PREVIOUS RELEASE

2010 Annual Survey of Philippine Business and Industry (ASPBI) - Manufacturing Sector : Final Results

Release Date:
February 2, 2013

 

Total number of all manufacturing establishments reaches 16,269 in 2010

The total number of all manufacturing establishments in the formal sector of the economy was estimated at 16,269, according to the final results of the 2010 Annual Survey of Philippine Business and Industry.

Among the industry sub-classes, the top ten manufacturing industries accounted for more than half (52.2%) of all manufacturing establishments. Bread, cakes, pastries, pies and similar "perishable" bakery products registered the highest number with 3,308 establishments or 20.3 percent of the total. Bottled water and printing ranked second with 1,090 establishments each.

Completing the top ten industries are:

  • Rice/corn milling (841 establishments)
  • Women's and girls' and babies' garment (526 establishments)
  • Wood furniture (424 establishments)
  • Repair of machinery (409 establishments)
  • Plastic articles for packing goods (290 establishments)
  • Structural concrete products (267 establishments)
  • Custom tailoring (260 establishments)

Figure 1 shows the percent distribution of all manufacturing establishments by industry sub-class in 2010.

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

Total employment generated by all manufacturing establishments reached 978,027 in 2010. Of this, 968,671 (99.0%) were paid employees while the rest were working owners and unpaid workers.

Industrywise, industries comprising the top ten slots in terms of employment generation accounted for 39.6 percent (388,253 workers) of the total workforce in all manufacturing establishments. Semi-conductor devices and other electronic components industry employed the highest number of workers with 117,346. This was followed by computers, computer peripheral equipment and accessories industry with 53,182 workers.

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

  • Women's and girls' and babies' garment (46,871 workers)
  • Bread, cakes, pastries, pies and similar "perishable" bakery products (41,169 workers)
  • Electric ignition or starting equipment for internal combustion engines (25,605 workers)
  • Men's and boys' garment (22,327 workers)
  • Building of ships and boats other than sports and pleasure boats (21,815 workers)
  • Printing (21,024 workers)
  • Parts and accessories for motor vehicles (19,835 workers)
  • Plastic articles for packing goods (19,079 workers).

Figure 2 shows the percent distribution of employment of all manufacturing establishments by industry sub-class in 2010.

Refined petroleum and other fuel products industries pay the highest average annual compensation

In 2010, total compensation paid to employees by all manufacturing establishments amounted to PHP204.1 billion or equivalent to an average annual compensation of PHP210,651 per employee.

Among industry sub-classes, refined petroleum and other fuel products industries paid the highest average annual compensation of PHP1.6 million per paid employee. This was followed closely by butter, cheese, and curd with average annual compensation of PHP1.2 million.

The following table shows the 14 other industries with an average annual compensation reaching more than half a million.

Table 1  Average Annual Compensation of Employees in Top-Paying Manufacturing Establishments

by Industry Sub-Class: Philippines, 2010

2009 PSIC Code

Industry Description

Average Annual Compensation per Employee

(In PHP1,000)

C20112

Industrial (compressed and liquefied) gases

868.6

C10530

Infants' powdered milk

809.9

C10560 & C10590

Milk-based infants' and dietetic foods and dairy products, n.e.c.

804.6

C10797

Mayonnaise, salad dressing, sandwich spread and similar products

787.6

C23940

Cement

682.6

C30300

Air and spacecraft and related machinery

642.4

C11030

Malt liquors and malt

628.2

C20117

Organic acids and organic compounds

614.2

C10622

Flour milling except cassava flour milling

556.3

C28120

Fluid power equipment

543.2

C10796

Flavoring extracts and food coloring

524.5

C21001

Drugs and medicines including biological products such as bacterial and virus vaccines, sera and plasma

511.3

C27122

Electricity distribution equipment

508.3

C23102

Glass containers

505.1

 

Semi-conductor devices and other electronics components industry leads in value of output

Value of output of all manufacturing establishments was estimated at PHP3.6 trillion in 2010.

More than half (51.4%) of the total value of output of all manufacturing establishments was contributed by 13 industries led by semi-conductor devices and other electronic components with an output share of 14.7 percent (PHP525.7 billion). Refined petroleum and other fuel products ranked second in terms of value of output with a combined share of 11.0 percent (PHP394.9 billion). Rounding up the 13 contributors to more than half of the total value of output are the following:

  • Computers and peripheral equipment and accessories (5.4%)
  • Motor vehicles (3.1%)
  • Non-ferrous smelting and refining, except precious metals (2.9%)
  • Parts and accessories for motor vehicles (2.3%)
  • Building of ships and boats other than sports and pleasure boats (2.0%)
  • Powdered milk (except for infants) and condensed or evaporated milk (1.9%)
  • Soft drinks (1.9%)
  • Cement (1.7%)
  • Prepared animal feeds (1.6%)
  • Electric ignition or starting equipment for internal combustion engines (1.5%)
  • Drugs and medicines including biological products such as bacterial and virus vaccines, sera and plasma (1.4%)

 

Figure 3 shows the top ten industries that generated the highest value of output for all manufacturing establishments in 2010.

Refined petroleum and other fuel products industries lead the top contributors to value added

Value added generated by all manufacturing establishments reached PHP1.0 trillion in 2010.

Among industries, the top ten industries comprised 52.6 percent of the total value added of the manufacturing sector. Refined petroleum and other fuel products led the top contributors to value added with a combined value of PHP192.4 billion or 18.7 percent of the total. Semi-conductor devices and electronic components ranked second with PHP115.7 billion or 11.2 percent of the total value added.

The ratio of value added to total employment, or a simple measure of total productivity, was recorded at PHP1.1 million.

Table 2 shows the most labor productive manufacturing industries in 2010 that exceeded a total productivity of PHP5.0 million.

Table 2  Most Labor Productive Industries for All Manufacturing Establishments

by Industry Sub-Class: Philippines, 2010

2009 PSIC Code

Industry Description

Value Added per Total Employment

(In PHP1,000)

      C19200 & C19900

Refined petroleum and other fuel products

106,420.1

      C10520

Powdered milk (except for infants) and condensed or evaporated milk (filled, combined or reconstituted)

   13,444.0

      C24220

Non-ferrous smelting and refining , except precious metals

    10,326.9

      C11030

Malt liquors and malt

     6,813.0

      C23940

Cement

     6,704.8

      C20231

Soap and detergents

     6,496.5

      C11010

Distilling, rectifying and blending of spirits

     6,365.9

      C24210

Gold and other precious metal refining

     6,037.1

      C10530

Infants' powdered milk

     5,851.5

      C10450

Refined coconut and other vegetable oil (including corn oil) and margarine

      5,826.3

      C20117

Organic acids and organic compounds

      5,778.9

      C10797

Mayonnaise, salad dressing, sandwich spread and similar products

      5,705.9

      C10622

Flour milling except cassava flour milling

      5,467.4

 

Gross addition to tangible assets reaches PHP88.3 billion in 2010

In 2010, the gross addition to tangible fixed assets of all manufacturing establishments reached PHP88.3 billion.

Semi-conductor devices and electronic components recorded the highest gross addition at PHP33.2 billion or 37.6 percent of the total. Refined petroleum and other fuel products industries followed as a far second with PHP6.5 billion (7.4%).

Spinning and texturizing industries receive PHP204.3 million worth of subsidies

Subsidies received from the government by all manufacturing establishments amounted to PHP645.1 million in 2010.

Among industry sub-classes, spinning and texturizing industries received PHP204.3 million worth of subsidies. Semi-conductor devices and electronic components industry followed with PHP33.0 million, while plastic articles for packing goods posted PHP21.9 million.

 


TECHNICAL NOTES

Introduction

The Special Release presents the final results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) for all manufacturing establishments.

As one of the designated statistical activities of the National Statistics Office (NSO), the 2010 ASPBI is aimed at collecting and generating information on the levels, structures and trends of economic activities in the country.

The survey was conducted nationwide in April 2011 with the year 2010 as the reference period of data, except for employment which is as of November 15, 2010. The 2009 Philippine Standard Industrial Classification (2009 PSIC) was adopted for the first time in this survey.

Data are presented at the national and industry sub-class or 5-digit 2009 PSIC.   

Legal Authority

The conduct of 2010 ASPBI is authorized under the following legislative acts and presidential directives:

  • Commonwealth Act 591
  • Presidential Decree No. 418
  • Executive Order No. 121
  • Executive Order No. 352
  • Executive Order No. 5

Scope and Coverage

The 2010 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 and Maintenance of Motor Vehicles, 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 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 partnership
  • Cooperatives and foundations
  • Single proprietorship with employment of 10 and over
  • Single proprietorships with branches

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2010 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.

Methodology

Sampling Design

The survey utilized stratified sampling with five-digit PSIC serving as the first stratification variable and total employment as the second stratification variable.

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:  

  =  denotes the non-certainty employment strata in TE of less than 20

 xsj = value of the jth establishment in the non-certainty employment stratum in TE 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 TE of less than 20 in the sth industry domain

 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 the sth industry domain

 

  1. 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 TE of less than 20 in the cth industry domain

  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 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 (strata of TE of 20 to 49 and TE of 50 to 99)

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 (geographic domain) is

where:

             s       denotes the non-certainty employment strata in TE of 20 and over

             p     = 1, 2,..., 17  regions (geographic domains)

     xspj   = value of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

      j      =  1, 2, 3,…, nsp establishments

     = weight of the jth establishment in the non-certainty employment strata in 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

 

  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 strata in TE of 20 and over

          p    = 1, 2,..., 17 regions (geographic domains)

xcpj  = value of the jth establishment in the certainty employment strata 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 strata 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.

 

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 or 10-19 is

                     

where:

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

 

For the non-certainty employment stratum in TE of 20-49 or 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 or 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 or 50-99 for an industry domain within each geographic domain (region)

 

Response Rate

The overall response rate is 95.4 percent.  For establishments with TE of 20 and over, the response rate is 95.0 percent while for establishments with TE of less than 20, 96.1 percent. These include 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 2010, were not imputed.

Limitation of Data

Only the formal sector was covered in the survey.

Some industries are combined with other related industry/ies so as not to disclose individual establishment’s data. In the table presented, there are 64 industry sub-classes combined to form 29 groups in order not to reveal firm level data.

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, 2010.

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.

Unpaid workers are persons working for at least one-third of the working time normal to the establishment and do not receive regular pay.      

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, PAG-IBIG etc.

Revenue includes 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.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchasers 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 of output represents the sum of the value of products and by-products sold, receipt from industrial services done for others, receipts from goods sold in the same condition as purchased less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress.

Intermediate cost refers to expenses incurred in the production of goods and industrial services such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value added is gross output less intermediate input. Gross output for the manufacturing sector is value of output plus industrial services done for others. Intermediate input is intermediate cost plus non-industrial services done by others and all other cost.

Gross addition to 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.