2013 Annual Survey of Philippine Business and Industry (ASPBI) - Manufacturing Sector for Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2016-08

Release Date: 

Wednesday, January 13, 2016

 

Other food products industry still dominates manufacturing establishments with total employment of 20 and over

The total number of manufacturing establishments with total employment (TE) of 20 and over reached 6,416 according to the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI). This number is 11.8 percent lower than the number of establishments estimated from the final results of the 2012 Census of Philippine Business and Industry.

Industrywise, the top ten manufacturing industries in terms of number of establishments accounted for more than half (53.7%) of the total manufacturing establishments with TE of 20 and over. Other food products still dominated other industries with 12.6 percent share (810 establishments) of the total manufacturing establishments with TE of 20 and over. Wearing apparel, except fur apparel followed with a share of 8.3 percent (533 establishments). Plastic products; and printing and service activities related to printing ranked third and fourth, with 7.0 (451 establishments) and 5.6 (356 establishments) percent share, respectively. Furniture occupied the fifth spot with 4.4 percent (279 establishments). Other industries in the list of top ten in terms of number of establishments in 2013 are the following:

  • Other fabricated metal products; metal working service activities (4.3%, 274 establishments)
  • Paper and paper products (3.3%, 214 establishments)
  • Non-metallic mineral products, n.e.c. (2.9%, 188 establishments)
  • Other chemical products, n.e.c. (2.8%, 179 establishments)
  • Grain mill products, starches and starch products (2.5%, 163 establishments)

The top ten industries in terms of number of establishments in 2012 remained the top ten in 2013, except that paper and paper products out-ranked non-metallic mineral products in the seventh spot in 2013.

Figure 1 presents the percent distribution of manufacturing establishments with TE of 20 and over by industry group in 2013.

Among the 17 regions, the National Capital Region (NCR) led all other regions with a share of 37.7 percent (2,241 establishments) of the total number of manufacturing establishments with TE of 20 and over in 2013. This was followed by nearby regions of CALABARZON and Central Luzon with respective shares of 23.8 and 11.9 percent. In the Visayas area, Central Visayas posted the highest share of 10.0 percent (644 establishments) while in the Mindanao area, Davao Region recorded 218 establishments or 3.4 percent share. Figure 2 shows the comparative distribution of the number of establishments by region in 2013 and 2012.

 

 

Electronic components industry leads in terms of employment generation

In 2013, total employment generated by manufacturing establishments with TE of 20 and over reached 978,430, a drop of 6.8 percent from the 1,049,980 generated in 2012. Paid employees made up 99.6 percent of total employment while the rest were working owners and unpaid workers.

The top ten industries in terms of employment generation comprised 57.3 percent of the total employment. Electronic components still generated the highest number of workers with 137,245 (14.0%). Wearing apparel, except fur apparel ranked second with 92,795 workers (9.5%). Other food products followed with 86,367 workers (8.8%). Ranking fourth and fifth were parts and accessories for motor vehicles, and computers and peripheral equipment and accessories with 55,678 (5.7%) and 41,797 (4.3%) workers, respectively. These top five industries occupied the same slots in 2012.  

Other industries comprising the top ten in terms of employment generation are:

  • Plastic products with 39,673 workers (4.1%)
  • Processing and preserving of fruits and vegetables with 29,216 workers (3.0%)
  • Non-metallic mineral products, n.e.c. with 26,918 workers (2.8%)
  • Other fabricated metal products; metal working service activities with 25,523 workers (2.6%)
  • Processing and preserving of meat with 25,170 workers (2.6%)

Figure 3 shows the percent distribution of employment of manufacturing establishments with TE of 20 and over by industry group in 2013.

Regionwise, the top three regions employed a total of 726,617 workers accounting for almost three-fourths (74.3%) of the total. CALABARZON, ranking second in the number of establishments, generated the most number of workers employing 374,454 or 38.3 percent of the total. NCR placed second with 216,075 workers or 22.1 percent. Central Visayas ranked a far third with 136,088 workers or 13.9 percent of the total.

 

Refined petroleum products industry pays the highest average annual compensation

In 2013, total compensation paid to employees by manufacturing establishments with TE of 20 and over was estimated at PHP268.1 billion or an increase of merely 0.5 percent from PHP266.7 billion recorded in 2012. This translates to an average annual compensation of PHP275,185 per employee.  

Among industries, refined petroleum products paid the highest average annual compensation of PHP2.2 million per employee. Dairy products distantly followed with average annual compensation of PHP1.1 million.

The following table shows the industries with an average annual compensation of more than half a million.

 

Table 1  Average Annual Compensation of Employees in Top-Paying Manufacturing Establishments

with TE of 20 and Over by  Industry Group: Philippines, 2013

2009 PSIC Code

Industry Description

Average Annual Compensation per Employee

C192

Refined petroleum products

 2,202,257

C105

Dairy products

              1,147,000

C120

Tobacco products

   986,371

C210

Pharmaceuticals, medicinal chemical and botanical products

   682,059

C301

Building of ships and boats

   673,385

C291

Motor vehicles

   673,100

C110

Beverages

   663,948

C242

Basic precious and other non-ferrous metals

   519,338

          

Both in 2013 and 2012, refined petroleum products and dairy products paid the first and the second highest average annual compensation, respectively.

Across regions, the top three regions in 2013 and 2012 accounted for more than three-fourths of total compensation with 76.4 (PHP204.8 billion) and 77.4 (PHP206.3 billion) percent share, respectively. These regions are the following:

Region

2013

2012

  Total compensation (PHP1000) % Total compensation  (PHP1000) %

CALABARZON

111,794,832

41.7

116,404,831

43.6

NCR

 63,609,858

23.7

  61,316,781

23.0

Central Luzon

  29,420,991

11.0

  28,627,040

10.7

 

Electronic components industry also leads in terms of output generation

Value of output of manufacturing establishments with TE of 20 and over was estimated at PHP4.0 trillion in 2013. This figure is lower by 8.4 percent than the PHP4.3 trillion generated in 2012.

Among industry groups, the combined output value of the top seven industries comprised almost half (48.3%) of the total output of manufacturing establishments with TE of 20 and over. Electronic components with an output share of 13.0 percent (PHP516.2 billion) led the industries. Refined petroleum products followed closely with PHP474.4 billion or 11.9 percent of the total.

Completing the list of the top seven contributors to value of output are the following:

  • Other food products (PHP223.1 billion, 5.6%)
  • Motor vehicles (PHP186.7 billion, 4.7%)
  • Dairy products (PHP185.0 billion, 4.6%)
  • Beverages (PHP182.1 billion, 4.6%)
  • Non-metallic metallic products, n.e.c. (PHP155.8 billion, 3.9%)

Five out of the top seven industries in 2013 were also in the top seven in 2012. These are electronic components, refined petroleum products, other food products, beverages, and dairy products. Figure 4 shows the top grossers in terms of value of output in 2013.

At the regional level, the top three regions generated a combined output value of PHP3.1 trillion, accounting for more than three-fourths (77.4%) of the total.

The following top three regions in 2013 maintained the same ranking as in 2012:

  • CALABARZON, PHP1.7 trillion (41.7%)
  • NCR, PHP761.0 billion (19.1%)
  • Central Luzon, PHP661.1 billion (16.6%)

 

Electronic components industry contributes the highest share to value added

In 2013, value added for manufacturing establishments with TE of 20 and over was estimated at PHP976.8 billion, a decline of 13.8 percent from PHP1.1 trillion generated in 2012.

Across industry groups, the combined share of the top ten industries amounted to PHP680.7 billion or 69.7 percent of total value added for manufacturing establishments with TE of 20 and over. Electronic components led the top contributors to value added with a share of 14.6 percent of the total, followed by motor vehicles (12.8%), tobacco products (9.1%), beverages (7.4%), other food products (6.4%).

Completing the list of the top ten contributors to value added are the following:

  • Non-metallic mineral products, n.e.c. (5.5%)
  • Dairy products (5.4%)
  • Pharmaceuticals, medicinal chemical and botanical products (3.0%)
  • Parts and accessories for motor vehicles (3.0%)
  • Other chemical products, n.e.c. (2.6%)

By region, the top three regions generated PHP791.2 billion or 81.0 percent of the total value added of the manufacturing establishments with TE of 20 and over.  CALABARZON maintained its lead generating PHP459.0 billion or almost half (47.0%) of the total. NCR and Central Luzon followed with PHP227.2 billion (23.3%) and PHP104.9 billion (10.7%), respectively.

The ratio of value added to total employment, a simple measure of labor productivity, was recorded at PHP998.4 thousand.

 

Electronic components industry contributes PHP19.2 billion to gross addition to tangible fixed assets in 2013

Gross addition to tangible fixed assets of manufacturing establishments with TE of 20 and over was estimated at PHP106.4 billion in 2013, a drop of 28.1 percent from the PHP148.0 billion recorded in 2012.  

Among industry groups, electronic components contributed the highest gross addition to tangible fixed assets at PH19.2 billion or 18.0 percent of the total. Non-metallic mineral products, n.e.c. placed second with PHP10.6 billion (10.0%).

Regionwise, the top three regions comprised PHP77.0 billion or 72.4 percent of the total gross addition to tangible fixed assets. The bulk of the gross addition to tangible fixed assets was contributed by CALABARZON with PHP50.4 billion or 47.3 percent of the total. Central Luzon and NCR followed with PHP14.0 and PHP12.6 billion, respectively.

 

Top three industries receive a combined share of 87.5 percent of the total subsidies

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. This amounted to PHP506.0 million in 2013, decreased by 91.3 percent from the value received by the manufacturing establishments with TE of 20 and over in 2012.

Among the 15 industry groups that received subsidies in 2013, the top three industries received a combined share of 87.5 percent of the total. Printing and service activities related to printing received the highest amount with PHP184.0 million or 36.4 percent of the total. Spinning, weaving and finishing of textiles followed closely with PHP169.8 million (33.6%). Other food products came in third with PHP89.1 million (17.6%).

Among regions that received subsidies, 95.5 percent of the total subsidies were received by the top three regions. Central Luzon received more than half (54.0%) of the total subsidies. Ranking second and third were NCR and CALABARZON with 38.6 and 2.9 percent of total subsidies received, respectively.

 

Sales from e-commerce reaches PHP9.2 billion in 2013

In 2013, e-commerce sales by manufacturing establishments with TE of 20 and over reached PHP9.2 billion, a decline by 51.4 percent from the 2012 figure.

By industry groups, batteries and accumulators generated the highest sales through e-commerce at PHP3.1 billion or 34.1 percent of the total. This was followed by Optical instruments and photographic equipment with PHP3.0 billion (33.0%).

At the regional level, the combined share of CALABARZON, Central Luzon and NCR was recorded at 95.0 percent of the total e-commerce sales. CALABARZON posted the highest e-commerce sales with almost half (49.4%) of the total.                                                                    

 

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2013 ASPBI for manufacturing establishments with total employment (TE) of 20 and over.

The 2013 ASPBI is a forerunner of the 2010 ASPBI and one of the designated statistical activities of the Philippine Statistics Authority (PSA). 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. The 2013 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey. The field operation of the 2013 ASPBI also integrated the data collection in updating the 2014 List of Establishments (ULE).

The survey was conducted nationwide in September 2014 with the year 2013 as the reference period, except for employment which is as of November 15, 2013.

Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) and at the regional level.   

 

Legal Authority

The conduct of 2013 ASPBI is authorized under the following:

Republic Act 10625 known as the Philippine Statistical Act of 2013 dated September 12, 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 services.

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. 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 answers 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

 

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

Like all other establishments censuses/surveys conducted by the PSA, the 2013 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.

For manufacturing, the unit of enumeration consists of shop, factory, bakery, mill, distillery, refinery, cannery, abattoir, brewery, foundry, printing press, tannery or plant engaged in manufacturing, processing, fabricating or finishing products mechanically or manually including the assembly of component parts of manufactured products and the substantial alteration, reconstruction or repair of special type of goods and classified under economic organization such as: single establishment (EO=1), branch only (EO=2) and establishment and main office (EO=3).

 

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 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. For the manufacturing sector, 419 industry sub-classes serve as the industry domain.

 

Estimation Procedure

          

  1. 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

     = 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

 

  1. 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

             

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.

The sample establishments responded also to the survey through the use of Web-based version of the 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

 

Response Rate

The response rate for the manufacturing establishments with TE of 20 and over was 88.1 percent (4,423 out of 5,020 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.

 

Concepts and Definitions of Terms

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

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, homeworkers and workers receiving pure commissions only.

             Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working for at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.

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 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.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price 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.

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.

Intermediate expense refers to expenses incurred in the production of goods and industrial services such as raw materials used; other materials and supplies used; fuels, lubricants, oils and greases used; electricity and water purchased and industrial services done by others.

Value added is gross output less intermediate input. Gross output for the manufacturing sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and all other cost.

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

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

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.

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.

 


Source:  Industry Statistics Division
              Economic Sector Statistics Service
              Sectoral Statistics Office
              Tel. No. 376-2060

 

 

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