Central Luzon leads in terms of number of establishments

The final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were a total of 253 establishments engaged in electricity, gas, steam and air conditioning supply. Of the total, 88.5 percent or 224 were establishments with total employment (TE) of 20 and over. The remaining 11.5 percent were establishments with total employment of less than 20.

The 253 establishments were all engaged in electric power generation, transmission and distribution. No establishment was engaged in manufacturing of gas, distribution of gaseous fuel through mains and steam, air conditioning supply and production of ice in 2013. (see Table 1)

The top three regions, in terms of number of  establishments, accounted for almost  one-third (32.1%)  of   the  total   number   of  establishments.  Central   Luzon  led   the  regions   with   30  establishments  or  11.9 percent of the total.   This  was  followed  by Central Visayas with 26 establishments (10.3%) and CALABARZON with 25 establishments (9.9%). On the other hand, three regions recorded the least count with only 6 establishments (2.4%) each. These were National Capital Region (NCR), Zamboanga Peninsula and Autonomous Region in Muslim Mindanao (ARMM). Figure 1 shows the regional distribution of all electricity, gas, steam, and air conditioning supply establishments in 2013.

Total employment reaches 46,696

In 2013, electricity, gas, steam and air conditioning supply sector employed a total of 46,696. Establishments with total employment of 20 and over hired a total of 46,424 workers comprising 99.4 percent of the total workforce while establishments with total employment of less than 20 hired only 272 workers or 0.6 percent of the total.

The top three regions, in terms of employment generation, were all located in Central Luzon area. NCR, despite recording the least number of establishments, employed the most number of workers with 9,675 or 20.7 percent of the total. This was followed by Central Luzon with 5,041 workers (10.8%) and CALABARZON with 4,422 workers (9.5%).

The average number of workers per establishment for the sector was recorded at 185. NCR recorded the highest average employment of 1,613, followed distantly by Zamboanga Peninsula and Cagayan Valley with 252 and 203 workers per establishment, respectively.

Establishments in CALABARZON pay the highest average annual compensation

Total compensation which consists of gross salaries and wages, separation and retirement/terminal pay, gratuities, employers’ contribution to SSS/GSIS, and other benefits amounted  to PHP34.8 billion in 2013. This translates to an average annual compensation of PHP746,127 per employee.

A total of PHP34.7 billion (99.6%) was paid by establishments with total employment of 20 and over or an average annual compensation of PHP747,133 per employee. On the other hand, PHP0.2 billion (0.4%) was paid by establishments with total employment of less than 20 or an average compensation of PHP574,482 per employee.

By region, employees in CALABARZON received the highest average annual pay of PHP1,367,795. This was followed by employees in NCR receiving an average annual compensation of PHP1,212,802. Employees in Eastern Visayas were the third highest paid earning an annual pay of PHP795,510. Employees in ARMM were the least paid with PHP214,479 average annual pay. Figure 2 shows the average annual compensation of employees for electricity, gas, steam and air-conditioning supply establishments by region in 2013.

Value of output sums up to PHP749.0 billion

Total value of output generated by the sector amounted to PHP749.0 billion. Establishments with total employment of 20 and over generated a total of PHP745.2 billion or 99.5 percent  of the   total output  value  while  establishments   with   total  employment   of  less  than 20,  PHP3.8  billion (0.5%).

Among  the regions, CALABARZON   generated   the   highest  value  of  output  with  PHP216.6  billion  representing   28.9  percent   of   the   total,  followed  by  NCR  with  PHP200.0   billion   or  26.7  percent. Central  Luzon  placed  third  with  value  of  output  equivalent to PHP92.3 billion or 12.3 percent. ARMM reported the least value of output at PHP1.0 billion or 0.1 percent of the total. Figure 3 shows the value of output for all electricity, gas, steam and air conditioning supply establishments by region in 2013.

Total expense amounts to PHP663.2 billion

Total expense, including compensation, incurred in business operation in 2013 amounted to PHP663.2 billion. A total of PHP659.7 billion or 99.5 percent of total expense was spent by establishments with total employment of 20 and over and the remaining PHP3.5 billion (0.5%) by establishments with total employment of less than 20.

CALABARZON spent the highest among the regions estimated at PHP194.5 billion (29.3%), followed  by  NCR  spending PHP179.2 billion (27.0%). Central Luzon placed third with PHP79.0 billion (11.9%). ARMM spent the least amount with only PHP1.2 billion (0.2%)

Ilocos region leads in terms of income per expense ratio

Income per expense ratio for the sector in 2013 was recorded at 1.21, indicating that for every peso spent PHP1.21 was realized in terms of income.

Among regions, establishments in Ilocos Region registered the highest return at 1.55 income per peso expense. This was followed by Northern Mindanao and Cagayan Valley, each with 1.46  income per  peso  expense. Cordillera  Administrative  Region  (CAR)  came next with 1.41 income per peso expense.

NCR contributes the highest share to value added

Value added, defined as gross output less intermediate input, generated by all electricity, gas, steam and air conditioning supply establishments reached PHP200.6 billion in 2013. Establishments with  total  employment  of  20   and  over  contributed  PHP199.9 billion or  99.7 percent to total value added. Whereas establishments with total employment of less than 20 produced only PHP0.7 billion or 0.3 percent of the total.

By region, NCR  accounted  for  the  biggest  share  to  total  value added amounting to PHP54.8 billion or 27.3 percent of the total, followed by CALABARZON and Central Luzon with PHP48.3 billion (24.1%) and PHP24.6 billion (12.3%), respectively.

Labor productivity is PHP4.3 million per worker

The ratio of value added per worker, a simple measure of labor productivity, was estimated at PHP4.3 million per worker. Labor productivity of establishment with total employment of 20 and over was posted at PHP4.3 million per worker while establishment with total employment of less than 20, PHP2.6 million per worker.

By  region,  establishments located  in CALABARZON were the  most productive recording  a  ratio of  PHP10.9 million per worker. This was followed by establishments in Cagayan Valley and CAR with respective productivity of PHP5.9 million and PHP5.8 million per worker. ARMM reported the least labor productivity of PHP1,666 per worker.

Gross addition to tangible fixed assets amounts to PHP25.1 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, was estimated at PHP25.1 billion in 2013. By employment size, establishments with total employment of 20 and over acquired PHP25.0 billion or 99.8 percent of the total and the remaining PHP41.4 million or 0.2 percent by establishments with total employment of less than 20.

Total subsidies reaches PHP9.2 billion

Total subsidies provided by the government to support the business operation of electricity, gas, steam and air conditioning supply establishments was estimated at PHP9.2 billion. By employment size, subsidies received by establishments with total employment of 20 and over amounted to PHP9.2 billion or 99.5 percent of the total while establishments with total employment of less than 20, PHP43.5 million or 0.5 percent.

Among regions, NCR received the highest subsidies estimated at PHP2.2 billion or 23.9 percent of the total. This was followed by Cagayan Valley and Northern Mindanao with subsidies amounting to PHP1.8 billion (20.0%) and PHP1.1 billion (12.5%), respectively.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for all electricity, gas, steam and air conditioning supply establishments.

The 2013 ASPBI is 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 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. 

Beginning with the 2013 ASPBI, the data processing was done on a decentralized set-up particularly by the Provincial Offices (POs). The set-up is in line with the PSA’s strategic direction to decentralize the data processing of surveys to the field offices. A new strategy in data processing was implemented through the use of an online system called the Establishment Data Management System (EDMS).

Data are presented at the regional and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC).   

Legal Authority

The conduct of the 2013 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

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 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 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

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

• All establishments with total employment (TE) of 10 or more, and
• All establishments with TE of less than 10, except those establishments 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 of Establishments

The frame for the 2013 ASPBI was extracted from the 2013 List of Establishments (LE). The estimated number of establishments in operation in the country in 2013 totaled to 941,000. About 263,000 establishments (28.0% of the total establishments) belong to the formal sector of which 229,000 (87.0%) 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 is the establishment. 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).

Methodology

All establishments in the formal sector for the Electricity, Gas, Steam and Air Conditioning Supply 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

where:

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

x_pj= value of the j^th establishment in an industry domain within each region

j= 1, 2, 3, …,m_p establishments

m_p= 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

Response rate for Electricity, Gas, Steam and Air Conditioning Supply Sector was 82.9 percent (272 out of 328 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. 

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 2013, were not imputed.

Limitation of Data

Only the formal sector was covered in the survey.

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 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 is the sum of 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 electricity, gas, steam and air conditioning supply sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate cost is intermediate expense plus expense for 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, income from 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 tangible 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 refer to special grants in the form of financial assistance or tax exemption or tax privilege received from the government to aid and develop an industry.