Building construction expenditures pegged at P304.4B in 2013—survey

Based on the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide which was released Wednesday, there were 1,113 construction establishments with total employment (TE) of 20 and over in the formal sector of the economy. 

Majority of these establishments were engaged in construction of buildings with 411 or 36.9 percent of the total. This was followed by construction of roads and railways with 294 establishments (26.4 percent), and electrical, plumbing and other construction installation activities with 222 establishments (20.0 percent).

On the other hand, demolition and site preparation recorded the least number with only 6 establishments (0.5 percent).

National Capital Region (NCR) with 582 establishments or 52.3 percent of the total led the regions in terms of the number of establishments. Calabarzon ranked a far second with 122 or 11.0 percent of the total. Mimaropa and Soccsksargen recorded the least count with only 10 establishments (0.9 percent) each. Meanwhile, no construction establishment was located in ARMM in 2013.

Construction of buildings generates the highest employment.

Construction establishments with TE of 20 and over employed a total of 235,755 workers in 2013. Of the total employment, 99.9 percent are paid employees and the rest are working owners and unpaid workers.

By industry, the top three employers accounted for 91.0 percent of the total, led by construction of buildings with 97,408 workers (41.3 percent). This was followed by construction of roads and railways with 83,248 workers (35.3 percent). Electrical, plumbing and other construction installation activities with 33,802 workers (14.3 percent) placed third.

NCR, having the most number of establishments, employed the bulk of the workers numbering to 173,617 or 73.6 percent of the total. Central Visayas with 14,157 (6.0 percent) workers ranked a far second. Completing the top three regions with the most number of workers was Calabarzon with 13,101 workers (5.6 percent).

The average number of workers per establishment was recorded at 212. Construction of roads and railways emerged the highest with 283 workers per establishment, followed by construction of buildings and demolition and site preparation with 237 and 230 workers per establishment, respectively.

Total compensation paid in 2013 amounted to P48.6 billion, indicating an average annual compensation of P206, 629 per employee.

Building completion and finishing paid the highest average annual compensation amounting to P274, 637 per employee, followed by demolition and site preparation with employees receiving an average annual pay of P250, 359. Construction of utility projects placed third at P232, 779 per employee.

At the regional level, six regions reported an average annual compensation higher than the national average. These are:

• Bicol Region with P599, 264

• Cagayan Valley with P341, 717

• Eastern Visayas with P322, 999

• Mimaropa with P253, 688

• Calabarzon with P216, 932

• NCR with P212, 914

Value of output reaches PHP330.2 billion

Total value of output generated by construction establishments with TE of 20 and over amounted to P330.2 billion in 2013.

By industry, value of output generated by construction of buildings accounted for more than half (53.0 percent or P175.1 billion) of the total. This was followed by construction of roads and railways with an output share of 29.8 percent (P98.5 billion). The shares of other industries to the total value of output are as follows:

• Electrical, plumbing and other construction installation activities, 9.8 percent (P32.5 billion)

• Building completion and finishing, 2.1 percent (P7.1 billion)

• Construction of utility projects, 2.1 percent (P6.8 billion)

• All other construction industries, 3.1 percent (P10.2 billion)

Among regions, NCR shared the biggest output value amounting to P252.4 billion, comprising 76.5 percent of the total value of output. This was distantly followed by Central Visayas and Calabarzon with respective output value of P16.5 billion (5.0 percent) and P13.3 billion (4.0 percent).

Total expense amounts to P304.4 billion; construction of buildings spends the most

Total expense, including compensation, amounted to P304.4 billion in 2013.

Among industries, construction of buildings incurred the highest expense amounting to P162.2 billion or more than half (53.3 percent) of the total. Construction of roads and railways placed second with P89.6 billion (29.4 percent). Electrical, plumbing and other construction installation activities came next with a total expense of P29.6 billion (9.7 percent).

NCR spent the highest among the regions estimated at P234.6 billion (77.1 percent). This was followed far behind by Central Visayas and Calabarzon spending P15.4 billion (5.0 percent) and P12.2 billion (4.0 percent), respectively.

Construction of buildings records the highest return

Income per expense ratio for establishments with TE of 20 and over in 2013 was recorded at 1.10, indicating that for every peso spent P1.10 was realized in terms of income.

Among industries, construction of other civil engineering projects registered the highest income per expense ratio of 1.19, followed by construction of roads and railways with 1.13 incomes per expense ratio. Other industries with more than 1.00 incomes per expense ratio are as follows:

• Construction of buildings, 1.10

• Electrical, plumbing and other construction installation activities, 1.10

• Other specialized construction activities, 1.06

• Construction of utility projects, 1.06

Among regions, construction establishments in Zamboanga Peninsula recorded the highest return at 1.27. Caraga and Bicol Region followed next, each with 1.21 income per peso expense.

Value added reaches P112.9 billion

Value added generated by the establishments with TE of 20 and over reached P112.9 billion in 2013.

The top three industries in terms of value added, accounted for 92.9 percent of the total. Construction of buildings led the top contributors to value added with P50.7 billion or 44.9 percent of the total. This was followed by construction of roads and railways with P42.8 billion (37.9 percent) and electrical, plumbing and other construction installation activities came next with P11.4 billion (10.1 percent).

By region, NCR contributed the biggest share with P85.8 billion or 76.0 percent of the total value added, followed by Calabarzon and Central Visayas with respective value of P5.1 billion (4.5 percent) with P 4.8 billion (4.2 percent). On the other hand, Zamboanga Peninsula shared the least with P.244 billion or 0.2 percent of the total.

Labor productivity, defined as value added per worker, was estimated at P478,900 per worker in 2013.

Construction of buildings generated a labor productivity of P520,6 thousand per worker, among industries. Construction of roads and railways followed with P514.386 per worker. Labor productivity of other industries is as follows:

• Construction of utility projects (P473.500 per worker)

• Building completion and finishing (P378.500 per worker)

• Construction of other civil engineering projects (P373.200 per worker)

• Electrical, plumbing and other construction installation activities (P336.500 per worker)

• All other construction industries (P265.100 per worker)

Among regions, the most productive was Bicol Region generating P1.5 million per worker. A far second was Cagayan Valley with P845.0 thousand per worker and CARAGA with P596.7 thousand per worker.

Construction of roads and railways posts the highest gross addition to tangible fixed assets

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, amounted to P8.1 billion in 2013.

Construction of roads and railways acquired P3.9 billion worth gross addition to fixed assets of accounting for almost half (48.0 percent) of the total. Other industries gross additions to fixed assets are as follows:

• Construction of buildings with P3.3 billion (40.8 percent)

• Electrical, plumbing and other construction installation activities with P379.4 million (4.7 percent)

• Building completion and finishing with P257.3 million (3.2 percent)

• Construction of other civil engineering projects with P139.6 million (1.7 percent)

• All other construction industries with P123.6 million (1.5 percent)

Total subsidies provided by the government to support the business operation of construction establishments with TE of 20 and over amounted to P5.0 million.

Establishments engaged in construction of buildings located in NCR were the only recipient of subsidies in 2013.