Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
As of December 2018
NIEMAR A. ABALO
JAMES P. BATUCAN
1
Table of Contents
I. PROFILE OF ORMOC CITY ...................................................................................... 6
A. DEMOGRAPHIC PROFILE ................................................................................... 6
B. PHYSICAL AND GEOGRAPHIC PROFILE .............................................................. 7
C. SOCIO ECONOMIC PROFILE............................................................................... 8
1. Educational Institutions ................................................................................ 8
2. Health Facilities ............................................................................................ 9
3. Day Care Centers .......................................................................................... 9
4. Protective Services ........................................................................................ 9
5. Sports and Recreation ................................................................................... 9
D. RESOURCE PROFILE ......................................................................................... 10
II. MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) PROFILE ............................ 10
A. MSMEs TOTAL NUMBER OF REGISTERED ESTABLISHMENTS ......................... 12
B. MSMEs PROFILE BY ASSET SIZE ....................................................................... 13
C. MSMEs PROFILE BY SECTOR CLASSIFICATION ................................................ 15
D. MSMEs PROFILE BY LEGAL IDENTITY .............................................................. 16
III. PRODUCTIVITY INDICES ......................................................................................... 20
A. SALES PRODUCTIVITY RATIO (SPR) ................................................................. 21
B. LABOR INTENSIVE RATIO (LIR) ........................................................................ 22
C. ASSET PRODUCTIVITY RATIO (APR) ................................................................. 23
IV. THE FOCUS: MANUFACTURING SECTOR................................................................ 24
A. MANUFACTURING SECTOR ........................................................................... 24
B. MANUFACTURING SECTOR BY ASSET SIZE...................................................... 27
C. MANUFACTURING SECTOR BY LEGAL IDENTITY ............................................. 28
D. PRODUCTIVITY INDICES OF MANUFACTURING SUB SECTOR ......................... 28
E. PROJECTION OF MANUFACTURING SECTOR .................................................. 31
2
Table of Figures
Figure 1: Ormoc City Brgy. Map Source: Draft CLUP 2016 ........................................... 7
Figure 2: Total Number of Registered Firms ............................................................... 12
(2017-2018)................................................................................................................. 12
Figure 3: MSMEs by Asset Size.................................................................................... 14
Figure 4: MSMEs by Sectoral Distribution .................................................................. 15
Figure 5: MSMEs by Legal Identity .............................................................................. 17
Figure 6: Sales Productivity Ratio= Sales/ No. of Jobs ................................................ 21
Figure 7: Labor Intensive Ratio =No. of Jobs / No. of Firms ....................................... 22
Figure 8: Asset Productivity Ratio = Total Asset / Sales .............................................. 23
Figure 9: Total Number of Establishments under Manufacturing (2017-2018) ........ 24
Figure 10: Distribution of Manufacturing Sub-sector ................................................ 26
Figure 11: Manufacuring by Asset Size ....................................................................... 27
Figure 12: Manufacuring by Asset Size ....................................................................... 28
Table of Tables
Table 1......................................................................................................................... 12
HISTORICAL SUMMARY OF ORMOC CITY ESTABLISHMENT........................................ 12
Table 2......................................................................................................................... 13
SUMMARY OF ORMOC CITY ESTABLISHMENT AS OF 2018 ........................................ 13
Table 3......................................................................................................................... 13
SUMMARY OF MSMEs by ASSET SIZE ......................................................................... 13
Table 4......................................................................................................................... 15
SUMMARY OF MSMEs by SECTORAL DISTRIBUTION .................................................. 15
Table 5......................................................................................................................... 16
SUMMARY OF MSMEs by LEGAL IDENTITY ................................................................. 16
Table 6......................................................................................................................... 21
SUMMARY OF SALES PRODUCTIVITY RATIO (SPR)...................................................... 21
Table 7......................................................................................................................... 22
SUMMARY OF LABOR INTENSIVE RATIO (LIR) ............................................................ 22
Table 8......................................................................................................................... 23
SUMMARY OF ASSET PRODUCTIVITY RATIO............................................................... 23
Table 9......................................................................................................................... 25
SUMMARY OF MANUFACTURING SUB-SECTOR ......................................................... 25
Table 10....................................................................................................................... 28
SUMMARY OF MANUFACTURING SUB-SECTOR by LEGAL IDENTITY .......................... 28
Table 11....................................................................................................................... 29
1. SALES PRODUCTIVITY RATIO ................................................................................... 29
Table 12....................................................................................................................... 29
2. LABOR INTENSIVE RATIO (LIR) ................................................................................ 29
Table 13....................................................................................................................... 30
3. ASSET PRODUCTIVITY RATIO................................................................................... 30
Table 14....................................................................................................................... 31
MANUFACTURING SECTOR BUSINESS REGISTRATION 2015-2020 ............................. 31
Table 15....................................................................................................................... 32
MANFACTURING SECTOR PROJECTIONS 2016-2020 .................................................. 32
3
3. Synopsis
Despite the wrath brought by the Super Typhoon Haiyan in Ormoc City,
the economy didn’t seize to grow. The three (3) major sectors: Trading,
Service and Manufacturing shows an average growth
4
CITY OF ORMOC
MSMEs DEVELOPMENT STRATEGY: 2018-2022
VISION
Ormoc City as the agro-commercial and industrial gateway in Eastern
Visayas and the Renewable Energy Capital of the Philippines; with a growth-
inclusive economy, in a disaster-resilient environment, administered by an
accountable local government.
5
I. PROFILE OF ORMOC CITY
Today, Ormoc City is a picture of steady progress and stability. With its
continuous modernization program, more investors are coming into the city,
which contributed to it being adjudged as the 2005 Most Business-Friendly City
in the Visayas by the prestigious Philippine Chamber of Commerce and
Industry. And though the city has embarked on modernization, it has also keep
attuned its environmental protection programs as evident in being a consistent
Cleanest and Greenest City awardee in Region VIII and one of the Cleanest and
Greenest City in the country. This prestigious award is a leading tribute to
visualize Ormoc as a beauty by the bay, a wonderful place to visit whether for
business or pleasure.
A. DEMOGRAPHIC PROFILE
In 2010 and 2013, the male population was relatively higher than the
female population. The gender ratios for both years exceeded 100, which
indicated predominance of the male population. For both years, more than half
(51%) of the population was male and the remaining 49% was female.
6
dependents (those aged 0 to 14 years) accounted for 36% (71,571 persons),
while the old dependents (those aged 65 years and above) represented 4.0%
(4,781 persons). These figures yielded an overall dependency ratio of 67% and
denote that for every 100 persons within the working age group, there are about
67 dependents. The working population from age 15 to 64 is relatively
distributed across the urban and rural barangays. Male population and female
population are almost equal and also proportionately distributed in all
barangays. From 2011 to 2025, the population and the number of households
are expected to grow at 360,218 and 72,044, respectively.
The city is located at Lat. 11° 00' 26.59" N, Long. 124° 36' 28.46" E, in
an enclave fronting the Ormoc Bay. This location serves to make the city an
ideal and popular jump off point for Cebu, the rest of the Visayas, and the
northern portion of Mindanao. It is situated 109 kilometers from Tacloban City,
7
the capital of Leyte and the eastern Visayas Region and about 62 nautical miles
from Cebu City. Thus, it has a great advantage over the nearby municipalities
in terms of commercial, transport and recreational facilities. It is a popular
convergence point for businessmen, traders, civic groups and industrialists.
1. Educational Institutions
8
2. Health Facilities
There were more public than private health facilities recorded at 220 and 21,
respectively. Existing in large number are barangay health center, barangay
health station, and health center.
As of 2013, there were 97 day care centers in five (5) districts of the city.
District 3 has the most number of day care centers equal to 25. The rest of the
districts have day care centers ranging from 16 to 19.
4. Protective Services
In 2015, most of the protective services facilities and equipment are in good
condition, except for the district jail which require improvement. The police-
population ratio was closely within the minimum standard of one (1) police for
every 1,000 population. However, the number of firemen should be increased
since the current ratio of 1:3,000 exceeded the minimum standard of 1 fireman:
1,000 population.
The people of Ormoc City enjoy a variety of socio-cultural and sports facilities.
There are about 124 local government-owned and 28 privately-owned cultural
and sports facilities, respectively. The sports and recreational facilities include
the socio-cultural center, indoor stadium, covered basketball court, shooting
range, tennis court, sports complex and grandstand, volleyball court, badminton
court, golf course, swimming pool, billiard hall, cockpit, and racetrack.
9
of the calamity. This was followed by damages on the private buildings and
establishments at PHP 113.8 million.
D. RESOURCE PROFILE
10
capacity of employment generation, low capital and technology requirement,
use of traditional or inherited skill, use of local resources, mobilization of
resources and possible exportability of products. MSMEs are credited for
generating inclusive growth in the city.
The initiative under this law aims to increase the number of registered
entities, promote inclusive growth, increase productivity, upgrading technology
and enabling entrepreneur with emphasis on manufacturing/processing sector
as well as expanding domestic and global market share of Ormoc City MSMEs’
products through Business Registration Assistance facilitate processing and
documentation of paper requirements necessary for the establishment of
MSMEs; Business Advisory Services tailored according to their needs that
include product development, trade promotion, financing facilitation,
investment matching and SME counselling, and; Business Information
Advocacy to provide economic, technical, market and investments related
materials and conduct information campaigns through trainings, seminars,
dialogues and publications.
11
A. MSMEs TOTAL NUMBER OF REGISTERED ESTABLISHMENTS
Table 1
HISTORICAL SUMMARY OF ORMOC CITY ESTABLISHMENT
(2012-2017)
A total number of 6779 and 7236 registered establishments as of 2017 and 2018
respectively are taken from data
8000
of the Ormoc City Local 7236
6779
Government Unit –Business 7000
1000
0
2016 2017 2018
12
Table 2
SUMMARY OF ORMOC CITY ESTABLISHMENT AS OF 2018
Year
Growth No. of
Sectors Asset Sales
Rate Jobs
2018 2017
17,969,105,357.0
19,138,759,124.0
TOTAL 7236 6779 6.74% 0 23,340
0
Table 3
SUMMARY OF MSMEs by ASSET SIZE
13
The establishments in Ormoc
Large Medium Small Micro
City are dominated by the
53 123 582
Micro, Small, and Medium
Enterprises (MSMEs).
MSMEs have been accepted
as the engine of economic
6478
growth and for promoting
equitable development. Out
of the 7,236 registered
establishments, MSMEs Figure 3: MSMEs by Asset Size
14
C. MSMEs PROFILE BY SECTOR CLASSIFICATION
Table 4
SUMMARY OF MSMEs by SECTORAL DISTRIBUTION
The establishments
Manufacturing Retailers Services
under service sector Banks and
OFIs 2.53% 2.57%
have taken a large
portion of the whole 32.82%
industry at 4492 or
62.08%.
62.08%
The trading
industry is also very
apparent with a total
of 2375 or 32.82% varying Figure 4: MSMEs by Sectoral Distribution
15
establishments also do not have the technology and machinery to keep up with
the present innovation. The city has the available raw materials for several kinds
of business and soon will be implementing the Investment Incentive Code which
will attract more investors to invest their assets in the City.
Table 5
SUMMARY OF MSMEs by LEGAL IDENTITY
Legal Identity Total No. of Establishments Percentage
16
STOPThe
Cooperative Association
distribution of Sole Proprietorship Partnership and Corporation
enterprises as of 2017
according to its legal 97.86%
17
According to the national competitiveness council of the Philippines
(2018), Ormoc City ranks 103 with a score of 39.0609 in the overall score of
LGUs in the country. This is the sum of scores on three pillars: economic
dynamism, government efficiency and infrastructure. In terms of economic
dynamism, Ormoc ranks 96 with a 4.2266 score. This pillar consists of several
sun-indicators such as the city's economy size, growth and cost of living to name
some. On the other hand, Ormoc City ranks 111 with regards to government
efficiency with a 11.0941 score. Ormoc City LGU ranks 57 in terms of
infrastructure with 6.5415 score and rank 95 in resiliency with 17.1986.
18
Table 6
ORMOC CITY CMCI RESULT
2014-2018
19
These scores indicate that Ormoc City has still long way to improve especially
in terms of economic dynamism and infrastructure. Hence, the LGU must be
able to create stable expansion of businesses in the locality so as to influence
the rate of job generation in the city.
20
A. SALES PRODUCTIVITY RATIO (SPR)
Table 7
SUMMARY OF SALES PRODUCTIVITY RATIO (SPR)
Sectors Ratios
Trading 1,100,668
Service 268,998
Manufacturing 3,748,590
Banks and OFIs 786,725
21
B. LABOR INTENSIVE RATIO (LIR)
Being labour-
9
intensive in nature, the 8
7
manufacturing sector 6
5
make significant 4
3
contribution in 2
employment generation 1
0
Mfg/ Banks
and expanding industrial Tradin
Proces Service and
g
network in city. Having sing OFIs
Labor Intensive
the ratio of 1:8, this 3 8 3 1
Ratio
sector nurtures the
Figure 7: Labor Intensive Ratio =No. of Jobs / No. of Firms
traditional skills and
knowledge in production of a certain goods. In manufacturing, each employee
can usually produce only a certain number of products which means that
increasing production requires more employees. Thus, using this analysis, it can
be identified which sector to increase in order to promote inclusive growth. On
the contrary, establishments under trading sector can increase sales without
necessarily adding staff. The manufacturing sector have been a good source of
employment generation and can be even more if the sector gets support in terms
of infusion of technology, capital and innovative marketing techniques.
Table 8
SUMMARY OF LABOR INTENSIVE RATIO (LIR)
Sectors Ratios
22
Trading 1: 3
Service 1:3
Manufacturing 1:8
Banks and OFIs 1:5
Asset Productivity
agribusiness sector is a Ratio
1.04 1 1.22 1.03
Table 9
SUMMARY OF ASSET PRODUCTIVITY RATIO
Sectors Ratios
1.04
Trading
1.22
Service
1.00
Manufacturing
1.03
Banks and OFIs
23
IV. THE FOCUS: MANUFACTURING SECTOR
165
160
Although it is evident that 160
150
generate employment with its Labor
145
Intensive Ratio by 1:8, what can be
Figure 9: Total Number of Establishments under
140
noted is the rising of service sectors in 2016 (2016-2018)
Manufacturing 2017 2018
the city. This implies that there has
been no structural transformation in the economy of Ormoc as well as no
industrial growth initiated by manufacturing.
From the 186 manufacturing sector, two are large corporations which
are Energy Development Corporation, the source of power in Eastern Visayas
and some other parts in the country as well as Coca-Cola.
24
Table 10
SUMMARY OF MANUFACTURING SUB-SECTOR
25
Processed Food/ Beverage
4
Textile, Wearing Apparels 1 2.15%
0.54%
1 2
Wood and Bamboo Products 054% 2 1.08%
16
1.08% 2
1
10.88% 1.08%
0.54%
Pharmaceutical Products
Others
26
types of processing that could possibly generates jobs for the community and
promote inclusive growth.
Table 9
SUMMARY OF MANUFACTURING SUB-SECTOR by ASSET
SIZE
27
C. MANUFACTURING SECTOR BY LEGAL IDENTITY
Table 10
SUMMARY OF MANUFACTURING SUB-SECTOR by LEGAL IDENTITY
28
Table 11
1. SALES PRODUCTIVITY RATIO
Non-Mettalic Minerals 56
Pharmaceutical Products 76
TOTAL 1447
Note: 33 new registered establishments are excluded from sales computation; 137 new job
generated are also excluded for effective computation of Sales Productivity Ratio.
Table 12
2. LABOR INTENSIVE RATIO (LIR)
No. of
Type of Processing No. of Jobs Ratio
Establishments
29
TOTAL 186 1447
80
70
60
50
40
30
20
10
0 Fabricated
Metal
Processed Basic Metal Chemical and Products Machinery Textile, Wood and
Furniture and Non-Mettalic Pharmaceutic Others
Food/ and Chemical except and Wearing Bamboo
Furnishings Minerals al Products (Geothermal)
Beverage Blacksmith Processing Machinery Equipments Apparels Products
and
Equipment
Table 13
3. ASSET PRODUCTIVITY RATIO
30
Pharmaceutical Products 378 922 879
TOTAL 5,424,210,633.00
Table 14
MANUFACTURING SECTOR BUSINESS REGISTRATION 2015-2020
The challenge for the city is to keep the existing manufacturing sectors
capacitated and ensure they receive the necessary support in sustaining their
business. The Negosyo Center and the Local Government Unit has come up
with a Development Strategy focused on the MSMEs that aims to sustain the
Manufacturing Sector over the succeeding years.
31
Table 15
MANFACTURING SECTOR PROJECTIONS 2016-2020
32
Provide skills training Skills training on Increase in the May August May
program for the Food Processing number of MSMEs
youth, women, and engaged in food
former or families of business
OFWs
Established access to Participate in trade Developed existing August October December
markets through fairs in partnership MSMEs
market matching and with the LGU and
trade fairs Chamber
This table represents the strategic plan of Negosyo Center Ormoc for the
manufacturing sector in the locality. This primarily aims to give MSMEs opportunity
to start and grow their business leading to business profitability and inclusive growth
in Ormoc City.
The strategies below tackles the challenges that Ormoc City entrepreneurs are
facing. Each strategy corresponds an activity that is hoping to develop the MSMEs in
the area.
33
Provide skills training program for the youth, women, and former or families of
OFWs
Part of the MSME Development Strategy is the skills training intended for the
specific sector in the city which are the youth, women, and former or families of OFWs.
Aside from the existing entrepreneurs, we would also like to empower the youth by
helping them learn and discover what they might want to pursue. Moreover, equipping
women, OFWs and their families will give households opportunity to at least have an
idea about entrepreneurship and learn a skill for a start-up a business.
34
Sources:
35