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Release Date :
Reference Number :
2018-249

Central Luzon leads the regions in terms of number of establishments

The preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 226 establishments with Total Employment (TE) of 20 and over under Electricity, Gas, Steam and Air Conditioning Supply sector.

All establishments of the sector were engaged in electric power generation, transmission and distribution. (Table 1)

Among regions, Central Luzon was the lead with 31 establishments or 13.7 percent of the total. This was followed by CALABARZON and Central Visayas with 23 (10.2%) and 20 (8.8%) establishments, respectively. These top three regions accounted for nearly one-third (32.7%) of the total establishments for the sector. On the other hand, Autonomous Region in Muslim Mindanao (ARMM) recorded the least count with only 5 establishments (2.2%).

Figure 1 shows the regional distribution of Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over by industry group in 2016.

Figure 1

 

Total employment of the sector reaches 46,949

Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over employed a total of 46,949 workers in 2016. Of the total employment, 46,893 or 99.9 percent were paid employees and the rest were either working owners or unpaid workers.

The top three regions in terms of employment generation were all located in Luzon. National Capital Region (NCR) employed the most number of workers with 7,942 or 16.9 percent of the total. This was followed by Central Luzon with 5,421 workers (11.5%) and CALABARZON with 4,883 workers (10.4%).

The average number of workers per establishment for this sector was recorded at 208. NCR recorded the highest average employment of 1,324, followed by Negros Island Region (NIR) and Zamboanga Peninsula with 276 and 241 workers per establishment, respectively.

Figure 2 shows the regional distribution of employment for Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over in 2016.

Figure 2

 

CALABARZON pays the highest average annual compensation

Total compensation, which consists of gross salaries and wages, separation and retirement/terminal pay, gratuities, employers’ contribution to SSS/GSIS, and other benefits, amounted to PHP35.3 billion in 2016. This translates to an average annual compensation of PHP752,788 per employee.

At the regional level, CALABARZON paid the highest average annual compensation of    PHP1,269,334 per employee. NCR and Eastern Visayas, which placed second and third, paid an average annual compensation per employee of PHP1,184,402 and PHP904,127, respectively. Autonomous Region in Muslim Mindanao (ARMM) paid the least average annual compensation per employee of PHP209,420.

Figure 3 shows the average annual compensation of employees in the Electricity, Gas, Steam and Air Conditioning Supply establishments with total employment of 20 and over by region in 2016.

Figure 3

 

Value of output of the sector reaches PHP753.5 billion

Total value of output generated by establishments with TE of 20 and over amounted to PHP753.5 billion.

Among the regions, CALABARZON generated the highest value of output with PHP177.2 billion representing 23.5 percent of the total. This was followed by NCR with PHP166.9 billion or 22.1 percent. Central Luzon placed third with value of output equivalent to PHP109.4 billion or 14.5 percent. ARMM reported the least value of output at PHP1.6 billion or 0.2 percent of the total.

Figure 4 shows the distribution of value of output for Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over in 2016.

Figure 4

 

Total expense amounts to PHP651.0 billion, CALABARZON spends the most

Total expense including compensation for Electricity, Gas, Steam and Air Conditioning Supply with TE of 20 and over amounted to PHP651.0 billion in 2016.

CALABARZON was the highest spender among regions with estimated value of PHP162.1 billion or 24.9 percent of the total. This was followed by NCR and Central Luzon spending PHP140.4 billion (21.6%) and PHP88.7 billion (13.6%), respectively. ARMM spent the least amount with only PHP1.6 billion (0.2%).

 

Income per expense ratio recorded at 1.21, CAR records the highest return

Income per expense ratio for establishments with TE of 20 and over in 2016 was recorded at 1.21, indicating that for every peso spent, PHP1.21 was realized in terms of income.

Among regions, Cordillera Administrative Region (CAR) registered the highest return at   1.52 income per peso expense. This was followed by Ilocos Region and Northern Mindanao, with 1.38 and 1.36 income per peso expense, respectively.

 

Value added reaches PHP224.6 billion, NCR contributes the highest

Value added generated by Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over reached PHP224.6 billion in 2016.

Region-wise, NCR contributed the biggest share with PHP49.2 billion or 21.9 percent of the total value added. This was followed by CALABARZON and Central Luzon with respective value added and shares of PHP42.7 billion or 19.0 percent and PHP33.6 billion or 15.0 percent.

 

Labor productivity of the sector is PHP4.8 million per worker, CALABARZON the most productive

Labor productivity, which is the ratio of value added per worker, was estimated at PHP4.8 million per worker for establishments with TE of 20 and over.

Among regions, the most productive was CALABARZON generating PHP8.7 million value added per worker. Central Visayas followed with PHP6.4 million value added per worker and CAR placed third with PHP6.3 million value added per worker.

 

Gross addition to tangible fixed assets amounts to PHP31.1 billion, Eastern Visayas reported the highest

Gross addition to tangible fixed assets was estimated at PHP31.1 billion in 2016.

Regional profile shows that Eastern Visayas reported the highest gross addition to tangible fixed assets valued at PHP6.7 billion or 21.7 percent of the total. NCR followed at PHP5.3 billion or 17.0 percent of the total. CALABARZON placed third with PHP5.2 billion (16.7%).

 

Total subsidies reaches PHP5.0 billion

Total subsidies provided by the government to support the business operation of Electricity, Gas, Steam and Air Conditioning Supply establishments with TE of 20 and over was estimated at PHP5.0 billion.

Among regions, Eastern Visayas received the highest subsidy estimated at PHP891.4 million or 17.8 percent of the total. This was followed by Central Visayas and Caraga with subsidies amounting to PHP817.5 million (16.4%) and PHP788.2 million (15.8%), respectively.

 

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
Director II
Officer-in-charge, SSO

 

 

 

 


TECHNICAL NOTES
 

Introduction

This Special Release presents the preliminary results of the 2016 ASPBI for the Electricity, Gas, Steam and Air Conditioning Supply sector (Sector D) for establishments with total employment of 20 and over.

The 2016 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 the year 2016 as the reference period of data, except for employment which is as of November 15, 2016.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2016 ASPBI questionnaires in the province 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 and regional level.

 

Legal Authority

The conduct of the 2016 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which mandates reorganizing and strenghthening 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 Activities (Q)
• Arts, Entertainment and Recreation (R)
• Other Service Activities (S)

However, three (3) sectors of the 2009 PSIC are not covered. These are:

• Public Administration and Defense; Compulsory Social Security (Section O)
• Activities of Households as Employers; Undifferentiated Goods and Services Producing Activities of Households for Own Use (Section T)
• Activities of Extra-territorial Organization and Bodies (Section 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 2016 ASPBI covered only the following economic units:

• All establishments with total employment of 10 and over; and
• All establishments with total employment of less than 10, except those with Legal Organization = 1 (Single proprietorship) and Economic Organization = 1 (Single establishments), that are engaged in economic activities described 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.

 

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 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 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. 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 December 31, 2015 was used for the 2016 ASPBI.

 

Methodology

Sampling Design

The survey utilized stratified systematic sampling with 3-digit or 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 18 administrative regions serve as the geographic domains while the 5-digit level (sub-class) of the 2009 PSIC serves as the industry domain.

All establishments in the formal sector for the Electricity, Gas, Steam and Air Conditioning Supply sector were covered on a 100 percent or on a certainty basis because of their relatively small number.

Estimation Procedure for Establishments with TE of 20 and Over

Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

The estimate of the total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region

Formula

where:

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

Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic Formula for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata in the same industry domain,

Formula

where dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates Formula for the particular industry domain from all the regions.

 

Response Rate

Response rate for Electricity, Gas, Steam and Air Conditioning Supply Sector for establishments with TE of 20 and over was 98.7 percent (226 out of 229 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

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 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.

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 November 15, 2016.

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, home workers and workers receiving pure commissions only.

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.

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 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.

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. Excluded are orders received from telephone, facsimile and e-mails.

Expense refers to cost incurred by the establishment in an enterprise’s effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used; fuels, lubricants, oils and greases, electricity and water purchased, and industrial services done by others.

Value added is gross output less intermediate input. Gross output 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 expense.

Value of output represents the sum of the receipts from revenue from main activity, income from industrial services done for others, goods sold in the same condition as purchased  less the cost of goods sold and value of fixed assets produced on own account.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

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.

Subsidies refer to special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.

 

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