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ECPC Responses on Public Comments Regarding Changes for 2007

By Document Number

07-0001 Sector 62 Health Care & Social Assistance. Keyword — Optometry

Docket Number 07-0001
Sector 62 Health Care and Social Assistance — Optometry

Three public comments requested changes to the definition of optometrist used in the NAICS United States 2002 Manual for Industry 621320, Offices of Optometrists. These proposals were assigned docket numbers 07-0001, 07-0004, and 07-0035. The ECPC reviewed the proposals and information from the American Optometric Association and is recommending changes to the definition to more accurately describe the industry with respect to diagnosis and treatment of diseases and disorders of the visual system. There will be no change to the content of the industry in NAICS 2007. The following wording is recommended by the ECPC:

621320 Offices of Optometrists

This industry comprises establishments of health practitioners having the degree of O.D. (Doctor of optometry) primarily engaged in the independent practice of optometry. These practitioners examine, diagnose, treat, and manage diseases and disorders of the visual system, the eye and associated structures as well as diagnose related systemic conditions. Offices of optometrists prescribe and/or provide eyeglasses, contact lenses, low vision aids, and vision therapy. They operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers, and may also provide the same services as opticians, such as selling and fitting prescription eyeglasses and contact lenses.

The existing cross-references will be retained.

07-0002 Sector 54 Professional, Scientific, & Technical Services. Keyword — Advertising

Docket Number 07-0002
Sector 54 Professional, Scientific, and Technical Services — Advertising

07-0002 requested a title change for Industry Group 5418 from Advertising and Related Services to Marketing and Related Services and additionally requested that Public Relations should not be treated as an advertising related service. The ECPC recommends against this change for several reasons. First, the proposed title would not adequately describe the advertising agencies, media buying agencies, and other dvertising-related services that are included in industry group 5418. Secondly, the ECPC notes that marketing research services are included in industry group 5419, Other Professional, Scientific, and Technical Services, and marketing consulting is included in industry group 5416, Management, Scientific, and Technical Consulting Services. The proposed title change would cause confusion because of the major marketing-related activities that are not included in the industry group. The ECPC does recommend changing the title of Industry Group 5418 to Advertising, Public Relations, and Related Services to more clearly indicate the content.

07-0003 Sector 81 Other Services (except Public Administration). Keyword — Repair

Docket Number 07-0003
Sector 81 Other Services (except Public Administration) — Repair

07-0003 provided comments on priorities for the revision but also requested specific changes to: (1) split NAICS US 713990, All Other Amusement and Recreation Industries, into separate industries for sport and recreation activities; (2) move motorcycle repair into motor vehicle repair; and (3) create a separate industry for boat repair and maintenance. The ECPC considered these requests but is recommending no changes in 2007 for several reasons. First, the ECPC notes that any attempt to classify activities as either sport or recreation will be highly subjective. The production processes are similar and any delineation would be more problematic than the current combination. The ECPC does not recommend the movement of motorcycle repair into Industry Group 8111, Automotive Repair and Maintenance. The current content of Industry Group 8111 is specialized and there is little or no evidence of overlap between automotive repair and motorcycle repair. The movement would be costly and there is little evidence that it would improve the resulting data. Lastly, the ECPC recommends against the creation of a new industry for boat repair. While it is arguable that boats are not personal and household goods as stated by the respondent, a new industry for the activity would not significantly improve available data. Boat repair activities can take place in units classified to manufacturing, amusement and recreation industries, and repair and maintenance. The only units that would be included in a new industry are those specialized repair facilities that do not manufacture boats or provide marina services. The 1997 Economic Census identified less than 2000 specialized boat repair units with less than $1 billion in revenue. This would be a very small industry. Although size is not a firmly defined criterion for identification of industries in NAICS, from a practical standpoint, industries must be large enough to collect and publish at national, regional, state, and local levels. The current definition of personal and household goods repair and maintenance does meet those goals.

07-0004 Sector 62 Health Care & Social Assistance. Keyword — Optometry

Docket Number 07-0004
Sector 62 Health Care and Social Assistance — Optometry

Three public comments requested changes to the definition of optometrist used in the NAICS United States 2002 Manual for Industry 621320, Offices of Optometrists. These proposals were assigned docket numbers 07-0001, 07-0004, and 07-0035. The ECPC reviewed the proposals and information from the American Optometric Association and is recommending changes to the definition to more accurately describe the industry with respect to diagnosis and treatment of diseases and disorders of the visual system. There will be no change to the content of the industry in NAICS 2007. The following wording is recommended by the ECPC:

621320 Offices of Optometrists

This industry comprises establishments of health practitioners having the degree of O.D. (Doctor of optometry) primarily engaged in the independent practice of optometry. These practitioners examine, diagnose, treat, and manage diseases and disorders of the visual system, the eye and associated structures as well as diagnose related systemic conditions. Offices of optometrists prescribe and/or provide eyeglasses, contact lenses, low vision aids, and vision therapy. They operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers, and may also provide the same services as opticians, such as selling and fitting prescription eyeglasses and contact lenses.

The existing cross-references will be retained.

07-0005 Sector 56 Administrative & Support & Waste Management & Remediation Services. Keyword — Video Conferencing

Docket Number 07-0005
Sector 56 Admininstrative and Support and Waste Management and Remediation Services — Video Conferencing

07-0005 requested a new industry for web casting and video conferencing. The ECPC reviewed the production processes of web casting and video conferencing and recommends against creation of a new industry for these activities. There are concerns about the size of the industry. The activity of video conferencing is currently included in NAICS 561499, All Other Business Support Services. NAICS 561499 is relatively small and many of the other individual activities currently included in the industry are larger than the video conferencing activity.

The term web casting is currently used by a wide variety of providers to describe numerous activities. As such, the term should be avoided or used to describe more specific activities. For example, web casting of entertainment content would be classified in the information sector, web casting of educational material would be classified in the education sector, and web casting of conferences would be classified in 561499 with other video conferencing.

07-0006 Sector 81 Other Services (except Public Administration). Keyword — Drycleaning

Docket Number 07-0006
Sector 81 Other Services (except Public Administration) — Drycleaning

07-0006 requested a change to NAICS 812320, Drycleaning and Laundry Services (except Coin-Operated), to more clearly indicate that drycleaning drop-off sites and drycleaning plants are included in the industry. The ECPC recommends against any changes to the industry definition at this time because the content of the industry is clearly defined with the existing wording, This industry comprises establishments primarily engaged in one or more of the following: (1) providing drycleaning services (except coin-operated); (2) providing laundering services (except linen and uniform supply or coin-operated); (3) providing dropoff and pickup sites for laundries and/or drycleaners; and (4) providing specialty cleaning services for specific types of garments and other textile items (except carpets and upholstery), such as fur, leather, or suede garments; wedding gowns; hats; draperies; and pillows. These establishments may provide all, a combination of, or none of the cleaning services on the premises.

07-0007 Unclassified

Docket Number 07-0007
Unclassified

07-0007 requested the addition of a not classified industry in NAICS. The ECPC discussed this extensively during the initial development of NAICS and reasoned that all establishments can be classified if the classification is exhaustive and mutually exclusive. A specific industry code for units that are not classified would violate the mutual exclusivity characteristic of the classification. While processing needs often dictate a holding area for units that have not been assigned codes, that should be addressed outside of the industry classification. The ECPC continues to support the original reasoning and does not recommend creation of an industry for unclassified establishments in NAICS.

07-0008 Sector 62 Health Care & Social Assistance. Keyword — Denturist

Docket Number 07-0008
Sector 62 Health Care and Social Assistance — Denturist

07-0008 requested a new industry in NAICS for denturists. Denturists are currently included in NAICS 621399, Offices of All Other Miscellaneous Health Practitioners. NAICS 621399 had approximately 5800 establishments and $1.8 billion of revenue in the 1997 Economic Census. NAICS 621399 includes a number of medical practitioners that account for considerably more revenue than denturists. Denturists are independently recognized and allowed independent practice in a limited number of states. The existing industry, NAICS 621399, is small and the ECPC does not anticipate that a new industry for denturists split out from it will meet basic collection and publication goals. The ECPC recommends that the respondent work with data collection programs in statistical agencies to collect specific information on denturists.

07-0009 Sector 31 Manufacturing. Keyword — Filters

Docket Number 07-0009
Sector 31-33 Manufacturing — Filters

07-0009 requested a new NAICS industry for filters. NAICS currently includes filters in a number of places based on the type of filter. There are numerous types of filters, including technical quality filters used in the production of pharmaceuticals and chemical products, industrial fluid filters, motor vehicle liquid and air filters, HVAC air filters of a variety of types including permanent and disposable, and even coffee filters. The ECPC researched the topic and determined that the combination of all filters would not result in a homogeneous grouping of production functions. The ECPC did note that there is considerable similarity in the production of industrial liquid and air filters and motor vehicle liquid and air filters. These are currently classified as follows in NAICS:

  • 333999 Filters and Strainers, except Fluid Power $2,006,433
  • 333999 Filters for Hydraulic and Fluid Power Systems, Nonaerospace $348,000
  • 333999 Filters for Pneumatic Fluid Power Systems, Nonaerospace $132,322
  • 333999 Filters for Hydraulic and Pneumatic Fluid Power Systems, Aerospace $77,540
  • 336399 Filters for internal combustion engines And motor vehicles 2,614,171

TOTAL $5,178,466

The ECPC recommended combining the industrial filters from miscellaneous general-purpose machinery manufacturing and the motor vehicle filters from all other motor vehicle parts and accessories. This proposal was not accepted by the statistical agencies in Canada or Mexico because of size considerations. Both countries were concerned about publication of an industry at this level in their countries. The ECPC withdrew the proposal from consideration and is not recommending changes to the classification of filters for NAICS in 2007.

07-0010 Various — Video Surveillance Systems

Docket Number 07-0010
Various — Video Surveillance Systems

07-0010 requested a new industry for closed circuit TV systems, video surveillance systems, and access control systems. The proposal did not detail if the industry was for the manufacture of these systems, the installation and monitoring of these systems, or the wholesale or retail trade of these systems. The ECPC considered each of these cases. In manufacturing, the individual components appear to be manufactured by separate units and are purchased by security companies to create systems. This analysis does not support the creation of a specific manufacturing industry. The installation and monitoring of these systems is currently classified in NAICS 561621, Security Systems Services (except Locksmiths). Merchandise lines data indicate that only 1-2 percent of the industry revenue is from the sale of goods. This analysis does not support changes to the industry. A considerable amount of sales of security equipment is currently classified in NAICS 423610 — Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers — and in NAICS 453998, All Other Miscellaneous Store Retailers (except Tobacco Stores). Because of the increasing focus on security due to recent events, while new trade industries are not easily justified, statistical programs that collect data below the industry level should consider creation of additional detail for the merchandise lines for future evaluation. The ECPC recommends against creation of new industries, but encourages statistical programs to collect additional detail in the area of security systems in merchandise lines or product detail in wholesale and retail trade.

07-0011 Sector 61 Educational Services. Keyword — E-learning

Docket Number 07-0011
Sector 61 Educational Services — E-learning

07-0011 requested a new industry for e-learning. The activity is defined in the proposal as the use of electronic communications networks, computer assisted training, use of simulators, and similar methods of education that incorporate advanced technologies to impart knowledge. This proposal illustrates a fundamental inconsistency with the current NAICS treatment of activities that rely on computer and Internet technology to provide services that previously used other methods of service provision. For example, Internet real estate agencies are classified along with other real estate agencies, Internet stock brokers are classified with other stock brokers, etc. On the other hand, NAICS separately identified Subsector 516, Internet Publishing and Broadcasting, in 2002 and also separately identified Industry 454111, Electronic Shopping, in 2002. In both of these cases, new methods have been utilized to expand markets or more efficiently provide traditional services already classified in NAICS.

The ECPC considered this inconsistency in classification and has decided that considerations for new and emerging industries should be based on new activities rather than new methods of delivering existing services. For example, the ECPC would not support the creation of an industry for accountants that rely heavily on accounting information systems separately from accountants that rely on paper journals. These are simply two different methods of providing the same service. The e-learning proposal presents a similar situation. The ECPC recommends against creation of an e-learning industry, but does recommend changes to the current definitions in the education sector to more clearly indicate that e-learning processes are a method of providing education.

07-0012 Sector 42 Wholesale Trade. Keyword — Purchasing Services

Docket Number 07-0012
Sector 42 Wholesale Trade — Purchasing Services

07-0012 requested additional detail in NAICS for purchasing services, supply chain management, and contract management and administration. The ECPC noted that contract management on a contract or fee basis would be included in NAICS 561990, All Other Support Services. The ECPC should not add an industry or index item for supply chain management at this time. As research continues in this area, and more information is available to allow for identifying and defining the various functions and roles relative to the supply chain, the ECPC should revisit this in the future.

The ECPC discussed a general treatment of purchasing services noting that for some units, a purchasing service is an outsourced administrative service, while other purchasing units are organizationally created to consolidate the purchasing activities of a wholesaler or retailer. In order to properly associate both purchases of goods for resale and the sales of those goods within the same industry, the treatment of units that purchase for resale and units that purchase goods for use in business operations, other than wholesale trade or retail trade, should be treated differently. In consultation with Canada and Mexico, the ECPC recommends that separate units performing the purchasing function be classified to wholesale trade or retail trade if the purchasing is being done for resale, and purchasing services obtaining goods or services for use in production would be classified to NAICS 561990, All Other Support Services. This is not considered a change to the NAICS classification but rather a clarification of the intended treatment of these units.

The ECPC will include this additional clarification in the NAICS 2007 Manual or supplement.

07-0013 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0013
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0014 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0014
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0015 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0015
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0016 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0016
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0017 Sector 53 Real estate & Rental & Leasing. Keyword — RV Rental

Docket Number 07-0017
Sector 53 Real Estate and Rental and Leasing — RV Rental

07-0017 requested a new industry for rental and leasing of recreational vehicles separate from the rental and leasing of trucks and utility trailers. The ECPC reviewed the staff summary of available Economic Census information. A separate industry should not be created for the rental and leasing of recreational vehicles. The actual production function of renting and leasing recreational vehicles does not differ in a substantial way from the leasing out of trucks and utility trailers. The rental or leasing of recreational vehicles is a use-based difference that is more appropriately defined in a product classification. The ECPC encourages programs that collect product data to continue to separately identify revenue for rental and leasing of recreational vehicles and travel trailers. In addition, the ECPC notes that the size of a recreational vehicle rental and leasing industry, based on available data, does not justify the creation of a separate industry.

07-0018 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0018
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0019 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0019
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0020 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0020
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0021 Priorities

Docket Number 07-0021
Priorities

Docket 07-0021 expressed thanks for notification of the Federal Register notice comment period but did not detail any particular priorities for NAICS in 2007.

07-0022 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0022
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0023 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0023
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0024 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0024
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0025 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0025
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0026 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0026
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0027 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0027
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0028 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0028
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0029 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0029
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0030 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0030
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0031 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0031
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0032 Sector 31 Manufacturing. Keyword — Manufacturing Detail Reduction

Docket Number 07-0032
Sector 31-33 Manufacturing — Manufacturing Detail Reduction

07-0032 was withdrawn. The proposal was for the collapse of unsupportable manufacturing industry detail.

07-0033 Priorities

Docket Number 07-0033
Priorities

Docket 07-0033 identified a single priority for a potential revision of NAICS in 2007 new and emerging industries. None of the other priorities was noted or commented on in the response.

07-0034 Sector 62 Health Care & Social Assistance. Keyword — Optometry

Docket Number 07-0034
Sector 62 Health Care and Social Assistance — Optometry

Duplicate submission of docket 07-0001. Three public comments requested changes to the definition of optometrist used in the NAICS United States 2002 Manual for Industry 621320, Offices of Optometrists. These proposals were assigned docket numbers 07-0001, 07-0004, and 07-0035. The ECPC reviewed the proposals and information from the American Optometric Association and is recommending changes to the definition to more accurately describe the industry with respect to diagnosis and treatment of diseases and disorders of the visual system. There will be no change to the content of the industry in NAICS 2007. The following wording is recommended by the ECPC:

621320 Offices of Optometrists

This industry comprises establishments of health practitioners having the degree of O.D. (Doctor of optometry) primarily engaged in the independent practice of optometry. These practitioners examine, diagnose, treat, and manage diseases and disorders of the visual system, the eye and associated structures as well as diagnose related systemic conditions. Offices of optometrists prescribe and/or provide eyeglasses, contact lenses, low vision aids, and vision therapy. They operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers, and may also provide the same services as opticians, such as selling and fitting prescription eyeglasses and contact lenses.

The existing cross-references will be retained.

07-0035 Sector 62 Health Care & Social Assistance. Keyword — Optometry

Docket Number 07-0035
Sector 62 Health Care and Social Assistance — Optometry

Three public comments requested changes to the definition of optometrist used in the NAICS United States 2002 Manual for Industry 621320, Offices of Optometrists. These proposals were assigned docket numbers 07-0001, 07-0004, and 07-0035. The ECPC reviewed the proposals and information from the American Optometric Association and is recommending changes to the definition to more accurately describe the industry with respect to diagnosis and treatment of diseases and disorders of the visual system. There will be no change to the content of the industry in NAICS 2007. The following wording is recommended by the ECPC:

621320 Offices of Optometrists

This industry comprises establishments of health practitioners having the degree of O.D. (Doctor of optometry) primarily engaged in the independent practice of optometry. These practitioners examine, diagnose, treat, and manage diseases and disorders of the visual system, the eye and associated structures as well as diagnose related systemic conditions. Offices of optometrists prescribe and/or provide eyeglasses, contact lenses, low vision aids, and vision therapy. They operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers, and may also provide the same services as opticians, such as selling and fitting prescription eyeglasses and contact lenses.

The existing cross-references will be retained.

07-0036 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0036
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0037 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0037
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0038 Priorities

Docket Number 07-0038
Priorities

Docket 07-0038 listed priorities for a revision of NAICS ranked by importance using percentages: time series continuity (75 percent), new and emerging industries (15 percent), production function-oriented underlying concept (10 percent), and greater international comparability (0 percent). The respondent did not support any significant changes to NAICS for 2007.

07-0039 Sector 23 Construction. Keyword — Environmental Control Wiring

Docket Number 07-0039
Sector 23 Construction — Environmental Control Wiring

07-0039 provided comments on the priorities of NAICS revision but also addressed specific problems with the special trade contractors industries in NAICS 2002. An overall comment was that subsector 238, Specialty Trade Contractors, does not work well for the industry. Additionally, the move of low voltage wiring for environmental control systems from HVAC to electricians has created skewed data. Finally, the commenter noted that the loss of a sheet metal workers industry in 2002 was a great loss to the industry and should be considered for re-institution in NAICS.

The ECPC reviewed summary conclusions from 2002 Economic Census data. The data summaries did not clearly indicate that an industry for sheet metal workers would improve NAICS. Sheet metal work can be performed by HVAC units, roofing contractors, siding contractors, window installation contractors, and others. The data did indicate that Plumbing, Heating, and Air-Conditioning Contractors (NAICS 238220) performed a slight majority of environmental controls installation in 2002. The ECPC recommended this move to Canada and Mexico. In the course of the discussion, both Canada and Mexico expressed concern with moving this one small portion of low voltage wiring while leaving the vast majority of the low voltage wiring installation in 238210, Electrical Contractors. In order to support the move of environmental control wiring installation to NAICS 238220, Canada and Mexico also wanted all other low voltage wiring, such as computer network wiring, stereo and home theater wiring, and similar activities moved to a new industry. The ECPC did not wish to create that much disruption in the Construction sector and therefore withdrew the proposal. Canada, Mexico, and the United States did agree that a title change reflecting the inclusion of other wiring contractors would help clarify the content and avoid misinterpretation of the content of the industry.

07-0040 Sector 62 Health Care & Social Assistance. Keyword — Physical Therapy

Docket Number 07-0040
Sector 62 Health Care and Social Assistance — Physical Therapy

07-0040 requested clarification of the physical therapy industry as defined in Industry 621340, Offices of Physical, Occupational and Speech Therapists, and Audiologists. Specifically, the commenter disagreed with the wording that physical therapy had to be prescribed by a medical doctor. Research indicates that the commenter is correct in many states, but not all. In order to make the definition more universally appropriate, the following wording is recommended by the ECPC:

621340 Offices of Physical, Occupational and Speech Therapists, and Audiologists

This industry comprises establishments of independent health practitioners primarily engaged in one of the following: (1) providing physical therapy services to patients who have impairments, functional limitations, disabilities, or changes in physical functions and health status resulting from injury, disease or other causes; or who require prevention, wellness or fitness services; (2) planning and administering educational, recreational, and social activities designed to help patients or individuals with disabilities, regain physical or mental functioning or to adapt to their disabilities; and (3) diagnosing and treating speech, language, or hearing problems. These practitioners operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers.

This removes the medically prescribed physical therapy limitation in the current definition.

07-0041 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0041
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0042 Various — Travel Goods

Docket Number 07-0042
Various — Travel Goods

07-0042 requested creation of a travel goods industry. The proposal requested a new industry for backpack manufacturing and separate industries in trade for retailing handbags and four new wholesale trade industries for travel goods.

There is an existing index item in NAICS 314911, Textile Bag Mills for knapsacks (e.g., backpacks, bookbags) manufacturing. During the 1997 Economic Census, backpacks were not separately collected but were combined with duffle bags. The Economic Census data are:

31491101 Dufflebags and Backpacks
Establishments suppressed
Quantity suppressed
Value of Shipments - $153M

In 1992, all values were suppressed. The entire NAICS industry accounts for only $900M in 1997 and is of questionable viability. Based on the lack of publishable data at the national level, the ECPC does not support the creation of a separate industry for backpacks. Additionally, the production function for backpacks and duffle bags is not drastically different. From that perspective, the case for a new industry is not strong. There probably is an argument for inclusion of backpacks with purses and luggage based on the production function. However, the current classification in textile bag mills is also arguable.

Regarding the wholesale and retail industries noted in the proposal, there is not a clear wholesale or retail classification for backpacks.

For retail trade, our view is that the product line is carried by a significant number of store types (sporting goods stores, travel goods stores, general merchandise stores including department stores, discount department stores, etc.) and is not primary to one therefore should not be added to the index items lists in retail. A thorough search of the merchandise lines does not specifically identify backpacks. The trade area suspects that it is broadly included with school supplies if placed in that department, luggage if placed in that department, and with camping supplies if placed in that department. It has not been raised as an issue in the past and is assumed to be a small problem.

The handbag stores are included in NAICS 448150, Clothing and Accessories Stores, and are included in a merchandise line for apparel (220) broadly, and with accessories and handbags (234) in more narrow lines. The ECPC notes that an industry for handbag stores would not cover a significant amount of the product sales because the product line is carried by a wide variety of industries.

There is no clear indication of the classification in wholesale trade. There are no current index items for wholesale of knapsacks. There are two basic possibilities they could be classified with textile bags in 424990, All Other Miscellaneous Nondurable Goods Merchant Wholesalers, or with luggage in 423990, Other Miscellaneous Durable Goods Merchant Wholesalers. As a practical matter, backpacks should probably be considered non-durable goods although there is not a firm definition in NAICS.

The ECPC recommends the addition of index items for backpacks in wholesale when a determiniation is made regarding the classification of backpack wholesalers.

As for a new breakdown of luggage and leather goods merchant wholesalers, portions would have to come from miscellaneous durable goods, miscellaneous nondurable goods, and apparel. Looking at merchandise lines for luggage (which is the only separately identifiable piece of the proposal based on our current merchandise lines):

421990 3152: 444 establishments $1.1 Billion
422990 3152: 61 establishments $2.7 Million
4223 3152: 17 establishments $2.6 Million

The vast majority is classified with units in 421990, Other Miscellaneous Durable Goods Wholesalers (Industry 423990 in NAICS 2002). There is no clear justification for moving the luggage portion of 421990 to apparel wholesale as suggested in the proposal. The merchandise lines and number of establishments are not expected to be large enough to support a separate industry in 42199 (42399 in NAICS 2002). The total industry for 421990 in 1997 had 11,600 establishments with sales of almost $66 billion. Total sales of $1.1 Billion would be excessively small for an industry in merchant wholesale.

The ECPC notes that there is an index item for handbag stores in NAICS 488150 and feels that no additional action is supported at this time.

07-0043 Sector 31 Manufacturing. Keyword — Fibers

Docket Number 07-0043
Sector 31-33 Manufacturing — Fibers

07-0043 requested a new grouping for all types of fibers (organic, glass, metal, carbon, etc.). This request would include units currently classified in chemicals, agriculture, textiles, and other areas into a single use-based grouping. The requester further proposes reorganizing a large number of industries to create a textile grouping that would include apparel and household furnishings and a third group for engineering with fibers that would include a wide range of industrial uses and applications of fibers and fabrics. The requester also notes several stages of processing that could be defined including fibrous pre-forms (yarns, wovens, knits, braids, etc).

Overall, the proposal is use-oriented and in conflict with the guiding production function orientation of NAICS. The groupings could be created in some cases (e.g., moving paper industries into a subsector of engineering with textiles), but would cause severe problems based on use in other cases (e.g., attempting to separate logging activities that result in wood chips or inputs for pulp mills from logging that results in inputs for sawmills). Similar problems exist for other industries, such as the chemical fiber industries in Subsector 325, Chemical Manufacturing; the nonmetallic minerals industries; the agriculture industries; and the metals industries.

The ECPC recommends against adopting the changes that are presented in the proposal but does note the underlying point advance materials are having a great impact on a wide range of products. The recommendation against adoption of the proposals in no way disagrees with observations of the requester rather the recommendation maintains the production function orientation necessary when grouping establishments.

07-0044 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0044
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0045 Sector 48 Transportation & Warehousing. Keyword — Express Delivery

Docket Number 07-0045
Sector 48-49 Transportation and Warehousing — Express Delivery

Docket 07-0045 included a proposal for a new industry and noted that great weight should be placed on new and emerging industries when considering changes to NAICS in 2007. 07-0045 requested clarifications to the couriers industry and new wording for the definition of couriers and express delivery. The ECPC considered this proposal and has proposed some changes to the descriptions of the industries and titles that do not change the content of the current industries. First, the ECPC is recommending defining 491110, Postal Service, in terms of the universal service obligation rather than in terms of the U.S. Postal Service. The intent of this change is to more accurately define the major production function difference between units operating under the universal service obligation and the units that are operating in a similar way that do not have the infrastructure required with the universal service obligation. This change in definition will not change the content of the industry.

The ECPC also considered the description of express delivery services that was provided by the requester. The ECPC is recommending incorporating a modified version of the wording to more accurately describe the activities of express delivery services and adding the term 'express delivery services' to the title along with the term 'couriers'. Once again, the definitional change will not change the content of the industry. The revised definitions are:

491110 Postal Service

This industry comprises establishments primarily engaged in providing mail services under a universal service obligation. Due to the infrastructure requirements of a universal service obligation, postal service establishments often provide parcel and express delivery services in addition to the mail service. Establishments primarily engaged in performing one or more parts of the basic mail service, such as sorting, routing, and/or delivery (except bulk transportation of mail) are included in this industry.

Cross-references. Establishments primarily engaged in —

  • Providing courier and express delivery services of parcels and packages- are classified in Industry 492110, Couriers and Express Delivery Services;
  • Providing bulk transportation of mail on a contract to and from basic mail service establishments are classified in Industry Group 4841, General Freight Trucking;
  • Providing mailbox services along with other business services — are classified in U.S. Industry 561431, Private Mail Centers; and
  • Providing local messenger and delivery services — are classified in Industry 492210, Local Messengers and Local Delivery.

492110 Couriers and Express Delivery Services

This industry comprises establishments primarily engaged in providing air, surface, or combination express delivery services of parcels that are not operating under a universal service obligation. These parcels can include goods and documents but the express delivery services are not part of the normal mail service. The establishments of this industry form a network including local pickup and delivery to serve their customers needs.

Cross-references. Establishments primarily engaged in —

  • Providing messenger and delivery services within a metropolitan area or within an urban center — are classified in Industry 492210, Local Messengers and Local Delivery; and
  • Providing truck transportation of palletized general freight — are classified in Industry Group 4841, General Freight Trucking.

The definitional and title changes apply to units not to the products that may be provided by those units. The units in the Postal Service industry(491110) and the Couriers and Express Delivery Services industry (492110) may provide some of the same products to the market, but the distinction made in NAICS is for the difference in infrastructure requirements based on the universal service obligation. The ECPC recognizes the current international trade discussions related to express delivery products and the potential abuses related to cross subsidization and favorable treatment of postal services in a number of nations. The ECPC also recognizes the growing trend to liberalize postal regulations throughout the world. These discussions and changes did not impact the decision to more clearly define industries in NAICS based on differences in the production function used by different providers of individual products or services.

07-0046 Priorities

Docket Number 07-0046
Priorities

Docket 07-0046 included a percentage listing of priorities: time series (50 percent), production function-oriented underlying concept (30 percent), new and emerging industries (10 percent), and international comparability (10 percent). The respondent noted a preference for a concordance approach to comparability.

07-0047 Sector 42 Wholesale Trade. Keyword — Rigid Packaging

Docket Number 07-0047
Sector 42 Wholesale Trade — Rigid Packaging

07-0047 requested a split of flexible and rigid packaging wholesale trade. The ECPC reviewed the request and is not recommending a new industry for rigid packaging. The ECPC looked at the size of the current industry that includes rigid packaging and also reviewed the current treatment of a variety of flexible packaging materials, including plastics, paper, paperboard containers, etc. The ECPC noted as well that wholesalers of packaging materials often sell both rigid and flexible materials. Splitting the outputs of establishments would not result in durable or consistent industry content.

07-0048 Sector 56 Administrative & Support & Waste Management & Remediation Services. Keyword — Event Planners

Docket Number 07-0048
Sector 56 Administrative and Support and Waste Management and Remediation Services — Event Planners

07-0048 requested the creation of a new industry for event planners. The ECPC reviewed the current industry definition of NAICS 561920, Convention and Trade Show Organizers, and also reviewed the content and definition of arts and sporting promoters that are included in Sector 71- Arts, Entertainment, and Recreation. Finally, the ECPC noted that wedding planners are classified with personal services in Subsector 812, Personal and Laundry Services.

The activities that event planners do on a daily basis are sufficiently covered through two NAICS sectors. First, NAICS 561920, Convention and Trade Show Organizers, includes a revenue line for convention services that clearly includes revenues that event planners earn through their daily activities. Second, NAICS sector 71 includes two NAICS codes for event planners that are engaged in the promotion of performing arts, sports, and similar events. Although event planners are engaged in a wide array of services for their clients, it is clear that NAICS has properly accounted for these services.

Research through several trade associations has affirmed that NAICS properly classified the event planning industry. Both NAICS and the trade associations include event planners that not only organize and promote special events, but also manage events.

07-0049 Sector 54 Professional, Scientific, & Technical Services. Keyword — Biotechnology

Docket Number 07-0049
Sector 54 Professional, Scientific, and Technical Services — Biotechnology

The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any information regarding the separate production function justification for creating the new industries. In order to evaluate the proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries.

The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical Services sectors of NAICS.

The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three industries requested based on the mixture of production processes that would be involved. These activities are currently classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food manufacturing. The ECPC considered the production processes and similarities to other production processes already separately identified in NAICS. Growing a genetically modified crop may require a different production function from the growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production process is still closer to other agriculture production processes than it is to manufacturing production processes or professional service production processes. A similar rationale applies to food manufacturing production processes, pharmaceutical manufacturing production processes, and industrial manufacturing production processes.

The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new industry will group similar establishments using biotechnology processes in experimental research and development; 2) the new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS United States 1997 and NAICS United States 2002. The ECPC proposes the following structure:

54171 Research and Development in the Physical, Engineering, and Life Sciences
541711 Biotechnology Research and Development
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is included in future data collection efforts.

07-0050 Sector 54 Professional, Scientific, & Technical Services. Keyword — Event Videography

Docket Number 07-0050
Sector 54 Professional, Scientific, and Technical Services — Event Videography

07-0050 requested a new industry for wedding and event videography. The ECPC reviewed the request and notes that the current classification of wedding and event videography in Industry 541921- Photography Studios, Portrait - is probably not the best classification for the activity. The requester asserts that there are a large number of wedding and event videographers practicing and that they do not, in general, provide photography services. The ECPC does not dispute the assertion. However, the ECPC was not able to locate any specific data regarding the size of the industry. The only indicating data was that there was very little revenue for motion picture services reported in the photography studios industry in the 1997 Economic Census. Because of concerns about the publishability of a new industry for wedding and event videography and the fact that many providers of the service may be nonemployers or providing the services as a secondary career, the ECPC does not recommend creating the industry at this time. The ECPC encourages statistical programs to attempt to collect specific information on the activity so that the proposal can be more effectively evaluated in the future.

07-0051 Various — Simulation

Docket Number 07-0051
Various — Simulation

07-0051 requested a new simulation industry. The initial proposal requested an industry that would include the simulation machinery, software, and simulation services that are currently included in a variety of industries in NAICS. The ECPC met with the requester several times. This resulted in a modified request for two industries, one in manufacturing and one in services for simulators and simulation services, respectively. The ECPC does not recommend creation of the proposed industries for several reasons. First, the industries are demand- or use-based and create problems with mutual exclusivity of production functions in the related areas of manufacturing and services. Second, the ECPC decided that modeling and simulation are methods of work rather than specific economic activities. However, the ECPC does recognize the use of computer technology in simulation and the growing use of simulation in the development of systems and for education and training purposes. Specifically, the ECPC proposed to Canada and Mexico that the electronic teaching machines which are specialized input/output devices used in simulators and simulation systems should be moved from general purpose machinery to the communications equipment industry, NAICS 334290. Canada and Mexico did not support this proposal so the ECPC withdrew the request.

The ECPC recommends adding wording to the education sector to more clearly indicate that simulators and simulation are methods of providing training and education. Finally, the ECPC recommends the addition of index items in the appropriate industries to more clearly identify the classification of individual activities involved in the simulator and simulation businesses. 07-0051 requested a new simulation industry. The initial proposal requested an industry that would include the simulation machinery, software, and simulation services that are currently included in a variety of industries in NAICS. The ECPC met with the requester several times. This resulted in a modified request for two industries, one in manufacturing and one in services for simulators and simulation services. The ECPC does not recommend creation of the proposed industries for several reasons. First, the industries are demand- or use-based and create problems with mutual exclusivity of production functions in the related areas of manufacturing and services. Second, the ECPC decided that modeling and simulation are methods of work rather than specific economic activities. However, the ECPC does recognize the use of computer technology in simulation and the growing use of simulation in the development of systems and for education and training purposes. Specifically, the ECPC proposed to Canada and Mexico that the electronic teaching machines which are specialized input/output devices used in simulators and simulation systems should be moved from general purpose machinery to Industry 334290, Other Communications Equipment Manufacturing. Canada and Mexico did not support this proposal, so the ECPC withdrew the request.

The ECPC recommends adding wording to the education sector to more clearly indicate that simulators and simulation are methods of providing training and education. Finally, the ECPC recommends the addition of index items in the appropriate

07-0052 Sector 23 Construction. Keyword — Design-Build

Docket Number 07-0052
Sector 23 Construction — Design-Build

Three public comments were received requesting a new industry for design/build firms. These proposals were assigned docket numbers 07-0052, 07-0053, and 07-0054. Similar proposals were received in both 1997 and 2002, and the ECPC remains opposed to using project delivery methods to define industries in the Construction sector of NAICS. The concept of using project delivery methods was exhaustively reviewed with Canada and Mexico during the 2002 revision of the Construction sector. During the 2007 revision process, the ECPC met with the respondents on several occasions and discussed the criteria for industries in NAICS and provided background on use of products in Census Bureau programs and the development of the North American Product Classification System (NAPCS) currently underway. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that more exhaustive survey items for the design/build delivery method are included in future efforts.

07-0053 Sector 23 Construction. Keyword — Design-Build

Docket Number 07-0053
Sector 23 Construction — Design-Build

Three public comments were received requesting a new industry for design/build firms. These proposals were assigned docket numbers 07-0052, 07-0053, and 07-0054. Similar proposals were received in both 1997 and 2002, and the ECPC remains opposed to using project delivery methods to define industries in the Construction sector of NAICS. The concept of using project delivery methods was exhaustively reviewed with Canada and Mexico during the 2002 revision of the Construction sector. During the 2007 revision process, the ECPC met with the respondents on several occasions and discussed the criteria for industries in NAICS and provided background on use of products in Census Bureau programs and the development of the North American Product Classification System (NAPCS) currently underway. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that more exhaustive survey items for the design/build delivery method are included in future efforts.

07-0054 Sector 23 Construction. Keyword — Design-Build

Docket Number 07-0054
Sector 23 Construction — Design-Build

Three public comments were received requesting a new industry for design/build firms. These proposals were assigned docket numbers 07-0052, 07-0053, and 07-0054. Similar proposals were received in both 1997 and 2002, and the ECPC remains opposed to using project delivery methods to define industries in the Construction sector of NAICS. The concept of using project delivery methods was exhaustively reviewed with Canada and Mexico during the 2002 revision of the Construction sector. During the 2007 revision process, the ECPC met with the respondents on several occasions and discussed the criteria for industries in NAICS and provided background on use of products in Census Bureau programs and the development of the North American Product Classification System (NAPCS) currently underway. The ECPC recommends that the respondents work with statistical data collection programs in order to ensure that more exhaustive survey items for the design/build delivery method are included in future efforts.

07-0055 Sector 31 Manufacturing. Keyword — Rope and Cordage

Docket Number 07-0055
Sector 31-33 Manufacturing — Rope and Cordage

07-0055 requested industry clarifications and changes for the rope and cordage industry in NAICS. The request is for both a new industry specifically for manufacturing of nets and slings and for a complete rewrite of the product detail collected by the Census Bureau using the Numerical List of Manufactured and Mineral Products. With respect to creation of new industries for the manufacture of nets and slings, we do not recommend this change. The request is a product- based request rather than an industry-based request. In addition, the specific industry addressed in this docket 314991 is not of sufficient size to split out a specific piece. The ECPC recommends that the Census Bureaus Manufacturing and Construction Division (MCD) analysts contact the cordage institute and determine if modifications to the Numerical List are needed. It seems that most of the requests in this proposal are not directed at the ECPC committee, but rather towards the data collection teams in MCD.

07-0056 Sector 56 Administrative & Support & Waste Management & Remediation Services. Keyword — Remediation

Docket Number 07-0056
Sector 56 Administrative and Support and Waste Management and Remediation Services — Remediation

07-0056 requested a new industry for environmental remediation services. The request is to bring together a range of activities currently classified in Sector 23, Construction; Subsector 562, Waste Management and Remediation Services; and Sector 54 - Professional, Scientific, and Technical Services. The proposal is based on the application of the NAICS system by the Small Business Administration (SBA) when certifying small and minority-owned businesses for remediation contracts.

In order to be classified under Environmental Remediation Services, SBA regulations require government contracts to cover activities in three or more separate industries with separate NAICS codes. Also, the company being awarded the contract may not derive 50 percent or more of its revenues, and may not dedicate 50 percent or more of its employees to one sole industry. Thus, the SBA has distinguished between industries in which companies primarily provide a single type of remediation service from those in which companies provide an array of services including remediation.

According to their proposal, this array of services could originate from industries throughout the following NAICS areas: Subsector 237, Heavy and Civil Engineering Construction; Subsector 238, Specialty Trade Contractors; Industry 541330, Engineering Services; Industry 541310, Architectural Services; NAICS Industry 54161, Management Consulting Services; Subsector 562, Waste Management and Remediation Services; Industry 541380, Testing Laboratories; and Industry 541710 - Research and Development in the Physical , Engineering, and Life Sciences.

NAICS was developed as a statistical classification system for the collection and tabulation of economic data. For this purpose each reporting unit is assigned one NAICS code. Most importantly, NAICS is constructed on a single conceptual framework -- economic units that have similar production processes are classified in the same industry. Any revisions to NAICS must adhere to this production process principal. The proposal is to assist a non-statistical use of NAICS. While that alone is enough to reject the proposal, the ECPC notes that the proposal violates the underlying principles of NAICS, and therefore is not recommended for action.

07-0057 Sector 56 Administrative & Support & Waste Management & Remediation Services. Keyword — Executive Search Services

Docket Number 07-0057
Sector 56 Administrative and Support and Waste Management and Remediation Services — Executive Search Services

07-0057 requested that the Industry 541612, Human Resources and Executive Search Consulting Services, be split into two separate industries and that the portion for executive search services be moved to Industry Group 5613, Employment Services, as a separate industry. The ECPC evaluated the production processes of human resource and executive search services and agreed that the production processes are dissimilar. The ECPC also noted that the production process for executive search services is more like other employment services in 5613. The ECPC evaluated the size of the two new industries based on data from the 1997 Economic Census and noted that both are of sufficient size to stand alone in NAICS as industries. The ECPC submitted a proposal to Canada and Mexico to create a new industry for executive search services. Canada and Mexico could not support a separate industry for executive search services, but did agree to move the activity to NAICS Industry 56131, Employment Placement Agencies. The ECPC therefore recommends the following changes:

Re-title NAICS 541612, Human Resources and Executive Search Consulting Services to Human Resources Consulting Services;

Create new national details below Employment Placement Agencies to account for the difference between employment placement agencies and executive search services. The national details would be:

56131 Employment Placement Agencies and Executive Search Services
561311 Employment Placement Agencies
561312 Executive Search Services

07-0058 Sector 42 Wholesale Trade. Keyword — Security Equipment

Docket Number 07-0058
Sector 42 Wholesale Trade — Security Equipment

07-0058 requested a number of changes to NAICS for specific activities. The two main requests were for a new industry for wholesale trade of security equipment and for additional clarification of the classification of activities that were once performed exclusively by government but are now contracted out to private providers.

The initial staff evaluation of the proposal recommended the creation of a new industry in Sector 42, Wholesale Trade. The ECPC did not adopt the staff recommendation for several reasons. First, while industries in wholesale trade are currently defined by products and uses, the ECPC does not support further expansion of that practice during revisions. The 2002 revision of wholesale trade began to more appropriately delineate industries based on production processes, and future modifications should continue in that direction. This recommendation is similar to the request made in docket 07-0010 and the ECPC again recommends that because of the increasing focus on security due to recent events, statistical programs that collect data below the industry level should consider creation of additional detail for the merchandise lines for future evaluation. The ECPC recommends against creation of new industries but encourages statistical programs to collect additional detail in the area of security systems through use of merchandise lines or product detail.

07-0059 Sector 31 Manufacturing. Keyword — Reduce Manufacturing Detail

Docket Number 07-0059
Sector 31-33 Manufacturing — Manufacturing Detail Reduction

07-0059 was a request to collapse industry detail within the Manufacturing sector because of increasing collection and publication problems for small industries. The proposal was withdrawn by the Census Bureau after ECPC discussion.

07-0060 Sector 31 Manufacturing. Keyword — Reduce Manufacturing Detail

Docket Number 07-0060
Sector 31-33 Manufacturing — Manufacturing Detail Reduction

07-0060 spoke in opposition to some of the industry collapses that were recommended in docket 07-0059 (withdrawn).

07-0061 Sector 62 Health Care & Social Assistance. Keyword — Telehealth

Docket Number 07-0061
Sector 62 Health Care and Social Assistance — Telehealth

07-0061 requested the creation of a telehealth industry. Telehealth was defined as the provision of medical services using advanced communication technologies such as Internet video and other resources that allow consultation and advice without the need to be physically located with a patient. The requester was going to provide a more formal proposal but none was received by the ECPC. Regardless of the lack of a formal proposal, the ECPC does not support the creation of a telehealth industry. This proposal addressed new ways of providing medical services because of the availability of advanced communications technologies, but did not represent a new service or a new industry. The rationale used in responding to docket 07-0011 (e-learning) also applies in the case of telehealth. The ECPC recommends that sector or subsector narratives be modified to reflect the various methods that may be used to provide medical services including telehealth services.

07-0062 Sector 31 Manufacturing. Keyword — Nonsparking Tools

Docket Number 07-0062
Sector 31-33 Manufacturing — Nonsparking Tools

07-0062 requested a new industry for non-sparking tools. Non-sparking tools are produced from materials that discourage the generation of sparks by reducing static electricity buildup or using materials that are less prone to spark in dangerous environments. The ECPC reviewed the request and recommends against creating a new industry for two reasons. First, all available information indicates that the industry would be too small for adequate collection and publication. Second, research indicates that tool producers produce both regular and non-sparking tools. The ECPC does not feel that the production function is sufficiently different from other hand tools to create a separate industry. The ECPC does recommend that programs that collect data below the industry level consider adding additional product detail to provide more complete information on the manufacture of non-sparking tools.

07-0063 Sector 31 Manufacturing. Keyword — Flexible Packaging

Docket Number 07-0063
Sector 31-33 Manufacturing — Flexible Packaging

07-0063 requested several changes to the flexible packaging industries in NAICS. The ECPC met with the respondents on several occasions to clarify the proposal. After review, the ECPC is not recommending any changes to the content of industries in this area, but does recommend changes to titles, as noted by the Flexible Packaging Association, to more accurately describe the content of industries.

The recommendation against any industry changes is based on the fact that the industries as they currently exist do not adhere well to the guiding principles of NAICS. The flexible packaging industries are strictly demand-based. A plastic film used for packaging is in one industry while the exact same (or substantially similar) film used for non-packaging purposes is classified to a different industry. This is a violation of the production function principle of NAICS. The association did request some minor adjustments to content. The ECPC feels that the area should be corrected or modified all at once to more appropriately reflect the principles of NAICS and feels that small incremental changes will be more costly and disruptive to statistical programs in the long run. The ECPC is willing to maintain the current industries for the time being, but strongly rejects the idea of incremental change. One goal of the 2007 revision was to have modest changes. The ECPC does not feel that a complete restructuring of the paper and plastic industries that are associated with flexible packaging falls within the spirit of that goal.

The title changes recommended in response to this proposal are:

  1. NAICS 322221 Coated and Laminated Packaging Paper and Plastics Film Manufacturing will be re-titled Coated and Laminated Packaging Paper Manufacturing.
  2. NAICS 322223 - Plastics, Foil, and Coated Paper Bag Manufacturing will be re-titled Coated Paper Bag and Pouch Manufacturing.
  3. NAICS 326111 Plastics Bag Manufacturing will be re-titled Plastics Bag and Pouch Manufacturing.

Additional wording changes are recommended to clarify the content of the existing industry. The definition for NAICS 322221 will be modified to remove references to plastics. A cross-reference for plastic/plastic laminates will be added to clearly indicate that they are not included in this industry.

The new industry definition will read:

NAICS 322221 Coated and Laminated Packaging Paper Manufacturing

This U.S. industry comprises establishments primarily engaged in performing one or more of the following activities associated with the manufacture of paper packaging materials: (1) cutting and coating paper; and (2) cutting and laminating paper with other flexible packaging materials (except foil to plastics laminates). The products manufactured by establishments in this industry are made from purchased sheet materials and may be printed in the same establishment.

Cross-references will be added for:

  • Manufacturing plastics to plastics packaging laminations are classified in U.S. Industry 326112, Plastics Packaging Film and Sheet (including Laminated) Manufacturing;
  • Printing purchased packaging materials are classified in Industry Group 3231, Printing and Related Support Activities, based on the printing process used;
  • Manufacturing paper to foil packaging laminations are classified in U.S. Industry 322225, Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses.

The existing cross-references will be retained.

NAICS 322223 Coated Paper Bag and Pouch Manufacturing

This U.S. industry comprises establishments primarily engaged in manufacturing: (1) bags or pouches of coated paper; (2) bags or pouches of metal foil; and/or (3) bags or pouches of paper laminated with plastics and/or foil. The products manufactured by establishments in this industry are made from purchased roll stock and may be printed in the same establishment.

Cross-references will be added for:

  • Printing purchased packaging materials are classified in Industry Group 3231, Printing and Related Support Activities, based on the printing process used.

The existing cross-references will be retained.

  • NAICS 326111 Plastics Bag and Pouch Manufacturing

This U.S. industry comprises establishments primarily engaged in: (1) converting plastics resins into plastics bags or pouches; and/or (2) forming, coating, or laminating plastics film or sheet into single web or multi-web plastics bags or pouches. Establishments in this industry may print on the bags or pouches they manufacture.

Cross-references will be added for:

  • Printing purchased packaging materials are classified in Industry Group 3231, Printing and Related Support Activities, based on the process used.

The existing cross-references will be retained.

As noted earlier in the summary, the ECPC does not recommend movement of individual items related to foil/paper or foil/plastics laminations. The ECPC recommends a complete review of this area in the future to more closely follow production process principles.

07-0064 Priorities

Docket Number 07-0064
Priorities

Docket 07-0064 urged the ECPC to carefully consider the impact of any potential change on data users as well as statistical programs. The comments included four points:

  1. The overriding comment is that the ECPC should recognize the extensive informational, scholarly, and organizational disruption that has occurred and will continue to occur as the U.S. moves from the 1987 SIC to the NAICS.
  2. Classification systems are a kind of language with significant externalities. The U.S. should make all efforts to avoid yet another major change in the classification in the near future.
  3. The ECPC sought comments on the relative priority in revisions of the NAICS. There should have been an additional priority listed for avoiding another major change in the classification in the near future.
  4. The priority for international comparability is a low priority at this time.

07-0065 Sector 31 Manufacturing. Keyword — Algin

Docket Number 07-0065
Sector 31-33 Manufacturing — Algin

07-0065 requested the movement of algin from miscellaneous chemical products (classified in Industry 325199) to miscellaneous food products (classified in Industry 311999) because a primary use of algin is food processing. A thorough review of the possible industries that might include algin production did not result in an unambiguously correct classification. The content of existing industries, the intent of particular industries, and the size of the activity were considered in the review and evaluation process. The ECPC does not recommend classification of algin manufacturing with miscellaneous food products. More acceptable process-based industries in chemicals, wet milling, and plant extract areas are possible. However, the ECPC does not recommend reclassification of algin production and supports the continued classification in NAICS 325199. If this classification recommendation has detrimental impacts on the requester for regulatory purposes, the ECPC recommends that the requester contact the regulatory agency(s) directly to clarify or mitigate any problems.

07-0066 Sector 31 Manufacturing. Keyword — Wire Rope

Docket Number 07-0066
Sector 31-33 Manufacturing — Wire Rope

07-0066 requested a new industry for wire rope lifting devices. The ECPC does not recommend creation of the industry. Wire rope lifting devices can be the output of several different NAICS industries, based on the production function of the unit. A unit that draws wire and fabricates slings would be classified as a wiredrawing unit while a unit that purchases wire and fabricates slings would be classified with other fabricated wire products. The resulting industry would not conform to the production function orientation of NAICS. An analysis of data related to lifting devices made from purchased materials in the 1997 Economic Census showed that a new industry for these products would have less than $500 million of shipments. While there are no official size standards for new industries in NAICS, this would be very small relative to most other manufacturing industries.

07-0067 Sector 52 Finance & Insurance. Keyword — REITs

Docket Number 07-0067
Sector 52 Finance and Insurance — REITs

07-0067 requested that the Industry 525930, Real Estate Investment Trusts, be moved from subsector 525 Funds, Trusts, and Other Financial Vehicles- to subsector 531, Real Estate. The ECPC agencies discussed this proposal extensively and consulted with additional agencies, including the Federal Reserve Board and the Internal Revenue Service. There were two positions regarding this proposal. One position asserted that real estate investment trusts (REITs) were essentially the same as all other real estate units in process and that the REIT industry should be deleted and the equity REITs be distributed across the existing real estate industries based on the primary component of their portfolio. The mortgage REITs would be combined with other closed-end funds. This would allow more complete presentation of statistical data by type of real estate. This position asserted that REIT tax status was essentially a legal form of operation rather than an industry distinction. The other position asserted that REITs really were different than real estate units because of their special status as trusts. Additionally, the second position saw REITs as primarily financial in nature and closer to mutual funds in process than other lessors of real estate. The second position gained more support within the ECPC although the support was not unanimous. Neither position discussed by the ECPC would have resulted in the movement of the REIT industry from Subsector 525 - Funds, Trusts, and Other Financial Vehicles - to Subsector 531, Real Estate. Position one would have deleted the industry and distributed the contents, position two would leave the industry in the funds area. For 2007, the ECPC is not recommending a change to the definition or placement of Industry 525930, Real Estate Investment Trusts.

07-0068 Sector 31 Manufacturing. Keyword — Photonics

Docket Number 07-0068
Sector 31-33 Manufacturing — Photonics

07-0068 requested a new industry for photonics. The industry would include photonic waveguides and photonic integrated circuits. While there are technical differences in the production of integrated circuits and photonic integrated circuits, the ECPC feels that the current production function-oriented industries identified in Industry Group 3344, Semiconductor and Other Electronic Component Manufacturing, are appropriate. Index items for photonic integrated circuits and for silicon wave guides should be added for Industry 334413, Semiconductor and Related Device Manufacturing, and a cross reference for silicon wave guides to Industry 334413 should be added in Industry 334419, Other Electronic Component Manufacturing.


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Source: U.S. Census Bureau | North American Industry Classification System (NAICS) | (888) 756-2427 | naics@census.gov | Last Revised: September 13, 2013