Professional Documents
Culture Documents
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 ............................ 11
A. MSMEs TOTAL NUMBER OF REGISTERED ESTABLISHMENTS ......................... 11
B. MSMEs PROFILE BY ASSET SIZE ....................................................................... 13
C. MSMEs PROFILE BY SECTOR CLASSIFICATION ................................................ 15
D. MSMEs PROFILE BY LEGAL IDENTITY .............................................................. 17
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......................................................................................................................... 17
SUMMARY OF MSMEs by LEGAL IDENTITY ................................................................. 17
Table 6......................................................................................................................... 22
SUMMARY OF SALES PRODUCTIVITY RATIO (SPR)...................................................... 22
Table 7......................................................................................................................... 23
SUMMARY OF LABOR INTENSIVE RATIO (LIR) ............................................................ 23
Table 8......................................................................................................................... 24
SUMMARY OF ASSET PRODUCTIVITY RATIO............................................................... 24
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
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
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
7
northern portion of Mindanao. It is situated 109 kilometers from Tacloban
City, 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
9
aftermath of the calamity. This was followed by damages on the private
buildings and establishments at PHP 113.8 million.
D. RESOURCE PROFILE
Aside from Ormoc being the transportation hub of Western Leyte, the
city hosts a huge geothermal plant managed by the Energy Development
Corporation (EDC). The Leyte Geothermal Production Field is known as the
second largest steam-producing field in the world. It supplies power not only
in the parts of Visayas, but also some areas in Luzon via submarine cables.
These rankings 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.
10
II. MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) PROFILE
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
Table 1
HISTORICAL SUMMARY OF ORMOC CITY ESTABLISHMENT
(2012-2017)
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
17,969,105,357.00
TOTAL 7236 6779 6.74% 19,138,759,124.00 23,340
Table 3
SUMMARY OF MSMEs by ASSET SIZE
13
The establishments in
Large Medium Small Micro
Ormoc City are dominated
53 123 582
by the Micro, Small, and
Medium Enterprises
(MSMEs). MSMEs have
been accepted as the engine
6478
of economic growth and for
promoting equitable
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
almost 62.08% .
However, 2231 or
62.08%
32.91% of those are
services operating
15
portion of just 2.53% or 183 registered establishments is to Banks and other
OFIs as of 2018.
16
D. MSMEs PROFILE BY LEGAL IDENTITY
Table 5
SUMMARY OF MSMEs by LEGAL IDENTITY
Legal Identity Total No. of Establishments Percentage
The distribution
Cooperative Association
of enterprises as of Sole Proprietorship Partnership and Corporation
2017 according to its
legal identity is shown 97.86%
17
adjacent to the Negosyo Center Office; Payment of Taxes and Fees at the City
Treasurer’s Office; and lastly approval of signature by the Mayor at the City
Mayor’s Office. A Philippine Business Registry Kiosk is
18
In provincial standpoint, Ormoc City's score of 39.0988 sets the LGU
at rank 2 in year 2017 among the 43 LGUs in the province of Leyte next to
Tacloban City in rank 1. Moreover, positive observation has been noted saying
there is a good leadership from Business Permits and Licensing Office in
Ormoc City LGU contributing to the competitive score of the city.
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
These productivity measures can provide insight as to what sector the
Negosyo Center Ormoc City should engage when increasing profitability or
employment generation. With this data, investors will also know as to what
sector to invest in Ormoc City. The following anaysis is presented below in
terms of their sales productivity, labor intensive, and asset productivity for the
different sectors.
trading is Trading at 1:
Figure 6: Sales Productivity Ratio= Sales/ No. of Jobs
1,100,668. This means that
for every one (1) job that the Trading sector has generated, there is an equal
sales of P 1,100,668. Furthermore, the manufacturing sector can operate on
low overhead costs, and therefore can do more with less employees, which
often translates to higher profitabilitiy than that of the service sector.
21
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
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 Tradin
Proces Service and
g
industrial network in sing OFIs
Labor Intensive
city. Having the ratio of 3 8 3 1
Ratio
1:8, this sector nurtures Figure 7: Labor Intensive Ratio =No. of Jobs / No. of Firms
the 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
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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
Trading 1: 3
Service 1:3
Manufacturing 1:8
Banks and OFIs 1:5
Among the
1.4
trading, service and 1.2
manufacturing/ processing 1
sector, the sector that has 0.8
0.6
used most of its asset for
0.4
productivity is the Service 0.2
at 1.22. This means that 0
Mfg/
Banks
Trading Processi Service
engaging business under ng
and OFIs
Asset Productivity
agribusiness sector is a Ratio
1.04 1 1.22 1.03
23
Table 9
SUMMARY OF ASSET PRODUCTIVITY RATIO
Sectors Ratios
1.04
Trading
1.22
Service
1.00
Manufacturing
1.03
Banks and OFIs
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 2016 (2016-2018)
Manufacturing 2017 2018
in 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.
24
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.
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
&textiles or other 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:
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