2015 Annual Survey of Philippine Business and Industry (ASPBI) - Water Supply; Sewerage, Waste Management and Remediation Activities All Establishments : Final Results

Reference Number: 

2017-350

Release Date: 

Saturday, December 30, 2017

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 993, based on the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide.

Leading the sector was water collection, treatment and supply industry with 857 establishments or 86.3 percent of the total. Trailing behind  was  materials recovery  with  56 establishments (5.6%) while sewerage and collection of non-hazardous waste both ranked third with 25 establishments each or 2.5 percent of the total count.

Figure 1 shows the distribution of all establishments for water supply; sewerage, waste management and remediation activities establishments by industry sub-class in 2015.

 

Water collection, treatment and supply industry employs the largest number of workers

Total number of workers hired by the sector reached 33,990 in 2015. This number was broken down into 33,880 or 9.6 percent paid workers and 110 or 0.3 percent unpaid workers.

Water collection, treatment and supply which recorded the most number of establishments, also emerged as the top employer with 30,454 workers or 89.6 percent of the total. Collection of non-hazardous waste employing 1,148 workers or 3.4 percent of the total registered second highest in terms of number of employment, while materials recovery was the third top employer with 1,008 workers (3.0%).

Figure 2 shows the distribution of employment for all water supply; sewerage, waste management and remediation activities establishments in 2015.

 

Employees of water collection, treatment and supply industry earns the highest

Total compensation paid in 2015 amounted to PHP12.0 billion, equivalent to an average annual compensation of PHP355,545 per employee.

Employees engaged in the collection of non-hazardous waste were the highest paid with an average annual pay of PHP593,469 per employee. Employees who worked for remediation activities and other waste management services followed with an average annual compensation of PHP421,357 per employee. Employees in water collection, treatment and supply received an average annual pay of PHP357,496 per employee. On the other hand, employees in materials recovery were the lowest paid receiving only PHP179,997 annually per employee.

Figure 3 shows the average annual compensation of employees for water supply; sewerage, waste management and remediation activities establishments by industry sub-class in 2015.

 

Water collection, treatment and supply industry yields the highest value of output

Total value of output generated by the sector in 2015 amounted to PHP81.9 billion.

At the industry level, water collection, treatment and supply which yielded the highest output value of PHP73.0 billion, accounted 89.2 percent of the total. The shares of other industries to the total value of output are as follows:

  • Collection of non-hazardous waste, PHP4.6 billion (5.6%)
  • Materials recovery, PHP2.2 billion (2.6%)
  • Sewerage, PHP1.5 billion (1.8%)
  • Treatment and disposal of non-hazardous waste, PHP0.3 billion (0.4%)
  • All other industries, PHP0.3 billion (0.3%)

Figure 4 shows the percentage distribution of value of output for all water supply; sewerage, waste management and remediation activities establishments by industry sub-class in 2015.

 

Total expense amounts to PHP61.6 billion

Total expense, including compensation incurred in business operations of the sector amounted to PHP61.6 billion in 2015.

The highest spender among the industries was water collection, treatment and supply, with PHP54.8 billion (88.9%). This was followed by collection of non-hazardous waste and materials recovery which spent PHP3.3 billion (5.4%) and PHP1.7 billion (2.7%), respectively.

 

Treatment and disposal of non-hazardous waste industry records the highest return

Income per expense ratio in 2015 for the sector was recorded at 1.43, indicating that PHP1.43 was received as income for every peso spent.

Among industries, treatment and disposal of non-hazardous waste recorded the highest income per expense ratio at 1.90. The income-expense ratio of other industries are as follows:

  • Water collection, treatment and supply, 1.44
  • Collection of non-hazardous waste, 1.38
  • Materials recovery, 1.36
  • Sewerage, 1.31
  • Treatment and disposal of hazardous waste, 1.11
  • Collection of hazardous waste, 1.08
  • Remediation activities and other waste management services, 0.18

 

Value Added for the sector reaches PHP46.1 billion

Value added, defined  as  gross  output  less  intermediate  input,  generated by all water supply, sewerage, waste  management  and  remediation  activities  establishments  reached  PHP46.1 billion in 2015.

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 PHP42.4 billion or 92.1 percent of the total. Collection of non-hazardous waste followed with PHP2.2 billion (4.8%) while materials recovery came in third with PHP0.7 billion (1.6%).

 

Water collection, treatment and supply industry records the highest labor productivity

The ratio of value added to total employment, a simple measure of labor productivity, was about PHP1.4 million per worker for the sector in 2015.

The highest labor productivity among industries was recorded by collection of non-hazardous waste valued at PHP1.9 million per worker. This was followed by industries of water collection, treatment and supply; and treatment and disposal of non-hazardous waste, with respective labor productivities of about PHP1.4 million and PHP0.9 million per worker.

 

Gross addition to tangible fixed assets amounts to PHP3.8 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of tangible fixed assets, was estimated at PHP3.8 billion in 2015.

Among industries, water collection, treatment and supply acquired the highest gross addition to tangible fixed assets amounting to PHP3.6 billion or 93.5 percent of the total.

 

Subsidy received amounts to PHP475.0 million

Total subsidy provided by the government to support the business operations of the sector amounted to PHP475.0 million, of which water collection, treatment and supply was the only recipient in 2015.

 

 


TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry for all Water Supply; Sewerage, Waste Management and Remediation Activities (Sector E) establishments.

The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015. The 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of the 2015 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through PSA website.

Data are presented at the national and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC).

Data are also generated at the regional level.

 

Legal Authority

The conduct of the 2015 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 2015 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)

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 2015 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 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) 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.

 

Sampling Design

The 2014 ASPBI used stratified systematic sampling with 5-digit PSIC serving as first stratification variable and employment size as the second stratification variable.

 

 

Estimation Procedure

  1. 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,

where:

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

 Wspj = 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

 

  1. 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,

where:  

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

 

  1. 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

a. 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

where:

  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

        where:

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

        where:

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

Response rate for Water Supply; Sewerage, Waste Management and Remediation Activities Sector was 94.9 percent (609 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 2015.

 

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.

 

 

 

ROMEO S. RECIDE

Assistant Secretary

Deputy Assistant National Statistician

Sectoral Statistics Office

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