Number of manufacturing establishments declines by 5.6 percent
The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) showed a total of 6,032 manufacturing establishments with total employment (TE) of 20 and over. This number represents a 5.6 percent decrease from the 6,393 establishments recorded in 2016. (Table 1)
Among industry groups, manufacture of other food products accounts for 732 establishments or 12.1 percent of the total. Manufacture of plastic products followed with 469 establishments (7.8%). Manufacture of wearing apparel, except fur apparel, ranked third with 461 establishments (7.6%). (Figure 1)
Among regions, the National Capital Region (NCR) recorded the highest number of establishments with 2,157 or 35.8 percent of the total. CALABARZON placed second with 1,553 (25.7%) establishments while Central Luzon ranked third (763 or 12.6%). (Table 1a)
Manufacture of electronic components employs the most number of workers
Total employment generated by manufacturing establishments with 20 or more workers reached 1.1 million in 2017, a 4.6 percent decrease from the total employment posted in 2016. (Table A)
Manufacture of electronic components employed the highest number of workers totaling 136,084 (12.9%). This was followed by manufacture of other food products (97,334 or 9.2%) and manufacture of wearing apparel, except fur apparel (97,073 or 9.2%). (Table 1)
Four regions reached the 100 thousand mark in terms of number of workers with CALABARZON (415,328 or 39.4%) posting the highest number of workers. This was followed by NCR (208,696 or 19.8%), Central Luzon (162,592 or 15.4%) and Central Visayas (146,874 or 13.9%). (Table 1a)
Total compensation slumps by 2.8 percent
Total compensation paid by manufacturing establishments with at least 20 workers amounted to PHP328.2 billion, a 2.8 percent decline from the PHP337.5 billion posted in 2016. This translates to an average annual compensation of PHP312,235 per employee. (Tables A)
Among industry groups, manufacture of refined petroleum products paid the highest average annual compensation of PHP2.4 million per employee, followed by manufacture of dairy products (PHP1.2 million) and manufacture of beverages (PHP1.0 million). (Figure 3)
By region, Cordillera Administrative Region (CAR) paid the highest average annual compensation of PHP769,945 per employee. Northern Mindanao (PHP393,850) placed second, followed by Eastern Visayas (PHP350,087). (Table 2a)
Manufacture of electronic components leads the manufacturing industries in terms of value of output
In 2017, value of output generated by manufacturing establishments with TE of 20 and over was estimated at PHP4.8 trillion. This reflects a 1.6 percent increase from the PHP4.7 trillion value of output posted in 2016. (Table 1)
The combined output value of the top 10 industry groups accounted for PHP2.6 trillion or 55.4 percent of the total. Manufacture of electronic components recorded the highest output value of PHP478.0 billion (10.0%). This was followed by manufacture of refined petroleum products (PHP389.8 billion or 8.2%) and manufacture of motor vehicles (PHP312.6 billion or 6.6%). (Figure 4)
CALABARZON (PHP2.0 trillion or 42.1%) generated the highest value of output and was the only region that reached the trillion mark. (Table 1a)
Manufacture of refined petroleum products incurs the highest intermediate expense of PHP332.3 billion
Intermediate expense incurred by manufacturing establishments with 20 or more workers stood at PHP3.1 trillion in 2017, a 1.5 percent increase from the previous year’s intermediate expense. (Table 1)
Manufacture of refined petroleum products recorded the highest intermediate expense amounting to PHP332.3 billion or 10.6 percent of the total. Manufacture of motor vehicles followed with PHP229.9 billion (7.4%) while manufacture of electronic components placed third with PHP212.6 billion (6.8%). Note that these industries were also the top three industries in terms of value of output. (Table 1)
Across regions, CALABARZON posted the highest intermediate expense of PHP1.4 trillion, and the only region that reached the trillion mark. (Table 1a)
Income per peso expense ratio stands at 1.16
Manufacturing sector reported an income per peso expense ratio of 1.16 for manufacturing establishments with total employment of 20 and over in 2017. This means that for every peso spent, a corresponding income of PHP1.16 was generated. (Table 2)
Among industries, manufacture of electronic components had the highest return of 1.47, followed by manufacture of air and spacecraft and related machinery (1.38), and manufacture of basic chemicals (1.26). (Table 2)
Across regions, CAR registered the highest return of 3.59. MIMAROPA (1.47) recorded the second highest income per peso expense while Northern Mindanao (1.23) ranked third. (Table 2a)
Manufacture of electronic components generates the highest value added
Value added generated by manufacturing establishments with total employment of 20 and over increased by 2.8 percent, reaching PHP1.3 trillion in 2017. (Table 1)
The combined value added of the top 10 industry groups reached PHP853.0 billion (65.1%). Manufacture of electronic components contributed the biggest share (PHP253.4 billion or 19.3%), followed by manufacture of beverages (PHP117.0 billion or 8.9%) and manufacture of tobacco (PHP99.0 billion or 7.6%). (Table 1)
Labor productivity, the ratio of value added to total employment, was recorded at PHP1.2 million per worker. Manufacture of refined petroleum products exhibited the highest labor productivity of PHP17.5 million per worker. Manufacture of motor vehicles (PHP12.5 million per worker) and manufacture of tobacco products (PHP8.0 million per worker) ranked second and third, respectively. (Table 2)
CAR was the most labor productive among regions, posting a labor productivity of PHP18.5 million per worker. Eastern Visayas (PHP2.6 million per worker) trailed behind, followed by Northern Mindanao (PHP2.6 million per worker). (Table 2a)
Manufacture of basic chemicals accounts for 37.3 percent of e-commerce sales
Sales from e-commerce transactions of manufacturing establishments with total employment of 20 and over amounted to PHP20.8 billion in 2017. (Table 1)
Manufacture of basic chemicals recorded the highest sales through e-commerce at PHP7.7 billion or 37.3 percent of the total. Processing and preserving of fruits and vegetables ranked second with PHP4.3 billion sales, followed by manufacture of vegetable and animal oils and fats (PHP3.7 billion). (Table 1)
Central Visayas surpassed other regions with PHP8.2 billion e-commerce sales. CALABARZON followed with PHP6.1 billion sales. These two regions accounted for more than half (68.8%) of the total e-commerce sales. (Table 1a)
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Manufacturing (Sector C) establishments with total employment of 20 and over.
The 2017 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 for the year 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period, except for employment which is as of November 15, 2017.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the province as well as in the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group and 3-digit Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2017 ASPBI is authorized under Republic Act No. 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 2017 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 following sections of the 2009 PSIC are excluded from the scope of this survey and all other establishment-based surveys of PSA:
• 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 2017 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 of Establishments
The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 (24.9%) establishments comprised the frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 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.
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).
Taxonomy 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.
The 2017 ASPBI used 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 17 administrative regions serve 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 serve as the industry domain.
For Establishments with TE of Less Than 20
- 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
s =denotes the non-certainty employment strata in employment of TE less than 20
xsj =value of the jth establishment in the non-certainty employment stratum in employment of less than 20 in the sth industry domain
j =1, 2, 3,…, ns establishments
Wsj =weight of the jth establishment in the non-certainty employment stratum in employment of less than 20 in the sth industry domain
Ns =total number of establishments in the non-certainty employment stratum in employment of less than 20 in the sth industry domain
ns =number of sample establishments in the non-certainty employment stratum in employment less than 20 in the sth industry domain
- Certainty Stratum
The estimate of the total of a characteristic (Xcp) for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
c =denotes the certainty employment strata in employment of less than 20 in the cth industry domain
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 Less Than 20
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,
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
Thus, the adjusted weight (W’sj) for employment stratum in TE of 1-9 and 10-19 is
Ns total number of establishments in the employment stratum in TE of 1-9 and 10-19 in the sth industry domain
n’s number of responding establishments in the employment stratum in TE of 1-9 and 10-19 in the sth industry domain
For the non-certainty employment stratum in TE of 20-49 and 50-99, the adjusted weight (W'spj) is
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)
The response rate for all Manufacturing establishments was 87.5 percent (4,385 out of 5,011 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments, etc.
The sample establishments also responded to the survey through the use of Web-based version of the 2017 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 168 establishments, only 3.4 percent of the total number of responding sample establishments.
Limitation of Data
The 2017 ASPBI covered only the formal sector of the economy.
Concepts and Definitions of Terms
Total employment is the number of persons who worked in for the establishment as of November 15, 2017.
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.