2013 Annual Survey of Philippine Business and Industry (ASPBI) - Economy Wide for All Establishment : Final Results

Reference Number: 

2017-036

Release Date: 

Tuesday, February 14, 2017

 

  • Wholesale and retail trade dominates the economy in terms of the number of establishments

The Philippines had a total of 225,244 establishments in the formal sector in 2013, higher by 51.9 percent compared to 148,266 recorded establishments in 2010. This can be translated into an average increase of 25,660 establishments per year for the 3-year period.

Of the 18 sectors, as shown in Figure 1, more than two in every five establishments in 2013 are engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles with 99,614 establishments or 44.2 percent of the total.  Accommodation and Food Service Activities accounted for 12.5 percent of the total number of establishments in 2013 with 28,188 establishments. This was followed by Manufacturing (25,149) and Education (13,999) with 11.2 percent and 6.2 percent shares of the total, respectively. These top four sectors comprised 74.1 percent of the total establishments in 2013.

On the other hand, Electricity, Gas, Steam and Air-Conditioning Supply; and Mining and Quarrying sectors, each with 253 establishments, numbered the least sharing 0.1 percent share each of the total.

 

FIGURE 1 Distribution of All Establishments by Sector, Philippines: 2013

 

  • One in five workers work for Manufacturing

Total employment in 2013 grew by 34.5 percent to 5,342,891 from 3,966,110 workers in 2010.

In 2013, Manufacturing had the highest number of workers (1,219,330), accounting for 22.8 percent of the total employment. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles followed next with 995,081 workers or 18.6 percent share of the total. Administrative and Support Service Activities ranked third with 754,499 workers or 14.1 percent share of the total. From 2010 to 2013, total employment of Other Service Activities sector accelerated by 118.5 percent, the highest increase among the 18 sectors. Water Supply; Sewerage, Waste Management and Remediation Activities recorded the least share in number of employees with only 0.6 percent (Figure 2).

 

FIGURE 2 Number of Employees for All Establishments by Sector, Philippines: 2013
 

 

  • Total Compensation Paid to Employees in 2013 reaches 1.3 trillion pesos

Total compensation paid to employees in 2013 amounted to PHP1.3 trillion pesos, up by 54.6 percent from PHP824.9 billion in 2010.

About one-fourth (24.0%) of the total compensation paid in 2013 was contributed by Manufacturing totaling PHP307.6 billion. Following behind were Administrative and Support Service Activities and Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles paying PHP194.4 billion (15.2%) and PHP137.0 billion (10.7%) worth of in total compensation, respectively. Other Service Activities with PHP6.9 billion or 0.5 percent paid the least amount in total compensation.

Average annual compensation in 2013 was valued at PHP244,563, about 15.6 percent increase compared with PHP211,615 in 2010. Workers in Electricity, Gas, Steam and Air-Conditioning Supply sector received the highest average annual pay of PHP746,127 in 2013. It went up by 38.2 percent from PHP539,900 in 2010.  Information and Communication sector placed second with an annual compensation of PHP548,158, an increase by 10.1 percent from PHP498,075 in 2010.  Financial and Insurance Activities received the third highest annual compensation of PHP473,577 (Figure 3).

Among the 18 sectors, Agriculture, Forestry and Fishing registered the highest growth of 41.7 percent in average annual compensation to PHP176,427 in 2013 from PHP124,549 in 2010.

 

FIGURE 3  Average Annual Compensation Per Employee for All Establishments
by Sector, Philippines: 2013
 

 

  • Manufacturing sector emerges as top revenue earner in 2013

Total income or total sales earned by establishments in 2013 amounted to PHP13.8 trillion, higher by PHP3.6 trillion or an increase of 34.9 percent from PHP10.2 trillion total income earned in 2010.

Manufacturing, the top income generator, accounted for 32.5 percent of total income at PHP4.5 trillion. Second highest was Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles with 26.7 percent share and earning PHP3.7 trillion in 2013. Financial and Insurance Activities placed third with 8.9 percent share or an income of PHP1.2 trillion (Figure 4).

The following sectors contributed less than one percent share to total income in 2013:

  • Human Health and Social Work Activities,  0.9 percent
  • Arts, Entertainment and Recreation, 0.6 percent
  • Water Supply; Sewerage, Waste Management and Remediation Activities, 0.6 percent
  • Other Service Activities, 0.2 percent

Meanwhile, Professional, Scientific and Technical Activities recorded the highest increase in total income at 154.9 percent from PHP106.7 billion in 2010 to PHP271.9 billion in 2013.

  • Manufacturing incurs highest expense

Total expense incurred in 2013 amounted to about PHP12.0 trillion, 58.1 percent increment from PHP7.6 trillion spent in 2010.  Manufacturing, the highest spender, incurred PHP4.0 trillion, more than one-third (33.5%) of the total expense. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles ranked second with PHP3.5 trillion or 29.3 percent of total expense.  This was followed by Financial and Insurance Activities with PHP0.8 trillion (6.8%) and Electricity, Gas, Steam and Air-Conditioning Supply with PHP0.7 trillion (5.5%). Other Service Activities spent the least at PHP21.9 billion or 0.2 percent share of the total (Figure 4).

 

FIGURE 4 Total Income and Expense for All Establishments
 by Sector, Philippines: 2013
 

 

  • Value Added amounts to PHP3.8 trillion

In 2013, value added, an indicator that measures the value of output minus the intermediate inputs stood at PHP3.8 trillion, expanding by 16.4 percent from PHP3.3 trillion generated in 2010.

Manufacturing contributed the highest share among sectors, registering at PHP1,037.0 billion or 27.2 percent of the total value added. Financial and Insurance Activities registered second place at PHP511.0 billion or 13.4 percent of the total. This was followed by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles with PHP340.9 billion in value added. Other Service Activities contributed less than one percent share to total value added with 0.3 percent, (Figure 5).

 

FIGURE 5 Value Added for All Establishments by Sector, Philippines: 2013
 
 
  • Workers of Electricity, Gas, Steam and Air-Conditioning Supply most productive

Labor productivity is measured in several ways. Value added per worker is one method. At the national level, value added per worker was recorded at PHP712,307 in 2013, lower by 13.8 percent compared with PHP826,358 recorded in 2010. Using this indicator, Electricity, Gas, Steam and Air-Conditioning Supply came up to be the most productive sector in 2013, with value added per worker of PHP4.3 million. Mining and Quarrying was the second most productive sector with labor productivity of PHP3.2 million.

Other six sectors, with million mark labor productivity, include the following:

  • Real Estate Activities, PHP2.8 million
  • Financial and Insurance Activities, PHP1.8 million
  • Information and Communication, PHP1.8 million
  • Water Supply; Sewerage, Waste Management and Remediation Activities, PHP1.3 million
  • Professional Scientific and Technical Activities, PHP1.1 million
  • Arts, Entertainment and Recreation, PHP1.0 million

Workers in Other Service Activities sector are the least labor productive with computed labor productivity of PHP124.6 thousand.

  • Subsidies received from the government grows by 32.8 percent

Total subsidies in 2013 amounted to PHP57.2 billion, an increase of 32.8 percent from the total subsidies granted to establishments in 2010 at PHP43.1 billion.

Arts, Entertainment and Recreation received the biggest amount of subsidy equivalent to   PHP17.0 billion or 29.8 percent share of the total. Electricity, Gas, Steam and Air Conditioning Supply received the second biggest subsidy amounting to PHP9.2 billion. Subsidies provided to Professional, Scientific and Technical Activities, Financial and Insurance Activities and Agriculture, Forestry and Fishing posted at PHP8.4 million, PHP6.4 million and PHP6.3 million, respectively. Accommodation and Food Service Activities, Human Health and Social Work Activities and Other Service Activities, however, were not provided with government subsidy in 2013.

  • E –commerce sales accounts for 0.3 percent of total income

Sales from e-commerce transactions in 2013 reached PHP46.6 billion, accounting for 0.3 percent of total income in 2013.

Among the 18 sectors, Transportation and Storage recorded the largest sales through e-commerce transactions amounting to PHP17.3 billion or 37.1 percent share of the total e-commerce sales and representing 4.2 percent share of total income for the sector. Financial and Insurance Activities followed with PHP9.2 billion (19.7%) sales from e-commerce and which accounted for about 1.0 percent of total sector’s income. Manufacturing placed third with recorded sales of PHP7.1 billion (15.2%) and which accounted for about 0.2 percent of total manufacturing income.

Four other sectors posted billion mark e-commerce sales:

  • Accommodation and Food Service Activities, PHP4.2 trillion
  • Administrative and Support Service Activities, PHP3.2 trillion
  • Information and Communication, PHP3.1 trillion
  • Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, PHP1.7 trillion

However, the following sectors have no e-commerce transaction in 2013:

  • Agriculture, Forestry and Fishing
  • Mining and Quarrying
  • Electricity, Gas, Steam and Air Conditioning
  • Water Supply; Sewerage, Waste Management and Remediation Activities
  • Construction
  • Real Estate Activities
  • Professional, Scientific and Technical Activities
  • Human Health and Social Work Activities

 

TECHNICAL NOTES

 

  • Introduction

This Special Release presents the final results of the 2013 ASPBI for the 18 sectors of the economy for all establishments.

The 2013 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). This is the 42nd in the series of establishment surveys. Data collected from the survey provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2013.

The survey was conducted nationwide in September 2014 with the year 2013 as the reference period of data, except for employment which is as of November 15, 2013. The 2013 Survey on Information and Communication Technology (SICT) was also undertaken as a rider to this survey.

Data are presented at the national level.

  • Legal Authority

The conduct of 2013 ASPBI is authorized under Republic Act (RA) 10625 known as the Philippine Statistical Act of 2013 – Reorganizing and Strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities. It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical service.

Section 27 of Republic Act No. 10625 states that:

“…Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner.

To ensure compliance, any violation of this Act shall result in the imposition of the penalty of one (1) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answer to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager and/or agent of said corporation. In addition, such erring corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)...”

  • Scope and Coverage

The 2013 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 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 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

Hence, the 2013 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 and over, and;
  • All establishment with TE of less than 10, except those establishment with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
  • Frame

The frame for the 2013 ASPBI was extracted from the 2013 List of Establishments (LE). The 2013 LE is the combined result of the following:

1. 2012 Updating of the List of Establishments (ULE) conducted during the period from May to July 2012

    2. Survey feedbacks from the 2013 Quarterly Survey of Philippine Business and Industry (QSPBI) and 2013 Monthly Integrated Survey of Selected Industries (MISSI); the 2012 Census of Philippine Business and Industry (CPBI); list of branches and subsidiaries from the 2011 Survey of enterprises in the Philippines (SEP); and additional establishments from Albay and Davao Oriental with submitted Establishment Inquiry Forms (ULE Form3) also provided updates on characteristics and status of sample establishments

    3. Lists from 2012 and 2013 Labor Turnover Survey of the Bureau of Labor and Employment Statistics

    The estimated number of establishments in the 2013 LE totaled 941,000 establishments in operation in 2013. Of this, about 28.0 percent or 263,000 establishments belong to the formal sector of which 87.0 percent or 229,000 establishments comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

    • Unit of Enumeration

    The unit of enumeration for the 2013 ASPBI was the establishment.  An establishment is defined in the United Nations International Recommendations on Industrial Statistics as an economic unit, which engages, under a single ownership or control, i.e. under a single legal entity, in one or predominantly one kind of economic activity at a single fixed physical location.

    In actual practice, however, there are some difficulties in applying the ideal definition so the establishment is defined in operational terms to take into account the organization and record-keeping practices of certain industries by making the single physical location and activity criteria more flexible. It is then necessary to use the kind-of-activity unit (KAU).

    The KAU is “the unit that is engaged in the production of the most homogeneous group of goods and services, usually at one location, but sometimes over a wide area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in production.” A KAU differs from establishment in that there is no restriction with respect to the geographical areas in which a given kind of activity is carried on a single legal entity.

    The above definition is an inherent characteristic of the following sectors: construction, transportation and storage, telecommunications, financial and insurance activities, real estate, security and investigation activities, travel agency and tour operator activities, and reservation service and related activities.

    • Classification of Establishments

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

    Economic Organization relates 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 that owns the establishment.  This provides the legal basis for ownership.  An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.

    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.

    Size of an establishment is determined by its total employment (TE) as of a specific date. 

    Geographic Classification refers to the classification of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification.

    • Methodology

    Sampling Design

    The 2013 ASPBI utilized stratified systematic sampling with 5-digit PSIC serving as the industry strata and employment size as the second stratification variable.

    For establishments with TE of 20 and over, the 17 administrative regions serve as the geographic domains while the 5-digit level (sub-class) of the 2009 PSIC serves as the industry domain.  

    Estimation Procedure

    a. Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)

    The estimate of the total of a characteristic  for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is

    where:

    s       denotes the non-certainty employment strata in TE of 20 and over

    p       = 1, 2,..., 17  regions (geographic domains)

    xspj   = value of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    j        =  1, 2, 3,…, nsp establishments

    Wspj  = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

     nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

     

    b. Certainty Stratum

    The estimate of the total of a characteristic  for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

    where:  

         c      denotes the certainty employment stratum in TE of 20 and over

        p    = 1, 2,..., 17 regions (geographic domains)

        xcpj  = value of the jth establishment in the certainty employment stratum in TE of 20 and over in an industry domain within each region

       J      = 1, 2, 3, …, mcp establishments

      mcp   = number of establishments in the certainty employment stratum in TE of 20 and over in an industry domain within each region

                 

    c. Total Estimate for TE of 20 and Over

    The estimate of the total of a characteristic  for the industry domain in each region (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

                 where

                         dp   denotes the industry domains in each region

    National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates  for the particular industry domain from all the regions.

     

    Weight Adjustment Factor for Non-Response

    To account for non-response in the non-certainty strata, the adjustment factors, and (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

                                                      

                                             

    For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight (W’spj) is

        where:

    Nsp   = total number of establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for an industry domain within each  geographic domain (region)
    n’sp  = number of responding establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for an industry domain within each geographic domain (region)
    • Questionnaire Design

    The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

    A Web-based version of the 2013 ASPBI questionnaires was available for accomplishment by sample establishment online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

    • Response Rate

    The response rate for all establishments was 90.7 percent (27,752 out of 30,583 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments, etc.

    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 in the certainty stratum, which were found to be duplicates and out of business in 2013, were not imputed. The table below shows the response rate by sector and the number of establishments which responded on-line.

    TABLE 1  2013 ASPBI Response Rates for All Establishments
     

    2009

    PSIC

    Industry Description

    Number of Samples

    Number of Responding Establishment

    Response Rate (%)

    Number of Responding Establishment On-line

    Philippines

    30,583

    27,752

    90.7

    511

    A

    Agriculture, Forestry and Fishing

    1,158

    996

    86.0

    16

    B

    Mining and Quarrying

    391

    351

    89.8

    13

    C

    Manufacturing

    6,747

    6,071

    90.0

    87

    D

    Electricity, Gas, Steam and Air-Conditioning Supply

    328

    272

    82.9

    21

    E

    Water Supply; Sewerage, Waste Management and Remediation Activities

    640

    615

    96.1

    11

    F

    Construction

    828

    768

    92.8

    17

    G

    Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

    6,032

    5,406

    86.9

    77

    H

    Transportation and Storage

    969

    876

    90.4

    13

    I

    Accommodation and Food Service Activities

    1,182 1,077 91.1

    7

    J

    Information and Communication

    4,881

    4,510 92.4

    94

    K

    Financial and Insurance Activities

    1,201

    1,145

    95.3

    57

    L

    Real Estates Activities

    287 250

    87.1

    8

    M

    Professional, Scientific and Technical Activities

    690

    608

    88.1

    15

    N

    Administrative and Support Service Activities

    2,126

    1,961

    92.2

    42

    P

    Education

    1,191

    1,084 91.0

    16

    Q

    Human Health and Social Work Activities

    723

    671

    92.8

    9

    R

    Arts, Entertainment and Recreation

    344 292 84.9

    6

    S

    Other Service Activities

    865

    799

    92.4

    2

     

    • 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, 2013.

    Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and 98 workers receiving pure commissions only.

    Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, PAG-IBIG etc.

    Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

    Expense refers to cost incurred by the establishment in an enterprise’s effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.

    Value of output represents the sum of the sale of products and by-products, income from industrial services done for others, sale of goods  less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress.

    Value added is gross output less intermediate input.

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

    Change in Inventories is computed as the value of ending inventory less the beginning inventory.

    Subsidies refer to special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.

    E-Commerce refers to the selling of products or services over electronic systems such as the 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.

     

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