2014 Annual Survey of Philippine Business and Industry (ASPBI) - Transport and Storage Sector For Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 2016-156
Release Date: 04 January 2017

Support activities for transportation industry leads the sector

Preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) showed that the Philippines had a total of 1,108 establishments with Total Employment of 20 and over engaged in Transport and storage sector. Support activities for transportation topped the sector with 445 establishments or 40.2 percent. This was followed by industries engaged in other land transport and transport via buses with 287 establishments (25.9%) and 151 establishments (13.6%), respectively. Figure 1 shows the percentage distribution of establishments by industry group in 2014.

 

 

Most of the establishments are located in National Capital Region (NCR)

At the regional level, more than half (54.9%) of the number of establishments were located in NCR comprising 608 establishments. CALABARZON followed with 125 establishments (11.3%) and Central Visayas came in third with 94 establishments (8.5%).

 

Support activities for transportation employ the biggest number of workers

The employment generated for the sector was recorded at 138,573. Of the total, 99.0 percent were paid employees (137,251) and the rest were unpaid workers.

Among industries, support activities for transportation provided the largest number of employees with 50,921 or 36.7 percent. Transport via buses ranked second employing 30,001 or 21.6 percent and other land transport came in third with 17,120 or 12.4 percent. Figure 2 shows the distribution of employment by industry group.

 

By region, NCR was the highest employer with 81,266 employees (58.6%). CALABARZON came in second with 11,051 employees (8.0%) and closely followed by Central Visayas with 9,704 employees (7.0%).

 

Employees of support activities for transportation earn the highest compensation

The total compensation paid by the sector amounted to PHP49.3 billion in 2014. Among industry group, support activities for transportation industry paid a total compensation of PHP23.7 billion or 48.1 percent of the total. Passenger air transport came in second with PHP9.8 billion or 19.9 percent while transport via buses placed third with PHP4.1 billion or 8.3 percent.

The highest average annual compensation of PHP1,070,434 was received by employees in passenger air transport. Employees in support activities for transportation and courier activities, were the second and third highest earners, with average annual compensation of PHP469,871 and PHP351,196, respectively. On the other hand, employees in inland water transport received the lowest average pay with PHP65,750 annually. Figure 3 shows the average annual compensation of employees for Transportation and storage establishments by industry group.

 

Support activities for transportation industry generates the highest income

Income earned by the sector in 2014 reached PHP484.7 billion. Support activities for transportation was the top contributor with total income of PHP184.2 billion or 38.0 percent of the total. Earning the second place was passenger air transport with PHP166.3 billion or 34.3 percent, followed by sea and coastal water transport with PHP48.7 billion or 10.0 percent.

Regionwise, NCR produced the highest revenue amounting to PHP411.4 billion (84.9%). CALABARZON followed next generating an income of PHP27.4 billion (5.6%) and Central Visayas contributed PHP18.0 billion (3.7%).

 

Passenger air transport industry spends the biggest

Operating expenses reached PHP431.2 billion in 2014. Passenger air transport industry incurred the highest expense of PHP169.7 billion or 39.4 percent, followed by support activities for transportation with PHP146.6 billion or 34.0 percent. Sea and coastal water transport industry came in third with PHP39.4 billion or 9.1 percent. Figure 4 displays a comparison of income and expense for the top five (5) industries.

 

Across region, NCR spent the largest as it incurred PHP370.0 billion (85.8%) for operating the industry. CALABARZON and Central Visayas followed next with PHP20.3 billion (4.7%) and PHP16.7 billion (3.9%), respectively.

 

Income-Expense ratio stands at 1.12

Income per peso expense for the sector was computed at 1.12. Warehousing and storage industry posted the highest ratio of 1.4. This was followed by support activities for transportation with 1.39 and sea and coastal water transport have income per expense of 1.12.

 

Value added amounts to PHP155.3 billion

Value added for the sector was estimated at PHP155.3 billion. Support activities for transportation contributed more than half (55.6%) of the total value added or PHP86.3 billion. Both sea and coastal water transport and passenger air transport industries followed with value added of PHP18.5 billion or 11.9. On the other hand, inland water transport generated the least with PHP148.6 million. Figure 5 shows the distribution of value added for the sector.

 

 

Employees of passenger air transport industries are the most labor productive

Employees of passenger air transport were the most labor productive, in terms of value added per worker, with PHP2.0 million. Support activities for transportation with PHP1.7 million per worker ranked second. Transportation via railways landed third with PHP1.6 million.

 

Gross additions to tangible fixed assets sum up to PHP35.0 billion

Transport and storage activities acquired total gross additions to tangible fixed assets amounting to PHP35.0 billion. Among industries, support activities for transportation reported the highest addition to fixed assets with PHP16.8 billion or 48.1 percent of the total. Establishments engaged in passenger air transport and sea and coastal water transport ranked second and third with PHP11.3 billion (32.4%) and PHP2.4 billion (6.8%), respectively.

 

Subsidies amounts to PHP182.7 million

Subsidies granted by the government to the sector amounted to PHP182.7 million. Transport via railways received the highest subsidy. Due to statistical disclosure the industry data was suppressed. Three other industries, sea and coastal water transport; warehousing and storage; and support activities for transportation received combined subsidies worth PHP3.9 million.

 

Passenger air transport collects PHP26.0 billion in E-commerce

E-commerce refers to the selling of products or services over electronic systems. Passenger air transport, the lone industry among the industries, that garnered e-commerce sale transactions amounting to PHP26.0 billion.

 


 

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Transportation and Storage sector for establishments with total employment of 20 and over in the formal sector of the economy.

The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014..

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2014 ASPBI questionnaires in the province as well as the online accomplishment of questionnare through the PSA website.

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC). 

Legal Authority

The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2014 ASPBI is a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector.  The following comprise the formal sector:  

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2014 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 or more, and;
  • All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

The initial estimate of the 2014 LE shows that there are about 944,500 establishments in operation in the country for the year.  About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.

  • 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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is the establishment.  An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

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

Economic Organization (EO)  refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO).   This refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment. 

Industrial Classification.   Is 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 NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size (SZ) of the Unit of Enumeration.  is determined by its total employment (TE) as of specific date.  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. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification.  is 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, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

For Establishments with TE of 20 and Over

   a.  Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections G, H, I, J, K, L, M, N, P, Q, R and S.

       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 

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 jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each regionin each region 

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

  Wspj = weight of the jth establishment in 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

 

   b.  Certainty Stratum 

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

 

 

   c.  Total Estimate for TE of 20 and Over 

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

 

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  for  the particular industry domain from all the regions,

 

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled 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 1-9 or TE 10-19 was

Where:

  N = total number of establishments in employment stratum in TE 1-9 or TE 10-19 in the Sth industry domain 

  n' = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 Sth industry domain 

For the non-certainty employment stratum for the selected industry domain with TE of 20-99, the adjusted weight (W'spj) was

Where:

 Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the selected industry domain within each geographic domain (region)

 

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for Transportation and Storage sector with TE of 20 and over was 93.6 percent (765 out of 817 establishments).  This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 13 establishments responded online.

 

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, 2014.

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.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay.  Excluded are silent or inactive business partners.

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.

Cost 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.

Expense refers to 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.

Intermediate cost  refers to expenses incurred in the production of goods 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 transport and storage activities is the sum of the total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; expense of industrial services done by others; expense of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.  

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

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

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 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.

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.