Number of establishments rises by 18.4 percent
In 2012, there were 303 establishments with total employment (TE) of 20 and over engaged in water supply; sewerage, waste management and remediation activities according to the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI). This number was higher by 18.4 percent from the 256 establishments recorded in 2010. The growth in the number was due to the 22 newly listed establishments in the 2012 List of Establishments, increase in the employment of 18 establishments from stratum TE of less than 20, and change in the main economic activity of 7 establishments previously classified in other industries.
Of the total number of establishments, water collection, treatment and supply recorded the largest number of establishments with 267 accounting for 88.1 percent. Waste collection ranked a far second with 13 establishments or 4.3 percent share to total. Materials recovery ranked third with 11 establishments or 3.6 percent of the total count.
Figure 1 shows the distribution of establishments with TE of 20 and over for water supply; sewerage, waste management and remediation activities sector by industry group in 2012.
By region, Central Luzon remained highest in terms of the number of establishments with 59 or 19.5 percent of the total, while CALABARZON continued to rank second with 52 or 17.2 percent of the total. Cordillera Administrative Region (CAR) still recorded the least count with 3 establishments or 1.0 percent (Table 2).
Figure 2 depicts the regional distribution of establishments with TE of 20 and over for water supply; sewerage, waste management and remediation activities sector by industry group in 2012.
Employment grows by 11.3 percent
In 2012, employment reached a total of 26,246 representing an increase of 11.3 percent from the employment figure of 23,571 recorded in 2010.
By industry group, water collection, treatment and supply employed the most number of workers with 23,602 or 89.9 percent, followed far behind by waste collection with 1,498 workers or 5.7 percent of the total. Materials recovery ranked third with only 506 workers (1.9%). Figure 3 shows the distribution of employment for water supply; sewerage, waste management and remediation activities sector for establishments with TE of 20 and over by industry group in 2012.
National Capital Region (NCR), which ranked third in terms of the number of establishments, continued to generate the highest employment with 5,945 workers or 22.7 percent of the total. CALABARZON with 4,033 (15.4%) workers ranked second. Completing the top three regions with most number of workers is Central Luzon with 3,654 (13.9%).
The average number of workers per establishment for the sector was recorded at 87. Waste collection registered the highest with 115 workers per establishment, followed by water collection, treatment and supply and waste treatment and disposal with 88 and 56 workers per establishment, respectively.
Average annual pay is PHP 367,231
Total compensation paid in 2012 amounted to PHP9.6 billion, indicating an average annual compensation of PHP367,231 per employee. Compared to the average annual pay of PHP298,681 in 2010, average pay increased by 23.0 percent. In real terms, however, average pay per worker increased by only 13.9 percent.
Employees working in water collection, treatment and supply received the highest average annual compensation amounting to PHP387,838. Average annual pay of employees working for waste treatment and disposal was placed at PHP236,907, while waste collection at PHP168,155 per employee. Figure 4 compares the average annual compensation of employees for water supply; sewerage, waste management and remediation activities sector for establishments with TE of 20 and over by industry group in 2012 and 2010.
By region, NCR employees continued to receive the highest average annual pay of PHP632,741, experiencing 12.6 percent increase in real terms from PHP525,269 received in 2010. This was followed by employees in Zamboanga Peninsula and Davao Region receiving an average annual compensation of PHP428,172 and PHP349,009, respectively. In real terms, this is equivalent to PHP314,601 for Zamboanga Peninsula and PHP257,191 for Davao Region.
Value of output posts 31.8 percent growth
Total value of output generated by establishments with TE of 20 and over amounting to PHP56.3 billion increased by 31.8 percent compared with PHP42.7 billion produced in 2010.
By industry, water collection, treatment and supply produced the highest output value of PHP52.1 billion accounting for 92.6 percent of the total. The shares of other industries to the total value of output were as follows:
- Waste collection, PHP2.8 billion (4.9%)
- Waste treatment and disposal, PHP0.9 billion (1.6%)
- Materials recovery, PHP0.2 billion (0.3%)
Sewerage, and remediation activities and other waste management services, PHP0.3 billion (0.6%)
Figure 5 shows the distribution of value of output for water supply; sewerage, waste management and remediation activities sector for establishments with TE of 20 and over by industry group in 2012.
Among regions, NCR shared the biggest output value amounting to PHP34.4 billion, comprising more than half (61.2%) of the total value of output. This was distantly followed by Central Luzon with an output value of PHP5.1 billion (9.0%). CALABARZON came in third with total output value of PHP4.6 billion (8.2%).
Total expense reaches PHP50.2 billion
Total expense in 2012 incurred in business operation amounted to PHP50.2 billion.
Among industries, water collection, treatment and supply incurred the highest expense amounting to PHP46.6 billion or 92.8 percent of the total. Waste collection ranked a far second with PHP2.4 billion (4.7%). Waste treatment and disposal followed next with a total expense of PHP0.9 billion (1.7%).
NCR spent the highest among the regions at PHP31.4 billion (62.6%). This was followed distantly by Central Luzon and CALABARZON spending PHP4.4 billion (8.9%) and PHP4.0 billion (8.0%), respectively.
Water collection, treatment and supply recorded the highest returns
Income per expense ratio for establishments with TE of 20 and over in 2012 was recorded at 1.36, indicating that for every peso spent PHP1.36 was realized in terms of income.
Among industries, sewerage, and remediation activities and other waste management services recorded the highest income per expense ratio of 1.50. The income-expense ratio of other industries were as follows:
- Water collection, treatment and supply (1.38 income per peso expense)
- Waste collection (1.19 income per peso expense)
- Materials recovery (1.19 income per peso expense)
- Waste treatment and disposal (1.06 income per peso expense)
Among regions, establishments in MIMAROPA registered the highest return at 1.90 income per peso expense. NCR and Northern Mindanao followed next with 1.46 and 1.41 income per peso expense, respectively.
Value Added stands at PHP36.6 billion
In 2012, value added generated by the establishments with TE of 20 and over reached PHP36.6 billion, indicating an increment of 8.2 percent from PHP33.8 billion produced in 2010.
Among industries, water collection, treatment and supply contributed the biggest share amounting to PHP35.3 billion or 96.4 percent of the total. Waste collection ranked a far second with P0.8 billion (2.2%) while waste treatment and disposal came next with PHP0.2 billion (0.5%).
By region, NCR recorded the highest value added at PHP23.2 billion (63.4%), followed by Central Luzon with PHP2.9 billion (8.0%) and CALABARZON with PHP 2.5 billion (6.9%).
Labor productivity declines by 2.8 percent
Labor productivity, defined as value added per worker, was estimated at PHP1,394.8 thousand per worker, posting a decrement of 2.8 percent compared to PHP1,435.2 thousand recorded in 2010.
By industry group, the highest labor productivity was recorded by water collection, treatment and supply with PHP1,495.6 thousand per worker followed by sewerage, and remediation activities and other waste management services with PHP601.6 thousand per worker. Labor productivity of other industries were as follows:
- Waste treatment and disposal (PHP573.5 thousand per worker)
- Waste collection (PHP546.5 thousand per worker)
- Materials recovery (PHP226.4 thousand per worker)
Figure 6 shows the labor productivity for water supply; sewerage, waste management and remediation activities sector for establishments with TE of 20 and over by industry group in 2012.
Among regions, NCR was the most productive generating PHP3,904.2 thousand per worker. This was followed by Zamboanga Peninsula with PHP936.7 thousand per worker and MIMAROPA with PHP896.9 thousand per worker.
Gross Addition to Tangible Fixed Assets slumps 59.0 percent to PHP2.6 billion
Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, decreased by 59.0 percent to PHP2.6 billion in 2012 from PHP6.5 billion in 2010.
Water collection, treatment and supply had the highest gross addition to fixed assets amounting to PHP2.6 billion or 98.7 percent of the total. Gross addition to fixed assets of other industries were as follows:
- Waste collection with PHP32.2 million (1.2%)
- Waste treatment and disposal with PHP2.1 million (0.1%)
All other industries did not report any gross addition to fixed assets.
Subsidies received amount to PHP32.4 million
Total subsidies provided by the government to support the business operation of establishments with TE of 20 reached PHP32.4 million or a decrease of 46.0 percent from PHP60.0 million in 2010.
Water collection, treatment and supply industry received all the subsidies in 2012.
Total assets for the sector is PHP174.9 billion
Total assets reached PHP174.9 billion in 2012. Water collection, treatment and supply reported the highest total assets at PHP171.9 billion or 98.3 percent of the total. This was followed by waste collection with PHP1.4 billion (0.8%) and waste treatment and disposal with PHP1.1 billion (0.6 %).
At the regional level, NCR had the highest total assets worth PHP124.3 billion (71.1%), followed by Central Luzon with PHP10.5 billion (6.0%) and CALABARZON with PHP8.8 billion (5.1%).
This special release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for the Water Supply; Sewerage, Waste Management and Remediation Activities (Sector E) for establishments with total employment 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 of 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.
The income and expense account in the Financial Statement of establishment was adopted in the design of sectoral questionnaires to capture data for the 2012 CPBI. This allowed respondents of the census an ease in accomplishing the questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
- Commonwealth Act No. 591 (An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein)
- Presidential Decree No. 418 (Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic Development Authority)
- Executive Order No. 121 (Reorganization Act of the Philippine Statistical System)
- Executive Order 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector)
- Executive Order 5 (Strengthening the National Statistics Office)
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
Unit of Enumeration
The units of enumeration for the 2012 CPBI are the establishment and enterprise. However, this special release is confined to the results of water supply; sewerage, waste management and remediation activities with establishment as the unit of enumeration.
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.
Establishments with TE of 20 and over in the formal sector for the Water Supply; Sewerage, Waste Management and Remediation Activities Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.
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
p = 1, 2,..., 17 regions (geographic domains)
xpj = value of the jth establishment with TE of 20 and over in an industry domain within each region
j = 1, 2, 3, …, mp establishments
mp = number of establishments with TE of 20 and over in an industry domain within each region
National level estimate of a characteristics by industry domain was obtained by aggregating separately the estimates for the particular industry domain from all the regions.
Response rate for Water Supply; Sewerage, Waste Management and Remediation Activities Sector for establishments with TE of 20 and over was 95.2 percent (336 out of 353 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 and out of business in 2012, were not imputed.
Limitation of Data
Only the formal sector was covered in the survey.
Some industries are combined with other related industry/ies so as not to disclose individual establishment’s data.
Concepts and Definitions of Terms
Economic activity is the establishment’s main 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, 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.
Compensation includes 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 non-industrial services done for others (except rent income from land). Intermediate input is intermediate expenses plus 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 economic activity, 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 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 establishment.