2016 Annual Survey of Philippine Business and Industry (ASPBI) - Manufacturing Sector: Final Results

Reference Number: 

2019-203

Release Date: 

Friday, July 19, 2019

Total number of all manufacturing establishments reaches 28,003

The total number of all manufacturing establishments in the formal sector of the economy reached 28,003 based on the final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI).

The top 10 manufacturing industries in terms of number of establishments comprised more than half (62.0%) of the total manufacturing establishments in the country. Baking of bread, cakes, pastries, pies and similar 'perishable' bakery products led the industries with 7,563 establishments (27.0%). This was followed by manufacture of bottled water with 3,372 establishments (12.0%), and printing with1,683 establishments (6.0%).

Other industries in the top 10 were the following:

• Rice/corn milling - 1,641 establishments (5.9%)
• Manufacture of wood furniture - 806 establishments (2.9%)
• Manufacture of structural concrete products - 639 establishments (2.3%)
• Custom tailoring – 536 establishments (1.9%)
• Women's and girls' and babies' garment manufacturing – 422 establishments (1.5%)
• Manufacture of plastic articles for packing goods - 375 establishments (1.3%)
• Men’s and boys’ garment manufacturing – 342 establishments (1.2%)

Figure 1 presents the percent distribution of all manufacturing establishments by industry sub-class in 2016.

Figure 1

 

Manufacture of semi-conductor devices and other electronic components industry employs the most number of workers

Total employment generated by all manufacturing establishments reached 1,277,400 in 2016. Of this, 98.3 percent were paid employees while the rest were working owners and unpaid workers.

Manufacture of semi-conductor devices and other electronic components employed the most number with 150,187 workers or 11.8 percent of the total. Baking of bread, cakes, pastries, pies and similar ‘perishable' bakery products came second with 85,106 workers (6.7%). Manufacture of computers and peripheral equipment and accessories followed with 58,224 workers (4.6%).

Other industries comprising the top 10 in terms of employment generation were:

• Manufacture of electric ignition or starting equipment for internal combustion engines - 53,432 workers (4.2%)
• Women's and girls' and babies' garment manufacturing - 42,384 workers (3.3%)
• Manufacture of wearing apparel, n.e.c - 30,872 workers (2.4%)
• Manufacture of parts and accessories for motor vehicles and their engines - 30,183 workers (2.4%)
• Printing - 27,894 workers (2.2%)
• Men's and boys' garment manufacturing - 23,429 workers (1.8%)
• Manufacture of plastic articles for packing goods - 22,975 workers (1.8%)

The average number of workers per establishment for the manufacturing sector was recorded at 46 in 2016. The top three industries that recorded an average employment higher than the national average were:

• Canning/packing and preserving of vegetables and vegetable juices - 4,769 workers per establishment
• Manufacture of uninterruptible power supplies (ups)– 2,326 workers per establishment
• Manufacture of calculating machines, adding machines, cash registers, calculators and manufacture of bills/coin counting and coin wrapping machinery– 2,004 workers per establishment

Figure 2 shows the percent distribution of employment of all manufacturing establishments by industry sub-class in 2016.

Figure 2

 

Total compensation paid by manufacturing establishments reaches PHP353.6 billion

Total compensation paid to employees by all manufacturing establishments reached PHP353.6 billion in 2016. This translates to an average annual compensation of PHP281,470 per paid employee.

Among the industries, manufacture of electric generating sets paid the highest average annual compensation of PHP4.3 million per paid employee. The refined petroleum products followed with PHP2.9 million per paid employee.

Table 1 shows the other top paying industries in 2016.

Table 1

 

Manufacture of semi-conductor devices and other electronic components leads the manufacturing industries in terms of value of output

In 2016, value of output generated by all manufacturing establishments was estimated at PHP4.8 trillion. The combined output value of the top 10 industries accounted for PHP2.0 trillion or a combined share of 42.0 percent.

Manufacture of semi-conductor devices and other electronic components industries was the highest with value of output of PHP468.4 billion or 9.7 percent. Manufacture of refined petroleum products ranked second with PHP390.4 billion or 8.1 percent.

Completing the list of the top 10 contributors to value of output were the following:

• Manufacture of motor vehicles - PHP259.7 billion (5.4%)
• Manufacture of computers and peripheral equipment and accessories - PHP183.8 billion (3.8%)
• Manufacture of powdered milk and condensed or evaporated milk and infants’ powdered milk - PHP148.2 billion (3.1%)
• Manufacture of cigarettes and cigars - PHP142.6 billion (2.9%)
• Manufacture of parts and accessories for motor vehicles and their engines - PHP120.2 billion (2.5%)
• Non-ferrous smelting and refining, except precious metals - PHP108.2 billion (2.2%)
• Manufacture of cement - PHP108.0 billion (2.2%)
• Manufacture of electric ignition or starting equipment for internal combustion engines - PHP104.2 billion (2.2%)

Figure 3 shows the top 10 industries that generated the highest value of output for all manufacturing establishments in 2016.

Figure 3

 

Income per peso expense ratio stands at 1.14

Manufacturing sector reported an income per peso expense ratio of 1.14 for all manufacturing establishments in 2016. This means that for every peso spent, a corresponding income of PHP1.14 was generated.

Among industries, manufacture of electrical quantities measuring and controlling instruments reported the highest income per peso expense ratio of 2.37, followed by non-ferrous rolling, drawing and extrusion mills with 2.35. Manufacture of paints occupied the third slot with a ratio of 2.14 income per peso expense.

 

Intermediate expense reaches PHP3.2 trillion

Intermediate expense incurred by all manufacturing establishments stood at PHP3.2 trillion in 2016.

Manufacture of refined petroleum products spent the highest which amounted to PHP332.9 billion or 10.5 percent of the total. Manufacture of semi-conductor devices and other electronic components followed with PHP254.5 billion (8.0%). Manufacture of motor vehicles placed third with PHP216.3 billion (6.8%).

 

Manufacture of semi-conductor devices and other electronic components industry generates the highest value added

Value added generated by all manufacturing establishments remained at PHP1.3 trillion in 2016.

The combined value added of the top 10 industries reached PHP620.6 billion (47.4%). Manufacture of semi-conductor devices and other electronic components led the top contributors to value added with PHP194.2 billion or 14.8 percent. Manufacture of cigarettes and cigars came second with PHP110.5 billion or 8.4 percent. Manufacture of malt liquors and malt ranked third with PHP63.1 billion or 4.8 percent.

Labor productivity, the ratio of value added to total employment, was recorded at PHP1.0 million per worker. Manufacture of refined petroleum products exhibited the highest labor productivity of PHP17.5 million per worker.

The top 10 most labor productive industries for all manufacturing establishments by industry sub-class are shown in Table 2.

Table 2

 

Manufacture of parts and accessories for motor vehicles and their engines receives PHP 435.8 million worth of subsidies

Subsidies received by all manufacturing establishments amounted to PHP978.8 million in 2016.

Among the industries, the top three highest subsidies comprised PHP804.9 million or a combined share of 82.2 percent. Manufacture of parts and accessories for motor vehicles and their engines received the highest subsidy accounting for PHP435.8 million or 44.5 percent of the total. Manufacture of semi-conductor devices and other electronic components followed with PHP274.0 million (28.0%). Manufacture of bicycles and bicycle parts came third with PHP95.0 million (9.7%).

 

Manufacture of fertilizers and nitrogen compounds accounts for 65.4 percent of e-commerce sales

E-commerce sales generated by all manufacturing establishments reached PHP1.3 billion in 2016.

Manufacture of fertilizers and nitrogen compounds recorded the highest sales through e-commerce at PHP850.9 million or 65.4 percent. Manufacture of rubber tires (including parts) and tubes followed with PHP126.0 million (9.7%) while manufacture of inorganic salts and compounds marketed PHP111.0 million (8.5%).

 

 

 

(Sgd.) VIVIAN R. ILARINA
Assistant National Statistician
Officer-in-Charge
Sectoral Statistics Office

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2016 ASPBI for all manufacturing establishments.

The 2016 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 data processing for this survey was decentralized to the Provincial Statistical Services Offices (PSSOs) as the provinces are near the establishments which are the data source of the survey.

The survey was conducted nationwide in April 2017 with the year 2016 as the reference period, except for employment which is as of November 15, 2016.

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

 

Legal Authority

The conduct of 2016 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 2016 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE) as of 03 March 2017.

The preliminary 2016 LE is a result of the 2016 Updating of the List of Establishments (ULE) undertaking which was conducted to provide an updated sampling frame for the 2016 ASPBI and other establishment-based surveys.

The 2016 ULE covered about 12,000 main office establishments with economic organization (EO) classified as EO=3 (Establishment and Main Office both located in the same address and with branches elsewhere) or EO=4 (Main Office only) and entails updating of around 100,000 establishments. Around 9,000 barangays without listed establishments since 2012 were also covered.

Other sources of updates are the survey feedbacks from the 2016 Quarterly Survey of Philippine Business and Industry (QSPBI) and 2016 Monthly Integrated Survey of Selected Industries (MISSI); list of branches and subsidiaries from the 2014 Annual Survey of Philippine Business and Industry, 2015 Annual Survey of Philippine Business and Industry; and 2016Labor Turnover Survey (LTS).

The 2016 LE recorded a total of 902,213 establishments in operation in the country. Of this, about 32.6 percent or 294,494 establishments belong to the “Formal Sector”, of which 86.7 percent or 255,403 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 2016 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 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, 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 2016 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, 422 industry sub-classes served as the industry domain.

 

Estimation Procedure

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

The estimate of the total of a characteristic  for the non-certainty employment strata in an industry domain in each region,

where:

s         = denotes the non-certainty employment strata in TE of 20 to 99
p         = 1, 2,..., 17  regions (geographic domains)
xspj     = value of the jth establishment in the non-certainty employment strata in TE of 20 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 in TE of 20 to 99 for an industry domain in each region

where:

Nsp     = total number of establishments in the non-certainty employment strata in TE of 20 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 99 for an industry domain in each region

 

b. Certainty Stratum (TE 100 and over)

The value of the total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region,

where:

c         = denotes the certainty employment strata of TE 100 and over
p         = 1, 2,..., 17 regions (geographic domains)
xcpj     = value of the jth establishment in the certainty employment strata in TE 100 and over in an industry domain within each region
j         = 1, 2, 3, …, mcp establishments
mcp    = number of establishments in the certainty employment strata in TE 100 and over in an industry domain within each region

 

c. Total Estimate for TE 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.

 

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain is

where:

s         = denotes the non-certainty employment strata in TE of less than 20
Xsj       = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j          = 1,2,3..., ns establishments
Wsj     = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

where:

Ns      = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns      = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

 

b.  Certainty Stratum

The total of a characteristic (Xc) for the certainty employment stratum in the Cth industry domain was

where:

c      = denotes the certainty employment strata in TE of less than 20 in the cth industry      
Xcj    = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
j       = 1,2,3,..., mc establishments 
mc   = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

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.

 

c.  Total Estimate for TE of Less Than 20

For all sections except B and C, national level estimates of the total of a characteristic for the industry domain is obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain. That is,

where d denotes the industry domain.

 

Weight Adjustment Factor for Non-Response

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

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 is

where:

Ns     = total number of establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
n's      = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) is

where:

Nsp    = number of establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
n'sp    = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 

Questionnaire Design

There were seven types of 2016 ASPBI questionnaires which captured data for establishments of the 18 sectors of the economy as defined in the 2009 PSIC. The clearance number and expiry date are located on the upper right hand corner of the cover page of each questionnaire.

The manufacturing sector used Form 2 of the 2016 ASPBI questionnaires with spot color of yellow, clearance number of PSA-1643-02 and expiry date of 31 March 2018.

The sample establishments also responded to the survey through the use of Web-based version of the 2016 ASPBI questionnaires which was accomplished online at the PSA website. The number of manufacturing samples which utilized the web-based version of the questionnaire totaled 218 establishments, only 2.4 percent of the total number of responding sample establishments.

 

Response Rate

The response rate for all manufacturing establishments was 95.5 percent (6,286 out of 6,581 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 2016, 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 15 November 2016.

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 additions 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.

 

 

 

 

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