Women's Handbag and Purse Manufacturing

Women’s Handbag and Purse Manufacturing 1997 Issued August 1999

EC97M-3169B

1997 Economic Census Manufacturing Industry Series

U.S. Department of Commerce Economics and Statistics Administration U.S. CENSUS BUREAU ACKNOWLEDGMENTS

The staff of the Manufacturing and Con- coordination of the publication process. struction Division prepared this report. Kim Credito, Patrick Duck, Chip Judy M. Dodds, Assistant Chief for Cen- Murph, Wanda Sledd, and Veronica sus and Related Programs, was respon- White provided primary staff assistance. sible for the overall planning, manage- The Economic Planning and Coordination ment, and coordination. Kenneth Division, Lawrence A. Blum, Assistant Hansen, Chief, Manufactured Durables Chief for Collection Activities and Shirin Branch, assisted by Mike Brown, Renee A. Ahmed, Assistant Chief for Post- Coley, Raphael Corrado, and Milbren Collection Processing, assisted by Dennis Thomas, Section Chiefs, Michael Zampo- Shoemaker, Chief, Post-Collection Census gna, Former Chief, Manufactured Nondu- Processing Branch, Brandy Yarbrough, rables Branch, assisted by Allen Fore- Section Chief, Sheila Proudfoot, Richard man, Robert Miller, Robert Reinard, Williamson, Andrew W. Hait, and Jenni- and Nat Shelton, Section Chiefs, and Tom fer E. Lins, was responsible for develop- Lee, Robert Rosati, and Tom Flood, ing the systems and procedures for data Special Assistants, performed the planning collection, editing, review, correction and and implementation. Stephanie Angel, dissemination Brian Appert, Stanis Batton, Carol Bea- The staff of the National Processing Center, sley, Chris Blackburn, Larry Blum- Judith N. Petty, Chief, performed mailout berg, Vera Harris-Bourne, Brenda preparation and receipt operations, clerical Campbell, Suzanne Conard, Vance and analytical review activities, data key- Davis, Mary Ellickson, Matt Gaines, ing, and geocoding review. Merry Glascoe, Kay Hanks, Karen Harshbarger, Nancy Higgins, James The Geography Division staff developed Hinckley, Walter Hunter, Jim Jamski, geographic coding procedures and associ- Evelyn Jordan, Robert Lee, John Line- ated computer programs. han, Paul Marck, Keith McKenzie, The Economic Statistical Methods and Pro- Philippe Morris, Joanna Nguyen, Betty gramming Division, Charles P. Pautler Pannell, Joyce Pomeroy, Venita Powell, Jr., Chief, developed and coordinated the Cynthia Ramsey, Chris Savage, computer processing systems. Martin S. Aronda Stovall, Sue Sundermann, Tha- Harahush, Assistant Chief for Quinquen- nos Theodoropoulos, Dora Thomas, nial Programs, assisted by Barbara Lam- Ann Truffa, Ronanne Vinson, Keeley bert and Christina Arledge were respon- Voor, Denneth Wallace, Tempie Whit- sible for design and implementation of the tington, Lissene Witt, and Mike computer systems. Gary T. Sheridan, Yamaner provided primary staff assis- Chief, Manufacturing and Construction tance. Branch, Lori A. Guido and Roy A. Smith, Brian Greenberg, Assistant Chief for Section Chiefs, supervised the preparation Research and Methodology Programs, of the computer programs. assisted by Stacey Cole, Chief, Manufac- Computer Services Division, Debra Will- turing Programs Methodology Branch, and iams, Chief, performed the computer pro- Robert Struble, Section Chief, provided cessing. the mathematical and statistical tech- The staff of the Administrative and Cus- niques as well as the coverage operations. tomer Services Division, Walter C. Odom, Jeffrey Dalzell and Cathy Ritenour pro- Chief, performed planning, design, compo- vided primary staff assistance. sition, editorial review, and printing plan- Mendel D. Gayle, Chief, Forms, Publica- ning and procurement for publications, tions, and Customer Services Branch, Internet products, and report forms. assisted by Julius Smith Jr. and Baruti Cynthia G. Brooks provided publication Taylor, Section Chiefs, performed overall coordination and editing. Women’s Handbag and Purse Manufacturing 1997 Issued August 1999

EC97M-3169B

1997 Economic Census Manufacturing Industry Series

U.S. Department of Commerce William M. Daley, Secretary Robert L. Mallett, Deputy Secretary

Economics and Statistics Administration Robert J. Shapiro, Under Secretary for Economic Affairs

U.S. CENSUS BUREAU Kenneth Prewitt, Director ECONOMICS AND STATISTICS ADMINISTRATION

Economics and Statistics Administration Robert J. Shapiro, Under Secretary for Economic Affairs

U.S. CENSUS BUREAU Kenneth Prewitt, Director William G. Barron, Deputy Director Paula J. Schneider, Principal Associate Director for Programs Frederick T. Knickerbocker, Associate Director for Economic Programs Thomas L. Mesenbourg, Assistant Director for Economic Programs William G. Bostic Jr., Chief, Manufacturing and Construction Division CONTENTS

Introduction to the Economic Census...... 1 Manufacturing...... 5

TABLES

1. Industry Statistics on NAICS Basis With Distribution Among 1987 SIC~Based Industries: 1997...... 7 2. Industry Statistics for Selected States: 1997...... 7 3. Detailed Statistics by Industry: 1997...... 8 4. Industry Statistics by Employment Size: 1997...... 9 5. Industry Statistics by Industry and Primary Product Class Specialization: 1997...... 9 6a. Products Statistics: 1997 and 1992...... 10 6b. Product Class Shipments for Selected States: 1997 and 1992 . ~~ 7. Materials Consumed by Kind: 1997 and 1992...... 10

APPENDIXES

A. Explanation of Terms...... A–1 B. NAICS Codes, Titles, and Descriptions...... B–1 C. Coverage and Methodology...... C–1 D. Geographic Notes ...... ~~ E. Metropolitan Areas ...... ~~ F. Footnotes for Products Statistics and Materials Consumed by Kind ...... ~~ G. Comparability of Product Classes and Product Codes: 1997 to 1992...... G–1

~~ Not applicable for this report.

MANUFACTURINGmINDUSTRY SERIES NAICS 316992 iii

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Introduction to the Economic Census

PURPOSES AND USES OF THE ECONOMIC CENSUS 52 Finance and Insurance 53 Real Estate and Rental and Leasing The economic census is the major source of facts about 54 Professional, Scientific, and Technical the structure and functioning of the Nation’s economy. It Services provides essential information for government, business, 55 Management of Companies and Enterprises industry, and the general public. Title 13 of the United 56 Administrative and Support and Waste States Code (Sections 131, 191, and 224) directs the Cen- Management and Remediation Services sus Bureau to take the economic census every 5 years, 61 Educational Services covering years ending in 2 and 7. 62 Health Care and Social Assistance The economic census furnishes an important part of the 71 Arts, Entertainment, and Recreation framework for such composite measures as the gross 72 Accommodation and Foodservices domestic product estimates, input/output measures, pro- 81 Other Services (except Public Administration) duction and price indexes, and other statistical series that measure short-term changes in economic conditions. Spe- (Not listed above are the Agriculture, Forestry, Fishing, and cific uses of economic census data include the following: Hunting sector (NAICS 11), partially covered by the census of agriculture conducted by the U.S. Department of Agri- • Policymaking agencies of the Federal Government use culture, and the Public Administration sector (NAICS 92), the data to monitor economic activity and assess the covered by the census of governments conducted by the effectiveness of policies. Census Bureau.) • State and local governments use the data to assess The 20 NAICS sectors are subdivided into 96 subsectors business activities and tax bases within their jurisdic- (three-digit codes), 313 industry groups (four-digit codes), tions and to develop programs to attract business. and, as implemented in the United States, 1170 industries (five- and six-digit codes). • Trade associations study trends in their own and com- peting industries, which allows them to keep their mem- RELATIONSHIP TO SIC bers informed of market changes. While many of the individual NAICS industries corre- • Individual businesses use the data to locate potential spond directly to industries as defined under the SIC sys- markets and to analyze their own production and sales tem, most of the higher level groupings do not. Particular performance relative to industry or area averages. care should be taken in comparing data for retail trade, wholesale trade, and manufacturing, which are sector ALL-NEW INDUSTRY CLASSIFICATIONS titles used in both NAICS and SIC, but cover somewhat different groups of industries. The industry definitions dis- Data from the 1997 Economic Census are published pri- cuss the relationships between NAICS and SIC industries. marily on the basis of the North American Industry Classi- Where changes are significant, it will not be possible to fication System (NAICS), unlike earlier censuses, which construct time series that include data for points both were published according to the Standard Industrial Classi- before and after 1997. fication (SIC) system. NAICS is in the process of being For 1997, data for auxiliary establishments (those func- adopted in the United States, Canada, and Mexico. Most tioning primarily to manage, service, or support the activi- economic census reports cover one of the following NAICS ties of their company’s operating establishments, such as sectors: a central administrative office or warehouse) will not be included in the sector-specific reports. These data will be 21 Mining published separately. 22 Utilities 23 Construction GEOGRAPHIC AREA CODING 31-33 Manufacturing Accurate and complete information on the physical 42 Wholesale Trade location of each establishment is required to tabulate the 44-45 Retail Trade census data for the states, metropolitan areas (MAs), coun- 48-49 Transportation and Warehousing ties, parishes, and corporate municipalities including cit- 51 Information ies, towns, villages, and boroughs. Respondents were

1997 ECONOMIC CENSUS INTRODUCTION 1

U.S. Census Bureau, 1997 Economic Census required to report their physical location (street address, Manufacturing and Construction Division 301-457-4673 municipality, county, and state) if it differed from their Service Sector Statistics Division 301-457-2668 mailing address. For establishments not surveyed by mail (and those single-establishment companies that did not HISTORICAL INFORMATION provide acceptable information on physical location), location information from Internal Revenue Service tax forms The economic census has been taken as an integrated is used as a basis for coding. program at 5-year intervals since 1967 and before that for 1954, 1958, and 1963. Prior to that time, individual com- BASIS OF REPORTING ponents of the economic census were taken separately at varying intervals. The economic census is conducted on an establishment basis. A company operating at more than one location is The economic census traces its beginnings to the 1810 required to file a separate report for each store, factory, Decennial Census, when questions on manufacturing were shop, or other location. Each establishment is assigned a included with those for population. Coverage of economic separate industry classification based on its primary activ- activities was expanded for the 1840 Decennial Census ity and not that of its parent company. and subsequent censuses to include mining and some commercial activities. The 1905 Manufactures Census was DOLLAR VALUES the first time a census was taken apart from the regular decennial population census. Censuses covering retail and All dollar values presented are expressed in current dol- wholesale trade and construction industries were added in lars; i.e., 1997 data are expressed in 1997 dollars, and 1930, as were some covering service trades in 1933. Cen- 1992 data, in 1992 dollars. Consequently, when making suses of construction, manufacturing, and the other busi- comparisons with prior years, users of the data should ness service censuses were suspended during World War consider the changes in prices that have occurred. II. All dollar values are shown in thousands of dollars. The 1954 Economic Census was the first census to be fully integrated: providing comparable census data across AVAILABILITY OF ADDITIONAL DATA economic sectors, using consistent time periods, concepts, definitions, classifications, and reporting units. It Reports in Print and Electronic Media was the first census to be taken by mail, using lists of firms provided by the administrative records of other Fed- All results of the 1997 Economic Census are available eral agencies. Since 1963, administrative records also on the Census Bureau Internet site (www.census.gov) and have been used to provide basic statistics for very small on compact discs (CD-ROM) for sale by the Census Bureau. firms, reducing or eliminating the need to send them cen- Unlike previous censuses, only selected highlights are sus questionnaires. published in printed reports. For more information, includ- The range of industries covered in the economic cen- ing a description of electronic and printed reports being suses expanded between 1967 and 1992. The census of issued, see the Internet site, or write to U.S. Census construction industries began on a regular basis in 1967, Bureau, Washington, DC 20233-8300, or call Customer and the scope of service industries, introduced in 1933, Services at 301-457-4100. was broadened in 1967, 1977, and 1987. While a few transportation industries were covered as early as 1963, it Special Tabulations was not until 1992 that the census broadened to include Special tabulations of data collected in the 1997 Eco- all of transportation, communications, and utilities. Also nomic Census may be obtained, depending on availability new for 1992 was coverage of financial, insurance, and of time and personnel, in electronic or tabular form. The real estate industries. With these additions, the economic data will be summaries subject to the same rules prohibit- census and the separate census of governments and cen- ing disclosure of confidential information (including name, sus of agriculture collectively covered roughly 98 percent address, kind of business, or other data for individual of all economic activity. business establishments or companies) that govern the Printed statistical reports from the 1992 and earlier regular publications. censuses provide historical figures for the study of long- Special tabulations are prepared on a cost basis. A term time series and are available in some large libraries. request for a cost estimate, as well as exact specifications All of the census reports printed since 1967 are still avail- on the type and format of the data to be provided, should able for sale on microfiche from the Census Bureau. be directed to the Chief of the division named below, U.S. CD-ROMs issued from the 1987 and 1992 Economic Cen- Census Bureau, Washington, DC 20233-8300. To discuss a suses contain databases including nearly all data pub- special tabulation before submitting specifications, call lished in print, plus additional statistics, such as ZIP Code the appropriate division: statistics, published only on CD-ROM.

2 INTRODUCTION 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census SOURCES FOR MORE INFORMATION V Represents less than 50 vehicles or .05 percent. More information about the scope, coverage, classifica- X Not applicable. tion system, data items, and publications for each of the Y Disclosure withheld because of insufficient economic censuses and related surveys is published in the coverage of merchandise lines. Guide to the 1997 Economic Census and Related Statistics Z Less than half the unit shown. at www.census.gov/econguide. More information on the a 0 to 19 employees. methodology, procedures, and history of the censuses will b 20 to 99 employees. be published in the History of the 1997 Economic Census c 100 to 249 employees. at www.census.gov/econ/www/history.html. e 250 to 499 employees. f 500 to 999 employees. ABBREVIATIONS AND SYMBOLS g 1,000 to 2,499 employees. The following abbreviations and symbols are used with h 2,500 to 4,999 employees. the 1997 Economic Census data: i 5,000 to 9,999 employees. j 10,000 to 24,999 employees. A Standard error of 100 percent or more. k 25,000 to 49,999 employees. D Withheld to avoid disclosing data of individual l 50,000 to 99,999 employees. companies; data are included in higher level m 100,000 employees or more. totals. p 10 to 19 percent estimated. F Exceeds 100 percent because data include q 20 to 29 percent estimated. establishments with payroll exceeding rev- r Revised. enue. s Sampling error exceeds 40 percent. N Not available or not comparable. nec Not elsewhere classified. Q Revenue not collected at this level of detail for nsk Not specified by kind. multiestablishment firms. – Represents zero (page image/print only). S Withheld because estimates did not meet (CC) Consolidated city. publication standards. (IC) Independent city.

1997 ECONOMIC CENSUS INTRODUCTION 3

U.S. Census Bureau, 1997 Economic Census This page is intentionally blank.

4 INTRODUCTION 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census Manufacturing

SCOPE The General Summary report contains industry and geographic area statistics summarized in one report. It The 1997 Economic Census – Manufacturing covers all includes higher levels of aggregation than the industry manufacturing establishments with one or more paid and state reports, as well as revisions to the data made employees. Manufacturing is defined as the mechanical, after the release of the industry and state reports. physical, or chemical transformation of materials or sub- The Products and Materials Consumed reports summa- stances into new products. The assembly of components rize the products and materials data published in the into new products is also considered manufacturing, industry reports. The Product Summary report also except when it is appropriately classified as construction. includes data from the Current Industrial Reports (CIR) and Establishments in the manufacturing sector are often a special table with data for products that are primary to described as plants, factories, or mills and typically use more than one industry, which are not in the industry power-driven machines and materials-handling equipment. reports. Also included in the manufacturing sector are some estab- The Concentration Ratios report publishes data on the lishments that make products by hand, like custom tailors percentage of value of shipments accounted for by the 4-, and the makers of custom draperies. While manufacturers 8-, 20-, and 50-largest companies for each manufacturing typically do not sell to the public, some establishments industry. Also shown in this report are Hirschmann- like bakeries and candy stores that make products on the Herfindahl Indexes for each industry. premises may be included. The Location of Manufacturing data files contain statistics on the number of establishments for the three- and GENERAL six-digit NAICS industry by state, county, place, and ZIP This report, from the 1997 Economic Census – Manufac- Code by employment-size of the establishment. turing, is one of a series of 480 industry reports and 51 geographic area reports, each of which provides statistics GEOGRAPHIC AREAS COVERED for individual industries or states, respectively. Seven of Statistics at the six-digit NAICS industry level are shown the industry reports are for industries no longer in the for states and the District of Columbia in both the state manufacturing sector but are included with manufacturing and industry reports for cells with 100 employees or for the 1997 census year. Also included for this sector are more. General, Product, and Materials Consumed Summary The state reports also include data at the ‘‘all manufac- reports, a special report on Concentration Ratios in Manu- turing’’ level for a variety of geographies that meet the facturing, and data files on Location of Manufacturing employment criteria. Plants. Data are available for the metropolitan areas (MAs) with Each industry report presents data for a six-digit North 250 employees or more. The term MA is a general term American Industry Classification System (NAICS) industry. used to encompass all of the specifically defined metro- A description of the particular NAICS industry may be politan areas. A consolidated metropolitan statistical area found in Appendix B. These reports include such statistics (CMSA) is made up of two or more contiguous primary as number of establishments, employment, payroll, value metropolitan statistical areas (PMSAs) with a combined added by manufacture, cost of materials consumed, value population of at least 1 million. A PMSA is a subdivision of of shipments, capital expenditures, etc. Explanations of a CMSA that demonstrates very strong internal economic these and other terms may be found in Appendix A. The and social links separate from the ties to other portions of industry reports also include data for states with 100 the CMSA. A metropolitan statistical area (MSA) is an inte- employees or more in the industry. grated economic and social unit with a population of at State reports, which include the District of Columbia, least 50,000. An MA is made up of one or more counties present similar statistics at the ‘‘all manufacturing’’ level meeting standards of metropolitan character. In New for each state and its metropolitan areas (MAs) with 250 England, cities and towns, rather than counties, are the employees or more, and for counties, consolidated cities, component geographic units. Determination of the MAs and places with 500 employees or more. The state reports was made by the Office of Management and Budget (OMB) also include six-digit NAICS level data for industries with as of June 30, 1997. The population estimates were from 100 employees or more in the state. the 1990 Census of Population or a subsequent special

1997 ECONOMIC CENSUS MANUFACTURING 5

U.S. Census Bureau, 1997 Economic Census census. When applicable, the make-up of an MA is manufacturing data. This change affects data in the state included in Appendix E. Changes to geographical bound- reports and the general summary. aries are noted in Appendix D. The state reports include data for counties with 500 DISCLOSURE employees or more. These are the primary divisions of states, except in Louisiana where they are called parishes In accordance with Federal law governing census and in Alaska where they are called boroughs and census reports (Title 13 of the United States Code), no data are areas. Maryland, Missouri, Nevada, and Virginia have one published that would disclose the operations of an indi- or more places that are independent of county organiza- vidual establishment or company. However, the number of tions. These places are treated as counties and places. The establishments classified in a specific industry or geogra- counties and places are defined as of January 1, 1997. phy is not considered a disclosure, and may be released The state reports include data for places with 500 even when other information is withheld. employees or more. Places are typically cities, towns, and villages. They may be incorporated municipalities, semi- The disclosure analysis for the industry statistics files is independent municipalities, special economic urban areas based on the total value of shipments. When the total (SEUAs), or other place equivalents. value of shipments cannot be shown without disclosing The state reports also include data for consolidated cit- information for individual companies, the complete line is ies with 500 employees or more. Consolidated cities are suppressed except for capital expenditures. However, the made up of separately incorporated municipalities. suppressed data are included in higher-level totals. A separate disclosure analysis is performed for capital expendi- COMPARABILITY OF THE 1992 AND 1997 CENSUSES tures that can be suppressed even though value of shipments data are published. The adoption of the North American Industry Classifica- tion System (NAICS) has had a major impact on the comparability of data between the 1992 and 1997 censuses. AVAILABILITY OF MORE FREQUENT ECONOMIC Approximately half of the industries in the manufacturing DATA sector of NAICS do not have comparable industries in the The Census Bureau conducts the Annual Survey of Standard Industrial Classification (SIC) system that was Manufactures (ASM) in each of the 4 years between the used in the past. If industries are not comparable between economic censuses. The ASM is a probability-based the two censuses, historic data are not shown. When appli- sample of approximately 58,000 establishments and col- cable, Appendix G shows the product class and product lects many of the same industry statistics (including comparability between the two systems. employment, payroll, value of shipments, etc.) as the eco- While most of the change affecting the manufacturing nomic census. However, there are selected statistics not sector was change within the sector, some industries left included in the ASM. Among these are the number of com- manufacturing and others came into manufacturing. panies and establishments, detailed product and materials Prominent among those leaving manufacturing are logging data, and substate geographic data. and portions of publishing. Prominent among the industries coming into the manufacturing sector are bakeries, In addition to the ASM, the Census Bureau conducts a candy stores where candy is made on the premises, cus- Current Industrial Reports (CIR) program. The CIR pub- tom tailors, makers of custom draperies, and tire retread- lishes detailed product statistics for selected manufacturing. Data for the industries coming into manufacturing as ing industries at the U.S. level annually and, in some well as those leaving manufacturing are included in the cases, monthly and/or quarterly. For the 1997 Economic manufacturing industry report series for 1997. However, Census – Manufacturing, the annual CIR data are included the state and summary reports only include data for in the Product Summary report. industries in the NAICS definition of manufacturing. The Census Bureau also conducts the monthly Manufac- Another change resulting from the conversion to NAICS turers’ Shipments, Inventories, and Orders (M3) program, is that data for central administrative offices (CAOs) asso- which publishes detailed statistics for manufacturing ciated with manufacturing are not included along side the industries at the U.S. level.

6 MANUFACTURING 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census Table 1. Industry Statistics on NAICS Basis With Distribution Among 1987 SIC~Based Industries: 1997 [NAICS codes appear in bold type. For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

All employees Production workers NAICS All Total capital or SIC Industry estab~ Value added by Cost of Value of expendi~ code Com~ lish~ Payroll Hours Wages manufacture materials shipments tures panies1 ments2 Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)

316992 Women’s handbag & purse mfg...... 136 137 3 530 80 057 2 634 5 202 43 468 209 600 158 768 372 430 8 336 317100 Women’s handbags & purses.. N 137 3 530 80 057 2 634 5 202 43 468 209 600 158 768 372 430 8 336

1For the census, a company is defined as a business organization consisting of one establishment or more under common ownership or control. 2Includes establishments with payroll at any time during the year.

Table 2. Industry Statistics for Selected States: 1997 [States that are disclosures or with less than 100 employees are not shown. For explanation of terms, see appendixes. For meaning of abbreviations and symbols, see introductory text]

All establishments All employees Production workers

Industry and geographic area With 20 em~ Total capital ploy~ Value added by Cost of Value of expendi~ ees or Payroll Hours Wages manufacture materials shipments tures E1 Total more Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)

316992, WOMEN’S HANDBAG & PURSE MFG United States...... – 137 22 3 530 80 057 2 634 5 202 43 468 209 600 158 768 372 430 8 336 California...... 3 17 3 151 2 873 136 252 2 369 5 159 4 375 9 506 134 Florida...... – 12 3 1 119 18 118 948 1 788 12 935 59 404 37 418 97 181 1 416 New York...... 2 48 6 666 17 846 486 948 9 473 39 930 35 292 77 696 1 371 Texas...... 3 7 2 136 2 753 63 120 962 4 472 5 510 9 945 141

* Hawaii has no incorporated places in the sense of functioning governmental units; however, in agreement with Hawaiian law, the Bureau of the Census reports data for census designated places (CDPs) which have been designated as place equivalents. Those CDPs, only for the state of Hawaii, with 2,500 or more population are recognized. 1Some payroll and sales data for small single~establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. This technique was also used for a small number of other establishments whose reports were not received at the time data were tabulated. The following symbols are shown where estimated data based on administrative~record data account for 10 percent or more of the figures shown: 1–10 to 19 percent; 2–20 to 29 percent; 3–30 to 39 percent; 4–40 to 49 percent; 5–50 to 59 percent; 6–60 to 69 percent; 7–70 to 79 percent; 8–80 to 89 percent; 9–90 percent or more.

MANUFACTURINGmINDUSTRY SERIES NAICS 316992 7

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Table 3. Detailed Statistics by Industry: 1997 [For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

Item Value Item Value

316992, WOMEN’S HANDBAG & PURSE MFG 316992, WOMEN’S HANDBAG & PURSE MFGm Con. Companies1 ...... number.. 136 Value added...... $1,000.. 209 600 ...... All establishments number 137 ...... Establishments with 1 to 19 employees...... number.. 115 Total inventories, beginning of year $1,000 60 394 ...... Finished goods inventories, beginning of year...... $1,000.. 34 629 Establishments with 20 to 99 employees number 15 ~ ~ ...... Establishments with 100 employees or more...... number.. 7 Work in process inventories, beginning of year $1,000 6 221 Materials and supplies inventories, beginning of year...... $1,000.. 19 544 ...... All employees number 3 530 Total inventories, end of year...... $1,000.. 52 361 2 ...... Total compensation $1,000 92 855 Finished goods inventories, end of year...... $1,000.. 28 781 Annual payroll...... $1,000.. 80 057 ~ ~ ...... Work in process inventories, end of year $1,000 8 007 Total fringe benefits $1,000 12 798 Materials and supplies inventories, end of year...... $1,000.. 15 573 Production workers, average for year...... number.. 2 634 Gross book value of total assets at beginning of year...... $1,000.. 38 659 Production workers on March 15...... number.. 2 704 Total capital expenditures (new and used)...... $1,000.. 8 336 Production workers on May 15...... number.. 2 660 Capital expenditures for buildings and other structures Production workers on August 15...... number.. 2 623 (new and used)...... $1,000.. 730 Production workers on November 15...... number.. 2 549 Capital expenditures for machinery and equipment (new and used)...... $1,000.. 7 606 Production~worker hours...... 1,000.. 5 202 Total retirements2 ...... $1,000.. 1 175 Production~worker wages...... $1,000.. 43 468 Gross book value of total assets at end of year...... $1,000.. 45 820 2 ...... Total cost of materials...... $1,000.. 158 768 Total depreciation during year $1,000 3 344 ...... Cost of materials, parts, containers, etc., consumed $1,000 125 179 Total rental payments2 ...... $1,000.. 9 245 Cost of resales...... $1,000.. 16 459 2 ...... Buildings and other structures rental payments $1,000 4 462 Cost of fuels $1,000 760 Machinery and equipment rental payments2...... $1,000.. 4 783 Cost of purchased electricity...... $1,000.. 962 Cost of contract work...... $1,000.. 15 408 Cost of purchased services for the repair of buildings and other structures3...... $1,000.. S Quantity of electricity purchased for heat and power...... 1,000 kWh.. 10 410 Response coverage ratio4 ...... percent.. S Quantity of electricity generated less sold for heat and power... 1,000 kWh.. – Cost of purchased services for the repair of machinery and equipment3 ...... $1,000.. S Total value of shipments...... $1,000.. 372 430 Response coverage ratio4 ...... percent.. S Primary products value of shipments...... $1,000.. 288 777 Cost of purchased communications services3 ...... $1,000.. S Secondary products value of shipments...... $1,000.. 49 686 Response coverage ratio4 ...... percent.. S Total miscellaneous receipts...... $1,000.. 33 967 Cost of purchased legal services3 ...... $1,000.. S Value of resales...... $1,000.. 31 173 Response coverage ratio4 ...... percent.. S Contract receipts...... $1,000.. D Cost of purchased accounting and bookkeeping services3 ...... $1,000.. S Other miscellaneous receipts...... $1,000.. D Response coverage ratio4 ...... percent.. S Cost of purchased advertising services3 ...... $1,000.. S Primary products specialization ratio...... percent.. 85 Response coverage ratio4 ...... percent.. S Value of primary products shipments made in all industries...... $1,000.. 312 417 Cost of purchased software and other data processing Value of primary products shipments made in this industry...... $1,000.. 288 777 services3 ...... $1,000.. S Value of primary products shipments made in other Response coverage ratio4 ...... percent.. S industries...... $1,000.. 23 640 Cost of purchased refuse removal (including hazardous waste) services3 ...... $1,000.. S Coverage ratio...... percent.. 92 Response coverage ratio4 ...... percent.. S

1For the census, a company is defined as a business organization consisting of one establishment or more under common ownership or control. 2These items are collected in the ASM and estimated for the remaining establishments; therefore, the levels of estimation are higher than for other items in the table. 3Based on ASM sample data. 4A response coverage ratio is derived for this item by calculating the ratio of the weighted employment (establishment data multiplied by sample weight) for those ASM establishments that reported to the weighted total employment for all ASM establishments classified in this industry. Note: The amounts shown for purchased services reflect only those services that establishments purchase from other companies.

8 NAICS 316992 MANUFACTURINGmINDUSTRY SERIES

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Table 4. Industry Statistics by Employment Size: 1997 [For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

All establishments All employees Production workers

Employment size class With 20 em~ Total capital ploy~ Value added by Cost of Value of expendi~ ees or Payroll Hours Wages manufacture materials shipments tures E1 Total more Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)

316992, WOMEN’S HANDBAG & PURSE MFG All establishments...... – 137 22 3 530 80 057 2 634 5 202 43 468 209 600 158 768 372 430 8 336

Establishments with 1 to 4 employees...... 8 81 – 134 2 641 119 234 2 031 6 310 5 179 11 375 170 Establishments with 5 to 9 employees...... 5 21 – 141 2 872 115 224 2 223 7 705 6 515 14 061 219 Establishments with 10 to 19 employees...... 4 13 – 176 3 524 144 297 2 811 6 572 6 015 12 581 168 Establishments with 20 to 49 employees...... 3 8 8 228 5 158 191 362 3 697 13 253 10 997 24 025 282 Establishments with 50 to 99 employees...... – 7 7 541 12 249 307 613 5 641 28 618 28 404 57 926 966 Establishments with 100 to 249 employees...... – 4 4 659 26 850 428 981 7 114 59 777 44 596 108 103 2 024 Establishments with 250 to 499 employees...... – 11DDDDDDDDD Establishments with 500 to 999 employees...... – 22DDDDDDDDD Establishments with 1,000 to 2,499 employees...... – ––––––––––– Establishments with 2,500 employees or more...... – ––––––––––– Administrative records2 ...... 9 73 – 153 2 769 134 273 2 156 6 347 5 480 11 780 211

1Some payroll and sales data for small single~establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. This technique was also used for a small number of other establishments whose reports were not received at the time data were tabulated. The following symbols are shown where estimated data based on administrative~record data account for 10 percent or more of the figures shown: 1–10 to 19 percent; 2–20 to 29 percent; 3–30 to 39 percent; 4–40 to 49 percent; 5–50 to 59 percent; 6–60 to 69 percent; 7–70 to 79 percent; 8–80 to 89 percent; 9–90 percent or more. 2Some payroll and sales data for small single~establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. Data are also included in respective size classes shown.

Table 5. Industry Statistics by Industry and Primary Product Class Specialization: 1997 [For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

NAICS All All employees Production workers Value added Total capital industry or Industry or primary product class estab~ by Cost of Value of expendi~ product lish~ Payroll Hours Wages manufacture materials shipments tures class code ments Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)

316992 Women’s handbag & purse mfg...... 137 3 530 80 057 2 634 5 202 43 468 209 600 158 768 372 430 8 336

MANUFACTURINGmINDUSTRY SERIES NAICS 316992 9

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Table 6a. Products Statistics: 1997 and 1992 [Includes quantity and value of products of this industry produced by (1) establishments classified in this industry (primary) and (2) establishments classified in other industries (secondary). Transfers of products of this industry from one establishment of a company to another establishment of the same company (interplant transfers) are also included. For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

1997 1992

Number of Product shipmentsNumber of Product shipments NAICS companies companies product Product with with code shipments Quantity of shipments Quantity of of production of production $100,000 for all Value $100,000 for all Value or more purposes Quantity ($1,000) or more purposes Quantity ($1,000)

316992 Women’s handbags and purses...... N X X 312 417 N X X 410 747

3169920 Women’s and children’s handbags and purses ...... N X X 312 417 N X X 410 747

31699201 Women’s and children’s handbags and purses ...... N X X 277 307 N X X N 3169920111 Women’s and children’s handbags and purses, outer surface of all leather or mostly leather...... thousands.. 38 X 10 014.4 219 567 47 X 15 508.8 261 308 3169920121 Women’s and children’s handbags and purses, outer surface of all plastics or mostly plastics (including vinyl)...... thousands.. 12 X 2 377.3 21 099 19 X 4 448.8 63 139 3169920131 Women’s and children’s handbags and purses, outer surface of all other materials, except precious metals...... thousands.. 9 X 2 954.5 36 641 14 X 2 596.1 33 416

3169920Y Women’s and children’s handbags and purses, nsk...... N X X 35 110 N X X N 3169920YWW Women’s and children’s handbags and purses, nsk, for nonadministrative~ record establishments ...... N X X 22 152 N X X 31 250 3169920YWY Women’s and children’s handbags and purses, nsk, for administrative~record establishments...... N X X 12 958 N X X 21 647

# Additional information is available for this item; see Appendix F. @ Additional data are available for these codes at the aggregate U.S. level in the Current Industrial Report (CIR) series; see Appendix F for the CIR survey number and title. $ This product is primary to more than one industry; see Appendix F for a listing of the related product codes. Note: For some establishments, data have been estimated from central unit values which are based on quantity~value relationships of reported data. The following symbols are used when percentage of each quantity figure estimated in this manner equals or exceeds 10 percent of published figure: p 10 to 19 percent estimated; q 20 to 29 percent estimated. If 30 percent or more is estimated, figure is replaced by S.

Table 6b. Product Class Shipments for Selected States: 1997 and 1992 [Not applicable for this report]

Table 7. Materials Consumed by Kind: 1997 and 1992 [Includes quantity and cost of materials consumed or put into production by establishments classified only in this industry. For meaning of abbreviations and symbols, see introductory text. For explanation of terms, see appendixes]

1997 1992 NAICS material Material consumed code Delivered cost Delivered cost Quantity ($1,000) Quantity ($1,000)

316992 WOMEN’S HANDBAG & PURSE MFG 31321023 Broadwoven fabrics (piece goods) ...... X 8 371 X 7 647 31332001 Plastics coated, impregnated, or laminated fabrics ...... X 10 848 X 8 793 32521105 Plastics resins consumed in the form of granules, pellets, powders, liquids, etc...... X DX N 32610013 Plastics products consumed in the form of sheets, rods, tubes, film, and other shapes ...... X 3 065 X 6 258 31611001 Finished leather ...... X 74 310 X 82 018 33251017 Trunk and luggage hardware, including locks ...... X 1 573 X D 00970099 All other materials and components, parts, containers, and supplies ...... X DX D 00971000 Materials, ingredients, containers, and supplies, n.s.k...... X 14 801 X 24 434

# Additional information is available for this item; see Appendix F. Note: For some establishments, data have been estimated from central unit values which are based on quantity~value relationships of reported data. The following symbols are used when percentage of each quantity figure estimated in this manner equals or exceeds 10 percent of published figure: p 10 to 19 percent estimated; q 20 to 29 percent estimated. If 30 percent or more is estimated, figure is replaced by S. 10 NAICS 316992 MANUFACTURINGmINDUSTRY SERIES

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Appendix A. Explanation of Terms

BEGINNING- AND END-OF-YEAR INVENTORIES 3. Cost of fuels consumed for heat and power—Includes the cost of materials or fuel consumed, whether pur- Respondents were asked to report their beginning-of- chased by the individual establishment from other year and end-of-year inventories at cost or market. Effec- companies, transferred to it from other establishments tive with the 1982 Economic Census, this change to a uni- of the same company, or withdrawn from inventory form instruction for reporting inventories was introduced during the year. for all sector reports. Prior to 1982, respondents were per- mitted to value inventories using any generally accepted 4. Cost of purchased electricity—The cost of purchased accounting method (FIFO, LIFO, market, to name a few). electric energy represents the amount actually used Beginning in 1982, LIFO users were asked to first report during the year for heat and power. In addition, infor- inventory values prior to the LIFO adjustment and then to mation was collected on the quantity of electric report the LIFO reserve and the LIFO value after adjust- energy generated by the establishment and the quan- ment for the reserve. tity of electric energy sold or transferred to other plants of the same company. Inventory Data by Stage of Fabrication 5. Cost of contract work—This term applies to work Total inventories and three detailed components (1) fin- done by others on materials furnished by the manu- ished goods, (2) work-in-process, and (3) materials, sup- facturing establishment. The actual cost of the mate- plies, fuels, etc., were collected. rial is to be reported on the cost of materials, parts, When using inventory data by stage of fabrication for and containers line of this item. The term ‘‘Contract ‘‘all industries’’ and at the three-digit subsector level, it Work’’ refers to the fee a company pays to another should be noted that an item treated as a finished product company to perform a service. by an establishment in one industry may be reported as a raw material by an establishment in a different industry. Specific Materials Consumed For example, the finished-product inventories of a steel In addition to the total cost of materials, which every mill would be reported as raw materials by a stamping establishment was required to report, information also plant. Such differences are present in the inventory figures was collected for most manufacturing industries on the by stage of fabrication shown for all publication levels. consumption of major materials used in manufacturing. The inquiries were restricted to those materials which COST OF MATERIALS were important parts of the cost of production in a par- This term refers to direct charges actually paid or pay- ticular industry and for which cost information was available for items consumed or put into production during the able from manufacturers’ records. If less than $25,000 of year, including freight charges and other direct charges a listed material was consumed by an establishment, the incurred by the establishment in acquiring these materials. cost data could be reported in the ‘‘Cost of all other mate- It includes the cost of materials or fuel consumed, rials...,’’ Census material code 00970099. Also, the cost of whether purchased by the individual establishment from materials for small establishments for which administra- other companies, transferred to it from other establish- tive records or short forms were used was imputed into ments of the same company, or withdrawn from inventory the ‘‘Materials not specified by kind,’’ Census materials during the year. code 00971000. Included in this item are: Duplication in Cost of Materials and Value of 1. Cost of parts, components, containers, etc.—Includes Shipment all raw materials, semifinished goods, parts, containers, scrap, and supplies put into production or used as The aggregate of the cost of materials and value of operating supplies and for repair and maintenance shipments figures for industry groups and for all manufac- during the year. turing industries includes large amounts of duplication since the products of some industries are used as materi- 2. Cost of products bought and sold in the same condi- als by others. This duplication results, in part, from the tion. addition of related industries representing successive

1997 ECONOMIC CENSUS APPENDIX A A–1

U.S. Census Bureau, 1997 Economic Census stages in the production of a finished manufactured prod- Included in the cost of purchased refuse removal ser- uct. Examples are the addition of flour mills to bakeries in vices are all costs of refuse removal services paid by the the food group and the addition of pulp mills to paper establishment, including costs for hazardous waste mills in the paper and allied products group of industries. removal or treatment. Excluded are all costs included in Estimates of the overall extent of this duplication indicate rental payments or as capital expenditures. that the value of manufactured products exclusive of such duplication (the value of finished manufactures) tends to Response Coverage Ratio approximate two-thirds of the total value of products A response coverage ratio is a measure of the extent to reported in the survey. which respondents report for an item. The estimate is Duplication of products within individual industries is made by calculating the ratio value of the weighted total significant within a number of industry groups, e.g., employment data for all the ASM establishments that machinery and transportation industries. These industries report the item to the weighted total employment data for frequently include complete machinery and their parts. In all ASM establishments classified in an industry (reporters this case, the parts made for original equipment are mate- and non-reporters). rials consumed for assembly plants in the same industry. Even when no significant amount of duplication is DEPRECIATION CHARGES FOR FIXED ASSETS involved, value of shipments figures are deficient as measures of the relative economic importance of individual This item includes depreciation and amortization manufacturing industries or geographic areas because of charged during the year against assets. Depreciation the wide variation in ratio of materials, labor, and other charged against fixed assets acquired since the beginning processing costs of value of shipments, both among of the year and against assets sold or retired during the industries and within the same industry. year are components of this category. Respondents were Before 1962, cost of materials and value of shipments requested to make certain that they did not report accu- were not published for some industries which included mulated depreciation. considerable duplication. Since then, these data have been published for all industries at the U.S. level and beginning EMPLOYEES in 1964, for all geographic levels. This item includes all full-time and part-time employees COST OF PURCHASED SERVICES on the payrolls of operating manufacturing establishments Annual Survey of Manufactures (ASM) establishments during any part of the pay period which included the 12th were requested to provide information on the cost of pur- of the months specified on the report form. Included are chased services for the repair of buildings and other struc- all persons on paid sick leave, paid holidays, and paid tures, the repair of machinery, communication services, vacations during these pay periods. Officers of corpora- legal services, accounting and bookkeeping services, tions are included as employees; proprietors and partners advertising, software and other data processing services, of unincorporated firms are excluded. The ‘‘all employees’’ and refuse removal. Each of these items reflects the costs number is the average number of production workers plus paid directly by the establishment and excludes salaries the number of other employees in mid-March. The number paid to employees of the establishment for these services. of production workers is the average for the payroll peri- Included in the cost of purchased services for the repair ods including the 12th of March, May, August, and Novem- of buildings and machinery are payments made for all ber. maintenance and repair work on buildings and equipment. Production Workers Payments made to other establishments of the same company and for repair and maintenance of any leased prop- This item includes workers (up through the line- erty also are included. Extensive repairs or reconstruction supervisor level) engaged in fabricating, processing, that was capitalized is considered capital expenditures assembling, inspecting, receiving, storing, handling, pack- and is, therefore, excluded from this item. Repair and ing, warehousing, shipping (but not delivering), mainte- maintenance costs provided by an owner as part of a nance, repair, janitorial and guard services, product devel- rental contract or incurred directly by an establishment in opment, auxiliary production for plant’s own use (e.g., using its own work force also are excluded. power plant), recordkeeping, and other services closely Included in the cost of purchased advertising services associated with these production operations at the estab- are payments for printing, media coverage, and other lishment covered by the report. Employees above the advertising services and materials. working-supervisor level are excluded from this item. Included in the cost of purchased software and other All Other Employees data processing services are all purchases by the establishment from other companies. Excluded are services pro- This item covers nonproduction employees of the vided by other establishments of the same company (such manufacturing establishment including those engaged in as by a separate data processing unit). factory supervision above the line-supervisor level. It

A–2 APPENDIX A 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census includes sales (including driver-salespersons), sales deliv- NUMBER OF ESTABLISHMENTS AND COMPANIES ery (highway truck drivers and their helpers), advertising, A separate report was required for each manufacturing credit, collection, installation and servicing of own prod- establishment (plant) with one employee or more. An ucts, clerical and routine office functions, executive, pur- establishment is defined as a single physical location chasing, financing, legal, personnel (including cafeteria, where manufacturing is performed. A company, on the medical, etc.), professional, and technical employees. Also other hand, is defined as a business organization consist- included are employees on the payroll of the manufacturing of one establishment or more under common owner- ing establishment engaged in the construction of major ship or control. additions or alterations utilized as a separate work force. If the company operated at different physical locations, even if the individual locations were producing the same FRINGE BENEFITS line of goods, a separate report was requested for each Fringe benefits are divided into legally required expen- location. If the company operated in two or more distinct ditures and payments for voluntary programs. The legally lines of manufacturing at the same location, a separate required portion consists primarily of Federal old age and report was requested for each activity. survivors’ insurance, unemployment compensation, and An establishment not in operation for any portion of workers’ compensation. Payments for voluntary programs the year was requested to return the report form with the include all programs not specifically required by legisla- proper notation in the ‘‘Operational Status’’ section of the tion whether they were employer initiated or the result of form. In addition, the establishment was requested to collective bargaining. They include the employer portion report data on any employees, capital expenditures, inven- of such plans as insurance premiums, premiums for tories, or shipments from inventories during the year. supplemental accident and sickness insurance, pension plans, supplemental unemployment compensation, wel- PAYROLL fare plans, stock purchase plans on which the employer payment is not subject to withholding tax, and deferred This item includes the gross earnings of all employees profit-sharing plans. They exclude such items as company- on the payrolls of operating manufacturing establishments operated cafeterias, in-plant medical services, free parking paid in the calendar year. Respondents were told they lots, discounts on employee purchases, and uniforms and could follow the definition of payrolls used for calculating work clothing for employees. the Federal withholding tax. It includes all forms of compensation, such as salaries, wages, commissions, dis- GROSS BOOK VALUE OF DEPRECIABLE ASSETS AT missal pay, bonuses, vacation and sick leave pay, and BEGINNING OF YEAR (BOY) AND END OF YEAR (EOY) compensation in kind, prior to such deductions as employees’ social security contributions, withholding taxes, Total value of depreciable assets is collected on all cen- group insurance, union dues, and savings bonds. The total sus forms. It shows the value of depreciable assets for the includes salaries of officers of corporations; it excludes beginning of year and end of year. The data encompass all payments to proprietors or partners of unincorporated fixed depreciable assets on the books of establishments. concerns. Also excluded are payments to members of The values shown (book value) represent the actual cost Armed Forces and pensioners carried on the active pay- of assets at the time they were acquired, including all rolls of manufacturing establishments. costs incurred in making the assets usable (such as trans- The census definition of payrolls is identical to that rec- portation and installation). Included are all buildings, ommended to all Federal statistical agencies by the Office structures, machinery, and equipment (production, office, of Management and Budget. It should be noted that this and transportation equipment) for which depreciation definition does not include employers’ social security con- reserves are maintained. Excluded are nondepreciable tributions or other nonpayroll labor costs, such as employ- capital assets including inventories and intangible assets, ees’ pension plans, group insurance premiums, and work- such as timber and mineral rights. ers’ compensation. The definition of fixed depreciable assets is consistent The ASM provides estimates of employers’ total supple- with the definition of capital expenditures. For example, mental labor costs (those required by Federal and state expenditures include actual capital outlays during the year laws and those incurred voluntarily or as part of collective rather than the final value of equipment put in place and bargaining agreements). buildings completed during the year. Accordingly, the value of assets at the end of the year includes the value of PRODUCT CODES AND CLASSES OF PRODUCTS construction in progress. In addition, respondents were requested to make cer- NAICS United States industries are identified by a six- tain that assets at the beginning of the year plus capital digit code, in contrast to the four-digit SIC code. The expenditures, less retirements, equaled assets at the end longer code accommodates the large number of sectors of the year. and allows more flexibility in designing subsectors. Each

1997 ECONOMIC CENSUS APPENDIX A A–3

U.S. Census Bureau, 1997 Economic Census product or service is assigned a ten-digit code. The prod- PRIMARY PRODUCT CLASS CODE uct coding structure represents an extension by the Cen- This file presents selected statistics for establishments sus Bureau of the six-digit industry classifications of the according to their degree of specialization in products pri- manufacturing and mining sectors. The classification sys- mary to their industry. This field contains either the six- tem operates so that the industrial coverage is progres- digit North American Industrial Classification System sively narrower with the successive addition of digits. This (NAICS) industry code corresponding to all establishments is illustrated as follows: in the industry, or the seven-digit NAICS product class code for all establishments within the industry that are specialized in a particular product class. Product class spe- NAICS level NAICS code Description cialization is determined by evaluating the ratio of the Industry ...... 33461 Manufacturing and reproduction largest primary product class shipments to total product of magnetic and optical media shipments (primary plus secondary, excluding miscella- U.S. industry...... 334612 Reproduction of software neous receipts) for the establishment. Product class ..... 3346120 Prerecorded compact disc (except software), tape, and record repro- ducing PRODUCTION-WORKER HOURS BLS link code..... 3346120X This item covers hours worked or paid for at the plant, Product code ..... 3346120XXX including actual overtime hours (not straight-time equiva- lent hours). It excludes hours paid for vacations, holidays, As in previous censuses, data were collected for most or sick leave. industries on the quantity and value of individual products shipped. In the 1997 census program, information was QUANTITY OF ELECTRIC ENERGY CONSUMED FOR collected on the output of almost 10,000 individual prod- HEAT AND POWER uct items. Data on the cost of purchased electric energy were col- In the new system, there are about 1,500 product lected on all census forms. However, data on the quantity classes (seven-digit codes), about 6,000 census products of purchased electric energy were collected only on the (ten-digit codes), and an additional 3,700 CIR products Annual Survey of Manufactures (ASM) form. In addition, (ten-digit codes). The ten-digit products are considered the information is collected on the quantity of electric energy primary products of the industry with the same first six generated by the establishment and the quantity of elec- digits. tric energy sold or transferred to other plants of the same The list of products for which separate information was company. collected was prepared after consultation with industry and government representatives. Comparability with pre- RENTAL PAYMENTS vious figures was given considerable weight in the selec- Total rental payments are collected on all census forms. tion of product categories so that comparable 1992 infor- However, the breakdown between rental payments for mation is presented for most products. buildings and other structures and rental payments for Typically, both quantity and value of shipments infor- machinery and equipment is collected only on the ASM mation were collected. However, if quantity was not sig- forms. This item includes rental payments for the use of nificant or could not be reported by manufacturers, only all items for which depreciation reserves would be main- value of shipments was collected. tained if they were owned by the establishment, e.g., Shipments include both commercial shipments and structures and buildings, and production, office, and transfers of products to other plants of the same com- transportation equipment. Excluded are royalties and pany. For industries in which a considerable portion of the other payments for the use of intangibles and depletable total shipments is transferred to other plants of the same assets and land rents where separable. company, separate information on interplant transfers also When an establishment of a multiestablishment com- was collected. Moreover, for products that are used to a pany was charged rent by another part of the same com- large degree within the same establishment as materials pany for the use of assets owned by the company, it was or components in the fabrication of other products, total instructed to exclude that cost from rental payments. production and often consumption of the item within the However, the book value (original cost) of these company- plant (quantity produced and consumed) was collected. owned assets was to be reported as assets of the estab- Typically, the information on production also was collected lishment at the end of the year. for products for which there are significant differences If there were assets at an establishment rented from between total production and shipments in a given year another company and the rents were paid centrally by the because of wide fluctuations in finished goods invento- head office of the establishment, the company was ries. Other measures of output of products with long pro- instructed to report these rental payments as if they were duction cycles were used as appropriate and feasible. paid directly by the establishment.

A–4 APPENDIX A 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census RETIREMENTS OF DEPRECIABLE ASSETS industries where value of work done is collected, the value added does not include an adjustment for the change in Included in this item is the gross value of assets sold, finished goods or work-in-process inventories. retired, scrapped, destroyed, etc., during the calendar ‘‘Value added’’ avoids the duplication in the figure for year. When a complete operation or establishment value of shipments that results from the use of products changed ownership, the respondent was instructed to of some establishments as materials by others. Value report the value of the assets sold at the original cost as added is considered to be the best value measure avail- recorded in the books of the seller. The respondent also able for comparing the relative economic importance of was requested to report retirements of equipment or manufacturing among industries and geographic areas. structures owned by a parent company that the establishment was using as if it were a tenant. VALUE OF SHIPMENTS

This item covers the received or receivable net selling TOTAL CAPITAL EXPENDITURES (NEW AND USED) values, f.o.b. plant (exclusive of freight and taxes), of all For establishments in operation and any known plants products shipped, both primary and secondary, as well as under construction, manufacturers were asked to report all miscellaneous receipts, such as receipts for contract their new and used expenditures for (1) permanent addi- work performed for others, installation and repair, sales of tions and major alterations to manufacturing establish- scrap, and sales of products bought and sold without fur- ments and (2) machinery and equipment used for replace- ther processing. Included are all items made by or for the ment and additions to plant capacity if they were of the establishments from material owned by it, whether sold, type for which depreciation accounts were ordinarily main- transferred to other plants of the same company, or tained. shipped on consignment. The net selling value of products Totals for expenditures include the costs of assets made in one plant on a contract basis from materials leased from nonmanufacturing concerns through capital owned by another was reported by the plant providing the leases. New facilities owned by the Federal Government materials. but operated under contract by private companies and In the case of multiunit companies, the manufacturer plant and equipment furnished to the manufacturer by was requested to report the value of products transferred communities and nonprofit organizations are excluded. to other establishments of the same company at full eco- Also excluded are expenditures for land and cost of main- nomic or commercial value, including not only the direct tenance and repairs charged as current operating cost of production but also a reasonable proportion of ‘‘all expenses. other costs’’ (including company overhead) and profit. In addition to the value for NAICS defined products, For any equipment or structure transferred for the use aggregates of the following categories of miscellaneous of the reporting establishment by the parent company or receipts are reported as part of a total establishment’s one of its subsidiaries, the value at which it was trans- value of product shipments: ferred to the establishment was to be reported. If an establishment changed ownership during the year, the 1. Reported contract work—Receipts for work or services cost of the fixed assets (building and equipment) was to that a plant performed for others on their materials. be reported. 2. Value of resales—Sales of products brought and sold without further manufacture, processing, or assembly. VALUE ADDED 3. Other miscellaneous receipts—Such as repair work, This measure of manufacturing activity is derived by installation, sales of scrap, etc. subtracting the cost of materials, supplies, containers, fuel, purchased electricity, and contract work from the Industry primary product value of shipments represents value of shipments (products manufactured plus receipts one of the three components of value of shipments. These for services rendered). The result of this calculation is components are: adjusted by the addition of value added by merchandising 1. Primary products value of shipments. operations (i.e., the difference between the sales value and the cost of merchandise sold without further manufac- 2. Secondary product value of shipments. ture, processing, or assembly) plus the net change in fin- 3. Total miscellaneous receipts. ished goods and work-in-process between the beginning- and end-of-year inventories. Primary product shipments is used in the calculations of For those industries where value of production is col- industry specialization ratio and industry coverage ratio. lected instead of value of shipments, value added is The term ‘‘Value of primary products shipments made in adjusted only for the change in work-in-process invento- this industry’’ is used in this publication and refers to the ries between the beginning and end of year. For those same data.

1997 ECONOMIC CENSUS APPENDIX A A–5

U.S. Census Bureau, 1997 Economic Census Duplication in Cost of Materials and Value of Before 1962, cost of materials and value of shipments Shipment were not published for some industries which included considerable duplication. Since then, these data have been The aggregate of the cost of materials and value of published for all industries at the U.S. level and beginning shipments figures for industry groups and for all manufac- in 1964, for all geographic levels. turing industries includes large amounts of duplication since the products of some industries are used as materi- Specialization and Coverage Ratios als by others. This duplication results, in part, from the addition of related industries representing successive These items are not collected on the report forms but stages in the production of a finished manufactured prod- are derived from the data shown in Table 3. An establish- uct. Examples are the addition of flour mills to bakeries in ment is classified in a particular industry if its shipments the food group and the addition of pulp mills to paper of primary products of that industry exceed in value its mills in the paper and allied products group of industries. shipments of the products of any other single industry. Estimates of the overall extent of this duplication indicate An establishment’s shipments include those products that the value of manufactured products exclusive of such assigned to an industry (primary products), those consid- duplication (the value of finished manufactures) tends to ered primary to other industries (secondary products), and approximate two-thirds of the total value of products receipts for miscellaneous activities (merchandising, con- reported in the annual survey. tract work, resales, etc.). Specialization and coverage Duplication of products within individual industries is ratios have been developed to measure the relationship of significant within a number of industry groups, e.g., primary product shipments to the data on shipments for machinery and transportation industries. These industries the industry shown in Tables 1a through 5 and data on frequently include complete machinery and their parts. In product shipments shown in Tables 6a and 6b. this case, the parts made for original equipment are materials consumed for assembly plants in the same industry. Specialization ratio represents the ratio of primary Even when no significant amount of duplication is product shipments to total product shipments (primary involved, value of shipments figures are deficient as mea- and secondary, excluding miscellaneous receipts) for the sures of the relative economic importance of individual establishments classified in the industry. manufacturing industries or geographic areas because of Coverage ratio represents the ratio of primary products the wide variation in ratio of materials, labor, and other shipped by the establishments classified in the industry to processing costs of value of shipments, both among the total shipments of such products that are shipped by industries and within the same industry. all manufacturing establishments wherever classified.

A–6 APPENDIX A 1997 ECONOMIC CENSUS

U.S. Census Bureau, 1997 Economic Census Appendix B. NAICS Codes, Titles, and Descriptions

316992 WOMEN’S HANDBAG AND PURSE The data published with NAICS code 316992 include MANUFACTURING the following SIC industry: This U.S. industry comprises establishments primarily engaged in manufacturing women’s handbags and purses 3171 Women’s handbags and purses of any material (except precious metal).

MANUFACTURING—INDUSTRY SERIES APPENDIX B B–1

U.S. Census Bureau, 1997 Economic Census Appendix C. Coverage and Methodology

MAIL/NONMAIL UNIVERSE establishments but were included in the product and material ‘‘not specified by kind’’ (nsk) categories. The manufacturing universe includes about 400,000 The industry classification codes included in the establishments. This number includes those industries in administrative-record files were assigned on the basis the North American Industry Classification System (NAICS) of brief descriptions of the general activity of the definition of manufacturing, but not those industries leav- establishment. As a result, an indeterminate number ing the manufacturing sector in the classification change. of establishments were erroneously coded to a four- The amounts of information requested from manufactur- digit SIC industry and then erroneously re-coded to a ing establishments were dependent upon a number of fac- six-digit NAICS industry. This was especially true tors. The more important considerations were the size of whenever there was a relatively fine line of demarca- the company and whether it was included in the annual tion between industries or between manufacturing survey of manufactures (ASM). The methods of obtaining and nonmanufacturing activity. information for the various subsets of the universe to arrive at the aggregate figures shown in the publication Sometimes the administrative-record cases had are described below: only two- or three-digit SIC group classification codes available in the files. For the 1997 Economic Census – 1. Small single-establishment companies not sent a Manufacturing, these establishments were sent a report form. separate classification form, which requested informa- Approximately 40 percent of the manufacturing tion on the products and services of the establish- establishments were small single-establishment com- ment. This form was used to code many of these panies that were excused from filing a census report. establishments to the appropriate six-digit NAICS Selection of these establishments was based on two level. Establishments that did not return the classifica- factors: annual payroll and our ability to assign the tion form were coded later to those six-digit NAICS correct six-digit NAICS industry classification to the industries identified as ‘‘All other’’ industries within establishment. For each four-digit Standard Industrial the given subsector. Classification (SIC) industry code, an annual payroll As a result of these situations, a number of small cutoff was determined. These cutoffs were derived so establishments may have been misclassified by indus- that the establishments with payroll less than the cut- try. However, such possible misclassification has no off were expected to account for no more than 3 per- significant effect on the statistics other than on the cent of the value of shipments for the industry. Gener- number of companies and establishments. ally, all single-establishment companies with less than The total establishment count for individual indus- 5 employees were excused, while all establishments tries should be viewed as an approximation rather with more than 20 employees were mailed forms. than a precise measurement. The counts for establish- Establishments below the cutoff that could not be ments with 20 employees or more are far more reli- directly assigned a six-digit NAICS code were mailed a able than the count of total number of establishments. classification report which requested information for assigning NAICS industry codes. Establishments below 2. Establishments sent a report form. the cutoff that could be directly assigned a six-digit The establishments covered in the mail canvass NAICS code were excused from filing any report. For were divided into three groups: below cutoff establishments, information on the physical location, payroll, and receipts was obtained a. ASM sample establishments. from the administrative records of other Federal agen- This group accounts for approximately 15 per- cies under special arrangements that safeguarded cent of all manufacturing establishments. The ASM their confidentiality. panel covers all the units of large manufacturing Estimates of data for these small establishments establishments as well as a sample of the medium were developed using industry averages in conjunc- and smaller establishments. The probability of tion with the administrative information. The value of selection was proportionate to size. For more infor- shipments and cost of materials were not distributed mation, see the Description of the ASM Survey among specific products and materials for these Sample.

MANUFACTURING APPENDIX C C–1

U.S. Census Bureau, 1997 Economic Census In an economic census year, the ASM report form Approximately 30 percent of all manufacturing (MA-1000) replaces the first page of the regular establishments were included in this group. A vari- census form for those establishments included in able cutoff, based on administrative-record payroll the ASM. In addition to information on employ- data and determined on an industry-by-industry ment, payroll, and other items normally requested basis, was used to select those establishments that on the regular census form, establishments in the were to receive 1 of the 220 economic census – ASM sample were requested to supply additional manufacturing regular forms. The first page, information on gross book value of assets and requesting establishment data for items such as capital expenditures. ASM establishments were also employment and payroll, was standard but did not contain the detailed statistics included on the ASM requested to provide information on retirements, form. The product, material, and special inquiry depreciation, rental payments, and supplemental sections supplied were based on the historical labor costs. For establishments not included in the industry classification of the establishment. ASM, these additional items were estimated using relationships observed in the ASM establishment c. Small single-establishment companies (non-ASM). data. The census statistics for these variables are a This group includes approximately 15 percent of sum of the ASM establishment data and the esti- all manufacturing establishments. For those indus- mated data for non-ASM establishments. ASM tries where application of the variable cutoff for establishments were also requested to provide administrative-record cases resulted in a large num- information for selected purchased services. The ber of small establishments being included in the census statistics for the purchased service items mail canvass, an abbreviated or short form was were derived solely from the ASM establishments. used. These establishments received 1 of the 31 See Appendix A, Explanation of Terms for an expla- versions of the short form, which requested sum- nation of these items. The census part of the report mary product and material data and totals but no form is 1 of 220 versions containing product, mate- details on employment, payroll, cost of materials, rial, and special inquiries. The diversity of manufac- inventories, and capital expenditures. turing activities necessitated the use of this many Use of the short form has no adverse effect on forms to canvass the 480 manufacturing industries. published totals for the industry statistics because Each form was developed for a group of related the same data were collected on the short form as industries. on the long form. However, detailed information on Appearing on each form was a list of products products and materials consumed was not col- primary to the group of related industries as well lected on the short form; thus, its use would as secondary products and miscellaneous services increase the value of the nsk categories. that establishments classified in these industries were likely to perform. Respondents were INDUSTRY CLASSIFICATION OF requested to identify the products, the value of ESTABLISHMENTS each product, and, in many cases, the quantity of the product shipped during the survey year. Space Each of the establishments covered in the 1997 Eco- also was provided for the respondent to describe nomic Census – Manufacturing was classified in 1 of 480 products not specifically identified on the form. industries (473 manufacturing industries and 7 former The report form also contained a materials- manufacturing industries) in accordance with the industry consumed inquiry which varied from form to form definitions in the 1997 NAICS Manual. This is the first edi- depending on the industries being canvassed. The tion of the NAICS Manual and it is a major change from the respondents were asked to review a list of materi- 1987 SIC Manual that was used previously. Appendix A of als generally used in their production processes. the 1997 NAICS Manual notes the comparability between From this list, each establishment was requested to the 1987 SIC and 1997 NAICS classification systems. When identify those materials consumed during the sur- applicable, Appendix G of this report shows the product vey year, the cost of each, and, in certain cases, the class and product comparability between the two systems quantity consumed. Once again, space was pro- for data in this report. vided for the respondent to describe significant In the NAICS system, an industry is generally defined as materials not identified on the form. a group of establishments that have similar production A wide variety of special inquiries was included processes. To the extent practical, the system uses supply- to measure activities peculiar to a given industry, based or production-oriented concepts in defining indus- such as operations performed and equipment used. tries. The resulting group of establishments must be significant in terms of number, value added by manufacture, b. Large and medium establishments (non-ASM). value of shipments, and number of employees.

C–2 APPENDIX C MANUFACTURING

U.S. Census Bureau, 1997 Economic Census The coding system works in such a way that the defini- Establishments frequently make products classified tions progressively become narrower with successive both in their industry (primary products) and other indus- additions of numerical digits. In the manufacturing sector tries (secondary products). Industry statistics (employ- for 1997, there are 21 subsectors (three-digit NAICS), 86 ment, payroll, value added by manufacture, value of ship- industry groups (four-digit NAICS), 184 NAICS industries ments, etc.) reflect the activities of the establishments (five-digit NAICS) that are comparable with Canadian and which may make both primary and secondary products. Mexican classification, and 473 U.S. industries (six-digit Product statistics, however, represent the output of all NAICS). This represents an expansion of the four-digit SIC- establishments without regard for the classification of the based U.S. industries from 459 in 1987. Product classes producing establishment. For this reason, when relating the industry statistics, especially the value of shipments, and products of the manufacturing industries have been to the product statistics, the composition of the industry’s assigned codes based on the industry from which they output should be considered. originate. In the new system, there are about 1,500 prod- The extent to which industry and product statistics may uct classes (seven-digit codes), about 6,000 census prod- be matched with each other is measured by the primary ucts, and an additional 3,700 CIR products (ten-digit product specialization ratio and the coverage ratio. The codes). The ten-digit products are considered the primary primary product specialization ratio is the proportion of products of the industry with the same first six digits. industry shipments accounted for by the primary products These counts do not include the seven former manufactur- of establishments classified in the industry. The coverage ing industries that are included in the 1997 Economic Cen- ratio is the proportion of product shipments accounted for sus – Manufacturing. by establishments classified in the industry. For the 1997 Economic Census – Manufacturing, all establishments were classified in particular industries ESTABLISHMENT BASIS OF REPORTING based on the products they produced. If an establishment The economic census – manufacturing is conducted on made products of more than one industry, it was classified an establishment basis. A company operating at more in the industry with the largest product value. For 1997, than one location is required to file a separate report for there were no ‘‘resistance rules’’ or ‘‘frozen industries.’’ each location or establishment. The ASM also is conducted In ASM years, establishments included in the ASM on an establishment basis, but separate reports are filed sample with certainty weights are reclassified by industry for just those establishments selected in the sample. Com- panies engaged in distinctly different lines of activity at only if the change in the primary activity from the prior one location are requested to submit separate reports if year is significant or if the change has occurred for 2 suc- the plant records permit such a separation and if the cessive years. This procedure prevents reclassification activities are substantial in size. when there are minor shifts in product mix. In 1997, as in earlier years, a minimum size limit was In ASM years, establishments included in the ASM set for inclusion of establishments in the census. All estab- sample with noncertainty weight are not shifted from one lishments employing one person or more at any time dur- industry classification to another. They are retained in the ing the census year are included. The same size limitation industry where they were classified in the base census has applied since 1947 in censuses and annual surveys of year. However, in the following census year, these ASM manufactures. In the 1939 and earlier censuses, establish- plants are allowed to shift from one industry to another. ments with less than $5,000 value of products were The results of these rules covering the switching of excluded. The change in the minimum size limit in 1947 plants from one industry classification to another are that does not appreciably affect the historical comparability of some industries comprise different mixes of establish- the census figures except for data on number of establishments in different survey years. Hence, comparisons ments for a few industries. between prior-year and current-year published totals, par- The 1997 Economic Census – Manufacturing excludes ticularly at the six-digit NAICS level, should be viewed data for central administrative offices (CAOs). These with caution. This is particularly true for the comparison would include separately operated administrative offices, between the data shown for a census year versus the data warehouses, garages, and other auxiliary units that ser- shown for the previous ASM year. vice manufacturing establishments of the same company. As previously noted, the small establishments that may These data are published in a separate report series. have been misclassified by industry are usually DESCRIPTION OF THE ASM SURVEY SAMPLE administrative-record cases whose industry codes were assigned on the basis of incomplete descriptions of the The annual survey of manufactures (ASM) sample is general activity of the establishment. Such possible mis- drawn for the second survey year after a census. The most classifications have no significant effect on the statistics recent sample was drawn for the 1994 survey year based other than on the number of companies and establish- on the 1992 Census of Manufactures. This sample will be ments. in place through the 1998 ASM.

MANUFACTURING APPENDIX C C–3

U.S. Census Bureau, 1997 Economic Census In 1992, there were approximately 370,000 individual constraint was specified. Using a technique developed by manufacturing establishments. For sample efficiency and Dr. James R. Chromy of the Research Triangle Institute, the cost considerations, the 1992 manufacturing population initial establishment probabilities were optimized such was partitioned into two components for developing esti- that the expected sample satisfied all industry and prod- mates within the ASM; a mail stratum and a nonmail stra- uct class reliability constraints while the sample size was tum. minimized. This technique reduces the likelihood of selecting nonrepresentative samples for individual product Mail stratum. The mail stratum of the survey is com- classes or industries. prised of larger single-location manufacturing companies This method of assigning probabilities based on prod- and all manufacturing establishments of multiunit compa- uct class shipments is motivated by our primary desire to nies (companies that operate at more than one physical produce reliable estimates of both product class and industry shipments. The high correlation between ship- location). Approximately 230,000 of the 370,000 estab- ments and employment, value-added, and other general lishments in the 1992 census were assigned to the mail statistics assures that these variables will also be well rep- stratum. On an annual basis, the mail stratum is supple- resented by the sample. The actual sample selection pro- mented with larger, newly active single-location compa- cedure uses an independent chance of selection method nies identified from a list provided by the Internal Revenue (Poisson sampling) which permits us to prevent small Service (IRS) and new manufacturing locations of multiunit establishments from being selected in consecutive companies identified from the Census Bureau’s Company samples without introducing a bias into the survey esti- Organization Survey (COS). mates. For the 1994 survey, a new sample of approximately 58,000 individual establishments was selected from the Nonmail component. The initial nonmail component of mail stratum assembled from the 1992 census. Supple- the survey was comprised of approximately 140,000 mental samples representing both 1993 and 1994 births small, single-establishment companies that were tabulated (newly active establishments that were not included in the as administrative records in the 1992 Census of Manufac- 1992 census) were also selected. Establishments selected tures. The nonmail stratum is also supplemented annually for the sample are mailed an ASM survey questionnaire for using the list of newly active single-location companies each year through 1998. provided by the Internal Revenue Service (IRS) and payroll cutoffs. Companies with payroll below the payroll cutoff The 1994-98 ASM sample design is similar to the one are added to the nonmail stratum. For this portion of the used since 1984. Companies in the 1992 Census of Manu- population, sampling is not used. The data for this group factures with manufacturing shipments of at least $500 are estimated based on selected information obtained million were defined as company certainties. For these annually from the administrative records of the IRS and large companies, each manufacturing establishment is Social Security Administration (SSA). This administrative included in the mail sample. For the 1994-98 sample, information, which includes payroll, total employment, there are approximately 650 certainty companies collec- industry classification, and physical location, is obtained tively accounting for over 18,000 establishments. under conditions which safeguard the confidentiality of For the remaining portion of the mail component of the both tax and census records. survey, the establishment was defined as the sample unit. All establishments with 250 employees or more were DESCRIPTION OF THE ASM ESTIMATING defined as employment certainties. In addition, all estab- PROCEDURE lishments producing products in SIC 3571 (Electronic Most of the ASM estimates derived for the mail stratum Computers) were defined as certainties. Across these three are computed using a difference estimator. At the estab- arbitrary certainty classes, there were approximately lishment level, there is a strong correlation between the 25,000 establishments included in the sample with cer- current-year data values and the corresponding 1992 tainty. Collectively, these certainty establishments (base) data values. Therefore, within the mailed stratum, accounted for approximately 80 percent of the total value for each item at each level of aggregation, an estimate of of shipments in the 1992 Census of Manufactures. the ‘‘difference’’ between the current year and the base Smaller establishments in the remaining portion of the year is computed from sample cases and added to the cor- mail stratum were sampled with probabilities ranging responding base-year values. For the 1993-1997 ASM esti- from .02 to 1.00. The initial probabilities of selection mates, the 1992 Census of Manufactures values serve as assigned to these establishments were proportionate to a the base year. For the 1998 ASM, the base will be updated measure-of-size determined for each establishment. The to be the 1997 Economic Census – Manufacturing. measure-of-size was a function of the establishment’s Due to the positive year-to-year correlation, estimates 1992 industry classification, its 1992 product class data, derived using this methodology are generally more reli- and the historical variability of the year-to-year estimates able than comparable estimates developed from the cur- of the product class estimates. For each product class rent sample data alone. Estimates for the capital expendi- (1,755) and four-digit industry (459), a desired reliability tures variables are not generated using the difference

C–4 APPENDIX C MANUFACTURING

U.S. Census Bureau, 1997 Economic Census estimator because the year-to-year correlations are consid- An inference that the comparable, complete-survey erably weaker. The standard linear estimator is used for result would be within the indicated ranges would be cor- these variables. rect in approximately the relative frequencies shown. For the nonmail stratum, estimates for payroll and Those proportions, therefore, may be interpreted as defin- employment are directly tabulated from the ing the confidence that the estimates from a particular administrative-record data provided by IRS and SSA. Esti- sample would differ from complete-coverage results by as mates of data other than payroll and employment are much as one, two, or three standard errors, respectively. developed from industry averages. Although the nonmail For example, suppose an estimated total is shown at stratum contains approximately 170,000 individual estab- 50,000 with an associated relative standard error of lishments in 1994, it accounts for less than 2 percent of 2 percent, that is, a standard error of 1,000 (2 percent of the estimate for total value of shipments at the total 50,000). There is approximately 67 percent confidence manufacturing level. that the interval 49,000 to 51,000 includes the complete- Corresponding estimates for the mail and nonmail com- coverage total, about 95 percent confidence that the inter- ponents are combined to produce the estimates included val 48,000 to 52,000 includes the complete-coverage in this publication. total, and almost certain confidence that the interval 47,000 to 53,000 includes the complete-coverage total. QUALIFICATIONS OF THE ASM DATA In addition to the sample errors, the estimates are subject to various response and operational errors: errors of The estimates developed from the sample are apt to collection, reporting, coding, transcription, imputation for differ somewhat from the results of a survey covering all nonresponse, etc. These operational errors also would companies in the sample lists but otherwise conducted occur if a complete canvass were to be conducted under under essentially the same conditions as the actual sample the same conditions as the survey. Explicit measures of survey. The estimates of the magnitude of the sampling their effects generally are not available. However, it is errors (the difference between the estimates obtained and believed that most of the important operational errors the results theoretically obtained from a comparable, were detected and corrected during the Census Bureau’s complete-coverage survey) are provided by the standard review of the data for reasonableness and consistency. errors of estimates. The small operational errors usually remain. To some The particular sample selected for the ASM is one of extent, they are compensating in the aggregated totals many similar probability samples that, by chance, might shown. When important operational errors were detected have been selected under the same specifications. Each of too late to correct the estimates, the data were suppressed the possible samples would yield somewhat different sets or were specifically qualified in the tables. of results, and the standard errors are measures of the As derived, the estimated standard errors included part variation of all the possible sample estimates around the of the effect of the operational errors. The total errors, theoretically comparable, complete-coverage values. which depend upon the joint effect of the sampling and Estimates of the standard errors have been computed operational errors, are usually of the order of size indi- from the sample data for selected ASM statistics in this cated by the standard error, or moderately higher. How- report. They are represented in the form of relative stand- ever, for particular estimates, the total error may consider- ard errors (the standard errors divided by the estimated ably exceed the standard errors shown. Any figures shown values to which they refer). in the tables in this publication having an associated stan- In conjunction with its associated estimate, the relative dard error exceeding 15 percent may be combined with standard error may be used to define confidence intervals higher level totals, creating a broader aggregate, which (ranges that would include the comparable, complete- then may be of acceptable reliability. coverage value for specified percentages of all the possible samples). DATA FROM THE CURRENT INDUSTRIAL REPORTS The complete-coverage value would be included in the (CIR) range: The CIR program provides product statistics for From one standard error below to one standard error selected manufacturing industries at the U.S. level annu- above the derived estimate for about two-thirds of all ally and, in some cases, monthly and/or quarterly. When possible samples. detail product data are collected in the CIR, they are not also collected in the census. However, the annual CIR data From two standard errors below to two standard are included in the census Product Summary report. errors above the derived estimate for about 19 out of The CIR program uses a unified data collection, pro- 20 of all possible samples. cessing, and publication system. The Census Bureau From three standard errors below to three standard updates the survey panels for most reports annually and errors above the derived estimate for nearly all reconciles the estimates to the results of the broader- samples. based annual survey of manufactures and the economic

MANUFACTURING APPENDIX C C–5

U.S. Census Bureau, 1997 Economic Census census – manufacturing. The economic census – manufac- VALUE OF INDUSTRY SHIPMENTS COMPARED WITH turing provides a complete list of all producers of the VALUE OF PRODUCT SHIPMENTS products covered by the CIR program and serves as the primary source for CIR sampling. Where a small number of The 1997 Economic Census – Manufacturing shows producers exist, CIR surveys cover all known producers of value of shipments data for industries and products. In the a product. However, when the number of producers is industry statistics tables and files, these data represent large, cutoff and random sampling techniques are used. the total value of shipments of all establishments classi- Surveys are continually reviewed and modified to provide fied in a particular industry. The data include the ship- the most up-to-date information on products produced. ments of the products classified in the industry (primary While the CIR program includes both mandatory and voluntary surveys, the annual data are mandatory. to the industry), products classified in other industries (secondary to the industry), and miscellaneous receipts DUPLICATION IN COST OF MATERIALS AND VALUE (repair work, sale of scrap, research and development, OF SHIPMENTS installation receipts, and resales). Value of product shipments shown in the products statistics tables and files Data for cost of materials and value of shipments represent the total value of all products shipped that are include varying amounts of duplication, especially at higher levels of aggregation. This is because the products classified as primary to an industry regardless of the clas- of one establishment may be the materials of another. The sification of the producing establishment. value added statistics avoid this duplication and are, for most purposes, the best measure for comparing the relative economic importance of industries and geographic areas.

C–6 APPENDIX C MANUFACTURING

U.S. Census Bureau, 1997 Economic Census Appendix D. Geographic Notes

Not applicable for this report.

1997 ECONOMIC CENSUS APPENDIX D D–1

U.S. Census Bureau, 1997 Economic Census Appendix E. Metropolitan Areas

Not applicable for this report.

1997 ECONOMIC CENSUS APPENDIX E E–1

U.S. Census Bureau, 1997 Economic Census Appendix F. Footnotes for Products Statistics and Materials Consumed by Kind

Not applicable for this report.

MANUFACTURINGmINDUSTRY SERIES APPENDIX F F–1

U.S. Census Bureau, 1997 Economic Census Aug. 11, 1999 Appendix G. Comparability of Product Classes and Product Codes: 1997 to 1992

1997 published 1997 collected 1992 published 1997 published 1997 collected 1992 published 1997 published 1997 collected 1992 published

3161101...... 31116 ...... 31116 3162120...... 31420 ...... 31420 31699101B5...... 3161075 ...... 3161086 pt 3161101111...... 3111611 ...... 3111611 3162120010...... 3142060 ...... 3142060 31699101C1...... 3161048 ...... 3161043 pt 3161101121...... 3111615 ...... 3111615 3162120121...... 3142071 ...... 3142071 31699101C5...... 3161078 ...... 3161086 pt 3161101231...... 3111619 ...... 3111619 3162120YWW...... 3142000 ...... 3142000 31699101D5...... 3161082 ...... 3161086 pt 3161101341...... 3111624 ...... 3111624 3162120YWY...... 3142002 ...... 3142002 31699101F1 pt..... 3161089 pt ...... 3161073 pt 3161101451...... 3111627 ...... 3111627 31699101F1 pt..... 3161089 pt ...... 3161084 pt 3161101461...... 3111629 ...... 3111629 3162130...... 31430 ...... 31430 31699101F2 pt..... 3161085 pt ...... 3161073 pt 3161101471...... 3111633 ...... 3111633 3162130000...... 3143000 pt ...... 3143000 pt 31699101F2 pt..... 3161085 pt ...... 3161084 pt 3161101481...... 3111635 ...... 3111635 3162130YWW...... 3143000 pt ...... 3143000 pt 31699101F3 pt..... 3161087 pt ...... 3161073 pt 3161101591...... 3111637 ...... 3111637 3162130YWY...... 3143002 ...... 3143002 31699101F3 pt..... 3161087 pt ...... 3161084 pt 31611015A1...... 3111638 ...... 3111638 31699101F4 pt..... 3161091 pt ...... 3161073 pt 3162140...... 31440 ...... 31440 31699101F4 pt..... 3161091 pt ...... 3161084 pt 3162140000...... 3144000 pt ...... 3144000 pt 3169910YWW...... 3161000 ...... 3161000 31611016B1...... 3111643 ...... 3111643 3162140YWW...... 3144000 pt ...... 3144000 pt 3169910YWY...... 3161002 ...... 3161002 31611016C1...... 3111651 ...... 3111651 3162140YWY...... 3144002 ...... 3144002 ...... 3169920...... 31710 ...... 31710 31611016D1 3111657 3111657 ...... 31611016E1 pt..... 3111667 pt ...... 3111662 3162190...... 31490 ...... 31490 3169920111 3171011 3171011 ...... 3169920121...... 3171051 ...... 3171051 31611016E1 pt 3111667 pt 3111663 3162190010 3149010 3149010 ...... 31611016E1 pt..... 3111667 pt ...... 3111665 3162190020...... 3149020 ...... 3149020 3169920131 3171071 3171071 ...... 3169920YWW...... 3171000 ...... 3171000 3161101YWV 3111600 3111600 3162190YWW 3149000 3149000 ...... 3162190YWY...... 3149002 ...... 3149002 3169920YWY 3171002 3171002 ...... 3161104...... 31119 ...... 31119 ...... 3169930 31720 31720 3169910 31610 31610 3169930111...... 3172011 ...... 3172011 3161104100 pt..... 3111900 ...... 3111900 3169910111...... 3161022 ...... 3161001 pt ...... 3169930121...... 3172015 ...... 3172015 3161104100 pt 3111902 3111902 3169910121...... 3161006 ...... 3161003 pt ...... 3169930231 3172031 3172031 3169910131 3161010 3161005 pt 3169930241...... 3172053 ...... 3172053 3169910141...... 3161014 ...... 3161007 pt ...... 3161107...... 39996 ...... 39996 ...... 3169930251 3172061 3172061 ...... 3169910145 pt 3161097 pt 3161081 pt 3169930261...... 3172095 ...... 3172093 3161107121 3999611 3999611 3169910145 pt..... 3161097 pt ...... 3161086 pt 3161107131...... 3999693 ...... 3999693 3169930271...... 3172098 ...... 3172097 3169910146 pt..... 3161093 pt ...... 3161053 pt ...... 3161107YWV...... 3999600 ...... 3999600 ...... 3169930YWW 3172000 3172000 3169910146 pt 3161093 pt 3161081 pt 3169930YWY...... 3172002 ...... 3172002 3169910146 pt..... 3161093 pt ...... 3161086 pt 316110W pt...... 31110 ...... 31110 3169910147 pt..... 3161095 pt ...... 3161081 pt 3169991...... 31310 pt ...... 31310 pt 3169991111...... 3131016 ...... 3131016 ...... 3169991121...... 3131031 ...... 3131031 316110W pt 39990 pt 39990 pt 3169910147 pt 3161095 pt 3161086 pt ...... 316110WYWW pt... 3111000 ...... 3111000 3169910148 pt..... 3161099 pt ...... 3161053 pt 3169991131 3131034 3131061 pt ...... 3169991141...... 3131062 ...... 3131061 pt 316110WYWW pt 3999000 pt 3999000 pt 3169910148 pt 3161099 pt 3161063 ...... 316110WYWY pt... 3111002 ...... 3111002 3169910148 pt..... 3161099 pt ...... 3161081 pt 3169991YWV 3131000 pt 3131000 pt 316110WYWY pt... 3999002 pt ...... 3999002 pt 3169910148 pt..... 3161099 pt ...... 3161086 pt 3169994...... 31990 pt ...... 31990 pt 3169910151...... 3161020 ...... 3161009 pt 3169994121...... 3199031 ...... 3199031 ...... 3169910161 3161024 3161001 pt 3169994141...... 3199096 ...... 3199096 3162111 30214 30214 3169910165...... 3161051 ...... 3161086 pt ...... 3162111000...... 3021400 ...... 3021400 3169994211 3199011 3199011 3169910171...... 3161028 ...... 3161003 pt 3169994231...... 3199091 ...... 3199091 3169910175...... 3161054 ...... 3161086 pt 3169994251...... 3199097 ...... 3199097 3162114...... 30215 ...... 30215 3169994YWV...... 3199000 pt ...... 3199000 pt 3162114110...... 3021501 ...... 3021500 pt ...... 3169910181 3161032 3161005 pt 316999W pt...... 31310 pt ...... 31310 pt 3162114210 3021502 3021500 pt 3169910185...... 3161060 ...... 3161086 pt 3162114YWV...... 3021500 ...... 3021500 pt 3169910191...... 3161036 ...... 3161007 pt 316999W pt...... 31990 pt ...... 31990 pt 3169910195...... 3161064 ...... 3161086 pt 316999WYWW pt... 3131000 pt ...... 3131000 pt 316211W...... 30210 ...... 30210 31699101A1...... 3161040 ...... 3161009 pt 316999WYWW pt... 3199000 pt ...... 3199000 pt 316211WYWW..... 3021000 ...... 3021000 31699101A5...... 3161071 ...... 3161086 pt 316999WYWY pt... 3131002 pt ...... 3131002 pt 316211WYWY..... 3021002 ...... 3021002 31699101B1...... 3161045 ...... 3161043 pt 316999WYWY pt... 3199002 ...... 3199002

MANUFACTURINGmINDUSTRY SERIES APPENDIX G G–1

U.S. Census Bureau, 1997 Economic Census EC97M-3169B 1997 Women’s Handbag and Purse Manufacturing 1997 Economic Census Manufacturing Industry Series USCENSUSBUREAU