GENERAL .1 This publication presents the data of 2014 on the Manufacturing, Mining and Quarrying industries, as well as data on Electricity and Water Supply, Sewerage and Waste Management activities. The .survey did not include Working of Diamonds due to difficulties in obtaining reliable data The data are derived from the results of a survey of all industries in the business sector for 2014. The survey was based on a sample, which was drawn from the Business Register established by the Central Bureau of Statistics (CBS). The Business Register is based primarily on combined administrative files – the VAT file of dealers, and the employers' file of the National Insurance Institute. In the process of establishing the Business Register, the classification of dealers in the economy was examined and updated. The sample comprised 2,107 manufacturing establishments that were active in 2014. Their financial statements for that tax year and the attachments to the .statements served as the source of the survey data This year, as part of the 2014 Manufacturing, Mining and Quarrying Survey, the Survey of Products and Materials in Manufacturing was carried out. This survey details the values of the sales and purchases of Manufacturing establishments (obtained from the Manufacturing, Mining and Quarrying Survey), by types of products and materials. The 2014 Survey of Products and Materials in Manufacturing is one of the surveys that serve in the preparation of the input-output table of the Israeli economy for that year. The survey is conducted once every several years (the previous survey was conducted in 2006). The results of the survey will appear in a special publication .dedicated to the topic The data are presented according to the Standard Classification of All Economic Industries, 20111 .((henceforth the 2011 Classification The survey population includes active dealers registered in the Business Register who belong to the business sector – dealers with employees, dealers without employees, as well as self- employed dealers. The population does not include non-profit institutions (NPIs) and local .authorities

PRODUCTION ACCOUNT 1.1 The first part of the Manufacturing, Mining and Quarrying Survey publication presents production account data. The production account is the starting point for the development of accounts of business units and sectors, and describes how income is generated, structured and utilized. Responsibility, control, and management of production activity are assumed by an institutional unit that uses inputs such as labour, capital, goods and services for the production of goods and services. In the Manufacturing, Mining and Quarrying Survey publication, the production account is based on a summary of the profit and loss statements as obtained from the financial statements that the establishments submitted to the income tax authorities, and it includes a variety of data on various aspects such as: employment, output, gross value added and compensation for jobs. In addition, Table 1 and Tables 45-47 present data on the Electricity and Water Supply, as well as .Sewerage and Waste Management activities

Central Bureau of Statistics (2012). The Standard Industrial Classification of All Economic Industries 1 .2011. Technical Publication No. 80. Jerusalem: Author ( 1 ) BALANCE SHEETS 1.2 The second part of the Manufacturing, Mining and Quarrying Survey publication presents a summary of data from the balance sheets. Many countries draw up balance sheets to examine their financial situation and behaviour. Analysis of balance sheets is an important tool for examining the situation of companies, their prospects for survival, and their prospects for future growth. This tool is important at the levels of industries, and also at the level of the economy at .large The system of national accounts requires the presentation of balance sheet data. The system of national accounts stresses the importance of compiling balance sheets for the overall economy and for its various sectors in order to present the economy’s assets and liabilities. The analysis of balance sheets facilitates a more comprehensive analysis of economic development – behaviour of households, distribution of national wealth, relationships among the various economic sectors, profitability, etc. It also allows for additional analyses of the consistency and integrity of the .accounts, thereby improving the quality of the estimates The profit and loss statement expresses the results for a business during a given period of time, .whereas the balance sheet reflects the condition of the firm on a given date The balance sheet data are presented in reported (nominal) values, in accordance with Accounting .Regulations Nos. 12 and 17 of the Israel Accounting Standards Board For the 2014 survey, the balance sheet data are shown for 2014 and 2013, at the level of aggregated divisions. These data complement the data in the profit and loss statements that are .published as part of the survey .The tables of the balance sheet components are shown also in percentages for 2014 and 2013 The main financial ratios for 2014 have also been calculated, although analysis by divisions is problematic in the Israeli economy because various establishments, even within one division, differ in terms of the number of jobs, extent of revenue, exports, profitability, and other parameters. This, .of course, affects the financial ratios and makes it more difficult to perform the analysis

GROSS CAPITAL FORMATION IN FIXED ASSETS 1.3 The publication presents data on capital formation in 2014 in the Manufacturing, Mining and Quarrying industries, as well as in Electricity and Water Supply, and in Sewerage and Waste Management, according to components. The data, which are published in current prices, were .taken from the financial statements submitted by the establishment to the Income Tax Authority

2 :Capital formation in fixed assets was divided into the following components (a. Land and buildings (including improvements in rented property b. Machinery and equipment (c. Motor vehicles (includes ships, aircraft and trains d. Furniture and office equipment e. Computers and software Even though land should not be included in fixed assets according to the definitions of national accounts, the item Land and Buildings includes land that was purchased over the year, because it .cannot be isolated from the financial statements In some cases, Furniture and Office Equipment also includes data on computers and software .((when those data could not be isolated Parallel data published by national accounts are calculated on the basis of imports and domestic .production of investment products

MAIN FINDINGS .2

PRODUCTION ACCOUNT 2.1

Manufacturing, Mining and Quarrying industries 2.1.1 According to the survey data, there were approximately 362,000 jobs in Manufacturing, Mining and .Quarrying in 2014 .Table A presents selected data for all establishments Table A. Selected Data from the Manufacturing, Mining and Quarrying Survey 2014 Establishments Establishments Manufacturing, with less than 5 with 5 or more Mining and jobs jobs Quarrying

19.6 341.9 361.5 (Jobs (thousands NIS million, at current prices 10,812 356,091 366,903 (Gross output(1 4,552 116,377 120,929 (Gross value added(2 NIS thousand, at current prices 232.2 340.4 334.5 Value added per job 69.6 198.0 191.0 Compensation per job Percentages Percentage of value added in 42 33 33 output 58 67 67 Percentage of inputs in output .Henceforth: output (1) .Henceforth: value added (2)

( 3 ) Manufacturing, Mining and Quarrying account for 2015–2016: Table B presents data on the output, input, and value added of the Manufacturing, Mining and Quarrying industries in current prices and at 2011 prices, including estimates for 2015 and 2016. These data are based on the 2014 Manufacturing, Mining and Quarrying Survey, as well as on changes in the Manufacturing .Production Index The current output data presented in Table B do not include revenue from non-manufacturing activities. The data for 2015–2016 at 2011 prices were calculated by deflating the data at current prices by the output price indices and the input price indices. Because there is no output price index for the Manufacturing, Mining and Quarrying industries, the price indices of each group were calculated as a weighted index of local sales prices (the wholesale index of manufacturing output) and of export price indices, which are calculated as the price change per unit or on the basis of price indices published abroad. Moreover, because there are no input price indices for the Manufacturing, Mining and Quarrying industries, the price indices were calculated as a weighted index of imported inputs and inputs from local production, according to the input weights in the 2006 Input-Output Tables. The results presented above are influenced by the price index estimates .used in the calculation Data on the value added at 2011 prices were obtained as the difference between the output and the value of the input at constant prices (by the double deflation method). Table B presents estimates of output, input, and value added for 2015–2016 – years for which summaries according to the Manufacturing, Mining and Quarrying Survey are not yet available. Estimates at 2011 prices were calculated by extrapolating the 2014 Manufacturing, Mining and Quarrying Survey data (output and input data according to groups) based on manufacturing production indices (assuming that input-output ratios are constant). The data at current prices were obtained from data estimated at 2011 prices, as well as from output and input price indices. Estimates of the value added at .current prices were obtained as the difference between output data and input data Table B. Output, Input and Value Added in Manufacturing, Mining and Quarrying Industries 2016–2011 NIS million Year At current prices At constant prices Value Value Output Input Output Input added added At 2011 prices 2011 356,438 248,935 107,503 356,438 248,935 107,503 2012 390,190 272,365 117,825 368,967 260,068 108,899 2013 378,625 264,640 113,985 367,280 259,967 107,313 2014 362,914 245,975 116,939 360,167 250,565 109,602 (1)2015 361,924 240,333 121,591 367,873 256,883 110,990 (1)2016 351,516 224,749 126,767 366,298 254,535 111,763 The data for 2015–2016 were estimated on the basis of the 2014 Manufacturing, Mining and (1) .Quarrying Survey, and on the basis of the changes in the Manufacturing Production Index

4 Table C presents the percentages of change in output, input and value added that were calculated in the Manufacturing, Mining and Quarrying Survey. In addition, it displays a comparison of these figures with the change in manufacturing production that were measured in the Manufacturing, Mining and Quarrying indices. These indices include the indices of manufacturing production that are intended to measure the changes in the value added of the industry, the index of revenue at .current prices, the index of revenue at constant prices, and employment indices It should be noted that the Manufacturing, Mining and Quarrying Survey sample is part of the sample of all industries in the economy, which is different from the Manufacturing, Mining and Quarrying indices sample. The results in the indices are affected by provisional data and imputations, as well as by the opening and closing of establishments. By contrast, the survey data are final – they include fewer imputations, and are less affected by the process of opening and .closing establishments The Manufacturing Production Index is based on revenue indicators at constant prices (without change in inventories), as well as on indicators of production quantities and work hours (without productivity). In most groups, the index reflects the change in output, and – assuming that input- output ratios remain constant – it also indicates the change in the value added of the group. The index for divisions and for manufacturing as a whole is weighted according to the value added of .the groups

( 5 ) Table C. Output, Input, and Value Added in Manufacturing, Mining and Quarrying 2012–2016 Percentage of change, compared to previous year Manufacturing, Mining and Quarrying Survey Manufacturing, Mining and Quarrying indices – Output Input Value added Manufacturing Production Index Nominal change 2012 9.5 9.4 9.6 2013 -3.0 -2.8 -3.3 2014 -4.1 -7.1 2.6 (1)2015 -0.3 -2.3 4.0 (1)2016 -2.9 -6.5 4.3

Quantity change 2012 3.5 4.5 1.3 4.0 2013 -0.5 -0.0 -1.5 0.6 2014 -1.9 -3.6 2.1 1.1 (1)2015 2.1 2.5 1.3 2.3 (1)2016 -0.4 -0.9 0.7 1.7 Price change 2012 5.8 4.7 8.2 2013 -2.5 -2.8 -1.8 2014 -2.3 -3.6 0.4 (1)2015 -2.4 -4.7 2.7 (1)2016 -2.5 -5.6 3.5 Data for 2015–2016 were estimated on the basis of the 2014 Manufacturing, Mining and Quarrying Survey and (1) .the changes in the Manufacturing Production Index

Table D presents data for 2013 and 2014 for total Manufacturing, Mining and Quarrying .establishments, by industry (division) at current prices and at constant prices

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