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2006 Census of Philippine Business and Industry (CPBI) - Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods for Establishments with Average Total Employment (ATE) of 20 and Over

Reference Number: 398
Release Date: 12 January 2009

Other retail trade of new goods in specialized stores dominates sector

  1. Based on the preliminary results of the 2006 Census of Philippine Business and Industry, the Philippines had a total of 4,537 establishments with ATE of 20 and over engaged in Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods. As shown in Figure 1, Retail trade, garnered the highest number or more than half (55.0%) of the total number. The Wholesale and commission trade ranked second with 1,194 (26.3 %). Sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel, on the other hand, recorded the lowest number of establishments with only 849.

  1. Among industry groups, Other retail trade of new goods in specialized store (excluding computers and non-customized computer softwares) dominated the sector with 1,453 or 58.0 percent of the total retail trade establishments. This was followed by non-specialized retail trade in stores with 823 establishments or 33.0 percent.

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

  1. On the regional level, NCR had the most number of establishments with 2,180 (48.0 %). CALABARZON placed second with 354 establishments (7.8%) followed by Central Visayas with 334 or 7.4 percent. Autonomous Region in Muslim Mindanao (ARMM) had the least with only 5 establishments.

Non-specialized retail trade in stores generates the highest employment

  1. Employment in 2006 reached a total of 228,622. Almost all or 98.9 percent were paid employees and the rest were working owners and unpaid employees.
  2. Table 1 shows that the Non-specialized retail trade in stores had the most number of employees with 83,674 (36.6%). The Other retail trade of new goods in specialized stores (excluding computers and non-customized softwares) garnered the second place with 48,058 employees (21.0%). The least number of employees were engaged in Wholesale of other machinery equipment and supplies.
  3. Regionwise, NCR was the top employer among regions with 115,260 employees (50.4%). Central Visayas followed with 19,266 (8.4%). ARMM employed the least with only 124 employees.

Non-specialized retail trade in stores pays the highest compensation

  1. The total compensation paid by the sector Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles and Repair of Personal and Household Goods amounted to PhP32.8 billion, an equivalent of PhP145,114 average annual compensation. Out of the total, PhP30.9 billion (93.9%) comprised the salaries and wages while the remaining PhP1.9 billion (6.1%) went to the employer's contribution to SSS/GSIS and the like.
  2. By industry group, Non-specialized retail trade in stores paid the highest compensation to its employees amounting to PhP8.1 billion or 24.6 percent of the total. Next is the other retail trade of new goods in specialized stores (excluding computers and non-customized softwares) paying PhP6.6 billion.

  1. Table 2 shows that labor payments in NCR amounted to PhP22.6 billion (68.8%), more than two-thirds of compensation nationwide. CALABARZON, which expended around PhP2.0 billion, came next. ARMM was the least payer with only PhP6.6 million.

Wholesale of electronic parts and equipment employees earns the highest in 2006

  1. Wholesale of electronic parts and equipment employees were the highest earners in 2006 with an average annual compensation of PhP348,047 (Table 3) Employees of Wholesale of other machinery equipment and supplies followed next with PhP308,835. Retail sale of automotive fuel employees received the lowest average annual remuneration of PhP82,884. (See Figure 3 Leading Industries with Highest Annual Compensation: 2006)

  1. By region, NCR-based workers received the highest average annual compensation of PhP197,217 while employees from ARMM received the least with only PhP56,538. Table 4 shows the computed indicators by region.

Total revenue amounts to PhP865.1 billion; non-specialized retail trade in stores produces the largest

  1. Gross revenue earned in 2006 for the sector reached PhP865.1 billion (Table 1). One-fourth (25.4%) of the total revenue for the sector was contributed by the Non-specialized retail trade in stores industry. Earning the second place is the Wholesale of non-agricultural intermediate products, waste and scrap with PhP135.3 billion (15.6%), while the Wholesale of other machinery equipment and supplies generated the least revenue with only PhP116 million.
  2. With respect to regions, NCR produced the highest revenue amounting to PhP547.3 billion. The least revenue was made by ARMM with only PhP97 million.

Total cost reaches PhP795.4 billion, non-specialized retail trade in stores spends the highest

  1. Costs for operating the sector summed up to PhP795.4 billion as shown in Table 1. Non-specialized retail trade in stores incurred the highest cost with PhP203.0 billion (25.5%) followed by Wholesale of non-agricultural intermediate products waste and scrap with PhP128.0 billion (16.1%).

  1. By region, NCR spent the largest as it incurred PhP500.3 billion (62.9%) cost for operating the industry. CALABARZON followed with PhP67.0 billion. The least cost was recorded by ARMM with only PhP88.5 million.

Revenue-cost ratio rates to 1.09, repair of personal and household goods records the highest returns

  1. Revenue-cost ratio, the revenue generated an amount of PhP1.09 for every peso cost. As shown in Table 3, among industries, Repair of personal and household goods recorded the highest with 1.78. This was followed by Wholesale on a fee or contract basis and maintenance and Repair of motor vehicles with 1.59 and 1.33 respectively.

Value added amounts to PhP91.1 billion

  1. Value added, was estimated at PhP91.1billion. More than half (55.3%) or PhP50.3 billion of the total value added of the sector was contributed by the following industry groups: non-specialized retail trade in stores, other retail trade of new goods in specialized stores (excluding computers and non-customized softwares) and wholesale of household goods. Among industries, Non-specialized retail trade in stores made the highest value added amounting to PhP21.7 billion. (See Figure 5 Distribution of Value Added by Industry Group:2006)

Wholesale of non-agricultural intermediate product waste and scrap employees are the most productive

  1. Employees of Wholesale of non-agricultural product waste and scrap establishments were the most productive in 2006 in terms of revenue per employee with a PhP13.0 million, more than three times higher than the national average of PhP3.8 million. Repair of personal and household goods industry on the other hand, recorded the least with only PhP357,150.
  2. Value added per total employment, another measure of labor productivity, was valued at PhP399 thousand per employee (Table 3). Among industries, Wholesale of non-agricultural product waste and scrap establishments had the highest average of PhP1.1 million. For Wholesale on a fee or contract basis, it was estimated at PhP1.0 million.

Gross Margin reaches PhP135 billion

  1. Gross margin for the sector in 2006 reached PhP134.9 billion with Non-specialized retail trade in stores as the top grosser contributing the highest among industries with PhP32.6 billion (24.1%). Wholesale of household goods and Other retail trade of new goods in specialized stores (excluding computers and non-customized softwares) followed next with PhP22.9 billion and PhP21.4 billion, respectively.

Total change in inventories valued at PhP8.4 billion

  1. Change in inventories, defined as the value of ending inventory less the beginning, amounted to PhP8.4billion in 2006. Among industries, Non-specialized retail trade in stores recorded the highest with PhP1.9 billion, while five industries reported negative inventories amounting to PhP335.8 million.

Gross addition to fixed assets totals PhP4.5billion

  1. Gross addition to fixed assets in 2006 totaled to PhP4.5billion with the Non-specialized retail trade in stores recording the highest amount of PhP1.6 billion (36.1%). Retail trade not in stores had the lowest with only PhP567,000.

Government grants PhP158 million subsidies

  1. Subsidies in 2006 reached PhP158 million with the government providing the highest to the Wholesale of agricultural raw materials, live animals, food, beverages and tobacco amounting to PhP125.5 million (79.3%). Nine out of the 23 industry groups availed subsidies granted by the government.

 


TECHNICAL NOTES

Introduction

An economic census is a comprehensive collection, compilation, evaluation, analysis and publication of data about the economic activities of the country. It is a source of information for establishing a benchmark level for the measurement and comparison of national, regional and provincial economic growth. Particularly, the economic census data will be used in constructing national and regional income accounts in the country, in determining and comparing regional economic structures, in formulating plans and policies of the government in the attainment of economic goals, in providing updates for the frame of establishments and in the conduct of market research and feasibility studies.

The 2006 Census of Philippine Business and Industry (CPBI) is one of the designated statistical activities undertaken by the National Statistics Office. The 2006 CPBI is the 14th in the series of economic censuses conducted in the Philippines. It is preceded by those for 2000, 1994, 1988, 1983, 1978, 1975, 1972, 1967, 1961, 1948, 1939, 1918 and 1903. The present name, Census of Philippine Business and Industry was first used in the 2000 round with 1999 as the reference period.

Legal Authority

The conduct of the 2006 CPBI was governed by authority of the following legislative acts and presidential directives, namely:

* Commonwealth Act No. 591 (An Act to Create a Bureau of the Census and statistics, to Consolidate Statistical Activities of the Government Therein) approved on August 19, 1940. CA No. 591 empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce. The same act also provides penalty for persons who fail to accomplish Census forms.

* Presidential Decree No. 418 dated March 20, 1974 - Reconstituting the Bureau of Census and Statistics to be known as the National Census and Statistics Office under the administrative supervision of the National Economic and Development Authority.

* Executive Order No. 121 - Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renaming the NCSO to the National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics.

* Executive Order No. 352 - Designation of Statistical Activities that will generate critical data for decision-making of the Government and Private Sector signed on July 1, 1996.

* Executive Order No. 5 dated July 29, 1998 - Strengthening the National Statistics Office.

Scope and Coverage

The 2006 CPBI 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 following major divisions are excluded from the scope of the survey: L (Public Administration and Defense; Compulsory Social Security), P (Private Households with Employed Persons) and Q (Extra-Territorial Organization and Bodies).

The scope of the 2006 CPBI 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

Unit of Enumeration

Like all other establishment surveys conducted by the NSO, the 2006 CPBI 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". In actual practice, however, there are difficulties in applying the definition of an establishment. Thus, it is defined in operational terms to take into account the organization and record-keeping practices of establishments by making the single location and activity criteria more flexible. This necessitates the use of the kind-of-activity unit for certain sectors as the single location restriction is eliminated.

For Construction, Transportation, storage and communications, Insurance, Real estate buying, developing, subdividing and selling, and Investigation and security activities, the establishment is defined in operational terms as "the unit that is engaged in the production of the most homogeneous group of goods and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning production of these goods and services and the materials, labor and physical resources used in this production".

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 2006 CPBI:

  • Code 0, 1 - 4 ATE
  • Code 1, 5 - 9 ATE
  • Code 2, 10 - 19 ATE
  • Code 3, 20 - 49 ATE
  • Code 4, 50 - 99 ATE
  • Code 5, 100 - 199 ATE
  • Code 6, 200 - 499 ATE
  • Code 7, 500 - 999 ATE
  • Code 8, 1000 - 1999 ATE
  • Code 9, 2000 and above ATE

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 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions.

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented up to the regional level only.

Frame

The 2006 List of Establishments (LE) was used as the frame for the 2006 CPBI. The 2006 LE was based on the combined results of the following:

  • 2004 ULE conducted in NCR and selected urban barangays
  • 2005 ULE in rural barangays in provincial capitals/cities/municipalities
  • Supplemental lists from other sources

Sampling Design

The 2006 CPBI used stratified systematic sampling with a random start. For establishments with ATE 20 and over, the geographic domain (provinces, independent component cities, chartered cities and highly urbanized cities and municipalities) and the industry domain (5-digit or group of 5-digit PSIC and/or 4-digit or group of 4-digit PSIC) served as the first stratification variable. On the other hand, for establishments with ATE less than 20, the geographic domains are the regions and the industry domain, the industry groups. Employment size (ATE) was used as the second stratification variable.

Sample Size

The sample size of the 2006 CPBI was 57,404 establishments broken down by ATE of 20 and over (26,448) and ATE of less than 20 (30,956).

Response Rate

The overall response rate for ATE of 20 and over is 95.1 percent or 5,065 out of 5,326. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. However, the effective response rate is 66.1 percent.

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.

Employment is the number of persons who worked in or for this establishment as of November 15, 2006.

Average total employment is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

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 refer 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 received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Cost 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).

Gross Margin refer to the difference between the value of goods sold on own account (including commission received on sale on account of others) during the inquiry period and the gross cost of these goods. The gross cost of goods is the value of purchased of goods intended for sale adjusted for stock change of these goods during the inquiry period.

Value added is gross output less intermediate costs.

Gross output is equal to the sum of total revenue, capital expenditures of fixed assets produced on own account, and change in inventory 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 purchased; fuels purchased to run motor vehicles, industrial machinery and other equipments; electricity purchased; industrial services done by others; non-industrial services done by others; computer software expenses; research and experimental development and other costs (plus change in inventory of materials, supplies and fuels.

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.

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.

Book value of fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

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
                 Manila, Philippines

Wholesale and Retail Trade by Year Published

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