Water collection, treatment and supply industry dominates the sector
The total number of establishments engaged in water supply; sewerage, waste management and remediation activities in the formal sector of the economy reached a total of 975, based on the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide.
Leading the sector was water collection, treatment and supply industry, which include water districts, with 845 establishments or 86.7 percent of the total. Trailing next was materials recovery with 53 establishments (5.4%) while collection of non-hazardous waste ranked third with 27 establishments or 2.8 percent of the total count. (Table 1)
Figure 1 shows the distribution of all establishments for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2014.
Water collection, treatment and supply industry hires the largest number of workers
Workers hired by the sector reached a total of 33,823 in 2014. Details of the total showed 33,150 or 98.0 percent were paid employees and the remaining 673 (2.0%) were unpaid workers.
Water collection, treatment and supply which recorded the most number of establishments, also emerged as the top employer with 30,276 workers or 89.5 percent. Followed by collection of non-hazardous waste employing 1,256 workers or 3.7 percent of the total. Materials recovery was the third top employer with 1,128 workers (3.3%).
Figure 2 shows the distribution of employment for water supply; sewerage, waste management and remediation activities establishments in 2014.
Employees of water collection, treatment and supply industry earns the highest
Total compensation paid in 2014 amounted to PHP10.9 billion, equivalent to an average annual compensation of PHP329,923 per employee.
Employees engaged in remediation activities and other waste management services were the highest paid with an average annual pay of PHP378,243 per employee. Employees who worked for water collection, treatment and supply followed with average annual compensation of PHP348,894 per employee. Employees in treatment and disposal of hazardous waste received an average pay of PHP315,976 per employee. On the other hand, employees in collection of hazardous waste were the lowest paid receiving only PHP139,954 annually. (Table 1a)
Figure 3 shows the average annual compensation of employees for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2014.
Water collection, treatment and supply industry yields the highest value of output
Total value of output generated by all establishments in 2014 amounted to PHP65.0 billion.
At the industry level, water collection, treatment and supply which yielded the highest output value of PHP58.8 billion, accounted for 90.5 percent of the total. The shares of other industries to the total value of output are as follows:
- Materials recovery, PHP2.6 billion (4.1%)
- Collection of non-hazardous waste, PHP2.0 billion (3.0%)
- Sewerage, PHP0.9 billion (1.3%)
- Treatment and disposal of non-hazardous waste, PHP0.3 billion (0.4%)
- All other industries, PHP0.4 billion (0.6%)
Figure 4 shows the distribution of the value of output for all water supply; sewerage, waste management and remediation activities establishments by industry sub-class in 2014.
Total expense amounts to PHP56.0 billion
Total expense, including compensation incurred in business operations, amounted to PHP56.0 billion in 2014.
The highest spender among the industries was water collection, treatment and supply, with PHP50.8 billion (90.6%). Collection of non-hazardous waste and materials recovery spent PHP2.3 (4.1%) and PHP1.5 billion (2.7%), respectively.
Treatment and disposal of non-hazardous waste industry records the highest returns
Income per expense ratio in 2014 for the sector was recorded at 1.41, indicating that PHP1.41 was received as income for every peso spent.
Among industries, treatment and disposal of non-hazardous waste recorded the highest income per expense ratio of 2.07. The income-expense ratio of other industries are as follows:
- Materials recovery, 1.77
- Water collection, treatment and supply, 1.42
- Collection of hazardous waste, 1.26
- Remediation activities and other waste management services, 1.20
- Collection of non-hazardous waste, 1.16
- Sewerage, 1.15
- Treatment and disposal of hazardous waste, 1.04
Value Added for the sector reaches PHP43.8 billion
Value added, defined as gross output less intermediate input, generated by all water supply, sewerage, waste management and remediation activities establishments reached PHP42.8 billion in 2014.
At the industry level, water collection, treatment and supply which recorded the highest value of output and expense, likewise, contributed the biggest share to the total value added amounting to PHP40.4 billion or 94.5 percent of the total. Materials recovery trailed distantly with PHP1.3 billion (3.1%). Collection of non-hazardous waste placed third with PHP0.5 billion (1.1%).
Water collection, treatment and supply industry records the highest labor productivity
The ratio of value added per worker, a simple measure of labor productivity, was about PHP1.3 million per worker.
The highest labor productivity among industries was recorded by water collection, treatment and supply industry valued at PHP1.3 million per worker. This was followed by materials recovery and treatment and disposal, with respective labor productivity of PHP1.3 million and PHP0.8 million per worker.
Gross addition to tangible fixed assets amounts to PHP3.3 billion
Gross addition to tangible fixed assets, defined as capital expenditures less sale of tangible fixed assets, was estimated at PHP3.3 billion in 2014.
Among industries, water collection, treatment and supply acquired the highest gross addition to tangible fixed assets amounting to PHP3.3 billion or 99.3 percent of the total. This was followed far behind by treatment and disposal of non-hazardous waste and treatment and disposal of hazardous waste and with gross additions of PHP11.0 million (0.3%) and PHP8.2 million (0.2%), respectively.
Subsidies received amount to PHP310.0 million
Total subsidies provided by the government to support the business operations of the sector amounted to PHP310.0 million.
Among industries, subsidies received by water collection, treatment and supply was the highest, with almost 80% of the total (PHP240.0 million). Other industries that received subsidies in 2014 are:
- Treatment and disposal of hazardous waste, PHP34.2 million (11.0%)
- Remediation activities and other waste management services, PHP21.7 million (7.0%)
- Sewerage, PHP14.1 million (4.6%)
This Special Release presents the final results of the 2014 ASPBI for the Water Supply; Sewerage, Waste Management and Remediation Activities (Sector E) for all employment sizes.
The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provides information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country. The 2014 Survey of Tourism Establishments in the Philippines (STE) was undertaken as a rider to this survey. The field operation of the 2014 ASPBI also integrated the data collection in updating the 2014 List of Establishments (ULE)
The survey was conducted nationwide in 2015 with the year 2014 as the reference period of data, except for employment data which is as of November 15, 2014.
Like the 2013 ASPBI operations, the data processing for this survey was decentralized to the Provincial Statistics Services Offices (PSSOs) as the provinces are near the establishments which are the data source of the survey
Data are presented at the national and industry sub-group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the 2014 ASPBI is authorized under the following:
Republic Act 10625 known as the Philippine Statistical Act of 2013 – (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policies of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No. 10625 states that:
“… Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager and/or agent of said corporation. In addition, such erring corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)…”
Scope and Coverage
The 2014 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- 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 Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
However, three (3) sectors of the 2009 PSIC are not covered. These are:
- Public Administration and Defense; Compulsory Social Security (O)
- Activities of Household as Employee. Undifferentiated Goods and Services Producing Activities of Household for Own Use (T)
- Activities of Extraterritorial Organizational Bodies (U)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
Hence, the 2014 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 and over, 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).
Frame of Establishments
The frame for the 2014 ASPBI was extracted from the 2014 List of Establishments (LE). The estimated number of establishments in operation in the country in 2014 totaled to 941,000. About 263,000 establishments (28.0% of the total establishments) belong to the formal sector of which 229,000 (87.0%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2014 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Classification of Establishments
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 single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
The industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.
The size of an establishment is determined by its total employment (TE) as of specific date.
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.
The 2014 ASPBI used stratified systematic sampling with 5-digit PSIC serving as first stratification variable and employment size as the second stratification variable.
- Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
The estimate of the total of a characteristic for the non-certainty employment strata in an industry domain in each region,
s denotes the non-certainty employment strata in TE of 20 to 99
p = 1, 2,..., 18 regions (geographic domains)
xspj= value of the jth establishment in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
j = 1, 2, 3,…,nspestablishments
= weight of thejthestablishment in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
- Certainty Stratum (TE 100 and over)
The value of the total of a characteristic for the certainty employment stratum in an industry domain in each region,
c denotes the certainty employment strata of TE 100 and over
p = 1, 2,..., 17 regions (geographic domains)
xcpj= value of the jth establishment in the certainty employment strata in TE 100 and over in an industry domain within each region
j = 1, 2, 3, …,mcp establishments
mcp= number of establishments in the certainty employment strata in TE 100 and over in an industry domain within each region
- Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
Where dp denotes the industry domains in each region.
National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions.
For Establishments with TE of Less Than 20
- Non-Certainty Stratum
The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j = 1,2,3..., ns establishments
Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain
Weight Adjustment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, 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
Ns= total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
n's = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was
Nsp = total number of establisments 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 20-99 for the selected industry domain within each geographic domain (region)
Response rate for Water Supply; Sewerage, Waste Management and Remediation Activities Sector was 91.9 percent (590 out of 642 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2014.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2014.
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.
Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as 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 refers to cash received and receivables for goods/products and by-products sold and services rendered.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices 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.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water 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 the water supply; sewerage, waste management and remediation activities sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate cost is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and other expenses.
Value of output represents the sum of the receipts from revenue from main activity, income from industrial services done for others, goods sold in the same condition as purchased less the cost of goods sold and value of fixed assets produced on own account..
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
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.