Part XVII--Proposed New Industry Structure for Nonmetallic Mineral Product Manufacturing Section A--NAICS Structure North American Industry Classification System (NAICS) Agreement Number 28 This Document represents the proposed agreement on the structure of the North American Industry Classification System (NAICS) for the following industries: Nonmetallic Mineral Product Manufacturing The detailed NAICS structure along with a brief description of the structure is attached (Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS structure to interested data users. Comments received will be shared among the countries and additional discussions will be held before a final decision on the structure is made. Each country may add additional detailed industries, below the 4-digit level of NAICS, as necessary to meet national needs, so long as this additional detail aggregates to a 4-digit NAICS level in order to ensure full comparability among the three countries. This NAICS structure was presented and provisionally accepted at the NAICS Committee meeting held on November 8 and November 9, 1995 in Washington, D.C. Accepted Signature Date Canada /S/ Jacob Ryten 11/9/95 Mexico /S/ Enrique Ordaz 11/9/95 United States /S/ Jack E. Triplett 11/9/95 ATTACHMENT 1--NAICS STRUCTURE XX Nonmetallic Mineral Product Manufacturing XXX Clay Product and Refractories Manufacturing XXXX Pottery, Ceramics, and Plumbing Fixture Manufacturing XXXX Clay Building Material and Refractories Manufacturing XXX Glass, Glass Product and Glass Container Manufacturing XXXX Glass and Glass Product Manufacturing XXXX Glass Container Manufacturing XXX Cement and Concrete Product Manufacturing XXXX Hydraulic Cement Manufacturing XXXX Ready-Mix Concrete Manufacturing XXXX Concrete Pipe, Brick, and Block Manufacturing XXXX Other Precast Concrete Product Manufacturing XXX Lime, Gypsum and Gypsum Product Manufacturing XXXX Lime Manufacturing XXXX Gypsum and Gypsum Product Manufacturing XXX Miscellaneous Nonmetallic Mineral Product Manufacturing XXXX Abrasive Product Manufacturing XXXX Other Miscellaneous Nonmetallic Mineral Product Manufacturing Attachment 2--North American Industry Classification System Draft Classification for: Nonmetallic Mineral Product Manufacturing Representatives of the statistical agencies of Canada, Mexico, and the United States agree to a draft industrial classification for these industries. The draft classification provides for the subsector Nonmetallic Mineral Product Manufacturing. The subsector is sub-divided into five industry groups and twelve industries. This subsector will be part of the Manufacturing sector of the classification. A General Outline The Nonmetallic Mineral Product Manufacturing industries produce such products as bricks, refractories, and ceramic products, and glass and glass products, such as plate glass, fiberglass and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products, including abrasive products, cut stone and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal consumption. Processes used in the Nonmetallic Mineral Product Manufacturing industries include grinding, mixing, cutting, shaping, and honing sand, stone, ceramic, and other nonmetallic raw material inputs. Heat often is used in the process, and chemicals are frequently mixed to change the composition, purity, and chemical properties of the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn or blow molded to the desired shape or thickness. Refractory materials are heated and then formed to brick or other shapes for use in industrial applications. Limitations and Constraints of the Classification A few factors constrained the structure and detail of the classification in the area under consideration. Most of the activities that take place in one country exist in the others. However, often an activity is not economically significant to the same degree in all countries. Another constraint is the small number of producers in some countries. For example, separate NAICS industries could not be created for refractories or concrete pipe because of confidentiality problems in Canada. Similar limitations prevent creation of more detailed industries for glass and glass products, mineral wool and other nonmetallic minerals products. Each country will publish additional categories that comprise subdivisions of NAICS industries, to present data for activities that are nationally significant. For those users requiring detailed commodity information, each country will publish information on the products of these industries. Efforts are also underway to harmonize the commodity classifications to allow for greater comparability of these statistics. Relationship to ISIC All NAICS 4-digit industries in this subsector are contained in Division 26, Manufacture of Nonmetallic Mineral Products, of the current International Standard Industrial Classification of All Economic Activities (ISIC, Revision 3) of the United Nations. This means that one can combine the industries of this NAICS subsector and be comparable to ISIC Division 26. Some Changes to the National Classifications For Canada, the production of glass yarn was moved from CSIC 1811, Man-Made Fiber and Filament Yarn, and mirrors from CSIC 3259, Other Motor Vehicle Accessories and Parts. Other changes consist of a restructuring of the existing Canadian subsector for Nonmetallic Minerals Product Manufacturing. For example, the production of glass products was separated for establishments producing glass, and those that purchase glass, then manufacture glass products. For Mexico, all changes are within the existing CMAP class for Nonmetallic Minerals. Changes include the separation of glass fibers (in primary glass production in NAICS) from glass insulation; moving the production of dead burned dolomite from the refractory industry to the NAICS Lime Manufacturing industry; separating decorative glass from glass containers; and moving articles made from plaster of Paris to the Other Nonmetallic Mineral Product Manufacturing industry. For the United States, little change was made to this subsector. The most important change was the elimination of the all but non-existent asbestos product industry. Two remaining products are made by establishments formerly classified in this industry: (1) brake linings were moved to the brake parts industry in the Transportation Equipment Manufacturing subsector and (2) gaskets were moved to the Other Nonmetallic Mineral Product Manufacturing industry. Other changes within the subsector were to move dry mix cement from the concrete products industry, to move steel wool from the abrasives industry, to move some plaster work into the NAICS industry for Gypsum and Gypsum Product Manufacturing, and to create new industries for cast concrete products. Achievement of Objectives The classification meets the objectives for the North American Industry Classification System (NAICS). It includes industries that group establishments with similar production processes, that is, it applies the production-oriented economic concept. In the main, the hierarchical structure of the classification also follows the production concept. Other objectives of the NAICS project are not as relevant in this area of the classification as in others. These objectives are the delineation of new and emerging industries, service industries and industries engaged in the production of advanced technologies. The industrial sector in question is relatively mature, generally produces goods, and has employed relatively stable technology. Therefore, the emphasis is on the objectives listed above. The industries have high specialization ratios, and they are economically significant. The detail (4-digit) level and structures of the classification are balanced in size. This enhances the classification's suitability for sampling, data publishing and other aspects of survey operations. Finally, while disruptions to time series exist, they have been minimized. The classification achieves comparability for the three participating countries. Based on existing data, all three countries expect to be able to publish data regularly at the industry (4-digit) level of the structure. All countries agree on the detailed definitions of the industries. Section B-Annex: United States National Industry Detail As explained in the Structure presentation of this notice, for a number of reasons 4-digit industries in the NAICS industry subsector presented in Part XVII, Section A--Attachment 1, contain less detail than is currently in the U.S. SIC system, and less detail than is required to meet important analytical requirements in the U.S. The three country agreement on NAICS envisions that each country may develop national detailed industries below the NAICS industry level, so long as the national detail can be aggregated to the NAICS classification, thus assuring full North American comparability. The ECPC is proposing U.S. 5-digit industry detail for the NAICS industry subsector covered in Part XVII of this notice. For cases where no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit industries will also represent the most detailed U.S. industries. TABLE 1 The definitions of status codes are as follows: E-existing industry; L-null industry for the U.S.; N-new industry R-revised industry;; and * means "part of". The abbreviation NEC is used for Not Elsewhere Classified. 1997 NAICS & U.S. description Status Code 1987 SIC Code 1987 SIC description XX Nonmetallic Mineral Product Manufacturing XXX Clay Product and Refractories Manufacturing XXXX Pottery, Ceramics and Plumbing Fixture Manufacturing XXXXX Vitreous China Plumbing Fixture and China and Earthenware Fitting and Bathroom Accessory Manufacturing E 3261 Vitreous China Plumbing Fixtures and China and Earthenware Fittings and Bathroom Accessories XXXXX Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing N 3262 Vitreous China Table and Kitchen Articles 3263 Fine Earthenware (Whiteware) Table and Kitchen Articles 3269 Pottery Products, NEC XXXXX Porcelain Electrical Supply Manufacturing E 3264 Porcelain Electrical Supplies XXXX Clay Building Material and Refractories Manufacturing XXXXX Brick and Structural Clay Tile Manufacturing E 3251 Brick and Structural Clay Tile XXXXX Ceramic Wall and Floor Tile Manufacturing E 3253 Ceramic Wall and Floor Tile XXXXX Other Structural Clay Product Manufacturing E 3259 Structural Clay Products, NEC XXXXX Clay Refractory Manufacturing E 3255 Clay Refractories XXXXX Nonclay Refractory Manufacturing E 3297 Nonclay Refractories XXX Glass, Glass Product and Glass Container Manufacturing XXXX Glass and Glass Product Manufacturing XXXXX Flat Glass Manufacturing E 3211 Flat Glass XXXXX Other Pressed and Blown Glass and Glassware Manufacturing E 3229 Pressed and Blown Glass and Glassware, NEC XXXXX Glass Product Manufacturing Made of Purchased Glass E 3231 Glass Products, Made of Purchased Glass XXXX Glass Container Manufacturing E 3221 Glass Containers XXX Cement and Concrete Product Manufacturing XXXX Hydraulic Cement Manufacturing E 3241 Cement, Hydraulic XXXX Ready-Mix Concrete Manufacturing E 3273 Ready-Mixed Concrete XXXX Concrete Pipe, Brick and Block Manufacturing XXXXX Concrete Block and Brick Manufacturing E 3271 Concrete Block and Brick XXXXX Concrete Pipe Manufacturing N 3272* Concrete Products, Except Block and Brick (concrete pipe) XXXX Other Precast Concrete Product Manufacturing N 3272* Concrete Products, Except Block and Brick (concrete products, except dry mix concrete, pipe, bricks and blocks) XXX Lime, Gypsum and Gypsum Product Manufacturing XXXX Lime Manufacturing E 3274 Lime XXXX Gypsum and Gypsum Product Manufacturing R 3275 Gypsum Products 3299* Nonmetallic Mineral Products, NEC (moldings, ornamental and architectural plaster work) XXX Miscellaneous Nonmetallic Mineral Product Manufacturing XXXX Abrasive Product Manufacturing R 3291* Abrasive Products (except metallic scouring sponges and scouring pads) XXXX Other Miscellaneous Nonmetallic Mineral Product Manufacturing XXXXX Cut Stone and Stone Product Manufacturing E 3281 Cut Stone and Stone Products XXXXX Ground or Treated Mineral and Earth Manufacturing E 3295 Minerals and Earths, Ground or Otherwise Treated XXXXX Mineral Wool Manufacturing E 3296 Mineral Wool XXXXX All Other Miscellaneous Nonmetallic Mineral Product Manufacturing R 3272* Concrete Products, Except Block and Brick (dry mixture concrete) 3292* Asbestos Products (except brake pads and linings) 3299* Nonmetallic Mineral Products, NEC (except moldings, ornamental and architectural plaster work) TABLE 2 The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 revenues for the 1987 SIC industry. 1987 SIC Code 1987 SIC description 1997 U.S. description 3211 Flat Glass Flat Glass Manufacturing 3221 Glass Containers Glass Container Manufacturing 3229 Pressed and Blown Glass and Glassware, NEC Other Pressed and Blown Glass and Glassware Manufacturing 3231 Glass Products, Made of Purchased Glass Glass Product Manufacturing Made of Purchased Glass 3241 Cement, Hydraulic Hydraulic Cement Manufacturing 3251 Brick and Structural Clay Tile Brick and Structural Clay Tile Manufacturing 3253 Ceramic Wall and Floor Tile Ceramic Wall and Floor Tile Manufacturing 3255 Clay Refractories Clay Refractory Manufacturing 3259 Structural Clay Products, NEC Other Structural Clay Product Manufacturing 3261 Vitreous China Plumbing Fixtures and China and Earthenware Fittings and Bathroom Accessories Vitreous China Plumbing Fixture and China and Earthenware Fitting and Bathroom Accessory Manufacturing 3262 Vitreous China Table and Kitchen Articles Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing (pt) 3263 Fine Earthenware (Whiteware) Table and Kitchen Articles Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing (pt) 3264 Porcelain Electrical Supplies Porcelain Electrical Supply Manufacturing 3269 Pottery Products, NEC Vitreous China, Fine Earthenware, and Other Pottery Product Manufacturing (pt) 3271 Concrete Block and Brick Concrete Block and Brick Manufacturing 3272@ Concrete Products, Except Block and Brick Dry Mixture Concrete Other Miscellaneous Nonmetallic Mineral Product Manufacturing (pt) Concrete Pipes Concrete Pipe Manufacturing Other Concrete Products Other Precast Concrete Product Manufacturing 3273 Ready-Mixed Concrete Ready-Mix Concrete Manufacturing 3274 Lime Lime Manufacturing 3275 Gypsum Products Gypsum and Gypsum Product Manufacturing (pt) 3281 Cut Stone and Stone Products Cut Stone and Stone Product Manufacturing 3291 Abrasive Products Metallic Scouring Sponges and Scouring Pads Other Metal Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector) Other Abrasive Products Abrasive Product Manufacturing 3292@ Asbestos Products Asbestos Brake Linings and Pads Motor Vehicle Brake System Manufacturing (pt) (Included in Transportation Equipment Manufacturing subsector) Other Asbestos Products Other Miscellaneous Nonmetallic Mineral Product Manufacturing 3295 Minerals and Earths, Ground or Otherwise Treated Ground or Treated Mineral and Earth Manufacturing 3296 Mineral Wool Mineral Wool Manufacturing 3297 Nonclay Refractories Nonclay Refractory Manufacturing 3299@ Nonmetallic Mineral Products, NEC Moldings, Ornamental and Architectural Plaster Work Gypsum and Gypsum Product Manufacturing (pt) Other Nonmetallic Mineral Products Other Miscellaneous Nonmetallic Mineral Product Manufacturing (pt) Description of Changes to the U.S. System 1987 SIC 3272, Concrete Products, Except Block and Brick, was split into three new industries in the 1997 structure for this industry subsector as follows: Concrete Pipe Manufacturing for international comparability. Other Precast Concrete Product Manufacturing. Other Miscellaneous Nonmetallic Mineral Product Manufacturing. Two activities were transferred out of 1987 Major Group 32, Stone, Clay, Glass and Concrete Products: Metallic scouring sponges and scouring pads from 1987 SIC 3291, Abrasive Products, were moved into the 1997 NAICS Fabricated Metal Product Manufacturing subsector to achieve comparability with Canada and Mexico and to better meet production concept criteria. Asbestos brake linings and pads from 1987 SIC Code 3292, Asbestos Products, were moved into the 1997 NAICS Transportation Equipment Manufacturing subsector to match Canada and Mexico, and because the production of brake linings from asbestos and non-asbestos materials are similar processes. 1987 SIC 3262, Vitreous China Table and Kitchen Articles; 1987 SIC 3263, Fine Earthenware (Whiteware) and Kitchen Articles; and 1987 SIC 3269, Pottery Products, Not Elsewhere Classified, were combined into the new Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing national industry. The combination was made because the 1987 SIC's were too small to warrant separation. The new national industry, however, shows strong production concept characteristics. Also, some activities were transferred within the Nonmetallic Mineral Product Manufacturing subsector. The number of nonmetallic mineral product manufacturing industries decreased by two to 24, from the 1987 SIC. For time series linkage, 23 of the 26 1987 industries are comparable within three percent of the 1997 industries.