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Release Date :
Reference Number :
2019-059

Central Luzon leads in terms of number of establishments

The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were a total of 265 establishments which were engaged in Electricity, Gas, Steam and Air Conditioning Supply. All the establishments of this sector were engaged in electric power generation, transmission and distribution.

Central Luzon led the regions with 33 establishments or 12.5 percent of the total. This was followed by CALABARZON with 27 establishments (10.2%) and Central Visayas with 26 establishments (9.8%). These top three regions accounted for almost one-third (32.5%) of the total number of establishments of the sector.

Figure 1 shows the regional distribution of all Electricity, Gas, Steam, and Air Conditioning Supply establishments in 2016.

Figure 1

 

National Capital Region (NCR) is the highest in total employment

In 2016, the sector employed a total of 47,390 workers.

The top three regions, in terms of employment generation, were all located in Luzon area. NCR, despite being at the bottom half in terms of number of establishments, employed the most number of workers of 7,967 or 16.8 percent of the total. This was followed by Central Luzon with 5,437 workers (11.5%) and CALABARZON with 5,026 workers (10.6%).

The average number of workers per establishment for the sector was recorded at 179. NCR recorded the highest average employment of 885, followed by Negros Island Region and Zamboanga Peninsula with 276 and 241 workers per establishment, respectively.

Figure 2 shows the regional distribution of employment for all Electricity, Gas, Steam and Air Conditioning Supply establishments in 2016.

Figure 2

 

Establishments in CALABARZON pay the highest average annual compensation

Total compensation which consists of gross salaries and wages, separation and retirement/terminal pay, gratuities, employers’ contribution to SSS/GSIS, and other benefits amounted to PHP35.6 billion in 2016. This translates to an average annual compensation of PHP752,712 per paid employee.

By region, employees in CALABARZON received the highest average annual pay of PHP1,265,923. This was followed by employees in NCR, receiving an average annual compensation of PHP1,181,624. Employees in Eastern Visayas, with an average annual pay of PHP904,127, ranked third.

Figure 3 shows the average annual compensation of paid employees for all Electricity, Gas, Steam and Air Conditioning Supply establishments by region in 2016.

Figure 3

 

CALABARZON generates the highest value of output

Total value of output generated by the sector amounted to PHP762.7 billion.

Among the regions, CALABARZON generated the highest value of output amounting to PHP180.8 billion which represents 23.7 percent of the total. This was followed by NCR with PHP166.9 billion or 21.9 percent and Central Luzon with value of output of PHP111.9 billion or 14.7 percent.

Figure 4 shows the value of output for all Electricity, Gas, Steam and Air Conditioning Supply establishments by region in 2016.

Figure 4

 

CALABARZON incurs the highest expense

Total expense, including compensation, incurred in business operation in 2016 amounted to PHP658.2 billion.

Among the regions, CALABARZON spent the highest at PHP165.3 billion (25.1%), followed by NCR at PHP140.4 billion (21.3%). Central Luzon placed third with PHP90.1 billion (13.7%).

 

CAR leads in terms of income per peso expense

Income per peso expense ratio for the sector in 2016 was recorded at 1.21. This indicates that for every peso spent, PHP1.21 was realized in terms of income.

Among the regions, establishments in Cordillera Administrative Region (CAR) registered the highest return at 1.53 income per peso expense. This was followed by Ilocos Region and Northern Mindanao, with 1.38 and 1.36 income per peso expense ratios, respectively.

 

NCR contributes the highest share to value added

Value added, defined as gross output less intermediate input, reached PHP228.3 billion in 2016 for the sector.

By region, NCR accounted for the biggest share to total value added, amounting to PHP49.2 billion or 21.6 percent of the total. This was followed by CALABARZON and Central Luzon with PHP43.4 billion (19.0%) and PHP35.8 billion (15.7%), respectively.

 

CALABARZON records the highest labor productivity

The ratio of value added per worker, a simple measure of labor productivity, was PHP4.8 million per worker.

By region, employees of establishments located in CALABARZON were the most productive, recording a ratio of PHP8.6 million per worker. This was followed by employees of establishments in Central Luzon and Central Visayas with respective labor productivities of   PHP6.6 million and PHP6.4 million per worker.

 

Eastern Visayas receives the highest subsidy

Total subsidies provided by the government to support the business operations of the sector was estimated at PHP5.1 billion in 2016.

Among the regions, Eastern Visayas received the highest subsidy of PHP891.4 million or 17.4 percent of the total. This was followed by Central Visayas with subsidies amounting to PHP822.9 million (16.1%) and Caraga with PHP788.2 million (15.4%).

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
(Director II)
Officer-in-charge
Sectoral Statistics Office

 

 


 

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2016 ASPBI for the Electricity, Gas, Steam and Air Conditioning Supply (Sector D) for all employment sizes.

The 2016 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 for the year 2016.

The survey was conducted nationwide in 2017 with 2016 as the reference year of data, except for employment data which is as of November 15, 2016.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the province, as well as in the online accomplishment of questionnaires through the PSA website.

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

 

Legal Authority

The conduct of the 2016 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 2016 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 Employers; 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6%) of the total establishments belong to the formal sector of which 255,403 (86.7%) 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 2016 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 establishmentis 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 TE as of a specific date. 

Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC).

 

Methodology

All establishments in the formal sector for the Electricity, Gas, Steam and Air Conditioning Supply Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.

The total of a characteristic (Xp) in an industry domain in each geographic domain (region) is

Formula 1

where:

p        = 1, 2…18 regions (geographic domains)
xpj     = value of the jth establishment in an industry domain within each region
j         = 1, 2, 3…mp establishments
mp    = number of establishments in an industry domain within each region

The total of a characteristics for the national level by industry domain (X) was obtained by aggregating separately the estimates (Xp) for the particular industry domain from all the regions.

Formula 2

 

Response Rate

Response rate for Electricity, Gas, Steam and Air Conditioning Supply Sector was 91.1 percent (267 out of 293 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 29 responded online or 10.9%.

Reports of the remaining non-reporting establishments were taken from financial statements from Securities and Exchange Commission (SEC) and other available administrative data sources. Reports of establishments which were found to be out-of-scope, duplicate of another establishment and out of business in 2016 were not included in the generation of statistical tables.

 

Limitation of Data

The survey covered only the formal sector of the economy.

 

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, 2016.

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.

Expense refers to cost incurred in an enterprise effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used; fuels, lubricants, oils and greases used; electricity and water purchased, and industrial services done by others.

Value added is gross output less intermediate input. Gross output for the Electricity, Gas, Steam, and Air Conditioning Supply sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and all 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.

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.

 

 

 

 

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