Support activities for transportation industry dominates the sector
The Preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 1,196 establishments with total employment (TE) of 20 and over in the formal sector of the economy under Transportation and Storage sector.
As shown in Figure 1, support activities for transportation dominated the sector with 477 establishments (39.9%). Other land transport followed with 317 establishments (26.5%) and transport via buses with 164 establishments (13.7%).
By geographic location, the National Capital Region (NCR) recorded the highest number of establishments of 654 (54.7%). Followed far behind were CALABARZON and Central Visayas with 140 establishments (11.7%) and 106 establishments (8.9%), respectively.
Support activities for transportation industry hires the largest number of workers
Total employment generated by transportation and storage with TE of 20 and over reached 173,188 workers in 2016. Of the total workforce, 172,325 (99.5%) were paid employees while the rest were working owners and unpaid workers.
Among industry group, support activities for transportation employed the most number of workers with 56,380 (32.6%). Transport via buses came in second with 31,959 workers (18.5%). Other land transport ranked third with 19,437 workers (11.2%). Figure 2 presents the distribution of employment for establishments with TE of 20 and over in 2016.
Regionwise, the top three regions in terms of employment generation comprised 80.5 percent of the total. NCR recorded the highest number of employees with 112,877 workers or 65.2 percent. Central Visayas followed with 13,312 workers (7.7%) and CALABARZON placed third with 13,093 workers (7.6%).
The average number of workers per establishment for the sector was recorded at 145. Passenger air transport obtained the highest with 915 workers per establishment.
Employees of passenger air transport activities industry receives the highest average annual compensation
Total compensation paid by the sector in 2016 amounted to PHP56.7 billion, equivalent to an average annual compensation of PHP328,963 per employee.
The highest average annual compensation of PHP1.1 million was received by employees of passenger air transport. Employees in support activities for transportation, and sea and coastal water transport were the second and third highest earners, with average annual compensation of PHP363.2 thousand and PHP290.7 thousand, respectively. On the other hand, employees in courier activities received the lowest average pay of PHP141.0 thousand annually. Figure 3 shows the five leading industries of the sector in terms of average annual compensation for establishments with TE of 20 and over by industry group in 2016.
By region, employees in Negros Island Region earned the highest average annual compensation of PHP468.3 thousand per employee.
Passenger air transport activities generate the highest income
In 2016, the total income earned by transportation and storage establishments reached PHP531.8 billion.
By industry group, passenger air transport activities generated the biggest income of PHP213.1 billion or 40.1 percent of the total income. Support activities for transportation, and sea and coastal water transport activities followed with an income of PHP178.6 billion (33.6%) and PHP59.0 billion (11.1%), respectively.
Across regions, NCR generated the largest income of PHP441.0 billion or 82.9 percent of the total income of the sector. Other regions with more than five billion peso income during the year were as follows:
- CALABARZON, PHP33.2 billion (6.2%)
- Central Visayas, PHP21.9 billion (4.1%)
- Central Luzon, PHP8.3 billion (1.6%)
- Northern Mindanao, PHP8.0 billion (1.5%)
- Davao Region, PHP7.0 billion (1.3%)
On the other hand, total expense incurred in the operation of the business by establishments with TE of 20 and over summed up to PHP455.6 billion in 2016.
Industry-wise, passenger air transport activities spent PHP194.8 billion or 42.8 percent of the total expense. The other two industries which incurred more than 10 percent of the total expense were support activities for transportation, and sea and coastal water transport with PHP137.9 billion (30.3%) and PHP47.3 billion (10.4%), respectively.
Across regions, establishments located in NCR disbursed the largest amount worth PHP380.2 billion (83.5%). Other regions with more than five billion pesos expenses were as follows:
- CALABARZON, PHP27.7 billion (6.1%)
- Central Visayas, PHP19.9 billion (4.4%)
- Davao Region, PHP6.0 billion (1.3%)
- Central Luzon, PHP5.9 billion (1.3%)
Presented in Figure 4 is the distribution of income and expense of the five leading industries for the sector with TE of 20 and over by industry group in 2016.
Income-expense ratio stands at 1.17
The income generated per peso expense for transportation and storage establishments stood at 1.17. This means that for every peso spent in the operation of the business, a corresponding income of PHP1.17 was generated.
Among industries, three exceeded the national average income per expense ratio and these were the following:
- Support activities for transportation, 1.29
- Sea and coastal water transport, 1.25
- Other land transport, 1.18
By region, Caraga recorded the highest income per expense ratio of 2.46. This was followed by Northern Mindanao and Central Luzon with income per expense ratio of 1.60 and 1.41, respectively.
Support activities for transportation industry generates the highest value added
Value added generated by the sector for establishments with TE of 20 and over was estimated at PHP188.4 billion in 2016.
Among industry groups, support activities for transportation contributed the biggest share to value added accounting for PHP81.7 billion or 43.4 percent of the total value added for the sector. Passenger air transport activities ranked second with PHP48.4 billion or a share of 25.7 percent. Sea and coastal water transport came in third with PHP23.5 billion (12.5%).
At the regional level, NCR registered more than 75 percent of the total value added accounting for PHP149.2 billion.
Labor productivity of the sector is PHP1.1 million per worker
Labor productivity, defined as the ratio of value added per total employment, was valued at PHP1.1 million per worker for establishments with TE of 20 and over.
By industry, passenger air transport registered the highest labor productivity with PHP3.5 million per worker. Other two industries with more than one million productivity ratio were support activities for transportation with PHP1.4 million per worker, and sea and coastal water transport with PHP1.3 million per worker.
Figure 5 displays the five leading industries in terms of labor productivity of the sector with TE of 20 and over by industry group in 2016.
Among regions, NCR recorded the highest labor productivity ratio of PHP1.3 million per worker. This was followed by CALABARZON with PHP883.6 thousand per worker. Central Luzon came in third with PHP796.9 thousand per worker.
Gross addition to fixed assets reaches PHP27.9 billion
Gross additions to fixed assets acquired by the sector during the year totaled to PHP27.9 billion.
Among industry groups, the combined gross additions of fixed assets of the top three industries comprised 80 percent of the total. Support activities for transportation acquired the highest gross additions to tangible fixed assets with PHP12.1 billion or 43.2 percent of the total gross additions to fixed assets. Sea and coastal water transport ranked second with PHP6.4 billion or 23.1 percent. Other land transport placed third with PHP3.8 billion or 13.7 percent.
Across the country, NCR topped in terms of gross additions to tangible fixed assets which was estimated at PHP17.1 billion or 61.2 percent share to the total. Regions with more than one billion worth of gross additions to fixed assets were the following:
- Central Visayas, PHP4.9 billion (17.6%)
- Central Luzon, PHP1.9 billion (6.8%)
- CALABARZON, PHP1.7 billion (6.1%)
Passenger air transport accounts PHP314.1 million worth of inventories
Passenger air transport recorded the highest change in inventories among industries. Other industries that reported more than one million in change in inventories were the following:
- Other land transport, PHP68.9 million
- Support activities for transportation, PHP58.5 million
- Transport via buses, PHP15.1 million
- Inland water transport, PHP1.8 million
Among regions, NCR recorded the highest change in inventories of PHP244.1 million. SOCCSKSARGEN and CALABARZON followed with PHP80.0 million and PHP61.7 million, respectively.
Government grants PHP9.5 billion subsidies
A total of PHP9.5 billion worth of subsidy was granted by the government to transportation and storage establishments during their operation in 2016.
Across regions, NCR received the biggest subsidy amounting to PHP9.5 billion. Central Luzon and SOCCSKSARGEN also received subsidies from the government amounting to PHP510.0 thousand and PHP236.0 thousand, respectively.
Sales from e-commerce reaches PHP19.2 billion; passenger air transport reports the highest
E-commerce refers to the selling of products or services over electronic system. Sales from e-commerce transactions for establishments with TE of 20 and over reached PHP19.2 billion in 2016.
Almost all transactions (99.9%) were accounted for passenger air transport establishments located in NCR.
This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for Transportation and Storage sector for establishments with total employment of 20 and over.
The 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 2016.
The survey was conducted nationwide in 2017 with 2016 as the reference period, except for employment where the reference period is 15 November 2016.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national/regional level.
The conduct of the 2016 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
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)
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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) 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 2016 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.
Taxonomy 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 PSA Board Resolution No. 2 Series of 2017-158 signed on 14 February 2017 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 31 December 2016 was used for the 2016 ASPBI.
The 2016 ASPBI uses a stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.
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 and over
p = 1, 2,..., 18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 and over 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 and over for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries except J61902, 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) is obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domain and p refers to region
National level estimate of the the characteristics by industry domain are 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)
Response rate for Transportation and Storage sector of establishments with TE of 20 and over was 91.0 percent (726 out of 798 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 23 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 2016.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
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 15 November 2016.
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 by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Value added is gross output less intermediate input. Gross output for Transportation and Storage sector is the sum of the total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. 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 from land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.
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.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.