Other retail trade of new goods in specialized stores leads among industries
The preliminary results of the 2009 Annual Survey of Philippine Business and Industry conducted nationwide covered a total of 4,885 establishments with total employment (TE) of 20 and over engaged in Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods. Other retail trade of new goods in specialized store (excluding computers and non-customized computer software) (G523) industries lead the sector with 1,366 (28 %) trade establishments. Non-specialized retail trade in stores (G521) and Wholesale of household goods (G513) followed with 797 (16.3%) and 563 (11.5%) establishments respectively. Figure 1 shows the percentage distribution of establishment by industry group in 2009.
Most of the establishments are in National Capital Region (NCR)
At the regional level, NCR had the most number of establishments with 2,604 or 53.3 percent of the total. CALABARZON placed second with 430 establishments (8.8%) followed by Central Visayas with 333 (6.8 %) establishments. Autonomous Region in Muslim Mindanao (ARMM) had the least with only 5 establishments.
Non-specialized retail trade in stores generates highest employment
Wholesale and retail trade; repair services sector in 2009 provided employment to some 297,883 workers. Of the total workforce, paid workers comprised 296,480.
Among industry groups, Non-specialized retail trade in stores (G521) generated the highest number of employee with 100,344 (33.7%) workers. Other retail trade of new goods in specialized stores (excluding computers and non-customized software) (G523) and Wholesale of household goods (G513) are the second and third industries that hired jobs with 49,875 (16.7%) and 36,785 (12.3%) workers, respectively. Figure 2 shows the distribution of employment by industry group.
Among the regions, NCR was the top employer with 163,185 employees (54.8%). Central Visayas followed with 25,504 (8.6%). ARMM employed the least with only 237 employees.
The sectors average employment stood at 61 employee per establishment. Non-specialized retail trade in stores registered the highest national average and almost doubled at 126 employee per establishment. Three other industries surpassed the sectors average which composed of Wholesale of agricultural raw materials, live animals, food, beverages and tobacco(G512), Sale of motor vehicles (G501), and Wholesale of computer peripheral equipment and software (G516) with 71,73 and 91 employee per establishment, respectively.
Non-specialized retail trade in stores pays the highest compensation
Total compensation paid by Wholesale and retail trade; repair services sector amounted to PhP52.2 billion, an equivalent of PhP176,007 average annual compensation. Out of the total, PhP47.3 billion (90.6%) comprised the salaries and wages while employer's contribution to SSS/GSIS and the like amounted to PhP3.1 billion (5.9%) and the remaining PhP1.8 billion (3.5%) was intended for separation, retirement, terminal pay, gratuities and others.
By industry group, Non-specialized retail trade in stores (G521) paid the highest compensation to its employees amounting to PhP11.8 billion or 22.6 percent of the total. Next is the Wholesale of household goods (G513) paying PhP11.1 billion or 21.3 percent while Other retail trade of new goods in specialized stores (excluding computers and non-customized software) (G523) is the third highest paying industry with PhP7.9 billion (15.1%). Figure 3 shows the compensation by industry for the sector.
Wholesale of household goods employees earn the highest with PhP302.4 thousand
Wholesale of household goods (G513) employees were the highest earners in 2009 with an average annual compensation of PhP 302,352. Employees of Wholesale of electronic parts and equipment (G517) and Retail sale of computers, computer peripheral equipment and software (G527) followed next with PhP285,230 and PhP265,774, respectively. On the other hand, Sale, maintenance and repair of motorcycles and related parts and accessories (G504) employees received the lowest annual pay of PhP95,546. Figure 4 shows ten leading industries with highest annual compensation in 2009.
By region, NCR-based workers received the highest average annual compensation of PhP233,770 followed by CALABARZON-based workers with PhP144,834. Employees from Central Luzon came in third with PhP114,469 annual remuneration.
Non-specialized retail trade in stores is highest in revenue and cost
Gross revenue for the sector in 2009 was estimated to PhP1.4 trillion. The top revenue generators were the following: Non-specialized retail trade in stores (G521) earned PhP295.7 billion (21.5%) ; Wholesale of household goods (G513) with PhP217.7 billion (15.9%);Wholesale of agricultural raw material, live animals, food, beverages and tobacco (G512) with PhP194.4 billion (14.2%).
More than half of the revenue of the sector came from NCR with PhP885.1 billion (64.5%). CALABARZON contributed with PhP105.5 billion (7.7%) and Central Visayas with PhP89.7 billion (6.5%).
Costs for operating the sector less compensation totaled to roughly PhP1.3 trillion. More than twenty percent of the total cost was spent by Non-specialized retail trade in stores (G521) with PhP274.0 billion. Wholesale of agricultural raw material, live animals, food, beverages and tobacco (G512) incurred the second highest cost with PhP216.8 billion (16.7%) followed by wholesale of household goods (G513) with PhP195.2 billion (15.0%).
Regionwise, NCR incurred the highest cost among regions amounting to PhP 843.6 billion while ARMM recorded the least with PhP164.1million. Figure 5 shows the distribution of revenue and cost by industry for the sector in 2009.
Revenue-cost ratio rates to 1.06
The revenue generated an amount of PhP1.06 for every peso cost for the sector. Among industries, Wholesale of machinery, equipment and supplies (G515) recorded the highest revenue-cost ratio with 1.22 followed by Wholesale on a fee or contract basis (G511) with PhP1.15. Wholesale of computers, computer peripheral equipment and software (G516) and Sale of motor vehicles parts and accessories (G503) both with 1.14 came in third.
Value added amounts to PhP125.1 billion.
Value added was estimated at PhP125.1 billion. More than half (63.5%) or PhP79.4 billion of the total value added of the sector was contributed by the following industry groups: non-specialized retail trade in stores (G521) with PhP31.0 billion (24.8%), wholesale of household goods (G513) with PhP28.1 billion (22.5%) and other retail trade of new goods in specialized stores (excluding computers and non-customized software) (G523) with PhP20.3 billion (16.3%). Figure 6 shows the value added by industry for the sector.
Workforces in retail sale of communication equipment are the most productive
The national average for revenue per employee for the sector was recorded at PhP4.6 million. Workers in Retail sale of communication (G528) establishments were the most productive in terms of revenue per employee with PhP10.6 million doubling that of the national average. Another industry that doubled the national average for revenue per employee is Sale of motor vehicles (G501) with PhP9.5 million. Repair of personal and household goods (G526) industry on the other hand, recorded the least with only PhP1.1 million.
Value added per employee, another measure of labor productivity, was valued at PhP419.9 thousand per employee. Among industries, Retail sale of communications equipment (G528) establishments had the highest average of PhP960.8 thousand followed by Wholesale of non-agricultural intermediate products waste and scrap(G514)and Wholesale of household goods (G513) with PhP773.1 and PhP764.5 thousand respectively.
Gross Margin reaches PhP217.2 billion, wholesale of household goods top grosser
Gross margin, the gross out of the sector in 2009 reached PhP217.2 billion with Wholesale of household goods (G513) as the top grosser contributing the highest among industries with PhP51.6 billion (23.8%). Non-specialized retail trade in stores (G521) followed closely with PhP48.5 billion (22.3%) and Other retail trade of new goods in specialized stores (excluding computers and non-customized software (G523) came in third with PhP32.8 billion (15.1%). The contribution of industries in gross margin is shown in Figure 7.
Total change in inventories sum up to PhP17.8 billion
Change in inventories, defined as the value of ending inventory less the beginning, amounted to PhP17.8 billion in 2009. Among industries, Wholesale of agricultural raw materials, live animals, food, beverages and tobacco (G512) recorded the highest with PhP3.9 billion, while five industries reported negative inventories amounting to PhP674.1 million.
Gross addition to fixed assets accumulates to PhP8.7 billion
Gross addition to fixed assets in 2009 totaled to PhP8.7 billion with the Non-specialized retail trade in stores (G521) recording the highest amount of PhP3.4 billion (38.7%). Wholesale of household goods (G513) followed with PhP1.3 billion (15.2%) and Other Retail trade of new goods in specialized stores (excluding computers and non-customized software) (G523) with PhP1.2 billion (14.2%).
Government grants PhP22 billion subsidies
Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry. For 2009, only Wholesale of agricultural raw materials, live animals, food, beverages and tobacco (G512) industry out of the 23 industries, availed the government subsidies amounting to PhP22.4 billion.
The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals.
The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.
Scope and coverage
The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:
- Agriculture, Hunting and Forestry
- Mining and Quarrying
- Electricity, Gas and Water Supply
- 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
- Private Education
- Health and Social Work
- Other Community, Social and Personal Service Activities
The scope of the ASPBI was confined to "formal sector" only, which consists of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorships with employment of 10 or more
- Single proprietorships with branches
Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. 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."
Classification of Establishments
Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organizations 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 establishment 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 branches 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
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
The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 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.
The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2009 ASPBI:
The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.
Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.
A total of 5,544 or 90.9 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
CONCEPTS AND DEFINITIONS OF TERMS
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.
Total employment is the number of persons who worked in or for this establishment as of November 15, 2009.
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 employee's contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.
Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.
Cost of goods sold represents the sum of the total value of goods purchased for resale and change in inventory of goods for resale (beginning less ending).
Gross margin refers to the difference between the value of goods sold on own account (including commission received on sale on account of others) during the inquiry period and the gross cost of these goods. The gross cost of goods is the value of purchased of goods intended for sale adjusted for stock change of these goods during the inquiry period.
Valued added is gross output less intermediate input.
Gross output is equal to the sum of the total revenue (less rent income from land, delivery charges separately invoiced to customers, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories of goods for resale ;less cost of goods purchased for resale.
Intermediate costs is equal to the sum of the following cost items: materials and supplies ; fuels, lubricants, oils and greases ; electricity and water ; cost of industrial services done by others; cost of non-industrial services done by others(less rent expense for land);research and experimental development expense; environmental protection expense; royalty fee; franchise fee, inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost.
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 tangible fixed assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.
Gross additions to tangible fixed assets is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.
Inventories refer to the stocks of goods owned by and 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 in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.
Subsidies are special grants in the form 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.
Source: National Statistics Office