Manufacturing Sector recorded the highest number of establishments in 2003
The 2003 Annual Survey of Philippine Business and Industry covered a total of 20,579 establishments with an average total employment (ATE) of 20 or more (Table 1). The Manufacturing Sector (Sector D) registered the highest number (5,900) of establishments, which accounted for 28.7 percent of the total. The Wholesale and Retail Trade (Sector G) followed next with 4,317 establishments (21.0 percent) while Hotels and Restaurants (Sector H) ranked third with 2,278 establishments (11.1 percent). On the other hand, the Mining and Quarrying Sector (Sector C) recorded the least number of establishments with 51 or 0.3 percent of the total. Figure 1 shows the distribution of establishments by sector.
Most establishments are located in NCR
For the regional distribution of establishments, the National Capital Region (NCR), as the center for most industries, recorded the highest number of establishments with 9,427 establishments (45.8 percent) (Table 3). Next was Region VI-A (Calabarzon) with 2,793 establishments (13.6 percent) followed by Region VII (Central Visayas) which covered 1,572 establishments or 7.6 percent of the grand total. The Autonomous Region of Muslim Mindanao (ARMM) had the least number with only 54 establishments (0.3 percent). Refer to Figure 2.
Manufacturing industries top employers in 2003
Total employment in 2003 was estimated at 2,440,094. Of the total figure, 99.3 percent were paid employees while only 0.7 percent were working owners and unpaid employees.
The Manufacturing Sector having the most number of establishments also employed the largest number of workforce with 986,612 (40.4 percent). Likewise, the Wholesale and Retail Trade with a total personnel of 262,657 (10.8 percent) recorded the second highest. Real Estate and Other Business Activities placed third, employing a total of 224,410 workers (9.2 percent). Meanwhile, Mining and Quarrying sector with the least number of establishments, employed the least count of employees with only 10,802 (0.4 percent).
Regionwise, NCR-based workers numbered 1,076,269 (44.1 percent), the highest among regions. Region IV-A and Region VII, ranked second and third, employed a total of 513,747 (21.2 percent) and 204,840 (8.4 percent), respectively. ARMM, on the other hand, hired the least number of workers with only 6,584 (0.3 percent), less than half percent of the national total.
Total compensation paid to employees by establishments with ATE 20 or more amounted to PhP381.5 billion or an average monthly compensation of PhP13,131 per paid employee.
Among sectors, Manufacturing paid the highest total compensation to its employees amounting to PhP138.6 billion (36.3 percent). On the second spot, Financial Intermediation paid an amount of PhP52.5 billion (13.8 percent). Third place was Transport, Storage and Communication sector with PhP35.9 billion (9.4 percent). Fishing sector paid the least amount with PhP1.5 billion (0.4 percent), as shown in Figure 4.
On the regional level, NCR workers earned the highest amount of compensation amounting to PhP216.9 billion (56.9 percent), more than half of the total. Calabarzon and Central Visayas had a share of PhP71.2 billion (18.7 percent) and PhP23.6 billion (6.2 percent), respectively.
Employees in Financial Intermediation Sector received highest pay in 2003
With regards to average monthly compensation, Financial Intermediation employees received the highest remuneration at PhP33,935. Electricity, Gas and Water and Transport, Storage and Communication workers earned an average monthly pay PhP23,362 and PhP20,799, ranking second and third place, respectively. Workers in Agricultural sector and the Fishing sector earned the least amount of less than about PhP6,700 average monthly compensation. See Figure 5 for the average monthly compensation per paid employee by sector.
Regionwise, workers in NCR received the highest average monthly compensation at PhP16,878 followed by CAR employees with PhP13,658 monthly and MIMAROPA workers with PhP12,489 at third place. Employees in ARMM received the least pay with only PhP5,355 average monthly compensation.
Manufacturing Sector contributed almost half of the total revenue
Gross revenue for all establishments with ATE 20 or more reached PhP4.6 trillion. The Manufacturing sector recorded the largest amount with PhP2.2 trillion (48.9 percent), almost half of the total. The Wholesale and Retail Trade establishments which contributed PhP743.1 billion (16.2 percent) was a far second, while Financial Intermediation Sector shared a total of PhP453.2 billion or 9.9 percent. Fishing sector had the least revenue with only PhP7.4 million (0.2 percent).
With respect to regions, NCR generated the largest amount, totaling PhP2.1 trillion (46.7 percent) while ARMM contributed the least with PhP3.3 billion (0.1 percent).
Operational cost in 2003 totals to PhP3 trillion
Excluding employees compensation, total cost spent for operation and maintenance of establishments with ATE 20 or more summed up to PhP3.6 trillion. More than half of the total, 50.5 percent (PhP1.8 trillion) was spent by Manufacturing sector. Placing second, the Wholesale and Retail Trade incurred a total cost of PhP670.4 billion (18.5 percent), while Financial Intermediation spending PhP298.1 billion (8.2 percent) ranked third. On the other hand, Fishing sector had the least cost with only PhP5.7 million (0.2 percent).
Regionwise, as expected, NCR spent the most with PhP1.6 trillion (45.4 percent) while ARMM recorded the least cost with only PhP1.9 billion (0.1 percent).
Revenue per peso cost is valued at PhP1.26
Revenue per peso cost of the total industries was estimated at PhP1.26 or for every peso spent, PhP1.26 revenue is expected to be earned. Private Education Services had the highest ratio of 2.77. On the second and third place, the Other Community and Personal Services (Sector O) and Real Estate and Other Business Activities (Sector K), showed ratios of 1.92 and 1.85, respectively.
On the regional level, ARMM recorded an estimate at 1.76, the highest among regions, while CAR had the lowest ratio, 1.08
Manufacturing establishments: major contributor in capital outlay for 2003
Gross addition to fixed assets amounted to PhP277.4 billion for establishments with ATE 20 or more. The largest value was contributed by Manufacturing sector amounting to PhP102.5 billion (37.0 percent). Transport, Storage, and Communication sector with PhP62.1 billion (22.4 percent) and Electricity, Gas and Water with PhP41.9 billion (15.1 percent) ranked second and third, respectively as major contributors in capital outlay. Fishing sector, on the other hand, shared the least with PhP281.2 million or 0.1 percent.
As expected, NCR contributed the biggest portion in gross addition to fixed assets among regions amounting to PhP129.9 million (46.8 percent). Calabarzon Region followed next with PhP52.3 million (18.9 percent) and Eastern Visayas, third, with PhP27.6 million (10.0 percent).
Value added generated in 2003 reached PhP1.7 trillion
The value added generated during the year was estimated at PhP1.5 trillion. Manufacturing shared the largest portion with PhP560.5 billion (37.3 percent) while Fishing contributed the least with only PhP2.9 billion (0.2 percent).
Regionwise, NCR was the major contributor with 57.5 percent (PhP865.2 billion) and ARMM contributed the least with PhP1.7 billion (0.1 percent).
Labor productivity in 2003 was PhP0.6 million
Labor productivity (measured as value added per paid employee) for establishments with ATE 20 or more in 2003 was PhP0.6 million. Financial Intermediation with PhP2.5 million had the highest labor productivity. Establishments engaged in Electricity, Gas and Water with PhP1.7 million and Transport, Storage and Communication with PhP1.4 million ranked second and third, respectively.
Among regions, Region VIII had the highest labor productivity with PhP1.1 million while Region IX showed the least figure with PhP231.2 thousand.
Total subsidies provided by government amounted to PhP22.6 billion
Subsidies granted by the government to the establishments with ATE 20 or more in 2003 amounted to PhP22.6 billion. Sector I availed the highest amount with PhP14.8 billion (65.4 percent).
Establishments located in NCR received the highest subsidy in 2003 with PhP18.6 billion (82.3 percent), more than 4/5 of the national total, while CAR-based establishments with PhP20.7 million (0.1 percent), had the least among regions.
The 2003 Annual Survey of Philippine Business and Industry (ASPBI), formerly known as Annual Survey of Establishments (ASE) with 2003 as the reference year, was conducted to collect benchmark information on economic activities in the entire country for the year 2003. Covered were the establishments engaged in economic activities as defined under the Amended 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into the following sectors:
Agriculture Establishments are farms, plantation, hacienda, ranch, or company engaged in the production of agricultural crops, livestock, poultry and other animals including animal products; firms providing agricultural, animal husbandry and horticultural services;
Forestry and Hunting Establishments are companies engaged in logging operations, forest tree nurseries operation, planting, replanting and conservation of forests; hunting, trapping and game propagation.
Mining Establishments are mining camps engaged in the exploration, extraction, dressing and beneficiating of minerals occurring naturally as solids: such as coal and ores, liquids: such as crude petroleum and gases, such as natural gas.
Quarrying Establishments are firms or companies engaged in the extraction from the earth of building and monumental stone, clay, sand and gravel; and other quarrying activities such as guano gathering, rock salt quarrying and salt evaporation.
Manufacturing Establishments includes shop, factory, bakery, millwork, distillery, refinery, cannery, abattoir, brewery, foundry, tannery or plant engaged in manufacturing, processing, fabricating of finishing products, mechanically or manually, including the assembly of the component parts of manufactured products and the substantial alteration, reconstruction and repair of special types of goods.
Construction Establishment includes general contractor engaged in the construction, alteration, repair or demolition of buildings, highways, railways, airports and other structures; blasting, test drilling, landfill, land leveling; earth moving, excavating, land reclamation, land drainage and other land preparation; specialty contractor engaged in only specialized trade or craft like electrical installation, plumbing, painting, air conditioning, well drilling, installation of doors and windows and other work on component parts of the structure.
Wholesale Trade and Commission Trade Establishments are store, shop, office, bazaar, arcade or emporium engaged in the (a) resale (sale without transformation) of new and used goods (in bulk) to retailers, industrial, commercial institutional or professional users, to other wholesalers and (b) trading on behalf and on the account of others such as commission agents, commodity brokers and auctioneers.
Retail Trade Establishments are store, shop, mart, bazaar, sari-sari store, pharmacy, supermarket, grocery, arcade or emporium engaged in the resale (sale without transformation) of new and used goods for personal and household consumption to the general public.
Repair Establishments are shops specializing in the repair of consumer goods like footwear, luggage, handbags and gloves and other leather goods; electrical appliances, and equipment as television and radio receivers, refrigerators, washing machines, ironers, vacuum cleaners, toasters, motor vehicles including motorcycles; watch, clock and jewelry; bicycles; typewriters, cameras, binoculars, musical instruments, umbrellas, etc.
Food and Drinks Service Establishments are restaurant, bar, lounge, salon, parlor, kiosk, club, canteen, counter, carinderia, cafe, turo-turo or karihan engaged in the sale of prepared food and drinks generally for consumption within the premises.
Lodging and Rooming Service Establishments are hotel, motel, resort, inn, lodge, camp, dormitory or lodging house engaged in the provision of lodging facilities to the general public on lease, rental or fee basis.
Transport Establishments are bus line, air line, shipping line, agency, broker or transport operator engaged in providing (a) vehicles for the transport to passenger or freight through regular scheduled operation, charter, rental or fee basis, and (b) services incidental to transport such as stevedoring, maintenance and operation of piers, terminals, depots; pilotage, forwarding, packing and crating.
Storage and Warehousing Establishments are brokerage, agency or office engaged in the operation of storage facilities and warehouse for hire by the general public for storage of such items as farm products, food, furniture and other household goods, automobile dead-storage, grains, whiskey, textile and lumber;
Financial Establishments are bank, savings and loan association, credit institution, pawnshop, financial institution, trust company, investment company, pawn broker, or institution engaged in accepting of deposits, granting loans and the investment of money; dealer, broker or office engaged in investment research and counseling, check cashing, stock quotation, foreign exchange dealing and other financial services.
Insurance, Pre-Need Plan Companies and Pension Funding Establishments are life insurance companies; non-life insurance for fire, marine, accident, health, title, financial obligation, casualty, fidelity and surety; agents and brokers servicing insurance carriers; consultant for policy holders; fund managers.
Real Estate Establishments are realtor, developer, agency, broker, lessor or companies engaged in the letting, operating, developing, subdividing, buying, selling, managing and appraising of real estate such as residential and non-residential buildings and dwellings and memorial lots whether on personal account, on a contract or fee basis.
Business Service Establishments are office, agency or firm engaged in (a) rental and leasing of machinery and equipment, audio-video machines, tapes and records, sports and recreational equipment, (b) computer and related activities, (c) legal, accounting, bookkeeping, research and development, advertising and other technical services, (d) cleaning of offices, shops and factories, (e) photographic activities, and (f) basic and general research in the biological, physical, mathematical, environmental, medical and social sciences.
Social Service Establishments also include company engaged in the collection and disposal of garbage, sewage and human waste; a clinic, hospital, sanitarium, nursing home or a similar institution offering medical, dental and other health and veterinary services; a home orphanage, society, center or agency engaged in providing social welfare services.
Recreational and Cultural Service Establishments are motion picture producer, booking agency, movie house, theater, radio and television station and studio, stage and opera company, band, orchestra, ticket agency, library, museum, dance hall, bowling alley, park, beach, swimming pool, sports club, gallery, skating rink, race track or golf course engaged in providing entertainment, amusement and recreational services.
Personal Service Establishment is a laundry shop, barber shop, massage clinic, beauty parlor, funeral parlor, fortune telling shop and such engaged in rendering various specialized service to the general public
Establishment - is an economic unit under a single ownership or control, i.e., under a single entity, engaged in one or predominantly one kind economic activity at and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous 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 the production of these goods and services and the materials, labor and physical resources used in this production.
Economic activity - or business is the activity of the establishment as classified under the Amended 1994 Philippine Standard Industry Classification (PSIC). Generally, the main activity 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.
Average Total Employment (ATE) - is the sum of the number of persons who worked in or for the establishment for all months of the year divided by 12, regardless of the number of months the establishment was in operation in 2003.
Paid employees - are all persons working in the establishment and receiving pay, as well as those who are working away from the establishment paid by and under the control of the establishment. Included are all employees working as full-time and part-time, employees on sick or maternity leave and on paid vacation or holiday, and employees on strike. Excluded are consultants, home workers, workers receiving pure commissions only and workers on indefinite leave.
Working owners - are owners who are actively engaged in the management but do not receive regular pay, i.e., not included in the payrolls. Managers and directors of corporations working for pay are reported as managers.
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.
Salaries and wages - are payments in cash or in kind to all employees, prior to deduction for employee's contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay and other benefits.
Employer's Contribution to SSS/GSIS and the like - refers to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAGIBIG.
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.
Value of output - represents the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased, fixed assets produced on own account and change in inventories (ending less beginning) finished goods, work-in-progress and goods for resale.
Costs - refer to all expenses 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. Beginning the 2003 ASPBI, valuation of total cost includes 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.
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.
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.
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