PREVIOUS RELEASE

2000 Census of Philippine Business and Industry (CPBI) - Manufacturing With Average Total Employment of 20 and Over : Final Results

Release Date:
January 8, 2005

 

HIGHLIGHTS

 

Number of establishments in NCR nearly half of total
 

A total of 7,450 manufacturing establishments with average total employment (ATE) of 20 or more workers were covered in the 2000 Census of Philippine Business and Industry with 1999 as the reference year. Food except beverages dominated the sector with 1,299 establishments or 17.4 percent of the total. Wearing apparel ranked second, with 931 establishments (12.5 percent) while chemical products placed third accounting for 446 establishments (6.0 percent).

The number of manufacturing establishments was significantly concentrated in the National Capital Region where nearly half (46.0 percent) or 3,426 establishments were located. Southern Tagalog followed with 1,660 establishments (22.3 percent). Central Luzon and Central Visayas accounted for 722 (9.7 percent) and 633 (8.5 percent) establishments, respectively. (See Figure 1 below.)

Food except beverages employs most number of workers
 

In 1999, employment of manufacturing establishments with ATE of 20 or more workers registered a total of 1,089,837. Of this, 1,084,228 workers or 99.5 percent were paid employees while the rest were working owners and unpaid workers.

Food except beverages, which was the leading industry in terms of number of establishments, employed the most number of workers with 170,275 or 15.6 percent of the total. This was followed by wearing apparel with 144,870 workers (13.3 percent). Electronic components ranked third with 109,895 workers (10.1 percent).

Across regions, Southern Tagalog dominated the sector in terms of employment count with 379,298 workers or 34.8 percent of the total. National Capital Region followed closely with 377,936 workers (34.7 percent). A far third is Central Visayas with 112,920 workers (10.4 percent).

Petroleum products pay more to employees
 

Total compensation paid by manufacturing establishments with ATE of 20 or more workers amounted to P114.4 billion in 1999. Average annual compensation was estimated at P105,524 per paid employee. Petroleum products registered the highest annual average compensation of P460,278 per paid employee. Seventeen (17) industries that recorded annual average compensation of over P100,000 per paid employee are shown in Table 1.

Food except beverages leads all industries in sales
 

Total revenue/sales reported in 1999 by manufacturing establishments with ATE of 20 or more workers grossed P1,760.6 billion. Food except beverages generated the highest revenue of P312.2 billion (17.7 percent). Electronic components ranked second with P226.1 billion (12.8 percent). Petroleum products followed with P184.8 billion (10.5 percent).

Food except beverages also incurs highest cost
 

In 1999, total costs excluding compensation incurred by manufacturing establishments with ATE of 20 or more amounted to P1,283.1 billion. Food except beverages incurred the biggest cost amounting to P232.7 billion (18.1 percent). This was followed by electronic components with total costs of P153.0 billion (11.9 percent). Petroleum products and office, accounting and computing machinery posted P134.8 billion and P114.4 billion, respectively, in total costs.

Food except beverages generates highest output value
 

In 1999, output value of manufacturing establishments with ATE of 20 or more was estimated at P1,758.7 billion. Food except beverages generated the highest output amounting to P313.5 billion or 17.8 percent of the total. Electronic components followed with P226.3 billion accounting for 12.9 percent. Petroleum products ranked third with P186.3 billion (10.6 percent). (See Figure 3.)

Value added ratio pegs at 32.6 percent
 

Total value added for manufacturing establishments with ATE 20 or more was estimated at P573.8 billion in 1999.

The value added ratio (VAR) for total manufacturing which is the proportion of value added to value of output, was about 32.6 percent in 1999. The following table shows the top industries in terms of VAR.

Gross addition to fixed assets reaches P102.6 Billion
 

Gross addition to fixed assets posted P102.6 billion in 1999. Electronic components contributed the biggest gross addition to fixed assets amounting to P27 billion or 26.3 percent of the total. Office, accounting and computing machinery followed next with P18.8 billion (18.4 percent). Food except beverages ranked third with P11.3 billion (11.0 percent).

Change in total inventories amounts to P26.6 Billion
 

In 1999, change in inventories reported by manufacturing establishments with ATE 20 and over workers amounted to P26.6 billion. Food manufacturing except beverages reported the highest change in inventories that accounted for 17.3 percent of the total (P4.6 billion).


EXPLANATORY TEXT

Introduction

The 2000 Census of Philippine Business and Industry (2000 CPBI) is a comprehensive collection and compilation of statistical information pertaining to business operations of establishments designed to bring forward adequate statistics on the structure and level of economic activity in the whole country. The collected data from the industrial and non-industrial sectors refer to calendar year 1999. These constitute reliable bases upon which to formulate policies and economic development plans by the government and private concerns.

Definition of Terms

Economic activity or business is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). The main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Employment refers to the average number of persons who worked in or for the establishments during the year; that is, the sum of all persons who worked all months of the year and divided by 12, regardless of the number of months the establishment was in operation during the year. Total employment includes paid employees and unpaid workers.

Paid employees are all persons working in the establishment receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.

Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.

Total compensation includes salaries and wages and employer's contribution to SSS/GSIS, and the like.

Salaries and wages are payments whether in cash or in kind, prior to deductions for employees' contribution to SSS/GSIS, withholding tax, and the like, to all employees. Included are total basic pay, overtime pay, and benefits.

Employer's contribution to SSS/GSIS, and the like refers to payments made by the employer on behalf of the employees. Examples are employer's contributions to SSS/GSIS, Employees Compensation Commission (ECC), MEDICARE, PAG-IBIG, and others.

Revenue/Sales include cash received and receivable for goods sold and services rendered. For manufacturing, total receipts include value of products sold, value of industrial services done for others, value of goods for resale, interest/dividend income and other revenue. Valuation is at producer's prices (ex-establishment), net of discounts and allowances, including duties and taxes but excluding subsidies.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods and services received by the establishment from other establishment of the same enterprise are valued as though purchased.

Value of output represents the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased, fixed assets produced on own account and change in inventories (ending less beginning) of finished goods, work-in-process and goods for resale.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Subsidies are all special grants in the forms of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

Gross additions to fixed assets as derived indicator, is equal to capital expenditures less sale of fixed assets, including land.

Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.

Capital expenditures for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or done on own account.

Change in total inventories as a derived indicator, is computed as the value of ending inventory less the value of beginning inventory.

Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost based on market prices at indicated dates.

Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Symbols Used

S - Suppressed


Source:   National Statistics Office
                    Manila, Philippines