Water collection, treatment and supply dominates the sector
The final results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were a total of 828 establishments engaged in water supply; sewerage, waste management and remediation activities in the formal sector of the economy. This number is higher by 8.7 percent from 762 establishments reported in the 2010 Annual Survey of Philippine Business and Industry.
Among the industries, water collection, treatment and supply recorded the largest number of establishments with 720 or 87.0 percent of the total. Materials recovery ranked a far second with 53 establishments or 6.4 percent share to total. Collection of hazardous and non-hazardous waste came next with 24 establishments or 2.9 percent of the total count (Table 1). Figure 1 shows the distribution of establishments for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2012.
The top three regions in terms of the number of establishments accounting for about two-fifths (40.1%) of the total were all located in Luzon area. Central Luzon led the region with 131 establishments or 15.8 percent of the total. CALABARZON followed closely ranking second with 128 establishments (15.5%) while NCR with 73 establishments (8.8%) placed third. Autonomous Region in Muslim Mindanao (ARMM) recorded the least count with only 6 establishments or 0.7 percent of the total (Table 2). Figure 2 shows the regional distribution of establishments for water supply; sewerage, waste management and remediation activities sector in 2012.
Employment up by 11.8 percent
In 2012, employment reached a total of 31,448 representing an increase of 11.8 percent from the employment figure of 28,131 recorded in 2010.
Water collection, treatment and supply employed the bulk of workers with 28,085 or 89.3 percent, followed far behind by collection of hazardous and non-hazardous waste with 1,608 workers or 5.1 percent of the total. Materials recovery ranked third with 981 workers (3.1%).
Among the industries, materials recovery posted the highest increase of 138.1 percent from the 412 workers registered in 2010. Figure 3 shows the distribution of employment for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2012.
National Capital Region (NCR), which ranked third in terms of the number of establishments, generated the highest employment of 6,482 workers or 20.6 percent of the total. CALABARZON with 4,779 (15.2%) workers ranked second. Completing the top three regions with the most number of workers was Central Luzon with 4,373 (13.9%).
The average number of workers per establishment for the sector was recorded at 38. Treatment and disposal of non-hazardous waste registered the highest with 68 workers per establishment, followed closely by collection of hazardous and non-hazardous waste with 67 workers and water collection, treatment and supply with 39 workers per establishment.
Average annual pay is PHP332,518
Total compensation paid by the sector in 2012 amounted to PHP10.3 billion, translating to an average annual compensation of PHP332,518 per employee. Compared to the average annual pay of PHP275,366 in 2010, average pay increased by 20.8 percent. In real terms, however, average pay per employee increased by only 11.8 percent.
At the industry level, employees working in water collection, treatment and supply received the highest average annual compensation amounting to PHP352,193. Average annual pay of employees working for treatment and disposal of non-hazardous waste was placed at PHP234,134, while sewerage at PHP230,383 per employee. Figure 4 presents the average annual compensation of employees for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2012.
By region, NCR employees received the highest average annual pay of PHP586,916 equivalent to PHP471,798 in real terms. This was followed by employees in Zamboanga Peninsula and Central Luzon receiving an average annual compensation of PHP379,128 and PHP326,515, respectively. In real terms, these are equivalent to PHP278,566 for Zamboanga Peninsula and PHP247,735 for Central Luzon.
Value of output posts 33.9 percent growth
Total value of output generated by the sector amounting to PHP60.4 billion increased by 33.9 percent compared with PHP45.1 billion produced in 2010.
By industry, water collection, treatment and supply contributed the lion’s share in value of output estimated at PHP55.2 billion or 91.3 percent of the total. The shares of other industries to the total value of output were as follows:
- Collection of hazardous and non-hazardous waste, PHP3.4 billion (5.7%)
- Treatment and disposal of non-hazardous waste, PHP0.7 billion (1.2%)
- Materials recovery, PHP0.5 billion (0.8%)
- Treatment and disposal of hazardous waste, PHP0.3 billion (0.5%)
- Sewerage, PHP0.2 billion (0.3%)
- Remediation activities and other waste management services, PHP0.1 billion (0.2%)
Figure 5 shows the distribution of value of output for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2012.
Among regions, NCR accounted for the biggest output value amounting to PHP35.8 billion, comprising more than half (59.3%) of the total value of output. This was distantly followed by Central Luzon with an output value of PHP5.8 billion (9.7%). CALABARZON came in third with total output value of PHP5.2 billion (8.6%).
Total expense amounts to PHP54.0 billion
Total expense in 2012 incurred in business operation amounted to PHP54.0 billion.
Among industries, water collection, treatment and supply incurred the highest expense amounting to PHP49.2 billion or 91.2 percent of the total. Collection of hazardous and non-hazardous waste ranked a far second with PHP2.9 billion (5.4%). Treatment and disposal of non-hazardous waste followed next with a total expense of PHP0.7 billion (1.4%).
NCR spent the highest among the regions at PHP32.6 billion (60.4%). This was followed distantly by Central Luzon and CALABARZON spending PHP5.2 billion (9.6%) and PHP4.6 billion (8.5%), respectively.
Water collection, treatment and supply records the highest returns
Income per expense ratio in 2012 was recorded at 1.34, indicating that for every peso spent PHP1.34 was realized in terms of income.
Among industries, water collection, treatment and supply recorded the highest income per expense ratio of 1.36. The income-expense ratio of other industries were as follows:
- Treatment and disposal of hazardous waste (1.21 income per peso expense)
- Collection of hazardous and non-hazardous waste (1.18 income per peso expense)
- Materials recovery (1.13 income per peso expense)
- Sewerage (1.07 income per peso expense)
- Treatment and disposal of non-hazardous waste (1.05 income per peso expense)
- Remediation activities and other waste management services (0.96 income per peso expense)
Among regions, establishments in MIMAROPA registered the highest return at 1.75 income per peso expense. NCR and Northern Mindanao followed next with 1.44 and 1.36 income per peso expense, respectively.
Value Added stands at PHP35.7 billion
In 2012, value added generated by the sector reached PHP35.7 billion, slightly increasing by 1.3 percent from PHP35.3 billion produced in 2010.
Among industries, water collection, treatment and supply contributed the biggest share to value added estimated at PHP34.4 billion or 96.2 percent of the total. Collection of hazardous and non-hazardous waste ranked a far second with P0.9 billion (2.6%) while materials recovery came next with PHP0.2 billion (0.5%).
By region, NCR shared PHP20.8 billion or more than half (58.2%) to the total value added. This was followed by Central Luzon and CALABARZON with respective shares of PHP3.2 billion (9.0%) and PHP 2.9 billion (8.0%).
Labor productivity down by 9.4 percent
Labor productivity, defined as value added per worker, was estimated at PHP1,136.4 thousand per worker, declining by 9.4 percent compared to PHP1,254.4 thousand recorded in 2010.
The highest labor productivity was recorded by water collection, treatment and supply valued at PHP1,224.3 thousand per worker followed by treatment and disposal of non-hazardous waste with PHP645.5 thousand per worker. Labor productivity of other industries were as follows:
- Collection of hazardous and non-hazardous waste (PHP586.1 thousand per worker)
- Remediation activities and other waste management services (PHP216.1 thousand per worker)
- Materials recovery (PHP194.4 thousand per worker)
- Sewerage (PHP135.5 thousand per worker)
- Treatment and disposal of hazardous waste (PHP116.3 thousand per worker)
Figure 6 illustrates the labor productivity for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2012.
Among the regions, workers in NCR were the most productive generating a productivity of PHP3,210.1 thousand per worker. This was followed by workers of Zamboanga Peninsula and Central Luzon with respective productivity of PHP811.0 thousand per worker and PHP733.8 thousand per worker.
Gross Addition to Tangible Fixed Assets decline by 52.7 percent
Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, decreased by 52.7 percent to PHP3.2 billion in 2012 from PHP6.8 billion in 2010.
Water collection, treatment and supply recorded the highest gross addition to fixed assets valued at PHP3.1 billion or 97.7 percent of the total. This was followed by collection of hazardous and non-hazardous waste with PHP70.1 million (2.2%) while treatment and disposal of hazardous waste ranked third with PHP0.7 million (0.2%).
NCR led all regions with gross addition to tangible fixed assets amounting to PHP978.9 million or 30.5 percent of the total, followed by Central Luzon and CALABARZON with PHP667.3 million (20.8%) and PHP446.0 million (13.9%), respectively
Subsidies received amount to PHP129.9 million
Total subsidies provided by the government to support the business operation of establishments amounted to PHP129.9 million, a decrease of 42.8 percent compared to PHP226.9 million registered in 2010.
Water collection, treatment and supply industry received most of the subsidies in 2012 valued at PHP129.1 million (99.4%). Sewerage industry received the remaining amount of PHP0.8 million (0.6%). The rest of the industries did not receive any subsidy from the government.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Water Supply; Sewerage, Waste Management and Remediation Activities Sector.
The 2012 CPBI is a forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census provide information on the levels, structure, performance, and trends of economic activities of the country. It also serves as benchmark information in the measurement and comparison of national and regional economic growth.
The census was conducted nationwide in April 2013 with the year 2012 as the reference period of data, except for employment which is as of November 15, 2012.
The income and expense account in the Financial Statement of establishment was adopted in the design of sectoral questionnaires to capture data for the 2012 CPBI. This allowed respondents of the census an ease in accomplishing the questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred by the establishment treated on a consumed basis.
Data are presented at the national, regional and industry group or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) for the sector.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
- Commonwealth Act No. 591 (An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein)
- Presidential Decree No. 418 (Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic Development Authority)
- Executive Order No. 121 (Reorganization Act of the Philippine Statistical System)
- Executive Order 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector)
- Executive Order 5 (Strengthening the National Statistics Office)
Scope and Coverage
The 2012 CPBI 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 of Motor Vehicles and 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 census was confined to the formal sector of the economy, which consists of the following:
- All establishments with total employment (TE) of 10 and over
- All establishments with TE less than 10, except those with legal organization classified as single proprietorship and economic organization classified as single establishments.
Unit of Enumeration
The units of enumeration for the 2012 CPBI are the establishment and enterprise. However, this special release is confined to the results of water supply; sewerage, waste management and remediation activities with establishment as the unit of enumeration.
An 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.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
The industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.
The size of an establishment is determined by its total employment (TE) as of specific date.
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.
All Establishments in the formal sector for the Water Supply; Sewerage, Waste Management and Remediation Activities Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.
The estimate of the total of a characteristic in an industry domain in each geographic domain (region) is
p= 1, 2,..., 17 regions (geographic domains)
xpj= value of the jth establishment in an industry domain within each region
j= 1, 2, 3, …,mp establishments
mp= number of establishments in an industry domain within each region
National level estimate of a characteristics by industry domain was obtained by aggregating separately the estimates for the particular industry domain from all the regions.
Response rate for Water Supply; Sewerage, Waste Management and Remediation Activities Sector was 96.6 percent. These included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or transferred, out of scope, refusals, duplicates, and referrals.
Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources. However, reports of establishments which were found to be duplicates, out of scope and out of business in 2012 were not imputed.
Limitation of Data
Only the formal sector was covered in the census.
Data for collection of hazardous waste and non-hazardous waste were combined so as not to disclose individual establishment’s data.
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, 2012.
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.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
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.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate expense are expenditures 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 input. 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 expenses plus non-industrial services done by others (except rent expense for land) and other expenses.
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.