PREVIOUS RELEASE

2014 Annual Survey of Philippine Business and Industry (ASPBI) - Manufacturing Sector for All Establishments: Final Results

Release Date:
April 29, 2017

 

Total number of all manufacturing establishments reaches 25,197 in 2014

The total number of all manufacturing establishments in the formal sector of the economy reached 25,197 according to the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI).

By industry sub-class, the top ten manufacturing industries comprised more than half (57.8%) of all manufacturing establishments in the country. Bread, cakes, pastries, pies and similar 'perishable' bakery products led the industries with 6,682 establishments or 26.5 percent of the total. Bottled water followed with 2,434 establishments (9.7%). Printing ranked third with 1,472 establishments (5.8%).

Other industries in the top ten are the following:

  • Rice/corn milling (1,194 establishments or 4.7%)
  • Wood Furniture (750 establishments or 3.0%)
  • Structural concrete products (485 establishments or 1.9%)
  • Women's and girls' and babies' garment (427 establishments or 1.7%)
  • Custom tailoring (412 establishments or 1.6%)
  • Plastic articles for packing goods (371 establishments or 1.5%)
  • Men's and boys' garment (346 establishments or 1.4%)

 

Figure 1 presents the percent distribution of all manufacturing establishments by industry sub-class in 2014.

 

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

Total employment generated by all manufacturing establishments reached 1,223,577 in 2014. Of this, 98.6 percent were paid employees while the rest were working owners and unpaid workers.

Among industries, the top ten industries in terms of employment generation accounted for more than one-third (40.1%) or a total of 491,127 workers. Semi-conductor devices and other electronic components employed the most number with 147,258 workers or 12.0 percent of the total. Bread, cakes, pastries, pies and similar ‘perishable' bakery products came in second with 78,476 workers (6.4%). Computers and peripheral equipment and accessories followed with 60,096 workers (4.9%).

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

  • Women's and girls' and babies' garment (45,910 workers)
  • Electric ignition or starting equipment for internal combustion engines (34,140 workers)
  • Parts and accessories for motor vehicles and their engines (26,885 workers)
  • Wearing apparel, n.e.c  (25,994 workers)
  • Plastic articles for packing goods (25,396 workers)
  • Printing (24,108 workers)
  • Men's and boys' garment (22,864 workers)

Figure 2 shows the percent distribution of employment of all manufacturing establishments by industry sub-class in 2014.

 

 

Total compensation paid by manufacturing establishments reaches PHP311.2 billion in 2014

Total compensation paid to employees by all manufacturing establishments reached PHP311.2 billion in 2014. This translated into an average annual compensation of PHP258,011 per employee. Average annual compensation paid by 125 industry sub-classes or group of sub-classes surpassed the national average.   

Among the industry sub-classes, the combined industries of powdered milk and condensed or evaporated milk paid the highest average annual compensation of PHP1.8 million per employee. Refined petroleum products followed closely with PHP1.7 million per employee. 

 

TABLE 1 Average Annual Compensation of Employees in Top-Paying Manufacturing Establishments by Industry Sub-Class: Philippines, 2014

 

2009 PSIC Code

Industry Description

Average Annual Compensation per Employee

C10520-C10530

Powdered milk and condensed or evaporated milk

1,786,672

C19200

Refined petroelum products

1,738,658

C12010-C12020

Cigarettes and cigars

1,565,489

C10490

Vegetable and animal oil and fats, n.e.c.

1,173,011

C28193

Unit air-conditioners

1,147,023

          

Refined petroleum products industry leads the manufacturing industries in terms of value of output

In 2014, value of output generated by all manufacturing establishments was estimated at PHP4.5 trillion.

By industry sub-class, the combined output value of the top ten industries or group of industries accounted for PHP1.9 trillion or a combined share of 43.0 percent of the total. Refined petroleum products led the industries with PHP530.8 billion or 11.8 percent. Semi-conductor devices and other electronic components ranked second with PHP410.2 billion or 9.1 percent.

Completing the list of the top ten contributors to PHP1.9 trillion worth of value of output are the following:

  • Computers and peripheral equipment and accessories (PHP218.0 billion)
  • Motor vehicles (PHP176.9 billion)
  • Powdered milk and condensed or evaporated milk (PHP137.7 billion)
  • Cigarettes and cigars (PHP115.5 billion)
  • Cement (PHP98.4 billion)
  • Parts and accessories for motor vehicles and their engines (PHP83.6 billion)
  • Electric ignition or starting equipment for internal combustion engines (PHP82.6 billion)
  • Soap and detergents (PHP80.6 billion)

 

Figure 3 shows the top ten industries that generated the highest value of output for all manufacturing establishments in 2014.

 

Intermediate expense reaches PHP3.0 trillion

Intermediate expense incurred by all manufacturing establishments amounted to PHP3.0 trillion in 2014.

At the industry sub-class level, refined petroleum products spent the highest which amounted to PHP487.4 billion or 16.0 percent of the total. Semi-conductor devices and other electronic components followed with PHP242.8 billion (8.0%). Computers and peripheral equipment and accessories placed third with PHP162.7 billion (5.4%).

 

Semi-conductor devices and other electronic components industry generates the highest value added

Value added generated by all manufacturing establishments reached PHP1.2 trillion in 2014.

Across industry sub-classes, the combined value added of the top ten industries reached PHP584.7 billion or more than half (50.3%) of the total. Semi-conductor devices and other electronic components led the top contributors to value added with PHP145.9 billion or 12.5 percent.  Motor vehicles came in second with PHP92.4 billion or 7.9 percent. Cigarettes and cigars ranked third with PHP85.5 billion or 7.4 percent.

The ratio of value added to total employment, a measure of labor productivity, was posted at PHP950.1 thousand per worker. Cigarettes and cigars which was placed third in terms of value added generation recorded the highest labor productivity of PHP19,639.4 thousand per worker.  

Table 2 presents the manufacturing industries with more than PHP4.0 million worth of labor productivity in 2014.

 

TABLE 2  Most Labor Productive Industries for All Manufacturing Establishments by Industry Sub-Class: Philippines, 2014

 

Rank

2009 PSIC Code

Industry Description

Labor Productivity

(in PHP1,000)

1

C12010 & C12020

Cigarettes and cigars

19,639.4

2

C11010

Distilling, rectifying and blending of spirits

19,297.3

3

C11030

Malt liquors and malt

14,865.6

4

C19200

Refined petroleum products

  12,367.5

5

C29100

Motor vehicles

  11,872.2

6

C23940

Cement

  10,033.8

7

C20113

Inorganic salts and compounds

  8,617.6

8

C10520-C10530

Powdered milk and condensed or evaporated milk

  8,615.4

9

C10490

Vegetable and animal oil and fats, n.e.c.

  5,606.2

10

C10797

Mayonnaise, salad dressing, sandwich spread and similar products

  5,334.8

11

C10622

Flour milling except cassava flour milling

  4,656.7

12

C10540

Butter, cheese and curd

  4,472.7

13

C32502

Ophthalmic goods, eyeglasses, sunglasses, lenses ground to prescription, contact lenses, safety goggles

  4,313.7

 

Semi-conductor devices and other electronic components industry contributes the highest gross addition to tangible fixed assets

In 2014, gross addition to tangible fixed assets of all manufacturing establishments reached PHP125.0 billion.

Among the industry sub-classes, 11 industries, each with more than PHP2.0 billion contribution to total gross addition to tangible fixed assets accounted for PHP82.4 billion or 66.0 percent of the total. Semi-conductor devices and other electronic components contributed the highest gross addition to tangible fixed assets at PHP33.3 billion or 26.6 percent. Non-ferrous smelting and refining, except precious metals ranked second with PHP14.1 billion or 11.3 percent. Drugs and medicines including biological products such as bacterial and virus vaccines, sera and plasma placed third with PHP6.6 billion or 5.3 percent.

 

Spinning industry receives PHP 83.9 million worth of subsidies

Subsidies received by all manufacturing establishments amounted to PHP270.2 million in 2014.

Among the industry sub-classes that received subsidies in 2014, the top three industries received PHP171.8 million or a combined share of 63.6 percent of the total. Spinning received the highest subsidies accounting for PHP83.9 million or 31.0 percent of the total.  Parts and accessories for motor vehicles and their engines followed with PHP61.4 million (22.7%).  Cement came in third with PHP26.5 million (9.8%).

 

Plastic articles for packing goods industry accounts for 97.0 percent of e-commerce sales

In 2014, e-commerce sales generated by all manufacturing establishments reached PHP23.2 million.   

Among industry sub-classes, plastic articles for packing goods recorded the highest sales through e-commerce at PHP22.5 million or 97.0 percent of the total e-commerce sales. Articles related to jewelry and cigarette lighters and miscellaneous articles, n.e.c. followed with PHP399.0 thousand (1.7%) and PHP295.0 thousand (1.3%), respectively.    

                                                                            

 

 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2014 ASPBI for all manufacturing establishments.

The 2014 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 2014 Survey of Tourism Establishments in the Philippines (STEP) was undertaken as a rider to this survey.

Like the 2013 ASPBI operations, 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 2015 with the year 2014 as the reference period, except for employment which is as of November 15, 2014.

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

 

Legal Authority

The conduct of 2014 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 2014 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

o   Agriculture, Forestry and Fishing (A)

o   Mining and Quarrying (B)

o   Manufacturing (C)

o   Electricity, Gas, Steam, and Air Conditioning Supply (D)

o   Water Supply; Sewerage, Waste Management and Remediation Activities (E)

o   Construction (F)

o   Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)

o   Transportation and Storage (H)

o   Accommodation and Food Service Activities (I)

o   Information and Communication (J)

o   Financial and Insurance Activities (K)

o   Real Estate Activities (L)

o   Professional, Scientific and Technical Activities (M)

o   Administrative and Support Service Activities (N)

o   Education (P)

o   Human Health and Social Work Activities (Q)

o   Arts, Entertainment and Recreation (R)

o   Other Service Activities (S)

 

The survey was confined to the formal sector of the economy, which consists of the following:

o   Corporations and partnership

o   Cooperatives and foundations

o   Single proprietorship with employment of 10 and over

o   Single proprietorships with branches

 

Hence, the 2014 ASPBI covered only the following economic units:

o   All establishments with total employment (TE) of 10 and over, and

o   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 2014 ASPBI was extracted from the 2014 List of Establishments (LE).

The 2014 LE is the combined result of the following:

1.    2014 field verification of NO MATCHED establishments conducted during the period from September to December 2014.  It covered  establishments from the following lists:

a.    List of operating registered enterprises as of September 2013 from the Philippine Economic Zone Authority (PEZA)

b.    Top 1000 Corporations from the 2012 Top 1000 Corporations of the Business World

c.     List of establishments engaged in Information and Communication Technology (ICT) and Business Process Management (BPM) as of May 2014 from Information, Communication and Telecommunication Office (ICTO)

d.    2014 Directory of the Philippine Retailers Association (PRA)

e.    2013 Traders (Importers/Exporters) list from the Foreign Trade Statistics Section of the Philippine Statistics Authority (PSA), coverage of which was limited to corporations 

f.      Directory of the country’s best hotels from the November 30, 2013 issue of the Philippine Daily Inquirer

g.    Reported subsidiaries, branches in the 2011 Survey of Enterprises (SEP), some branches and reporting units of sample establishments of 2012 Census of Philippine Business and Industry (CPBI)

2.    Survey feedbacks from the 2014 Quarterly Survey of Philippine Business and Industry (QSPBI) and 2014 Monthly Integrated Survey of Selected Industries (MISSI); list of branches and subsidiaries from the 2013 Annual Survey of Philippine Business and Industry and 2013 Survey on Information and Communication Technology (SICT); 2014 Second Quarter Labor Turn Over Survey of the former Bureau of Labor and Employment Statistics.

3.    Department of Tourism lists of accredited tourism establishments in 2014

The estimated number of establishments in the 2014 LE totaled 944,500 establishments in operation in the country in 2014. Of this, about 28.0 percent or 266,000 establishments belong to the formal sector of which 87.0 percent or 231,000 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 2014 ASPBI unit of enumeration is the establishment. The 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).

 

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 2014 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 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.

 

Estimation Procedure

For Establishments with TE of Less Than 20

  1. 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 employment of 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

          b. Certainty Stratum

       The estimate of the total of a characteristic for the certainty employment stratum in the cth industry domain is

     

       where:  

       c    denotes the certainty employment strata in employment of less than 20 in the cth industry domain

          xcj    = value of the jth establishment in the certainty employment strata in  

                                    employment 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 employment of less than 20 in the cthindustry domain

 

Total Estimate for TE of Less Than 20

National level estimates of the total of a characteristic   for the industry domain was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

           where   d  denotes the industry domain

 

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,…, nsp establishments

         Wspj     = 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.

 

Total Estimate for all establishment

National level estimates of the characteristics by industry domain were obtained by aggregating separately the total estimates of TE of less than 20 and TE of 20 and over for a particular industry domain.

 

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

                                                 

where:

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  

 

                                        

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 2013 ASPBI. There were seven types of 2014 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 2014 ASPBI questionnaires with spot color of yellow, clearance number of PSA-1259-02 and expiry date of 31 December 2015. 

The sample establishments also responded to the survey through the use of Web-based version of the 2014 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 99 establishments, merely 1.7 percent of the total number of responding sample establishments.

 

Response Rate

The response rate for all manufacturing establishments was 87.4 percent (5,983 out of 6,848 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 2014, 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, 2014.

            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.