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Release Date :
Reference Number :
204-101

Supporting auxiliary transport activities dominate the transport, storage and communications sector

  1. There were 10,462 establishments engaged in transport, storage and communications based on the 2000 Census of Philippine Business and Industry (CPBI). Supporting auxiliary transport activities (PSIC I63) had the largest number of establishments accounting for 42.7 percent (4,466) of the total in the sector. Land transport; transport via pipelines comprised the second largest group with 3,290 establishments (31.4 percent). (See Figure 1).

  2. Majority of these establishments (9,011 or 86.1 percent) had an average total employment (ATE) of less than 20 while only 13.9 percent or 1,451 had an ATE of 20 or more workers.

  3. Regional distribution showed that the establishments in the sector were highly concentrated in the National Capital Region (NCR) where 4,223 firms (40.4 percent) are located. The least number of establishments is found in Region XII with only 101 (1.0 percent). Figure 2 presents the distribution of transport, storage and communications establishments by region.

    National Capital Region contributed the highest number of employees

  4. During the census year, the transport, storage and communications sector?s total workforce recorded 246,828 employees. As in the past years, transport storage and communications establishments in the NCR continued to account for almost two-thirds or 64.0 percent (157,926) of total employment in the sector. Southern Tagalog followed with 16,014 employees.

  5. Supporting auxiliary transport services (I63), the industry division with the largest number of establishments, absorbed the biggest number of workers numbering to 83,529 workers or 33.8 percent. Land transport; transport via pipelines (I60) accounted for the second biggest employment of 69,029 workers (28.0 percent).

  6. Majority (94.9 percent) of the employees in the transport, storage and communications sector are paid employee numbering to. An estimated 24.6 percent of the paid workers were engaged in land transport operation.

    Air Transport workers, highest earners with average monthly compensation of P37, 699

  7. The transport, storage and communications industries paid a total of P34.5 billion as compensation in 1999. This translates to an average monthly compensation of P12,273 per paid employee. Highest earners were workers of air transport establishments (PSIC I62) who received an average monthly compensation of P37,699. In contrast, employees in land transport and transport via pipelines (PSIC I60) were the lowest earners with P6,005 average monthly compensation.

  8. The sector?s dominant region, NCR, accounted for the largest share of 84.7 percent of the total compensation (P29.2 billion). Persons employed by Metro Manila establishments had the highest average monthly compensation of P15,809, while paid employees in ARMM received the least with P2,201.

    Postal and telecommunications services, top grosser in both revenue and expenditures

  9. Total revenue earned by the sector amounted to P243.3 billion. About half or P116.1 billion was contributed by postal and telecommunications services (PSIC I64). Other industry divisions that exceeded the P30 billion mark were supporting auxiliary transport activities (PSIC I63) with P47.0 billion and air transport (PSIC I62) with P32.4 billion.

  10. The cost for operating the transport, storage and communications establishments excluding compensation paid to employees, amounted to P144.5 billion in 1999. Industries contributing the highest share to the total revenue likewise registered the highest share to total operational costs. (See Figure 4).

  11. Bulk of the revenues was generated in NCR with P209.5 billion or 86.1 percent of the total revenue for the whole sector. Similarly, the bulk of costs in this sector was spent by NCR-based establishments (P122.4 billion or 84.7 percent). CAR, on the other hand, earned the lowest revenue of P 155.8 million or 0.1 percent and spent the lowest cost of P67.4 million.

  12. Labor productivity for the sector as measured by the ratio between revenue and employment pegged at P0.986 million. Air transport (PSIC I62) had the highest labor productivity at P3.1 million. On the other hand, the least labor productive industry division was land transport; land transport via pipeline (PSIC I60) at P0.355 million.

     


    TECHNICAL NOTES

    Scope and Coverage:

    The 2000 Census of Philippine Business and Industry (CPBI) formerly known as Census Establishments (CE) was conducted to collect benchmark information on economic activities in the entire country for the year 1999. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which is on transport, storage and communications (Sector I). The sector is composed of land transport; transport via pipelines (I60), water transport (I61), air transport (I62), supporting and auxiliary transport activities; activities of travel agencies (I63), postal and telecommunications services (I64).

    All transport, storage and communications establishments nationwide with average total employment (ATE) of 20 and over were covered on a 100 percent basis and those with ATE of less than 20 were selected using probability proportional to size sampling.

    Response

    A total of 2,148 or 59.58% responded out of the 3,605 samples drawn for the sector. Adjustments for non-response were made through imputations.

    Concepts and Definition of Terms

    Establishment - is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.

    Economic activity - or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

    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 1999.

    Paid employees - are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.

    Unpaid workers - include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.

    Salaries and wages - are payments in cash or in kind, 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.

    Revenue - refers to cash received and receivables for goods sold and services rendered.

    Cost - refers to all expenses excluding compensation 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.

    Gross additions to fixed assets - is the sum of cost 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, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.

    Capital expenditures - for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or done on own account.

    Change in Inventories - as a derived indicator, is computed as the value of ending inventory less the value of beginning inventory.

    Subsidies - are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.

    Inventories - refer to stocks of goods owned by or 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.


    Source:   National Statistics Office
                   Manila, Philippines

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