2015 Annual Survey of Philippine Business and Industry (ASPBI) - Manufacturing Sector for Establishment with TE 20 and Over : Preliminary Results

Reference Number: 

2017-242

Release Date: 

Thursday, September 28, 2017

Other food products industry leads in terms of number of establishments

In 2015, the number of manufacturing establishments with total employment (TE) of 20 and over totaled 6,347, according to the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI).

Of the total manufacturing establishments with TE of 20 and over, the top ten industry groups comprised more than half (53.5%) of the total. Other food products with the highest number of establishments led the industries with 767 establishments. Wearing apparel, except fur apparel, ranked second with 498 establishments while plastic products followed with 489 establishments. Other industries in the top ten in terms of number of establishments in 2015 are the following:

  • Printing and service activities related to printing, 331 establishments
  • Other fabricated metal products; metal working service activities, 286 establishments
  • Furniture, 273 establishments
  • Paper and paper products, 214 establishments
  • Other chemical products, n.e.c.,196 establishments
  • Non-metallic mineral products, n.e.c., 185 establishments
  • Structural metal products, tanks, reservoirs and steam generators,156 establishments

Figure 1 presents the number of establishments with TE of 20 and over by industry group in 2015.

Among regions, the share of the top three regions accounted for 74.4 percent of the total or 4,724 establishments. National Capital Region (NCR) with the highest number of establishments of 2,337 (36.8%) led the regions. CALABARZON followed with 1,608 establishments or 25.3 percent of the total.Ranking third is Central Luzon with 779 establishments (12.3%).

Electronic components industry remains the biggest contributor to employment generation

Total employment of manufacturing establishments with TE of 20 and over was estimated at 1,082,380 workers in 2015. Of this, 99.7 percent were paid employees and the remaining were working owners and unpaid workers.

By industry group, more than half (57.3%) of the total workforce or 620,187 workers were employed by the top ten industries led by electronic components with 139,494 workers. Wearing apparel, except fur apparel recorded the second highest number of workers with 93,797. Other food products followed with 89,588 workers. Parts and accessories for motor vehicles,and computers and peripheral equipment and accessories employed 76,351 and 65,691 workers, respectively.

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

  • Plastic products with 48,284 workers
  • Other fabricated metal products; metal working service activities with 29,634 workers
  • Processing and preserving of fruits and vegetables with 27,973 workers
  • Non-metallic mineral products, n.e.c with 26,923 workers
  • Paper and paper products with 22,452workers

Figure 2 shows the percent distribution of employment for manufacturing establishments with TE of 20 and over by industry group in 2015.

Among regions, the top three regions in terms of employment generation accounted for a total of 821,148 workers or 75.9 percent of the total workforce. CALABARZON, as the top ranking region generated the most number of workers employing 446,874 or 41.3 percent of the total. NCR placed second with 217,657 workers or 20.1 percent. Central Luzon followed with156,617 workers or 14.5 percent of the total.

Refined petroleum products industry pays the highest average annual compensation of PHP2.0 million per employee

Manufacturing establishments with TE of 20 and over spent PHP304.4 billion for total compensation in 2015. This is translatedinto an average annual compensation of PHP281,964 per employee.

Among industries, refined petroleum products paid the highest average annual compensation of PHP2.0 million per employee. Dairy products placed second with PHP1.2 million per employee. Air and spacecraft and related machinery ranked third with PHP818.1 thousand per employee.

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

 

TABLE1  Average Annual Compensation of Employees in Top-Paying Manufacturing Establishments

with TE of 20 and Over by  Industry Group: Philippines, 2015

2009 PSIC Code

Industry Description

Average Annual Compensation per Employee
(PHP1,000)

C192

Refined petroleum products

2,049.3

C105

Dairy products

1,157.0

C303

Air and spacecraft and related machinery

   818.1

C291

Motor vehicles

729.5

C120

Tobacco products

707.8

C301

Building of ships and boats

   629.2

C242

Basic precious and other non-ferrous metals

   568.6

C252

Weapons and ammunition

   544.5

C210

Pharmaceuticals, medicinal chemical

and botanical products

532.9

C272

Batteries and accumulators

507.8

 

By region, the top three regions spent PHP242.0 billion for total compensation of employees accounting for 79.5 percent of the total. CALABARZON spent the highest amount of PHP131.7 billion which was translatedinto an average annual compensation of PHP295,509 per employee surpassing the national average. NCR and Central Luzon followed with total compensation of PHP73.8 billion and PHP36.5 billion, respectively.

Refined petroleum productsindustry generates the highest value of output

In 2015, manufacturing establishments with TE of 20 and over generated PHP4.2 trillion of value of output.

Among industry groups, the top ten industries accounted for a combined share of 53.9 percent of the total value of output of manufacturing establishments with TE of 20 and over. Refined petroleum products led the industries with a share of 9.2 percent while electronic components followed with 8.2 percent. Other food productsoccupied third slot with a share of 6.1 percent.

Other industries in the top ten contributors are the following:

At the regional level, the total value of output of the top three regions reached PHP3.4 trillion or 80.1 percent of the total. CALABARZON remained the highest contributor to value of output with PHP1.8 trillion (42.1%). NCR followed with PHP863.3 billion or 20.4 percent of the total. Placed third was Central Luzon with PHP746.7 billion (17.6%).

Electronic components industry leads the top contributors to value added

Value added for manufacturing establishments with TE of 20 and over was estimated at PHP1.1 trillion in 2015.

Industrywise, value added of the top ten industry groups totaled PHP701.8 billion or 64.7 percent of the total value added. Electronic components contributed the highest value added with PHP109.8 billion. Tobacco products followed closely with PHP109.4 billion while motor vehicles placed third with PHP104.5 billion. Beverages with PHP100.0 billion managed to be one of the industries with at least PHP100.0 billion of value added.

Completing the list of the top ten industry groups in terms of value added are the following:

  • Other food products, PHP60.8 billion
  • Dairy products, PHP56.3 billion
  • Non-metallic mineral products, n.e.c., PHP45.9 billion
  • Parts and accessories for motor vehicles, PHP41.8 billion
  • Computers and peripheral equipment and accessories, PHP38.1 billion
  • Refined Petroleum products, PHP35.2 billion

Regionwise, the combined share to value added of the top three regions was recorded at 81.6 percent or PHP885.5 billion. CALABARZON with PHP460.0 billion or 42.4 percent of the total remained as the top contributing region to value added. NCR and Central Luzon placed second and third with PHP261.7 billion and PHP163.8 billion, respectively.

The ratio of value added to total employment, a simple measure of labor productivity, was recorded at PHP1.0 million. Table 2 shows the most labor productive manufacturing industries in 2015 that exceeded a total productivity of PHP1.0 million.

 

TABLE 2  Most Labor Productive Industries for Manufacturing Establishments with TE of 20 and Over

by Industry Group: Philippines, 2015

Rank

2009 PSIC Code

Industry Description

Value Added per Total Employment

(PHP1,000)

1

C291

Motor vehicles

15,888.8

2

C192

Refined petroleum products

11,816.2

3

C120

Tobacco products

10,612.0

4

C110

Beverages

  6,133.9

5

C105

Dairy products

5,395.7

6

C242

Basic precious and other non-ferrous metals

2,982.7

7

C301

Building of ships and boats

2,510.7

8

C106

Grain mill products, starches and starch products

2,064.5

9

C272

Batteries and accumulators

1,936.4

10

C239

Non-metallic mineral products, n.e.c.

  1,705.0

11

C279

Other electrical equipment

  1,680.7

12

C201

Basic chemicals

   1,619.0

13

C303

Air and spacecraft and related machinery

   1,481.9

14

C264

Consumer electronics

   1,472.5

15

C202

Other chemical products, n.e.c.

   1,278.2

16

C309

Transport equipment, n.e.c.

   1,240.0

17

C210

Pharmaceuticals, medicinal chemical and botanical products

   1,180.0

18

C231

Glass and glass products

   1,157.4

 
 
Gross addition to tangible fixed assets reaches PHP106.3 billion
 
In 2015, gross addition to tangible fixed assets of manufacturing establishments with TE of 20 and over reached PHP106.3 billion.

By industries, electronic components contributed the highest gross addition to tangible fixed assets at PHP15.5 billion or 14.6 percent of the total. Refined petroleum products followed closely with PHP15.2 billion (14.3%) while basic precious and other non-ferrous metals ranked third with PHP8.3 billion (7.8%).

By region, a total of PHP77.4 billion worth of gross additions to tangible fixed assets was contributed by the top three regions. These regions are the following:

  • CALABARZON with PHP37.2 billion (35.0%)
  • Central Luzon with PHP26.6 billion (25.0%)
  • NCR with PHP13.6 billion (12.8%)

Top three industries receive a total of PHP1.3 billion worth of subsidies

Manufacturing establishments with TE of 20 and over received PHP1.9 billion worth of subsidies in 2015.

Among industry groups, the top three industries recorded a total of PHP1.3 billion of subsidies or 65.1 percent of the total. General purpose machinery received the highest subsidies worth PHP554.8 million (28.6%). Building of ships and boats ranked second with PHP357.0 million (18.4%). Other food products followed closely with PHP352.5 million (18.2%).

Among the 11 regions that received subsidies in 2015, Cordillera Administrative Region led the regions with PHP554.8 million worth of subsidies. Central Luzon followed closely with PHP514.4 million while CALABARZON received PHP414.2 million. Together, the three regions received more than three-fourths (76.4%) of the total subsidies.

Basic chemicals industry generates more than three-fourths of the total e-commerce sales

In 2015, manufacturing establishments with TE of 20 and over generated a total of PHP145.3 million worth of e-commerce sales.

By industry group, the top three industries generated PHP141.6 million or 97.5 percent of the total. Bulk of the e-commerce sales was contributed by basic chemicals with more than three-fourths (77.5%) of the total.A far second was structural metal products, tanks, reservoirs and steam generators with 12.3 percent share (PHP17.9 million). Transport equipment, n.e.c. placed third with a share of 7.7 percent (PHP11.1 million).

Among the three regions that generated e-commerce sales, Central Luzon contributed the highest with PHP112.5 million or 77.5 percent of the total.

 


 

Technical Notes

Introduction

This Special Release presents the preliminary results of the 2015 ASPBI for manufacturing establishments with TE of 20 and over.

The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provides information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country.  The 2015 Survey on Information and Communication Technology (SICT) which was conducted for the fifth time was undertaken as a rider to this survey.

The survey was conducted nationwide in April 2016 with the year 2015 as the reference period, except for employment data which is as of November 15, 2015.

The Provincial Statistical Offices (PSOs) were involved in every aspect of field operation from the distribution and collection of questionnaires to data processing. The processing of data wasstill a decentralized set-up. The PSOs and the Subject Matter Divisions (SMDs) of the Economic Sector Statistics Service (ESSS) utilized the Establishment Data Management System (EDMS) for the online processing of data and the Monitoring and Tracking System (MTS) for the real time monitoring of field operation and data processing.

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

Legal Authority

The conduct of 2015 ASPBI is authorized under the following:

Republic Act 10625known 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 2015 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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

However, three (3) sectors of the 2009 PSIC are not covered. These are

  • Public Administration and Defense; Compulsory Social Security (O)
  • Activities of Households as Employers; Undifferentiated Goods and Services Producing Activities of Households for Own Use (T)
  • Activities of Extra-territorial Organization and Bodies (U)

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 2015 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 and over, 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 PSIC.

Frame

The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE).

The preliminary 2015 LE is a result of the 2015 Updating of the List of Establishments (ULE) undertaking which was conducted to provide an updated sampling frame for the 2015 ASPBI and other establishment based surveys.

The 2015 ULE involved the complete enumeration of selected barangays where “no matched” establishments (establishments listed in other sources but not in the LE) from prioritized secondary sources are located.Also covered are barangays with new shopping malls, barangays having the highest number of establishments from the typhoon Yolanda affected cities and municipalities, barangays where there exist an establishment having an employment of 100 and over, and barangays with highest count of establishments for some provinces. Other “no matched” establishments, including those located in distant barangays, were also covered using mail inquiry.

Other sources of updates are the survey feedbacks from the 2015 Quarterly Survey of Philippine Business and Industry (QSPBI) and 2015 Monthly Integrated Survey of Selected Industries (MISSI); list of branches and subsidiaries from the 2014 Annual Survey of Philippine Business and Industry and 2014 Survey of Tourism Establishments in the Philippines (STEP).

The estimated number of establishments in the 2015 LE totaled 909,786 establishments in operation in the country. Of this, about 29.0 percent or 259,386 establishments belong to the formal sector, of which 87.0 percent or 223,821 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 2015 ASPBI unit of enumeration is the establishment. The establishment isdefined 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 Organizationrelates 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 Organizationrefers 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, non-profit 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 2015 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 18 administrative regions served as the geographic domains.

The industry domains (industry strata) for the survey were the 5-digit level (industry sub-class) of the 2009 PSIC. For the manufacturing sector, 424 industry sub-classes served as the industry domain.

Estimation Procedure

For Establishments with TE of 20 and Over

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

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

where:

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

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

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

j=  1, 2, 3,…, nspestablishments

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

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

nsp  = number of sample establishments in the non-certainty employment stratum 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 and 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 and 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 and 50-99 for an industry domain within each geographic domain (region)

Questionnaire Design

The questionnaire design is the same as that of the 2014 ASPBI.

The sample establishments responded also to the survey through the use of Web-based version of the 2015 ASPBI questionnaire which was accomplished online at the PSA website. The number of manufacturing samples which utilized the web-based version of the questionnaire totaled 165 establishments, about 4.0 percent of the total number of responding sample establishments.

Response Rate

The response rate for manufacturing establishments with TE of 20 and over was 91.6 percent (4,511 out of 4,926 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 2015, 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, 2015.

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, workers receiving pure commissions only and workers not in the payroll of this establishment.

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 employer 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 sold and services rendered.

Expense refers to the cost incurred in an enterprise’s efforts to generate revenue, representing the cost of doing business. Excludes cost incurred in 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.

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.

 

Attachment: 

Tags: 

Industry: 

Manufacturing

Industry 2009 PSIC: 

Manufacturing