Water collection, treatment and supply leads the sector

The final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide showed that there were a total of 977 establishments engaged in water supply; sewerage, waste management and remediation activities in the formal sector of the economy.

Water  collection,  treatment and supply which  includes water districts led the sector with 842 establishments or 86.2 percent of the total. Materials  recovery ranked a  far second  with 55 establishments (5.6%)  while collection of non-hazardous waste placed third with 29 establishments or 3.0 percent of the total count. (Table 1)

Figure 1 shows the distribution of all establishments for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2013.

Water collection, treatment and supply employs 34,360 workers

Water supply; sewerage, waste management and remediation activities sector employed a total of 34,360 workers in 2013. Of the total employment, 33,404 or 97.2 percent were paid employees and the remaining 956 (2.8%) were unpaid workers.

Water collection, treatment and supply, recording the most number of establishments, also emerged as the top employer with 30,994 workers or 90.2 percent. Collection of non-hazardous waste followed far behind employing 1,231 workers or 3.6 percent of the total. Materials recovery was the third top employer with 970 workers (2.8%). Figure 2 shows the distribution of employment for water supply; sewerage, waste management and remediation activities establishments in 2013.

Employees of water collection, treatment and supply earns the highest

Total compensation paid in 2013 amounted to PHP10.9 billion, equivalent to an average annual compensation of PHP326,761 per employee.

Employees who worked in water collection, treatment and supply were the highest paid with average annual compensation of PHP345,421 per employee. Employees working for remediation activities and other waste management services followed with an average annual pay of PHP249,520. Employees in treatment and disposal of non-hazardous waste received an average pay of PHP183,519 per employee. On the other hand, employees in sewerage were the lowest paid receiving only PHP126,558 annually. (Table 1a)

Figure 3 shows the average annual compensation of employees for water supply; sewerage, waste management and remediation activities sector by industry sub-class in 2013.

Water collection, treatment and supply generates highest value of output

Total value of output generated by all establishments in 2013 amounted to PHP67.4 billion.

By industry, water collection, treatment and supply which produced the highest output value of PHP61.9 billion accounted for 91.9 percent of the total. The shares of other industries to the total value of output are as follows:

• Collection of non-hazardous waste, PHP2.2 billion (3.2%)
• Materials recovery, PHP1.3 billion (1.9%)
• Treatment and disposal of non-hazardous waste, PHP1.3 billion (1.9%)
• Sewerage and other waste management and remediation activities, PHP0.7 billion (1.1%)

Figure 4 shows the distribution of value of output for all water supply; sewerage, waste management and remediation activities establishments by industry sub-class in 2013.

Total expense amounts to PHP58.1 billion

Total expense, including compensation, incurred in business operation amounted to PHP58.1 billion in 2013.

About 91.8 percent or PHP53.3 billion of the total was spent by water collection, treatment and supply, the highest among the industries. Collection of non-hazardous waste and materials recovery followed spending PHP1.9 (3.3%) and  PHP1.3 billion (2.2%), respectively.

Treatment and disposal of hazardous waste records the highest returns

Income per expense ratio in 2013 for the sector was recorded at 1.35, indicating that PHP1.35 was returned for every peso spent.

Among industries, treatment and disposal of hazardous waste recorded the highest income per expense ratio of 1.63. The income-expense ratio of other industries are as follows:

• Water collection, treatment and supply, 1.37
• Treatment and disposal of non-hazardous waste, 1.37
• Sewerage, 1.25
• Collection of non-hazardous waste, 1.13
• Remediation activities and other waste management services, 1.04
• Materials recovery, 1.02
• Collection of hazardous waste, 0.77

Value Added reaches PHP43.8 billion

Value added, defined as gross output less intermediate input, generated by all water supply, sewerage, waste management and remediation activities establishments reached PHP43.8 billion in 2013.

At the industry level, water collection, treatment and supply which recorded the highest value of output and expense, likewise, contributed the biggest share to total value added amounting to PHP42.3 billion or 96.7 percent of the total. Collection of non-hazardous waste followed distantly with P0.5 billion (1.2%). Treatment and disposal of non-hazardous waste came next with PHP0.5 billion (1.1%).

Water collection, treatment and supply records highest labor productivity

The ratio of value added per worker, a simple measure of labor productivity, was estimated at PHP1.3 million per worker.

The highest labor productivity among industries was recorded by water collection, treatment and supply valued at PHP1.4 million per worker. This was followed by treatment and disposal of non-hazardous and hazardous waste with respective labor productivity of PHP1.3 million and PHP0.8 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 2013.

Among industries, water collection, treatment and supply acquired the highest gross addition to tangible fixed assets amounting to PHP3.6 billion or 96.0 percent of the total. This was followed far behind by collection of non-hazardous waste and treatment and disposal of non-hazardous waste with gross additions of PHP94.7 million (2.5%) and PHP46.9 million (1.2%), respectively.

Subsidies received amount to PHP195.5 million

Total subsidies provided by the government to support the business operation of water supply; sewerage, waste management and remediation activities sector amounted to PHP195.5 million.

All the subsidies received by the sector in 2013 went to water collection, treatment and supply industry.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Water Supply; Sewerage, Waste Management and Remediation Activities (Sector E) for all employment sizes.

The 2013 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 2013.

The survey was conducted nationwide in 2014 with the year 2013 as the reference period of data, except for employment which is as of November 15, 2013. 

Beginning with the 2013 ASPBI, the data processing was done on a decentralized set-up particularly by the Provincial Offices (POs). The set-up is in line with the PSA’s strategic direction to decentralize the data processing of surveys to the field offices. A new strategy in data processing was implemented through the use of an online system called the Establishment Data Management System (EDMS).

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

Legal Authority

The conduct of the 2013 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 2013 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 2013 ASPBI covered only the following economic units:

• All establishments with total employment (TE) of 10 or more, 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 2013 ASPBI was extracted from the 2013 List of Establishments (LE). The estimated number of establishments in operation in the country in 2013 totaled to 941,000. About 263,000 establishments (28.0% of the total establishments) belong to the formal sector of which 229,000 (87.0%) 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 2013 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 2013 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 was

where:

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

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

x_spj    = value of the j^th establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

j = 1, 2, 3,…, n_sp establishments

  = weight of the j^th establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

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

n_sp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each regionCertainty Stratum (TE 100 and over)

2. Certainty Stratum (TE 100 and over)

The estimate of the total of a characteristic  for the certainty employment stratum in an industry domain in each region was

where:  

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

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

x_cpj   = value of the j^th establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region

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

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

3. 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

1. Non-Certainty Stratum

The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the s^th industry domain was

where:

s    = denotes the non-certainty employment strata in TE of less than 20

Xsj = value of the j^th establishment in non-certainty employment stratum in TE of less than 20 in S^th industry domain

j = 1,2,3..., n_s establishments

W_sj = weight of the j^th establishment in the non-certainty employment stratum of less than 20 in the s^th industry domain

N_s = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the s^th industry domain

n_s = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in s^th 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:

N_s = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the s^th industry domain

n'_s = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the s^th industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'_spj) was

where:

N_sp  = 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 96.1 percent (615 out of 640 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 imputed based on established imputation methods and from other available administrative data sources. However, reports of establishments which were found to be duplicates, out-of-scope and out of business in 2013, were not imputed.

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, 2013.

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.