Manufacture of other food products industry group accounted for nearly one-third of the total manufacturing establishments

The 2022 Annual Survey of Philippine Business and Industry (ASPBI) preliminary results showed that a total of 23,361 establishments in the formal sector of the economy were engaged in manufacturing activities. This indicates a decrease of 7.6 percent from the 25,279 establishments engaged in this section in 2021. (Tables A and 1)

Among industry groups, manufacture of other food products posted the highest number of 7,162 establishments or 30.7 percent of the total for the section in 2022. This was followed by manufacture of beverages with 2,995 establishments (12.8%), printing and service activities related to printing with 2,091 establishments (9.0%), and manufacture of grain mill products, starches and starch products with 1,233 establishments (5.3%).  (Figure 1 and Table 1)

Across regions, the National Capital Region (NCR) recorded the highest number of 4,364 establishments or 18.7 percent of the total. This was followed by CALABARZON with 3,948 establishments (16.9%) and Central Luzon with 2,634 establishments (11.3%). (Table 3)

Manufacture of electronic components industry group employed the highest number of workers

The manufacturing section employed a total of 1.20 million workers in 2022, indicating an increase of 2.0 percent from the 1.18 million workers in 2021. Of the total employment for the section, 1.19 million workers or 99.3 percent were paid employees, while the remaining were working owners and unpaid workers. (Tables A and 1)

By industry group, manufacture of electronic components employed the highest number of 153,865 workers or 12.9 percent of the total employment for the section in 2022. This was followed by manufacture of other food products, and manufacture of parts and accessories for motor vehicles with 126,181 workers (10.6%) and 97,352 workers (8.1%), respectively. (Figure 2 and Table 1)

Across regions, four regions employed more than 100 thousand workers, which was led by CALABARZON with 527,508 workers or 44.1 percent of the total. The other three regions were NCR with 188,768 workers (15.8%), Central Luzon with 168,939 workers (14.1%), and Central Visayas with 135,030 workers (11.3%). (Table 3)

On the average, the manufacturing section employed 51 workers per establishment in 2022, which denotes an increase of 10.9 percent from the average employment of 46 workers per establishment reported in 2021. (Tables A and 2)

Among industry groups, manufacture of computers and peripheral equipment and accessories had the highest average employment of 1,560 workers per establishment in 2022. This was followed by manufacture of electronic components with 1,148 workers per establishment. On the other hand, custom tailoring and dressmaking registered the least average of six workers per establishment. (Table 2)

Among regions, CALABARZON employed the highest average employment of 134 workers per establishment. This was followed by Central Luzon with 64 workers per establishment. Meanwhile, Ilocos Region reported the lowest average of nine workers per establishment. (Table 4)

Manufacture of refined petroleum products industry group paid the highest average annual compensation

In 2022, the total compensation paid to the employees of the section amounted to PhP 387.46 billion, which translates to an average annual compensation of PhP 326.50 thousand per paid employee. This was 5.2 percent higher than the reported average annual pay of PhP 310.46 thousand per paid employee in 2021. (Tables A, 1, and 2)

By industry group, manufacture of refined petroleum products paid the highest average annual compensation of PhP 1.06 million per paid employee in 2022. This was followed by manufacture of pharmaceuticals, medicinal chemical and botanical products with average annual compensation of PhP 976.13 thousand per paid employee. On the other hand, custom tailoring and dressmaking paid the least average annual compensation of PhP 83.92 thousand per paid employee. (Figure 3 and Table 2)

Across regions, the Cordillera Administrative Region (CAR) paid the highest average annual compensation of PhP 624.78 thousand per paid employee in 2022. This was followed by CALABARZON with average annual pay of PhP 368.78 thousand per paid employee. On the other hand, Cagayan Valley Region paid the least average annual compensation of PhP 115.13 thousand per paid employee. (Table 4)

Manufacture of electronic components industry group generated the largest share to the total revenue and total expense

In 2022, the total revenue generated by the manufacturing section reached PhP 7.03 trillion, indicating an increase of 28.5 percent from the PhP 5.47 trillion recorded total revenue in 2021. Meanwhile, the section incurred a total expense of PhP 6.20 trillion in 2022, which shows an increment of 26.6 percent from the PhP 4.90 trillion total expense in 2021. (Figure 4, Tables A and 1)

The top three industry groups in terms of total revenue and total expense for the section were as follows:

1.    Manufacture of electronic components with total revenue amounting to PhP 830.09 billion (11.8%) and total expense of PhP 692.47 billion (11.2%);
2.    Manufacture of other food products with total revenue of PhP 469.48 billion (6.7%) and total expense of PhP 420.41 billion (6.8%); and
3.    Manufacture of motor vehicles with PhP 399.69 billion (5.7%) total revenue and PhP 377.33 billion (6.1%) total expense. (Figure 4 and Table 1)

Across regions, CALABARZON recorded the highest revenue and expense in 2022 amounting to PhP 3.17 trillion (45.1%) and PhP 2.90 trillion (46.8%), respectively. This was followed by Central Luzon with a total revenue of PhP 1.90 trillion (16.9%) and total expenditure of PhP 976.27 billion (15.7%). In contrast, the Bangsamoro Autonomous Region in Muslim Mindanao earned and spent the least revenue and expense amounting to PhP 5.66 billion (0.1%) and PhP 4.84 billion (0.1%), respectively. (Table 3)

Manufacture of batteries and accumulators industry group registered the highest revenue per expense ratio

In 2022, the revenue per expense ratio for the section was recorded at 1.13, which was 0.9 percent higher than the revenue per expense ratio of 1.12 in 2021. This indicates that for every peso spent in the operation of its business in 2022, the section generated a corresponding revenue of PhP 1.13. (Tables A and 2)

By industry group, manufacture of batteries and accumulators had the highest revenue per peso expense ratio of 2.63 in 2022. This was followed by manufacture of pharmaceuticals, medicinal chemical and botanical products, and repair of fabricated metal products, machinery and equipment with revenue per expense ratios of 1.41 and 1.36, respectively. Moreover, there were 27 other industry groups that surpassed the revenue per expense ratio of 1.13 for the section. (Table 2)

Across regions, Cagayan Valley Region recorded the highest revenue per peso expense ratio of 1.50. CAR came next with revenue per expense ratio of 1.43. In addition, there were 10 other regions which posted higher revenue per peso expense ratio than the recorded revenue per expense ratio for the section. (Table 4)

Manufacturing section generated PhP 2.15 billion worth of sales from e-commerce transactions

E-commerce transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, government, and other public or private organizations, conducted over the Internet. The goods and services are ordered over the Internet, but the payment and the ultimate delivery of the good or service may be conducted online or offline.

The total sales from e-commerce transactions for the manufacturing section amounted to PhP 2.15 billion in 2022. This indicates a decrease of 87.5 percent from the recorded sales from e-commerce transactions in 2021 at PhP 17.21 billion. (Tables A and 1)

Among industry groups, manufacture of dairy products generated the highest e-commerce sales of PhP 906.73 million or 42.3 percent of the total e-commerce sales for the section in 2022. This was followed by manufacture of basic iron and steel with PhP 286.68 million (13.4%) and manufacture of other chemical products, not elsewhere classified with PhP 281.13 million (13.1%). (Table 1)

Out of 17 regions, 14 generated sales from e-commerce transactions in 2022, which was led by NCR with PhP 1.79 billion or 83.5 percent of the total. This was followed by CALABARZON and Central Luzon with recorded e-commerce transactions of PhP 176.92 million (8.3%) and PhP 43.40 million (2.0%), respectively. (Table 3)
 

DIVINA GRACIA L. DEL PRADO, PhD   
Assistant Secretary   
Deputy National Statistician   
Sectoral Statistics Office   
 

TECHNICAL NOTES     
2022 Annual Survey of Philippine Business and Industry

I. Introduction

I.1. Background of the Survey

The Annual Survey of Philippine Business and Industry (ASPBI), one of the designated statistical activities of the Philippine Statistics Authority (PSA), generates essential statistics for economic planning and analysis. It is specifically designed to collect and generate information on the levels, structure, performance, and trends of economic activities of the formal sector of the country’s economy.

The 2022 ASPBI is the 50th in the series of annual surveys of establishments in the country. It was conducted nationwide in April 2023 with 2022 as reference period.

The conduct of the 2022 ASPBI is authorized under Republic Act No. 10625, known as the Philippine Statistical Act of 2013, which mandates the PSA to collect, compile, analyze, and publish statistical information relating to the country’s economic condition.

I.2. Objectives

The 2022 ASPBI aims to collect and generate information on the levels, structure, performance, and trends of economic activities of the formal sector of the economy for the year 2022.

Specifically, the 2022 ASPBI aims to:

1. collect and generate detailed information on employment, revenue, expense, inventories, tangible fixed assets, intangible assets, and total assets of the establishments;     
2. generate estimates for other economic indicators such as value added, average compensation, and other indicators which are necessary to evaluate the performance of industries at the national and regional levels;     
3. generate statistics for micro, small, and medium establishments (MSME) where identification of MSME is based on total employment; and     
4. gather pertinent information for the updating of the sampling frame of establishment-based surveys.

I.3. Historical Information on the Survey

Annual surveys are usually conducted a year after the reference year. Except for the survey conducted in 2002, the year in the survey title refers to the reference year.

The following are the annual surveys conducted:

1. 1956 Annual Survey of Manufactures (ASM) – First annual survey of establishments undertaken since the Bureau of Census and Statistics (BCS) was established in 1940. It was conducted jointly by the National Economic Council (now the National Economic and Development Authority or NEDA) and the BCS with technical assistance provided by the International Cooperation Administration (ICA) of the United States (US). The ICA is the predecessor of the now US Agency for International Development (USAID).     
2. 1957 ASM – This was also conducted jointly by NEDA and BCS.     
3. 1958 ASM – This survey was integrated as a regular activity of the BCS.     
4. 1959, 1960, 1962, 1963, 1964, 1965, and 1966 ASM – Annual Surveys of Manufactures were conducted for these years.     
5. 1965 Annual Survey of Wholesale and Retail Trade (ASWRT) was conducted for the City of Manila only. The 1966 ASWRT was expanded to cover both the City of Manila and suburbs, but there were no available publications.     
6. 1968 and 1969 – The ASM and the ASWRT were conducted.            
7. The 1968 ASWRT was the start of the annual series for wholesale and retail trade at the national level.     
8. 1970 and 1971 Annual Survey of Establishments (ASE) – The scope of the annual survey was expanded to include the business, utilities, and services sectors, aside from manufacturing, and wholesale and retail trade.     
9. 1973 and 1974 ASE – The coverage of the 1971 ASE was expanded to include Mining and Quarrying; Construction; and Transportation, Communication and Storage; Electricity, Gas, and Water; Financing; Insurance; Real Estate and Business Services were included for the first time in the 1974 ASE.     
10. 1976 ASE – The annual survey was conducted for all sectors, which was also the start of the Annual Surveys of Agriculture, Forestry and Hunting, and Fishing.     
11. 1977, 1979, 1980, 1981, 1982, 1984, 1985,1986, 1987, 1989, 1990, 1991, 1992, 1993 and 1995 – Annual surveys for all sectors were conducted for these years.     
12. 1996 and 1997 ASE – Only one survey was conducted for all sectors to collect data for two years, 1996 and 1997.     
13. 1998 ASE – Annual survey was conducted for all sectors.     
14. 2000 – No annual survey was conducted for this reference year.     
15. 2001 – The title of the survey for this reference year was renamed as 2002 Annual Survey of Philippine Business and Industry (ASPBI). This was based on NSCB Resolution No.3 Series of 2000 which approved the change in the title of Census of Establishments to 2000 Census of Philippine Business and Industry (CPBI) and changed the title to the year when the census was undertaken. Thus, the title of the ASE was changed accordingly to ASPBI.     
16. 2002 – No annual survey was undertaken for this reference year.     
17. 2003 ASPBI – Starting with the 2003 ASPBI, the year in the survey title referred again to the reference year. The survey was conducted in 2004.     
18. 2004 – No annual survey was undertaken for this reference year.     
19. 2005 ASPBI – An annual survey was conducted in 2006 instead of the originally planned 2005 Census of Philippine Business and Industry.     
20. 2007 and 2011 – No annual survey was undertaken for these reference years.     
21. 2009, 2010, 2013, 2014, 2015, 2016, 2017, 2019, 2020 and 2021 ASPBI – The surveys were conducted for these reference years.

An economic census of establishments was undertaken for reference years 1903, 1918, 1939, 1948, 1961, 1967, 1972, 1975, 1978, 1983, 1988, 1994, 1999, 2006, 2012, and 2018. Except for 1999, the title of the census refers to the year the census was conducted. For these years, no annual surveys were undertaken.

I.4. Scope and Coverage

The 2022 ASPBI covered establishments engaged in 18 sections classified according to the 2009 Philippine Standard Industrial Classification (PSIC), namely:

1. Agriculture, Forestry, and Fishing (A)     
2. Mining and Quarrying (B)     
3. Manufacturing (C)     
4. Electricity, Gas, Steam, and Air Conditioning Supply (D)     
5. Water Supply; Sewerage, Waste Management, and Remediation Activities (E)     
6. Construction (F)     
7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)     
8. Transportation and Storage (H)     
9. Accommodation and Food Service Activities (I)     
10. Information and Communication (J)     
11. Financial and Insurance Activities (K)     
12. Real Estate Activities (L)     
13. Professional, Scientific, and Technical Activities (M)     
14. Administrative and Support Service Activities (N)     
15. Education (P)     
16. Human Health and Social Work Activities (Q)     
17. Arts, Entertainment, and Recreation (R)     
18. Other Service Activities (S)

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

1. Corporations and partnership, regardless of employment size;     
2. Cooperatives and foundations, regardless of employment size;     
3. Single proprietorships with branches, regardless of employment size; and     
4. Single proprietorship with no branches but with total employment (TE) of 10 and over.

Hence, the 2022 ASPBI covered all establishments regardless of employment size, except those establishments with:

1. Legal Organization of single proprietorship (LO=1),     
2. Economic Organization of single establishment (EO=1), and     
3. TE of less than 10.

II. Data Collection and Processing

II.1. Data Collection

The survey was conducted nationwide in 2023 with 2022 as the reference period, except for employment where the reference period is as of 15 November 2022.

Distribution and collection of 2022 ASPBI questionnaires were done according to a timetable set. Distribution was done in April 2023 through personal visits by PSA field staff to the sample establishments located in the provinces and cities nationwide. The collection of accomplished questionnaires started one week after distribution.

II.2. Survey Instruments

The 2022 ASPBI utilized seven forms of questionnaires which captured data of sample establishments engaged in the 18 sections of the economy as defined in the 2009 PSIC. The seven forms of questionnaires are presented in the table below:

Each form of the survey questionnaire is available in three options. These are the following:

1. online questionnaire which can be accessed at https://aspbi.psa.gov.ph;     
2. electronic copy of the questionnaire, either in portable document format (.pdf) or Excel (.xlsx) file format; and     
3. printed copy of the self-administered questionnaire.

The sample establishment can choose from these options in recording the information for the data items in the survey questionnaire.

II.3. Data Items

The survey collected data on employment, revenue, expense, sales from e-commerce transactions, capital expenditure, book value of fixed tangible and intangible assets, average capacity utilization rate, and inventory.

II.4. Data Processing

To ensure quality of survey reports, several levels of validation following guidelines set were done during the processing phase of the survey operation.

Computer systems were also developed and used to facilitate the smooth conduct and monitoring of the survey operation. These were the Monitoring and Tracking System (MTS) and the Establishment Data Management System (EDMS) which are online systems. The MTS was used to monitor the real-time progress of the survey operation, which included distribution, collection, transmittal, manual processing, and data processing of questionnaires, among others. On the other hand, the EDMS was used in the processing of data and tabulation of survey results.

III. Methodology

III.1. Sampling Frame

The sampling frame for the 2022 ASPBI was extracted from the preliminary 2022 List of Establishments (LE) updated as of 10 February 2023. This frame was used to draw the sample establishments for the survey. The preliminary 2022 LE showed that there were 1,100,781 establishments that were in operation in the country of which 360,637 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2022 ASPBI.

III.2. Sample Selection Procedure

The 2022 ASPBI uses a stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the section and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases the precision of “overall” survey estimates.

Domain

The geographic domain of the 2022 ASPBI is the region. The industry domain/stratum is a 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2022 ASPBI is the establishment.

III.3. Estimation Procedure

III.3.1. Weights Computation

Base Weight

The base weight is the inverse of the probability of selection.  For the ASPBI, the base weight for each domain is given by:

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry section is as follows:

Final Weight

The final weight is the product of the base weight and adjustment factor.  That is,

III.3.2. Estimation of Total

Total by Industry-Employment Stratum (h)

The estimator for the total of a characteristic in each industry-employment stratum (h) in a region (geographic domain) is given by:

Total by Industry Stratum per Region

The estimator for the total of a characteristic in each industry stratum in a region is given by:

Total by Employment Stratum per Region

The estimator for the total of a characteristic in each employment stratum for the regional domain is given by:

Total by Geographic Domain

The estimator for the total of a characteristic in each geographic domain is given by:

Total by Industry Stratum (National)

The estimator for the national total of a characteristic in each industry domain/stratum is given by:

Total by Employment Stratum (National)

The estimator for the national total of a characteristic in each employment domain/stratum is given by:

III.4. Response Rate

Response rate for all Manufacturing section was 85.5 percent (6,838 out of 7,994 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out, or out-of-scope establishments.     

Of the total responses, 408 establishments or 6.0 percent responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2022 were not included in the generation of statistical tables.

IV. Concepts and Definitions of Terms

An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be a single establishment, branch, establishment, and main office with branches elsewhere, main office only, or an ancillary unit other than the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be a single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, or cooperative.

Industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue.  The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017, was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment as of the time of visit during the latest Updating of the List of Establishments.

Total Employment (TE) refers to the total number of persons who work in or for the establishment. This includes paid employees, working owners, unpaid workers, and all employees who work full-time or part-time including seasonal workers. Also included 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 31 December 2020 was used for the 2020 ASPBI.

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Expense is the cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser 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.

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.

Revenue is the 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.

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.

E-commerce transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private organizations, conducted over the Internet. The goods and services are ordered over the Internet, but the payment and the ultimate delivery of the good or service may be conducted on or offline.

V. Dissemination of Results and Revision

The results of the 2022 ASPBI are disseminated through the posting of Special Releases and electronic publications on the PSA website, and final statistical tables in OpenStat. The updating or revisions on data were done upon finalizing the results of the 2022 ASPBI data.

This Special Release presents the results of the 2022 ASPBI for Manufacturing establishments (Section C). Data are presented by industry group or 3-digit classification as classified under the 2009 PSIC.

Section 26 of RA 10625 requires that data furnished by respondents be kept confidential. To avoid disclosure of information of individual establishment, statistical tables do not provide information for any industry group wherein the number of establishments is less than three. Figures relating to such industries were either suppressed or combined with those of other related industries in accordance with the guidelines on statistical disclosure control of data for establishments’ survey.

VI. Citation

Philippine Statistics Authority. (October 2024). Technical Notes on the 2022 Annual Survey of Philippine Business and Industry (ASPBI).

https://psa.gov.ph/technical-notes/2022aspbi

VII. Contact Information

John Paul C. Sacop     
Chief Statistical Specialist   
Industry Statistics Division   
(632) 8376-2060   
isd.staff@psa.gov.ph

For data request, you may contact the:     
Knowledge Management and Communications Division      
(632) 8462-6600 locals 820 and 823     
info@psa.gov.ph