Support activities for transportation industry leads the sector
Preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that the Philippines had a total of 1,090 establishments with Total Employment (TE) of 20 and over engaged in Transportation and Storage sector.
Industry-wise, support activities for transportation topped the sector with 442 establishments or 40.6 percent. This was followed by industries engaged in other land transport and transport via buses with 294 establishments (27.0%) and 146 establishments (13.4%), respectively. Figure 1 shows the percentage distribution of establishments by industry group in 2015.
At the regional level, more than half (55.1%) of the number of establishments were located in NCR comprising 601 establishments. CALABARZON followed with 125 establishments (11.5%) and Central Visayas came in third with 95 establishments (8.7%).
Support activities for transportation industry employs the biggest number of workers
The employment generated for the sector was recorded at 149,269. Of the total, 99.5 percent were paid employees (148,547) and the rest were unpaid workers and working owners.
Among industries, support activities for transportation provided the largest number of employees with 54,731 or 36.7 percent. Transport via buses ranked second employing 28,296 or 19.0 percent and other land transport came in third with 18,810 or 12.6 percent. Figure 2 shows the distribution of employment by industry group.
By region, NCR was the highest employer with 89,450 employees (59.9%). Central Visayas came in second with 11,873 employees (8.0%) and closely followed by CALABARZON 11,822 employees (7.9%).
Average number of workers was at 137. Passenger air transport surpassed the national average with 1,104 workers per establishment. The lowest was recorded by other land transport establishments with only 64 employees per establishment.
Employees of support activities for transportation earns the highest compensation
The total compensation paid by the sector amounted to PHP49.5 billion in 2015 for establishments with total employment of 20 and over.
Among industry group, support activities for transportation industry paid a total compensation of PHP20.8 billion or 42.0 percent of the total. Passenger air transport came in second with PHP12.5 billion or 25.3 percent while transport via buses placed third with PHP4.6 billion or 9.3 percent.
Across regions, NCR spent the biggest share in total compensation amounting to PHP38.1 billion (77.0%). Central Visayas and CALABARZON were in second and third place with PHP3.1 billion (6.3%) and PHP2.5 billion (5.0%), respectively.
The highest average annual compensation of PHP1,029,928 was received by employees in passenger air transport. Employees in transport via railways and support activities for transportation, were the far second and third highest earners, with average annual compensation of PHP 389,804 and PHP381,196, respectively. On the other hand, employees in other land transport received the lowest average pay with PHP150,805 annually. Figure 3 shows the average annual compensation of employees for Transportation and storage establishments by industry group.
Employees working in the NCR received the highest average annual compensation of PHP427.5 thousand while those employed in MIMAROPA received the lowest with PHP38.7 thousand.
Support activities for transportation industry generates the highest income and spent the most
Income earned by the sector in 2015 reached PHP552.2 billion. Support activities for transportation was the top contributor with total income of PHP243.3 billion or 44.0 percent of the total. Followed by passenger air transport with PHP187.3 billion (34.0 %) and sea and coastal water transport industry with PHP57.1 billion (10.3 %).
Region-wise, NCR produced the highest revenue amounting to PHP459.1 billion (83.1%). CALABARZON followed next, generating an income of PHP42.3 billion (7.7%) and Central Visayas contributing PHP19.8 billion (3.6%).
Operating expenses reached PHP491.3 billion in 2015. By industry, support activities for transportation incurred the highest expense of PHP206.0 billion or 42.0 percent, followed by passenger air transport with PHP180.0 billion or 36.6 percent. Sea and coastal water transport industry came in third with PHP41.7 billion or 8.5 percent. Figure 4 displays a comparison of income and expense for the top five industries.
Across regions, NCR spent the largest as it incurred PHP409.5 billion (83.4%). CALABARZON and Central Visayas followed next with PHP40.4 billion (8.2%) and PHP17.6 billion (3.6%), respectively.
Income-Expense ratio stands at 1.12
Income per peso expense for the sector was computed at 1.12. Sea and coastal water transport industry posted the highest ratio of 1.37. This was followed by transportation via buses with 1.21 and support activities for transportation had income per expense of 1.18.
Value added amounts to PHP175.5 billion
Value added realized by transportation and storage sector totaled PHP175.5 billion in 2015.
Industry-wise, support activities for transportation contributed a little more than half (50.5%) of the total value added or PHP88.5 billion. Passenger air transport industries followed with value added of PHP38.8 or 22.1 percent. Sea and coastal water transport recorded value added at PHP27.1 billion or 15.4 percent.
Across regions, NCR reported the highest value added, amounting to PHP144.2 billion. Central Visayas and CALABARZON came in far second and third with PHP8.7 billion (5.0%) and PHP5.7 billion (3.3%), respectively. CAR had the least value added with only PHP18.3 million or 0.01 percent.
Air transport industry is the most labor productive
Employees of passenger air transport were the most labor productive, in terms of value added per worker, with PHP3.2 million. Support activities for transportation with PHP1.6 million per worker ranked second. Sea and coastal water transport industry was third with PHP1.55 million. Figure 5 displays the labor productivity of the top five industries of Transportation and Storage Sector.
Across regions, NCR recorded the highest value added per worker at PHP1.6 million. Central Luzon came in second with PHP756.2 thousand and Central Visayas at third place with PHP735.7 thousand.
Gross additions to tangible fixed assets sum up to PHP31.4 billion
In 2015, the Transportation and storage sector acquired total gross additions to tangible fixed assets amounting to PHP31.4 billion.
Among industries, passenger air transport reported the highest addition to fixed assets with PHP12.1 billion or 38.6 percent of the total. Establishments engaged in support activities for transportation, and sea and coastal water transport ranked second and third with PHP10.1 billion (32.1%) and PHP5.1 billion (16.3%), respectively.
By region, a total of PHP28.9 billion value of gross additions to fixed assets was contributed by the top three regions and these were NCR with PHP25.1 billion, Central Visayas with PHP2.5 billion and Davao Region with PHP1.3 billion.
Subsidies amounts to PHP9.0 billion
Subsidies granted by the government to the sector amounted to PHP9.0 billion. This was availed by transport via railways in NCR.
E-commerce sales accounts for nearly 6.0 percent of the total income
E-commerce refers to the selling of products or services over electronic systems. The sector generated e-commerce sales of PHP31.0 billion accounting for 5.6 percent of the total income in 2015.
Among industries, passenger air transport earned an amount of PHP30.5 billion or 98.4 percent of the total e-commerce sale transactions. The other industries with e-commerce transactions were support activities for transportation (PHP250.3 million) and warehousing and storage (PHP234.8 million).
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Transportation and Storage sector for establishments with total employment 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 provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015.
The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC)..
The conduct of the 2015 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 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)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorship with branches
Hence, the 2015 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 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) 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 2015 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.
Industrial Classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size of an establishment is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment.
This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of December 31, 2015 was used for the 2015 ASPBI.
Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.
Estimation Procedure for Establishments with TE of 20 and Over
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
Sections A, C, E, F, G, H, I, J, K, L, M, N, P, Q, R and S.
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
s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99
p = 1, 2,..., 18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 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 with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B, D and J, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
j = 1,2,3,..., mcp establishments
mcp = number of establishments in the certainty employment strata 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 (geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)
Total response rate for Transportation and Storage sector with TE of 20 and over was 94.0 percent (921 out of 980 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, nineteen establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.
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, 2015.
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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
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.
Expense refers to cost incurred in as enterprise 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.
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 used, fuels, lubricants, oils and greases used; electricity and water purchased, and industrial services done by others.
Valued added is gross output less intermediate input. Gross output for transportation and storage 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 expenses.
Gross 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.
Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others less rent expense for land; research and development expense; environmental protection expense; royalty fee; franchise fee; foreign exchange losses and other expense.