBI.

The highest average annual salaries and wages in 2006 were paid by the industries listed in the following table:

Cost of materials, fuels and electricity consumed and Industrial services amounts to P2.03 trillion

Total costs of materials, fuels and electricity consumed and industrial services and supplies incurred by all manufacturing establishments with ATE of 20 and over amounted to P2.03 trillion.

The proportion of materials, fuels and electricity consumed and industrial services to value of output was recorded at 65.6 percent.

Semi-conductor devices and other electronic component accounts for the largest value of output

Value of output for manufacturing establishments with ATE of 20 and over was estimated at P3.11 trillion in 2006, which jumped by 76.7 percent from the P1.76 trillion reported by 2000 CPBI.

Combined value of output of the top ten (10) industries comprised 50.0 percent of the total output of the manufacturing sector.

Semi-conductor devices and other electronic components led the top contributors to manufacturing output. Figure 3 shows the top grossers in value of output in 2006.

Six (6) industries generates 50.5 percent of the total value added

Value added was estimated at P868.3 billion

About 50.5 percent of the total value added was accounted for by six (6) industries comprising of 216 establishments (4.3%) as follows:

Value of Fixed Asset other than Land amounts to P690.8 billion

Value of fixed assets other than land in 2006 was estimated at P690.8 billion

The value of fixed assets other than land was highest for three (3) industries as follows:
 

• Semi-conductor devices and other electronic components (P150.5 billion)
• Cement (P48.8 billion)
• Refined petroleum and other fuel products (P35.1 billion)

TECHNICAL NOTES

The 2006 Census of Philippine Business and Industry (CPBI) is a comprehensive collection, compilation, evaluation and analysis of data about economic activities of the country. It will be a vital source of information for establishing benchmark levels of measurement and comparison of national, regional and provincial economic growth for the year 2006.

The field operations for the 2006 CPBI was undertaken in 2007. It covered 14 sectors of the economy namely:
 

• Agriculture, hunting and forestry
• Fishing
• Mining and mining
• Manufacturing
• Electricity, gas and water
• Construction
• Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods
• Hotels and restaurants
• Transport, storage and communications
• Financial intermediation
• Real estate, renting and business activities
• Education
• Health and social work
• Other community, social and personal service activities.

The census was undertaken by authority of five (5) legislative acts and presidential directives namely: Commonwealth Act 591, Presidential Decree 418, Executive Order No 121, Executive Order No. 352 and Executive Order No.5.

This Special Release presents the preliminary results of the census for manufacturing establishments with ATE of 20 and over.

2006 CPBI Design

Scope and Coverage

The unit of enumeration is the establishment. It is defined as an "economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location".

The scope of the census was confined to the formal sector and it consists of the following:
 

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 and over
• Single proprietorship with branches.

Sampling Design

For the manufacturing sector, all establishments with average total employment of 20 and over were taken on a 100 percent basis except for employment stratum of ATE of 20-99 for the following industries where 50 percent of the establishments is taken.
 

• Rice and corn milling
• Manufacture of bakery products
• Custom tailoring and dressmaking
• Printing
• Manufacture of plastic articles for packing goods

Classification Systems

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

Economic Organization

Economic Organization relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
 

• Single establishment is an one which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere.
• Establishment and main office, both located in the same address and with branch/es elsewhere.
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise.
• Ancillary unit other than Main Office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments. Examples are warehouse of plants or wholesale establishments, repair shops or garage or terminals of transport establishments.

Legal Organization
 

The Legal Organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
 

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator.
• Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS.
• Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC.
• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC.
• Cooperative - the establishment name includes words such as Cooperative or COOP

Size of Establishments

The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2006 CPBI:

Industrial Classification

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 Philippine Standard Industrial Classification (PSIC) is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

Example: D - Manufacturing
 

15 - Manufacture of food products and beverages
151- Production, processing and preservation of meat, fish and seafoods, fruits, vegetables,                oils and fats, including and slaughtering and meat packing
15113 - Processing and preserving of fish and fish products and other seafoods
151131 - Canning/packing of fish and other marine products

Geographic Classification

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006. The PSGC contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines

The geographic domains of the 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions.

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented is limited only for regional levels.

Response

A total of 5,024 or 92 percent out of 5,447 sample establishment responded to the census. Cold deck and hot deck imputation methods were employed for non-responding establishments. Hot deck imputation was employed with the aid of computers.

Concepts and Definitions

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, 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 is the number of persons who worked in or for this establishment as of November 15, 2005. The concept of employment as of the payroll November 15 was adopted for the first time in the 2002 ASPBI (reference year 2001).

Average total employment is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, workers receiving pure commissions only, and workers on indefinite leave.

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

Value of output represents the sum of 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 less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress (ending less beginning).

In the past surveys/censuses, estimation of value of output was not net of cost of goods sold but included change in inventory (ending less beginning) of goods for resale.

Cost of materials, fuels and electricity consumed and industrial services refers to expenses incurred in the production of goods and industrial services such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others and change in inventory of materials, supplies and fuels (beginning less ending).

In the past surveys/censuses, cost of materials, fuels and electricity consumed and industrial services also includes goods purchased for resale.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

Book value of fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Source:   National Statistics Office