Land transport operation industry dominates Transport, Storage and Communications sector
From the preliminary results of the 2009 Annual Survey of Philippine Business and Industry, the Philippines had a total of 960 establishments with TE of 20 and over engaged in Transport, Storage and Communications sector. Land transport operation (I601) topped the sector with 242 establishments or 25.2 percent. This was followed by Activities of other transport agencies (I639) and Telecommunications (I642) industries with 202 establishments (21.0%) and 117 establishments (12.2%), respectively. Figure 1 shows the percentage distribution of establishment by industry group in 2009.
Most of the establishments are located in National Capital Region (NCR)
On the regional level, more than half of the establishments are located in the NCR with 560 (58.3%). Central Visayas followed with 80 establishments (8.3%) and CALABARZON came in third with 73 establishments (7.6%). Autonomous Region in Muslim Mindanao (ARMM) has the least number of establishments recording only three (3).
Telecommunications industry generates the highest employment
Employment for the sector reached a total of 149,657 in 2009. Almost all or 99.3 percent were paid employees (148,553).
Among the industries, Telecommunications (I642) industry had the highest number of employees with 33,384 (22.3%). The Land transport operation (I601) industry ranked second with 20.8 percent and Activities of other transport agencies (I639), third with 13.4 percent. Non-scheduled air transport (I622) industry employed the least with only 242 employees (0.2%). Distribution of employment by industry groupthe sector was shown in Figure 2.
Across region, NCR was the top employer with more than two-thirds of total employment or 104,230 employees. Central Visayas was a distant second with 8,458 employees (5.7%) followed by CALABARZON with 6,804 employees (4.5%). Cagayan Valley region employed the least with only 141 employees (0.1%).
Telecommunications industry pays the highest compensation
The total compensation paid by Transport, Storage and Communications sector amounted to PhP57.6 billion, an equivalent of PhP387,908 average annual compensation. About 86.0 percent of the total compensation or PhP49.5 billion went to gross salaries and wages while PhP3.1 billion (5.4%) went to social contributions and the remaining PhP5.0 billion (8.6%) went to separation, retirement, terminal pay, gratuities and others.
By industry group, almost half of the total compensation of the sector was paid by Telecommunications (I642) industry with PhP27.6 billion (47.8%). Scheduled air transport (I621) industry came in second with PhP9.2 billion (16.0%) and Activities of other transport agencies (I639) industry placed third with PhP4.4 billion (7.6%).
Among the regions, NCR topped the labor payments that amounted to PhP51.8 billion (89.9%). Central Visayas came far next with PhP1.2 billion (2.1%) and Davao region came third with PhP1.0 billion (1.8%). CAR was the least payer with only PhP16.6 million.
Employees of telecommunications industry earn the highest
Telecommunications (I642) industry employees were the highest earner in 2009 with an average annual compensation of PhP826,724. Employees of Scheduled air transport (I621) industry and Non-scheduled air transport (I622) industry followed with PhP811,094 and PhP473,833, respectively. Workers in Land transport operation (I601) industry received the lowest average annual compensation with PhP139,796. Figure 3 shows the leading industries with highest average annual compensation for the sector.
By region, NCR-based workers received the highest average annual compensation of PhP498,334 while employees from ARMM received the least with only PhP43,029.
Total revenue sums to PhP525.2 billion; Telecommunications industry produces the largest
Gross revenue earned in 2009 for Transport, Storage and Communications sector reached PhP525.2 billion. Telecommunications (I642) industry was the top contributor with revenue of PhP280.9 billion or 53.5 percent of the total. Earning the second place was Scheduled air transport (I621) industry with PhP97.1 billion (18.5%) followed by Sea and coastal water transport (I611) PhP35.9 billion (6.8%).
With respect to regions, more NCR produced the highest revenue amounting to PhP490.8 billion (93.4%). ARMM produces the least revenue amounting to only PhP52.7 million. Distribution of revenue for the sector in 2009 was shown in Figure 4.
Total cost totals to PhP325.5 billion, Telecommunications industry spends the highest
Costs for operating the industry summed up to PhP325.5 billion. Telecommunications (I642) industry incurred the highest cost with PhP145.0 billion (44.6%) followed by Scheduled air transport (I621) industry with PhP79.7 billion (24.5%). Sea and coastal water transport (I611) came in third with PhP26.8 billion (8.2%). Revenue and cost distribution for the sector is shown in Figure 5.
Across regions, NCR spent the largest as it incurred PhP299.5 billion (92.0%) cost for operating the industry. Central Visayas and CALABARZON followed with PhP8.1 billion (2.5%) and PhP6.0 billion (1.9%), respectively. CAR spends the least cost with only PhP20.2 million.
Revenue-cost ratio reaches to 1.6, Supporting and auxiliary activities to land transport industry records the highest returns
Revenue per peso cost for the sector estimated at 1.6. Among industries, Supporting and auxiliary activities to land transport (I631) industry posted the highest ratio of 2.1 followed closely by Supporting and auxiliary activities to water transport (I632) industry with 2.0.
Value added amounts to PhP298.8 billion
Value added was estimated at PhP298.8 billion. Almost seventy percent of the total value added of the sector or PhP202.7 billion was contributed by Telecommunications (I642) industry. Scheduled air transport (I621) and Supporting and auxiliary activities to land transport (I631) industries followed with PhP29.9 billion (10.0%) and PhP15.5 billion (5.2%), respectively. Figure 6 shows the percentage distribution of value added for the sector in 2009.
Employees of Telecommunications and Scheduled air transport industries are the most productive
Employees of Telecommunications (I642) industry were the most productive in 2009 in terms of value added per total employment with PhP6.1 million, more than thrice the national average of PhP2.0 million. Supporting and auxiliary activities to land transport (I631) and Scheduled air transport (I621) were the other industries that surpassed the national average with PhP2.8 million and PhP2.6 million, respectively.
Revenue per employee, another measure of labor productivity, was valued at PhP3.5 million. Among industries, Scheduled air transport (I621) industry had the highest average of PhP8.5 million while Land transport operation (I601) industry recorded the least average of PhP686,616.
Total change in inventories valued at PhP960.5 million
Change in inventories, defined as the value of ending inventory less the beginning, amounted to PhP960.5 million in 2009. Among industries, Scheduled air transport (I621) industry recorded the highest change in inventories with PhP557.7 million (58.1%). Land transport operation (I601) industry followed with PhP278.7 million (29.0%). Telecommunications (I642) industry, on the other hand, had the highest negative inventories amounting to PhP120,288.
Gross addition to fixed assets sums to PhP54.1 billion
Gross addition to fixed assets in 2009 totaled to PhP54.1 billion with Telecommunications (I642) industry recording the highest amount of PhP40.6 billion (75.0%). Scheduled air transport (I621) industry was next with PhP5.7 billion (10.5%) and Sea and coastal water transport (I611) followed with PhP3.3 billion (6.1%).
Subsidies in 2009 amounts to PhP2.8 billion
Subsidies granted by the government to the sector amounted to PhP2.8 billion in 2009. Most of the subsidies were given to Land transport operation (I601) with PhP2.7 billion (99.0%). Supporting and auxiliary activities to water transport (I632) industry was a far second with PhP10.8 million.
Industry Code and Descriptions at three-digit PSIC:
|I601||Land transport operation|
|I602||Transport via pipelines|
|I609||Other land transport operation, n.e.c.|
|I611||Sea and coastal water transport|
|I612||Inland water transport|
|I613||Renting of ship with operator|
|I614||Towing and pushing services|
|I621||Scheduled air transport|
|I622||Non-scheduled air transport|
|I631||Supporting and auxiliary activities to land transport|
|I632||Supporting and auxiliary activities to water transport|
|I633||Storage and warehousing|
|I634||Storage and warehousing|
|I635||Activities of tour and travel agencies and tour operators; tourist assistance activities, n.e.c.|
|I639||Activities of other transport agencies|
|I641||Postal and courier activities|
The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals.
The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19,1940.
Scope and Coverage
The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:
- A - Agriculture, Hunting and Forestry
- B - Fishing
- C - Mining and Quarrying
- D - Manufacturing
- E - Electricity, Gas and Water Supply
- F - Construction
- G - Wholesale and Retail Trade, Repair and Maintenance of Motor Vehicles, Motorcycles, and Personal and Household Goods
- H - Hotels and Restaurants
- I - Transportation, Storage and Communications
- J - Financial Intermediation
- K - Real Estate, Renting and Business Activities
- M - Private Education
- N - Health and Social Work
- O - Other Community, Social and Personal Service Activities
The scope of the ASPBI was confined to the "formal sector" only consisting of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorships with employment of 10 or more
- Single proprietorships with branches
Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."
Classification of Establishments
Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment is an establishment which has neither branch nor main office
- Branch only is an establishment which has a separate main office located elsewhere
- Establishment and main office, both located in the same address and with branches elsewhere
- Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
- Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provide goods or services that support but do not become part of the output of those establishments
The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator.
- Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners, Partners, Limited or LTD., Associates or ASSOCS.
- Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC.
- Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC.
- Cooperative - the establishment name includes words such as Cooperative or COOP
The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.
The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.
The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2009 ASPBI:
The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.
Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.
A total of 1,190 or 92.9 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
CONCEPTS AND DEFINITIONS OF TERMS
Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, 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.
Total Employment is the number of persons who worked in or for this establishment as of November 15, 2009.
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, workers receiving pure commissions only, and workers on indefinite leave.
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.
Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.
Costs refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.
Costs of goods sold represents the sum of the total value of goods purchased for resale and change in inventory of goods for resale (beginning less ending).
Value added is gross output less intermediate costs.
Gross Output is equal to the sum of the total revenue (less rent income from land, delivery charges separately invoiced to customers, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories of goods for resale ;less cost of goods purchased for resale.
Intermediate costs is equal to the sum of the following cost items: materials and supplies ; fuels, lubricants, oils and greases ; electricity and water ; cost of industrial services done by others; cost of non-industrial services done by others(less rent expense for land);research and experimental development expense; environmental protection expense; royalty fee; franchise fee, inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost.
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, other structures and land improvements, transport equipment, fixtures, machinery, tool, furniture, office equipment and other fixed assets.
Book value of tangible fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.
Gross addition to fixed assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.
Inventories refer to the stocks of goods owned by and 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 in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.
Subsidies are special grants in the form 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.
Source: National Statistics Office