The industry section on professional, scientific, and technical activities (Section M) includes 16 industry groups that cover specialized professional, scientific, and technical activities that require a high degree of training and make these specialized knowledge, and skills available to users.
The highlights of results of the 2018 CPBI for the professional, scientific and technical activities industry section is presented in Figure 1. This figure shows the number of establishments engaged in the industry sections, total employment created, total revenue generated, total expenses incurred, and total value added generated.
Legal activities industry group led in terms of number of establishments
A total of 6,888 establishments in the formal sector of the economy were engaged in professional, scientific, and technical activities indicating an increase of 0.3 percent from 6,687 establishments in 2012.
Among the industry groups, legal activities topped the list with 1,334 establishments or 19.4 percent. Photographic activities ranked second (1,189 or 17.3%), followed with management consultancy activities (796 or 11.6%). (Table 1A, and Figure 2)
Architectural and engineering activities, and related technical consultancy industry employed the highest number of workers
In terms of total employment, professional, scientific, and technical activities establishments employed 148,580 workers in 2018, a 38.5 percent increase compared to the 107,270 workers in 2012. (Table A, and Figure 1)
Among the industry groups, architectural and engineering activities and related technical consultancy employed the highest number of workers with 40,562 (27.3%). This was followed by the management consultancy activities with 27,802 (18.7%), and accounting, bookkeeping, and auditing activities; tax consultancy with 21,130 (14.2%). (Table 1A, and Figure 3)
In 2018, the employment per establishment ratio was estimated at 22. This result is 38.1 percent higher than the 2012 ratio of 16 workers per establishment. (Figure 1)
Establishments involved in research and experimental development in information technology registered the highest number of workers per establishment with 250 workers. Veterinary activities establishments, on the other hand, had the lowest number with five workers per establishments. (Table 2)
Across region, NCR recorded the highest number of workers per establishment with 42. This was followed by CALABARZON (32), Davao Region (15), and Central Visayas (14). All other regions had less than 10 workers per establishment on the average. (Table 4)
In addition to the total workers hired, the industry section also engaged the services of 7,991 workers on sub-contract agreement or under manpower agencies to augment the workforce. By industry groups, majority of workers (2,970 workers or 37.2 percent of the total) who were under this category were engaged in advertising. (Table 1)
Management consultancy activities paid the highest average annual compensation
Firms paid a total compensation of PhP 68.5 billion to all paid employees in 2018. This number is relatively higher by 61.9 percent from the compensation paid in 2012. Meanwhile, the industry paid an average annual compensation of PhP 468.2 thousand per employee. (Table A, and Figure 4)
Among the industry groups, employees engaged in management consultancy activities received the highest average annual compensation at PhP 787.2 thousand each. Activities of head offices followed with PhP 753.9 thousand average annual compensation per employee. (Figure 4)
Other industry groups that also provided a relatively higher annual compensation on the average were research and experimental development in information technology (PhP 671.8 thousand per employee), research and experimental development on natural sciences and engineering (PhP 568.9 thousand per employee) and market research and public opinion polling (PhP 474.5 thousand per employee). (Figure 4)
Across region, establishments in NCR paid the highest average annual compensation with PhP 573.1 thousand per employee. All other regions registered lower average annual compensation compared to the national level average annual compensation. (Table 3)
Activities of the head office generated the highest revenue and incurred the highest expenses
The total revenue generated by the establishments engaged in professional, scientific and technical activities amounted to PhP 302.4 billion. This industry section also spent PhP 282.7 billion. The total revenue generated in 2018 increased by 77.8 percent compared to PhP 170.0 billion in 2012. (Table A and Figure 5)
Among industry groups, activities of the head office earned the highest revenue with PhP 86.7 billion (28.7%). This was followed by management consultancy activities with PhP 68.9 billion (22.8%) and architectural and engineering activities and related technical consultancy with PhP 47.2 billion (15.6%). (Table 1A)
The top three industry groups that contributed the highest revenue were also the top three industries in the total expenses incurred in 2018 with PhP 107.2 billion (37.9%), PhP 58.7 billion (20.8%) and PhP 39.4 billion (13.9%), respectively. The total expenses incurred of all establishments of this section grew by 110.4 percent to PhP 282.7 billion from PhP 134.4 billion in 2012. (Table 1A, and Table A)
NCR contributed the biggest portion of revenue and expenses
Across regions, NCR-based establishments accounted for 85.0 percent (PhP 257.1 billion) of the total revenue generated and 87.3 percent (PhP 246.8 billion) of the total expenses incurred. (Table 3A)
Each of the other 16 regions generated less than 3 percent of the total revenue and total expense incurred. (Table 3A)
Revenue per expense ratio stood at 1.07
The revenue per peso expense generated by all establishments in this section stood at 1.07. The revenue per peso expense generated in 2018 is 15.5 percent lower compared with 1.27 in 2012.
Management consultancy activities contributed the highest value-added
The industry section generated a total value added of PhP129.9 billion, an increase of 26.5 percent from Php 102.7 billion in 2012. (Table A)
Establishments in management consultancy activities contributed the highest value added with PhP 33.6 billion or 25.9 percent share to total. This was followed by architectural and engineering activities and related technical consultancy establishments with PhP 26.1 billion (20.1%) and activities of head offices and advertising industry with PhP 15.7 billion (12.1%). (Table 1A, and Figure 6)
NCR contributed the highest value-added
At the regional level, NCR dominated the industry section’s total value-added with the region’s value added amounting to PhP 105.8 billion or 81.4 percent share to total. Each of other 16 regions only contributed less than 5 percent share to the total value-added. (Table 3A)
DENNIS S. MAPA, Ph.D.
National Statistician and Civil Registrar General