Retail sale in non-specialized stores dominates among industries
Preliminary results of the 2012 Census of Philippine Business and Industry showed that a total of 9,723 establishments with total employment of 20 and over were engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles.
Retail sale in non-specialized stores industry had the highest number of establishment with 1,600 establishments or 16.5 percent of the total. Retail sale of other household equipment in specialized stores closely followed with 1,444 establishments at about 14.9 percent. Retail sale of other goods in specialized stores industry ranked third with1,304 establishments or 13.4 percent (Figure1).
At the regional level, NCR the hub of business and industry had the most number of establishments with 3,906 (40.2%).CALABARZON and Central Visayas placed far second and third with 1,012 (10.4%) and 819 (8.4%), respectively (Table 2).
Retail in non-specialized stores employs the highest number of workers
In 2012, employment reached a total of 469,298 workers. Paid workers comprised the majority of the workforce with employment of 465,130 (99.1%). The rest of the workers was working owners and unpaid workers.
Retail sale in non-specialized stores employed the most number of workers among industries with 134,852 or 28.7 percent of the total. Wholesale of household goods followed with 57,540 workers (12.3%). Ranked third was wholesale of food, beverages and tobacco with 46,780 workers (10.0%). Non-specialized wholesale trade employed the least with 594 employees only. (Figure 2).
Among regions, NCR generated jobs to nearly half (45.9%) or 215,496 workers. This was followed by CALABARZON, Central Visayas and Central Luzon with 45,008 (9.6%), 40,440 (8.6%) and 28,969 (6.2%) workers.
The average number of workers per establishment of the sector stood at 48. Retail sale in non-specialized stores registered the highest with 84 workers per establishment, followed by sale of motor vehicles and wholesale of household goods with 65 and 64 workers per establishment, respectively.
Total compensation disbursements reach to PHP76.5 billion
The sector paid a total compensation of PHP76.5 billion in 2012, equivalent to an average annual compensation of PHP164.4 thousand per employee.
Industry wise,retail sale in non-specialized stores paid the highest compensation of PHP17.1 billion comprising more than one-fifth (22.4%) of the total. Wholesale of household goods followed next with PHP12.8 billion or 16.8 percent. Retail sale of other goods in specialized stores ranked third with PHP7.8 billion or 10.2 percent. Non-specialized wholesale trade recorded the lowest payments of PHP82.4 million (0.1%).
Across regions, employers in NCR spent the biggest share in total compensation amounting to PHP47.4 billion (62.0%). CALABARZON placed second providing an amount of PHP6.7 billion (8.7%) while businesses in Central Visayas region disbursed PHP4.8 billion (6.2%). Workers in ARMM received the lowest compensation of PHP28.0 million.
Wholesale of machinery, equipments and supplies workers are highest-paid employees in 2012
Workers in wholesale of machinery, equipment and supplies establishments were the highest-paid employees of the sector receiving an average annual compensationof PHP257.6 thousand per year translating into average monthly compensation of PHP21,464. Wholesale of household goods employees followed next with PHP225.3 thousand. Employees of other specialized wholesale came in third with annual compensation of PHP221.8 thousand. On the other hand,those workers employed inretail sale of automotive fuel in specialized storeswere the lowest paid with PHP107.2 thousand or monthly compensation of PHP8,932 (Figure3).
Retail sale in non-specialized stores generates the biggest share in income and expense
Gross income generated by the sector reached to PHP2.5 trillion in 2012. Retail sale in non-specialized stores earned PHP566.8 billion or 22.5 percent of the total. Wholesale of household goods ranked second with PHP393.4 billion (15.6%). Other specialized wholesale ranked third with PHP333.6 billion (13.2%).
By region, NCR earned more than half (56.7%) of the total income of the sector amounting to PHP1.4 trillion. Income for other next in rank regions were the following: CALABARZON with PHP245.2 billion (9.7%), Central Luzon with PHP195.7 billion (7.8%) and Central Visayas with PHP156.4 billion (6.2%).
Total expenses incurred amounted to PHP2.4 trillion in 2012. Being the major contributor in income, retail sale in non-specialized stores had the largest proportion in expense with PHP547.1 billion (22.6%). This was followed by wholesale of household goods PHP362.0 billion (15.0%) and other specialized wholesale PHP320.5 billion (13.3%) respectively. On the other hand, retail trade not in stores, stalls or marketsi ncurred the lowest expense of PHP684.1 thousand. Figure 4 below shows the top five industry groups in terms of income and expense.
Across regions, NCR incurred highest expense amounting to PHP1.4 trillion (56.8%). Next other regions with highest expense reported were as follows: CALABARZON with PH234.5 billion (9.7%), Central Luzon with PHP190.1 billion (7.9%) and Central Visayas with PHP145.0 billion (6.0%).
Income per peso expense at 1.04 in 2012
In 2012, the income per peso expense for the sector stood at 1.04, which means that for every peso spent by the establishment, a corresponding income of PHP1.04 was generated. Among industries, sale, maintenance and repair of motorcycles and related parts and accessories exhibited the highest and surpassed the national average with 1.10 income per peso expense. This was followed by industry engaged in wholesale of household goods with 1.09. Maintenance and repair of motor vehicles closely came in and placed third with 1.08 income per peso expense. On the other hand, wholesale of food, beverages and tobacco recorded the lowest ratio of 1.01.
At the regional level, Central Visayas posted the highest among regions at 1.08. Seven regions recorded the next highest ratio of 1.05 and these were the following: CAR, Ilocos Region, CALABARZON, Bicol Region, Northern Mindanao,Davao Region and SOCCSKSARGEN.
Value added stands at PHP233.4 billion
Value added for the Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles section was estimated at PHP233.4 billion in 2012.
The top three Industries that contributed to the total value added were retail sale in non-specialized stores with PHP53.2 billion (22.8%), wholesale of household goods at PHP49.6 billion (21.2%) and other specialized wholesale at PHP24.8 billion (10.6%)(Figure 5). Likewise, on the regional level, NCR contributed the largest value added of PHP142.3 billion (61.0%).
Other specialized wholesale industry has the highest labor productivity
Value added per employee, a measure of labor productivity of the sector was estimated at PHP497.4 thousand. Other specialized wholesale lead the section with PHP930.9 thousand while retail trade not in stores, stalls or markets recorded the lowest with PHP161.6 thousand. Workers from NCR were the most productive among regions with PHP660.5 thousand.
Gross margin reaches PHP392.8 billion
Gross margin or trade margin, the gross output of the section in 2012 reached PHP392.8 billion. Retail sale in non-specialized stores was the top grosser contributing the highest among industries with PHP93.7 billion (23.9%). Wholesale of household goods followed with PHP87.5 billion (22.3%) and other specialized wholesale came in third with PHP40.2 billion (10.2%). The percentage distribution of industries to gross margin is shown in Figure 6.
Gross additions to fixed assets accumulates to PHP12.2 billion
Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP12.2 billion in 2012.
Retail sale in non-specialized stores acquired the biggest gross addition to fixed assets with PHP3.8 billion. This was followed by other specialized wholesale with PHP1.9 billion and wholesale of food, beverages and tobacco with PHP1.5 billion. On the other hand, retail trade not in stores, stalls or markets had the least with PHP3.0 million. Regionwise, NCR recorded the highest gross additions amounting to PHP7.0 billion while ARMM had the least at PHP12.5 million.
Total change in inventories amounts to PHP47.1 billion
Total change in inventories defined as ending less beginning inventory amounted to PHP47.1 billion in 2012. Wholesale of food, beverages and tobacco had the highest change in inventory comprising more than one-third (36.2%) of the total with PHP17.1 billion. Retail sale in non-specialized stores followed next with PHP8.3 billion (17.7%). Sale of motor vehicles came in third with change in inventory amounting to PHP4.7 billion (10.0%).
Among regions, NCR had the highest change in inventories at PHP33.6 billion while ARMM garnered the lowest of PHP10.4 million.
Subsidies totals to PHP8.0 billion
Total subsidies received from the government amounted to PHP8.0 billion in 2012.
Only wholesale of food, beverages and tobacco industry located in NCR received subsidies from the government.
Sales from E-commerce reaches PHP24.0 billion
Sales from e-commerce transactions of the sector were valued at PHP24.0 billion. Five out 19 industries posted transactions of e-commerce of which retail sale of information and communications equipment in specialized accounted for almost half (49.6%) of the total amounting to PHP11.9 billion. At the regional level, NCR recorded the highest e-commerce transaction with PHP23.8 billion or 99.4%.
Total assets of the sector values at PHP1.5 trillion
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.
In 2012, the total assets of the sector engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles was valued at PHP1.5 trillion. Sale of motor vehicles recorded the highest among industries at PHP500.8 billion while retail trade not in stores, stalls or markets posted the lowest at PHP639.1 million. Among regions, NCR accounts for more than three-fourths (76.5%) of the total assets amounting to PHP1.2 trillion. CALABARZON and Central Visayas followed with PHP80.4 billion and PHP65.3 billion, respectively.
This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for Wholesale and Retail Trade; Repair of MotorVehicles and Motorcycles sector for establishments with total employment of 20 and over.
The 2012 CPBI is the 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 will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.
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 which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and coverage
The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
1. Corporations and partnerships
2. Cooperatives and foundations
3. Single establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
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 Classificatin (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport 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)
Private Education (P)
Human Health and Social Work Activities (Q)
Arts Entertainment, and Recreation (R)
Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
Branch (EO=2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO=3) is one where the establishments is located in the same address as the main office and with branch/es elsewhere.
Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
Ancillary unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole propietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whatever they are stock or non-stock corporations.
Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial Classification. The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size (SZ) of the Unit of Enumeration. The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
The following are the size codes and corresponding total employment used in the 2012CPBI:
|TE Code||Total Employment||TE Code||Total Employment|
|0||1 - 4||5||100 - 199|
|1||5 - 9||6||200 - 499|
|2||10 - 19||7||500 - 999|
|3||20 - 49||8||1000 - 1999|
|4||50 - 99||9||2000 & Over|
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.
Total response rate for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles was 94.0 percent (14,876 out of 15,821 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 119 establishments responded online, and eight establishments submitted through e-mail.
For establishments with TE 20 and over, the response rate was 92.1 percent.
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, 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.
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.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and agricultural/forestry/fishery 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 Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased;water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.
Value of output represents the sum of the receipts from products and by-products sold, agricultural/forestry/fishery services rendered, industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.
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.
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.
Source: Philippine Statistics Authority - National Statistics Office