2010 Annual Survey of Philippine Business and Industry - Water Supply; Sewerage, Waste Management and Remediation Activities Sector : Final Results

Reference Number: 

2013-20

Release Date: 

Friday, February 8, 2013

 

Water supply; sewerage, waste management and remediation activities (Section E) is one of the five new sectors covered in the 2010 Annual Survey of Philippine Business and Industry (ASPBI). The new sectors were created as a result of the structural changes observed in the composition of industries in the economy during the past decade. The water supply; sewerage, waste management and remediation activities sector was created combining industries that were previously under three other sectors in the 1994 PSIC. These industries were (a) collection, purification and distribution of water from electricity, gas and water supply sector, (b) sanitation services from other community, social and personal services sector, and (c) recycling from manufacturing sector.

 

Majority of establishments are engaged in water collection, treatment and supply

Final results of the 2010 ASPBI covered a total of 762 establishments engaged in water supply; sewerage, waste management and remediation activities.

By industry, water collection, treatment and supply recorded the highest number with 675 establishments or 88.6 percent of the total. Materials recovery ranked a far second with 40 establishments (5.3%), followed by collection of non-hazardous and hazardous waste with 33 establishments (4.3%). On the other hand, treatment and disposal of hazardous waste recorded the lowest number with only 14 establishments (1.8%).

Figure 1 shows the percentage distribution of water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2010.

 

Water collection, treatment and supply establishments hire the bulk of workers

Total employment of all water supply; sewerage, waste management and remediation activities establishments was estimated at 28,131.

Among industries, water collection, treatment and supply hired the bulk of workers with 25,823 or 91.8 percent of the total workforce. Collection of non-hazardous and hazardous waste followed distantly with 1,524 workers (5.4%). Materials recovery and treatment and disposal of hazardous waste hired a total of 412 (1.5%) and 372 (1.3%) workers, respectively. Figure 2 displays the distribution of employment for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2010.

The average number of workers per establishment for the sector was 37 per establishment. Collection of non-hazardous and hazardous waste registered the highest average with 46 workers per establishment. Water collection, treatment and supply with 38 workers and treatment and disposal of hazardous waste with 27 workers per establishment placed second and third, respectively. On the other hand, materials recovery recorded the lowest average with only 10 workers per establishment (Table 1a).

 

Employees of water collection, treatment and supply receive the highest compensation

Total compensation paid by the sector in 2010 amounted to PHP7.7 billion, indicating an average annual compensation of PHP275,366 per employee.

At the industry level, employees of water collection, treatment and supply received the highest average annual compensation of PHP283,132. This was followed by employees of treatment and disposal of hazardous waste and collection of non-hazardous and hazardous waste with respective average annual compensation of PHP208,121 and PHP200,865. Employees of materials recovery received the lowest average remuneration of PHP124,883.

Figure 3 shows the average annual compensation of employees for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2010.

 

Value of output amounts to PHP45.1 billion

Total value of output produced by all establishments was estimated at PHP45.1 billion.

Among industries, water collection treatment and supply generated the lion’s share to value of output worth PHP40.8 billion representing 90.4 percent. Value of output generated by other industries were as follows:

  • collection of non-hazardous and hazardous waste, PHP2.3 billion (5.0%)
  • materials recovery, PHP1.5 billion (3.3%)
  • treatment and disposal of hazardous waste, PHP0.6 billion (1.3%).

Figure 4 displays the percentage distribution of value of output for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2010.

 

Total cost for the sector reaches PHP26.5 billion

Total cost, except compensation, incurred in 2010 by all establishments reached PHP26.5 billion (Table 1).

By industry, water collection, treatment and supply expended PHP23.1 billion or 87.1 percent of the total, followed a far by collection of non-hazardous and hazardous waste with PHP1.5 (5.8%) and materials recovery with PHP1.4 billion (5.3%). Treatment and disposal of hazardous waste incurred only PHP0.5 billion (1.8%).

 

Revenue per peso cost ratio stands at 1.92

Revenue per cost ratio in 2010 for all establishments was recorded at 1.92, indicating that for every peso spent PHP1.92 was realized in terms of revenue (Table 1a).

At the industry level, water collection, treatment and supply registered the highest  returns with a revenue per cost ratio of 2.01. The revenue-cost ratio of other industries were as follows:

  • collection of non-hazardous and hazardous waste, 1.47
  • treatment and disposal of hazardous waste, 1.18
  • materials recovery, 1.09

 

Value added reaches PHP35.3 billion

Value added produced by all establishments reached PHP35.3 billion (Table 1).

Of the total value added, 96.5 percent or PHP34.1 billion was produced by water collection, treatment and supply establishments. Value added of non-hazardous and hazardous waste collection establishments amounted to PHP0.8 billion, (2.4%). Treatment and disposal of hazardous waste and materials recovery establishments generated value added worth PHP0.2 billion each.

 

Water collection, treatment and supply records highest productivity

Labor productivity, defined as value added per worker, was estimated at PHP1.2 million per worker.

By industry, the highest labor productivity was recorded by water collection, treatment and supply with PHP1.3 million per worker. Labor productivity of other industries were as follows:

  • collection of non-hazardous and hazardous waste,  PHP0.6 million
  • treatment and disposal of hazardous waste, PHP0.5 million
  • materials recovery PHP0.4 million.

Figure 5 illustrates the labor productivity for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2010.

 

Gross addition to tangible fixed assets totals to PHP6.8 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, acquired by all establishments was valued at PHP6.8 billion (Table 1).

By industry, water collection, treatment and supply gross addition to tangible fixed assets reached PHP6.7 billion or 98.2 percent of the total. Gross addition to tangible fixed assets of other industries were as follows:

  • collection of non-hazardous and non-hazardous waste, PHP95.1 million (1.4%)
  • materials recovery, PHP12.6 million (0.2%)
  • treatment and disposal of hazardous waste, PHP11.7 million (0.2%).

 

Water collection, treatment and supply industry receives PHP226.9 million worth of subsidies

Total subsidies provided by the government to support the business operation of the sector reached PHP226.9 million. Of the total subsidies, water collection treatment and supply received PHP226.1 or 99.7 percent while the remaining PHP780 thousand (0.3%) went to treatment and disposal of hazardous waste. Meanwhile, three industries of the sector namely collection of non-hazardous waste, collection of hazardous waste and materials recovery have no reports on subsidy from the government.

 

 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) for the water supply; sewerage, waste management and remediation activities sector.

The 2010 ASPBI is one of the designated statistical activities of the National Statistics Office (NSO) with the objective of providing key measures on the levels, structure, trends, and performance of economic activities in the country. As such, the survey generates the most critical and essential statistics required for economic planning and policies.  It was conducted in April 2011 with year 2010 as the reference period of data, except for employment which is as of November 15, 2010.

The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this survey. This is the latest version of the classification of industries in the country which conforms with the International Standard Industrial Classification Revision 4 prescribed by the United Nations.

The 2009 PSIC defines five new sectors. One of these is water supply; sewerage, waste management and remediation sector. This new sector was created combining industries that were previously under three other sectors in the 1994 PSIC. These industries were (a) collection, purification and distribution of water from electricity, gas and water supply sector, (b) sanitation services from other community, social and personal services sector, and (c) recycling from manufacturing sector.

Data are presented at the industry sub-class or 5-digit 2009 PSIC, national levels.

 

Legal Authority

The conduct of the ASPBI is governed by legislative acts and presidential directives, mainly Commonwealth Act No. 591 which was approved on August 19,1940. Other legislative acts are:

  • Presidential Decree No. 418
  • Executive Order No. 121
  • Executive Order No. 352
  • Executive Order No. 5

 

Scope and Coverage

The 2010 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

  • Agriculture, Forestry and Fishing (A)
  • Mining and Quarrying (B)
  • Manufacturing (C)
  • Electricity, Gas, Steam, and Air Conditioning Supply (D)
  • Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  • Construction (F)
  • Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
  • Transportation and Storage (H)
  • Accommodation and Food service activities (I)
  • Information and Communication (J)
  • Financial and Insurance Activities (K)
  • Real Estate Activities (L)
  • Professional, Scientific and Technical Activities (M)
  • Administrative and Support Service Activities (N)
  • Education (P)
  • Human Health and Social Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

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

 

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2010 ASPBI unit of enumeration is the establishment.  The establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.

 

Methodology

Sampling Design

The 2010 ASPBI used stratified systematic sampling with five-digit PSIC serving as first stratification variable and TE as the second stratification variable.

Estimation Procedure

 

Response Rate

The response rate is 98.7 percent (235 out of 238 establishments). 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 is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2010.

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, receiving pure commissions only, and workers on indefinite leave.

Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

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 includes cash received and receivables for goods/products and by-products 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 incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value added is gross output less intermediate cost. Gross output for the water supply; sewerage, waste management and remediation activities sector is value of output plus non-industrial services done for others (except rent income from land). Intermediate input is intermediate cost plus non-industrial services done by others (except rent expense for land) and other costs.

Value of output represents the sum of the receipts from revenue from main activity, industrial services done for others, goods sold in the same condition as purchased  less the cost of goods sold and  value of fixed assets produced on own account.

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

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

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

Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

 

 

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