2012 Census of Philippine Business and Industry - Manufacturing Sector for Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2014-054

Release Date: 

Friday, July 11, 2014

 

Manufacturing establishments with TE of 20 and over reaches 7,313 in 2012

The total number of manufacturing establishments with TE of 20 and over in the formal sector of the economy was estimated at 7,313 according to the preliminary results of the 2012 Census of Philippine Business and Industry. This number is 56.8 percent greater than the estimated number of establishments in 2010. This is attributed mostly to the newly listed manufacturing establishments with TE of 20 and over in the 2011 and 2012 Updating of List of Establishments which totaled to 869 and 1,961 establishments, respectively.

Among the industry groups, the top ten manufacturing industries accounted for more than half (52.9%) of the total manufacturing establishments with TE of 20 and over. Other food products led in terms of number of establishments with 908 establishments or 12.4 percent of the total. Wearing apparel, except fur apparel ranked second with 668 establishments (9.1%). Plastic products; and printing and service activities related to printing followed with 454 (6.2%) and 365 establishments (5.0%), respectively. These four industries also occupied the same slot in 2010.

Completing the list of top ten industries in 2012 in terms of number of establishments are the following:

  • Furniture (315 establishments, 4.3%)
  • Other fabricated metal products; metal working service activities (289 establishments, 4.0%)
  • Non-metallic mineral products, n.e.c. (239 establishments, 3.3%)
  • Paper and paper products (218 establishments, 3.0%)
  • Other chemical products, n.e.c. (214 establishments, 2.9%)
  • Grain mill products, starches and starch products (197 establishments, 2.7%)

The above listed industries were also part of the top ten industries in 2010 except for grain mill products, starches and starch products.

Figure 1 shows the percent distribution of manufacturing establishments with TE of 20 and over by industry group in 2012.

The top three regions in terms of number of establishments were all located in the Luzon area with a total share of 73.3 percent. The National Capital Region (NCR) led the regions where a total of 2,720 (37.2%) establishments were located. This was followed by the neighboring regions of CALABARZON and Central Luzon with 1,757 (24.0%) and 881 (12.0%) establishments, respectively. Central Visayas recorded the largest count in the Visayas area with 709 (9.7%) establishments. While in the Mindanao area, Davao Region registered the most number of manufacturing establishments with 246 (3.4%) establishments.

 

Electronic components industry still employs the highest number of workers                                                            

In 2012, total employment generated by manufacturing establishments with TE of 20 and over reached 1,056,172. This exhibited an increase of 21.0 percent from the total employment generated in 2010. Paid employees in 2012 made up 99.6 percent of total employment while the rest were working owners and unpaid workers.

Industrywise, the top ten industry groups have a combined share of 56.2 percent of the total employment. Electronic components industry, despite being dislodged from the top ten in terms of number of establishments and ranking only 19th place in 2012, still employed the highest number of workers with 139,930 or 13.2 percent of the total. Wearing apparel, except fur apparel also ranking second in terms of number of establishments followed with 107,883 workers (10.2%). Other food products followed in the third slot with 76,781 workers (7.3%). Ranking fourth and fifth were parts and accessories for motor vehicles, and computers and peripheral equipment and accessories with 63,500 and 52,784 workers, respectively.  Parts and accessories for motor vehicles out-ranked computers and peripheral equipment and accessories industry in the fourth slot in 2012. 

Other industries comprising the top ten slots in terms of employment generation are:

  • Plastic products (38,971 workers or 3.7%)
  • Processing and preserving of fruits and vegetables (29,664 workers or 2.8%)
  • Other fabricated metal products; metal working service activities (29,311 workers or 2.8%)
  • Non-metallic mineral products, n.e.c. (28,297 workers or 2.7%)
  • Processing and preserving of fish, crustaceans and mollusks (26,815 workers or 2.5%)

In terms of employment generation, this same set of industries were in the top ten in 2012 and 2010 except for non-metallic products, n.e.c. replacing building of ships and boats in the ninth place in 2012.

Figure 2 shows the percent distribution of employment of manufacturing establishments with TE of 20 and over by industry group in 2012.

Among regions, the top three regions in terms of number of establishments were also the top three in terms of employment generation employing a combined of 782,537 workers or almost three-fourths (74.1%) of total employment of manufacturing establishments with TE of 20 and over. CALABARZON, ranking second in number of establishments, generated the most number of workers numbering 420,111 or 39.8 percent of the total. NCR ranked second with 218,728 workers or 20.7 percent. Central Luzon followed employing 143,698 workers or 13.6 percent.

 

Refined petroleum products industry pays the highest average annual compensation                                                           

In 2012, total compensation paid to employees by manufacturing establishments with TE of 20 and over was estimated at PHP267.3 billion or 38.2 percent higher than PHP193.4 billion generated in 2010. This is equivalent to an average annual compensation of PHP254,110 and PHP222,034 per employee in 2012 and 2010, respectively.  

Among industry groups, refined petroleum products paid the highest average annual compensation of PHP1.9 million per paid employee. A far second was dairy products with average annual compensation of PHP932.6 thousands.

The following table shows the ranking of industries with an average annual compensation reaching more than half a million.

 

Table 1  Average Annual Compensation of Employees in Top-Paying Manufacturing Establishments
with TE of 20 and Over Philippines, by  Industry Group: 2012
 

Rank

2009 PSIC Code

Industry Description

Average Annual Compensation per Employee

1

C192

Refined petroleum products

1,878,235

2

C105

Dairy products

   932,646

3

C303

Air and spacecraft and related machinery

   747,457

4

C210

Pharmaceuticals, medicinal chemical and botanical products

   607,201

5

C252

Weapons and ammunition

   570,933

6

C110

Beverages

   539,341

7

C291

Motor vehicles

   515,212

8

C242

Basic precious and other non-ferrous metals

   507,676

The top four industries which paid the highest average annual compensation in 2012 were also the top four and the only industries with more than half a million average annual compensation in 2010. 

By region, CALABARZON, NCR and Central Luzon were the top three regions that accounted for more than three-fourths of total compensation with percent share of 77.0 in 2012 and 78.1 in 2010.

 

Value of output amounts to PHP4.3 trillion, electronic components industry contributes 16.9 percent of the total                                                          

Value of output generated by manufacturing establishments with TE of 20 and over was estimated at PHP4.3 trillion in 2012. This value is higher by 24.5 percent from the amount generated in 2010.

By industry group, more than half (50.2%) of the total value of output of manufacturing establishments with TE of 20 and over was contributed by seven industries led by electronic components with an output share of 16.9 percent (PHP732.1 billion). Refined petroleum products followed with 11.0 percent share (PHP477.3 billion). Completing the list of the top seven contributors to more than half of the total value of output are the following:

  • Computers and peripheral equipment and accessories (PHP238.9 billion)
  • Other food products (PHP201.9 billion)
  • Beverages (PHP193.2 billion)
  • Dairy products (PHP174.8 billion)
  • Parts and accessories for motor vehicles (PHP156.7 billion)

The same industries were also the top seven contributors to value of output in 2010. But in 2010 the combined share of these seven industries fell below half (48.9%) of the total value of output of manufacturing establishments with TE of 20 and over. Most of the industries maintained its 2010 ranking except for beverages which was displaced by other food products in the fourth slot.     

Figure 3 compares the top seven contributors to value of output in 2012 and 2010.

Regionwise, the combined output value of the top three regions was recorded at PHP3.4 trillion or a combined share of 78.2 percent. The following are the top regions in terms of contribution to value of output:

  • CALABARZON, PHP1,956.3 billion (45.2%)
  • NCR, PHP786.6 billion (18.2%)
  • Central Luzon, PHP642.3 billion (14.8%)

 

Electronic components industry generates the highest value added                                                         

Value added generated by manufacturing establishments with TE of 20 and over reached PHP1.1 trillion in 2012, an increase of merely 8.3 percent from PHP1.0 trillion in 2010.  

Among the industry groups, the top ten industries comprised 69.1 percent of the total value added for manufacturing establishments with TE of 20 and over. Electronic components led the top contributors to value added with PHP304.1 billion or 28.0 percent of the total. Computers and peripheral equipment and accessories placed second with PHP106.8 billion or 9.8 percent of the total value added.

The ratio of value added to total employment, or a simple measure of total productivity, was recorded at PHP1.0 million.

Table 2 shows the most labor productive manufacturing industries in 2012 that exceeded a total productivity of PHP1.0 million.

 

Table 2  Most Labor Productive Industries for Manufacturing Establishments with TE of 20

and Over by Industry Group: Philippines, 2012

Rank

2009 PSIC Code

Industry Description

Value Added per Total Employment

(In PHP1,000)

1

C192

Refined petroleum products

13,999.7

2

C272

Batteries and accumulators

  5,182.9

3

C120

Tobacco products

  4,620.6

4

C110

Beverages

  4,408.0

5

C105

Dairy products

  4,096.7

6

C279

Other electrical equipment

  2,746.7

7

C104

Vegetable and animal oils and fats

  2,275.8

8

C261

Electronic components

  2,173.5

9

C106

Grain mill products, starches and starch products

  2,138.5

10

C262

Computers and peripheral equipment and accessories

  2,023.2

11

C242

Basic precious and other non-ferrous metals

 1,545.6

12

C291

Motor vehicles

 1,456.6

13

C239

Non-metallic mineral products, n.e.c.

 1,365.1

14

C301

Building of ships and boats

 1,261.2

15

C210

Pharmaceuticals, medicinal chemical and botanical products

 1,206.5

16

C281

General purpose machinery

 1,150.1

By region, CALABARZON recorded PHP586.3 billion or more than half (54.0%) of the total value added which registered a total productivity of PHP1.4 million for the region.

 

Gross addition to tangible fixed assests surges to PHP189.6 billion in 2012                                                        

In 2012, gross addition to tangible fixed assets of manufacturing establishments with TE of 20 and over reached PHP189.6 billion. This figure is more than twice (118.9%) of the gross addition in 2010.  

Electronic components still recorded the highest gross addition at PHP46.6 billion or 24.6 percent of the total. Refined petroleum products followed closely with PHP43.3 billion (22.9%). These two industries also recorded the highest gross addition in 2010.

CALABARZON led the regions in terms of gross addition to tangible fixed assets by posting the highest with PHP51.2 billion or 27.0 percent. Central Luzon recorded PHP47.7 billion or 25.2 percent. Cordillera Administrative Region, on the other hand, registered PHP42.0 billion or 22.1 percent. Altogether, these regions comprised 74.3 percent of the total gross addition.                 

 

Electronic components industry receives almost two-thirds worth of the subsidies in 2012                                                        

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry. This amounted to PHP3.3 billion in 2012, a value more than five times (415.6%) of the subsidies received by the manufacturing establishments with TE of 20 and over in 2010.

Among industry groups, electronic components received the highest worth of subsidies with PHP2.2 billion or 65.6 percent of the total. Spinning, weaving and finishing of textiles followed as a far second with PHP268.6 million (8.1%), while printing and service activities related to printing posted PHP179.9 million (5.4%).

At the regional level, NCR received the highest worth of subsidies at PHP2.2 billion or 65.9 percent of the total.  CALABARZON ranked next with PHP696.5 million, followed by Central Luzon which posted PHP280.4 million.

 

Total assets amounts to PHP3.1 trillion in 2012                                                               

Total assets of establishments was gathered for the first time in the 2012 CPBI. It refers to resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

Total assets acquired by manufacturing establishments with TE of 20 and over amounted to PHP3.1 trillion in 2012.

Among industry groups, the top ten industries acquired more than half (54.8%) of the total assets.   Electronic components recorded the biggest share with 10.7 percent or PHP332.2 billion. Refined petroleum followed closely with a share of 9.7 percent.

CALABARZON acquired the largest amount of total assets at PHP1.1 trillion or 35.1 percent of the total followed by NCR at PHP589.6 billion or 18.9 percent.  Central Luzon came in third with PHP559.0 billion (18.0%).

 

Sales from e-commerce accounts for less than one percent of total income                                                              

Sales from e-commerce was another data captured for the first time in the census. It refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

In 2012, e-commerce sales by manufacturing establishments with TE of 20 and over reached PHP24.7 billion, accounting for 0.6 percent of total income in 2012.      

Industrywise, electronic components recorded the highest sales through e-commerce at PHP8.2 billion or 33.4 percent of the total, registering 1.1 percent of total income of the industry. Followed by processing and preserving of meat; and beverages with e-commerce sales of PHP4.7 billion and PHP2.8 billion, respectively.                                                                 

Regionwise, NCR accounted for the highest e-commerce sales at PHP9.2 billion (37.4%) which represent 1.1 percent of the total income of the region.  Central Visayas ranked second with PHP8.8 billion (35.6%). A far third was CALABARZON with PHP2.6 billion (10.6%).

 

 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for manufacturing establishments with total employment (TE) of 20 and over.

The 2012 CPBI is a forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census provide information on the levels, structure, performance and trends of economic activities in the country.  It also serves as benchmark information in the measurement and comparison of national and regional economic growth.

The census was conducted nationwide in April 2013 with the year 2012 as the reference period of data, except for employment which is as of November 15, 2012.

Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (2009 PSIC) and at the regional level.   

 

Legal Authority

The conduct of 2012 CPBI is authorized under the following legislative acts and presidential directives:

  • Commonwealth Act 591
  • Presidential Decree No. 418
  • Executive Order No. 121
  • Executive Order No. 352
  • Executive Order No. 5

 

Scope and Coverage

The 2012 CPBI 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 of Motor Vehicles and 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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

The census 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

The frame for the 2012 CPBI was extracted from the 2012 List of Establishments (LE). The estimated number of establishments in the 2012 LE totaled 945,900 establishments in operation in 2012. Of this, about 28.0 percent or 262,800 establishments belong to the formal sector of which 87.0 percent or 229,500 establishments comprised the establishment frame. This frame was used to draw the sample establishments for the census.

 

Unit of Enumeration

Like all other establishments censuses/surveys conducted by the NSO, the 2012 CPBI unit of enumeration is the establishment. The 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.

For manufacturing, the unit of enumeration consists of shop, factory, bakery, mill, distillery, refinery, cannery, abattoir, brewery, foundry, printing press, tannery or plant engaged in manufacturing, processing, fabricating or finishing products mechanically or manually including the assembly of component parts of manufactured products and the substantial alteration, reconstruction or repair of special type of goods and classified under economic organization such as: single establishment (EO=1), branch only (EO=2) and establishment and main office (EO=3). 

 

Methodology

Sampling Design

The 2012 CPBI utilized stratified systematic sampling with 3-digit or 5-digit PSIC serving as the industry strata and employment size as the second stratification variable.

For the sampling domain, the 17 regions serve as the geographic domain while 158 industry groups and 347 industry sub-classes (3/5 digit PSIC) serve as the industry domain. For the manufacturing sector, 65 industry groups and 10 industry sub-classes serve as the industry domain.

Estimation Procedure

a. Non-Certainty Stratum (TE of 20-99)

The estimate of the total of a characteristic for the non-certainty employment stratum in TE of 20 and over for an industry domain in each region (geographic domain) is

where:

s         denotes the non-certainty employment stratum in TE of 20 and over

p      = 1, 2,..., 17  regions (geographic domains)

xspj   = value of the jth establishment in the non-certainty employment stratum in TE of 20 and over for an industry domain in each region

j       =  1, 2, 3,…, nsp establishments

= weight of the jth establishment in the non-certainty employment stratum in TE of 20 and over for an industry domain in each region

Nsp = total number of establishments in the non-certainty employment stratum in TE of 20 and over for an industry domain in each region

nsp  = number of sample establishments in the non-certainty employment stratum in TE of 20 and over for an industry domain in each region

 

b. Certainty Stratum

    The estimate of the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

     

    where:

    c       denotes the certainty employment stratum in TE of 20 and over

    p      = 1, 2,..., 17 regions (geographic domains)

    xcpj  = value of the jth establishment in the certainty employment stratum in TE of 20 and over in an industry domain within each region

    j       = 1, 2, 3, …, mcp establishments

    mcp  = number of establishments in the certainty employment stratum in TE of 20 and over in an industry domain within each region

     

    Total Estimate for TE of 20 and Over

    The estimate of the total of a characteristicfor 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.

     

    Weight Adjustment Factor for Non-Response

     

    To account for non-response in the non-certainty strata, the adjustment factors, and (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

     

    For the non-certainty employment stratum in TE of 20-99, the adjusted weight (W’spj) is

    where:

    Nsp   = total number of establishments in the non-certainty employment stratum in TE of 20-99 for an industry domain within each geographic domain (region)

    n’sp  = number of responding establishments in the non-certainty employment stratum in TE of 20-99 for an industry domain within each geographic domain (region)

     

    Questionnaire Design

    The design of the 2012 CPBI sectoral questionnaires not only took into consideration the requirements of national income accounting but also adopted the income and expense account in the Financial Statement of the establishment to provide respondents ease in the accomplishment of the forms. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.

    The sample establishments responded also to the census through the use of Web-based version of the 2012 CPBI questionnaires which was accomplished online at the NSO website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

     

    Response Rate

    The overall response rate for the manufacturing sector was 88.8 percent (6,894 out of 7,768 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments, etc.

    Of the total responses, 36 or 0.5 percent were accomplished online using the Web-based version and six e-questionnaires were sent through e-mail.  While 13 accomplished questionnaires in portable document format (PDF) were also submitted through e-mail.

    For establishments with TE of 20 and over, the response rate was 88.3 percent.

    Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources.  However, reports of establishments in the certainty stratum, which were found to be duplicates and out of business in 2012, were not imputed.

     

    Limitation of Data

    Only the formal sector was covered in the census. It consists of corporations and partnership; cooperatives and foundations; single proprietorship with employment of 10 and over; and single proprietorships with branches.

     

    Concepts and Definitions of Terms

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

    Total employment is the number of persons who worked in for the establishment as of November 15, 2012.

    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.

    Unpaid workers are persons working for at least one-third of the working time normal to the establishment and do not receive regular pay.

    Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, PAG-IBIG etc.

    Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts, and allowances, including duties and taxes but excluding subsidies.

    Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchasers price 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.

    Value of output represents the sum of the sale of products and by-products, income from industrial services done for others, sale of goods  less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress.

    Intermediate expense refers to expenses incurred in the production of goods and industrial services such as raw materials used; other 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 manufacturing 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 cost.

    Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

    Change in total inventories is computed as the total value of ending inventory less the total beginning inventory.

    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.

    Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

    E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

     

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