All Other Employees - The “other employees”
covers nonproduction employees of the manufacturing establishment
including those engaged in factory supervision above the line-supervisor
level. It includes sales (including driver-salespersons), sales
delivery (highway truck drivers and their helpers), advertising,
credit, collection, installation and servicing of own products,
clerical and routine office functions, executive, purchasing,
financing, legal, personnel (including cafeteria, medical, etc.),
professional, and technical employees. Also included are employees
on the payroll of the manufacturing establishment engaged in the
construction of major additions or alterations utilized as a separate
Capital expenditures for new and used plant and equipment
- Represents the total new and used capital expenditures reported
by establishments in operation and any known plants under construction.
These data include expenditures for:
Permanent additions and major alterations to manufacturing
and mining establishments.
New and used machinery and equipment used for replacement
and additions to plant capacity, if they are of the type for
which depreciation, depletion, or (for mining establishments)
Office of Minerals Exploration accounts are ordinarily maintained.
In addition, for mining establishments, these data include
expenditures made during the year for development and exploration
of mineral properties. For manufacturing establishments, these
data are broken down into three types.
Automobiles, trucks, etc. for highway use. These include
vehicles acquired under a lease purchase agreement and
excludes vehicles leased or normally designed to transport
materials, property, or equipment on mining, construction,
petroleum development, and similar projects. These vehicles
are of such size or weight as to be normally restricted
by state laws or regulations from operating on public
highways. It also excludes purchases of vehicles that
are purchased by a company for highway use.
Computers and peripheral data processing equipment.
This item includes all purchases of computers and related
All other expenditures for machinery and equipment excluding
automobiles and computer equipment. Capital expenditures
include work done by contract, as well as by the establishment’s
own workforce. These data exclude expenditures for land
and mineral rights and cost of maintenance and repairs
charged as current operating expenses.
Company - A company or “enterprise”
is comprised of all the establishments that operate under the
ownership or control of a single organization. A company may be
a business, service, or membership organization; consist of one
or several establishments; and operate at one or several locations.
It includes all subsidiary organizations, all establishments that
are majority-owned by the company or any subsidiary, and all the
establishments that can be directed or managed by the company
or any subsidiary. A company may have one or many establishments.
Examples include product and service sales offices (retail and
wholesale), industrial production plants, processing or assembly
operations, mines or well sites, and support operations (such
as an administrative office, warehouse, customer service center,
or regional headquarters). Each establishment should receive,
complete, and return a separate census form. If the company operated
at different physical locations, even if the individual locations
are producing the same line of goods, a separate report is requested
for each location. If the company operated in two or more distinct
lines of manufacturing at the same location, a separate report
is requested for each activity.
Cost of materials - This term refers to direct
charges actually paid or payable for items consumed or put into
production during the year, including freight charges and other
direct charges incurred by the establishment in acquiring these
materials. It includes the cost of materials or fuel consumed,
whether purchased by the individual establishment from other companies,
transferred to it from other establishments of the same company,
or withdrawn from inventory during the year. Included in total
cost of materials are:
Cost of parts, components, containers, etc. Includes all
raw materials, semifinished goods, parts, containers, scrap,
and supplies put into production or used as operating supplies
and for repair and maintenance during the year.
Cost of products bought and sold in the same condition.
Cost of fuels consumed for heat and power. Includes the
cost of materials or fuel consumed, whether purchased by the
individual establishment from other companies, transferred
to it from other establishments of the same company, or withdrawn
from inventory during the year.
Cost of purchased electricity. The cost of purchased electric
energy represents the amount actually used during the year
for heat and power. In addition, information was collected
on the quantity of electric energy generated by the establishment
and the quantity of electric energy sold or transferred to
other plants of the same company.
Cost of contract work. This term applies to work done by
others on materials furnished by the manufacturing establishment.
The actual cost of the material is to be reported on the cost
of materials, parts, and containers line of this item. The
term “Contract Work” refers to the fee a company
pays to another company to perform a service.
Duplication in cost of materials and value of shipments
- The aggregate of the cost of materials and value of shipments
figures for industry groups and for all manufacturing industries
includes large amounts of duplication, since the products of some
industries are used as materials by others. This duplication results,
in part, from the addition of related industries representing
successive stages in the production of a finished manufactured
product. Examples are the addition of flour mills to bakeries
in the food group and the addition of pulp mills to the paper
manufacturing group of industries. Estimates of the overall extent
of this duplication indicate that the value of manufactured products
exclusive of such duplication (the value of finished manufactures)
tends to approximate twothirds of the total value of products
reported in the annual survey. Duplication of products within
individual industries is significant within a number of industry
groups, e.g., machinery and transportation industries. These industries
frequently include complete machinery and their parts. In this
case, the parts made for original equipment are materials consumed
for assembly plants in the same industry. Even when no significant
amount of duplication is involved, value of shipments figures
are deficient as measures of the relative economic importance
of individual manufacturing industries or geographic areas because
of the wide variation in ratio of materials, labor, and other
processing costs of value of shipments, both among industries
and within the same industry.
Establishment - An establishment is a single
physical location where business is conducted or where services
or industrial operations are performed. Data in this sector includes
those establishments where manufacturing is performed. A separate
report is required for each manufacturing establishment (plant)
with one employee or more that is in operation at any time during
the year. An establishment not in operation for any portion of
the year is requested to return the report form with the proper
notation in the “Operational Status” section of the
form. In addition, the establishment is requested to report data
on any employees, capital expenditures, inventories, or shipments
from inventories during the year.
Interplant transfers - In the case of multiunit
companies, the manufacturer was requested to report the value
of products transferred to other establishments of the same company
at full economic or commercial value, including not only the direct
cost of production but also a reasonable proportion of “all
other costs” (including company overhead) and profit.
Number of Employees - This item includes all
full-time and part-time employees on the payrolls of operating
manufacturing establishments during any part of the pay period
that included the 12th of March, June, September, and December.
Included are employees on paid sick leave, paid holidays, and
paid vacations; not included are proprietors and partners of unincorporated
businesses. The ‘‘all employees’’ number is the average number
of production workers plus the number of other employees in mid-March.
Payroll - This item includes the gross earnings
of all employees on the payrolls of operating manufacturing establishments
paid in the calendar year. Respondents are told they could follow
the definition of payrolls used for calculating the federal withholding
tax. It includes all forms of compensation, such as salaries,
wages, commissions, dismissal pay, bonuses, vacation and sick
leave pay, and compensation in kind, prior to such deductions
as employees’ social security contributions, withholding
taxes, group insurance, union dues, and savings bonds. The total
includes salaries of officers of corporations; it excludes payments
to proprietors or partners of unincorporated concerns. Also excluded
are payments to members of Armed Forces and pensioners carried
on the active payrolls of manufacturing establishments. The census
definition of payrolls is identical to that recommended to all
federal statistical agencies by the Office of Management and Budget.
It should be noted that this definition does not include employers’
social security contributions or other nonpayroll labor costs,
such as employees’ pension plans, group insurance premiums,
and workers’ compensation. The Annual Survey of Manufactures
(ASM) provides estimates of employers’ total supplemental
labor costs (those required by federal and state laws and those
incurred voluntarily or as part of collective bargaining agreements).
Product codes and classes of products - North
American Industry Classification System (NAICS) United States
industries are identified by a six-digit code. The longer code
accommodates the large number of sectors and allows more flexibility
in designing subsectors. In the manufacturing sector for 2002,
there are 21 subsectors (three-digit NAICS), 86 industry groups
(four-digit NAICS), 184 NAICS industries (five-digit NAICS) that
are comparable with Canadian and Mexican classification, and 473
U.S. industries (six-digit NAICS). Product classes of the manufacturing
industries have been assigned codes based on the industry from
which they originate. There are 1,450 product classes (seven-digit
codes). Manufacturing activity involves the mechanical, physical,
or chemical transformation of materials, substances, or components
into new products. The assembling of component parts of manufactured
products is considered manufacturing, except in cases where the
activity is appropriately classified in Sector 23, Construction.
Manufacturing activities include:
fabricating, processing, and assembling;
maintenance of plant and equipment;
warehousing and storage;
health and safety; and
cafeteria and other services if operated as separate establishments.
Manufacturing activities exclude:
sales branches and sales offices;
mining activities; and
general administrative offices.
As in previous censuses, data were collected for most industries
on the value of individual products shipped. However, several
product classes report value of production rather than value of
shipments. The value of production should equal the selling value
f.o.b. plant (after discounts and allowances and excluding freight
charges) of all products made during the survey year whether sold,
transferred, added to inventory, or used in further processing.
Production Worker Hours - This item covers
all hours worked or paid for at the manufacturing plant, including
actual overtime hours (not straight-time equivalent hours). It
excludes hours paid for vacations, holidays, or sick leave when
the employee is not at the establishment.
Production Workers - The “production
workers” number includes workers (up through the line-supervisor
level) engaged in fabricating, processing, assembling, inspecting,
receiving, storing, handling, packing, warehousing, shipping (but
not delivering), maintenance, repair, janitorial and guard services,
product development, auxiliary production for plant’s own
use (e.g., power plant), recordkeeping, and other services closely
associated with these production operations at the establishment
covered by the report. Employees above the working-supervisor
level are excluded from this item.
Total beginning and end of year inventories -
- These items are comprised of:
1. Finished goods
3. Materials, supplies, fuels, etc.
Materials inventories refer to goods that are raw inputs to the
manufacturing process, and that will be substantially altered
to produce an establishment's output. Work-in-process inventories
refer to goods that have been substantially transformed in the
manufacturing process, but that are not yet the final output of
the establishment. Finished goods are goods that represent the
final output of the establishment, but that are still within ownership
of the establishment.
Total Fringe Benefits - This item is the employer’s
costs for social security tax, unemployment tax, workmen’s
compensation insurance, state disability insurance pension plans,
stock purchase plans, union-negotiated benefits, life insurance
premiums, and insurance premiums on hospital and medical plans
for employees. Fringe benefits are divided into legally required
expenditures and payments for voluntary programs. The legally
required portion consists primarily of federal old age and survivors’
insurance, unemployment compensation, and workers’ compensation.
Payments for voluntary programs include all programs not specifically
required by legislation, whether they are employer initiated or
the result of collective bargaining. They include the employer
portion of such plans as insurance premiums, premiums for supplemental
accident and sickness insurance, pension plans, supplemental unemployment
compensation, welfare plans, stock purchase plans on which the
employer payment is not subject to withholding tax, and deferred
profit-sharing plans. They exclude such items as company-operated
cafeterias, in-plant medical services, free parking lots, discounts
on employee purchases, and uniforms and work clothing for employees.
Total value of shipments - Includes the received
or receivable net selling values, “Free on Board”
(FOB) plant (exclusive of freight and taxes), of all products
shipped, both primary and secondary, as well as all miscellaneous
receipts, such as receipts for contract work performed for others,
installation and repair, sales of scrap, and sales of products
bought and sold without further processing. Included are all items
made by or for the establishments from material owned by it, whether
sold, transferred to other plants of the same company, or shipped
on consignment. The net selling value of products made in one
plant on a contract basis from materials owned by another was
reported by the plant providing the materials. In the case of
multiunit companies, the manufacturer was requested to report
the value of products transferred to other establishments of the
same company at full economic or commercial value, including not
only the direct cost of production but also a reasonable proportion
of “all other costs” (including company overhead)
and profit (interplant transfers). In addition to the value for
the North American Industry Classification System (NAICS) defined
products, aggregates of the following categories of miscellaneous
receipts are reported as part of a total establishment’s
value of product shipments:
value of resales — sales of products bought and sold
without further manufacture, processing, or assembly;
contract receipts — receipts for work or services
that a plant performed for others on their materials; and
other miscellaneous receipts — includes repair work,
installation, sales of scrap, etc.
Total value of shipments is comprised of three components. These
primary product value of shipments
secondary product value of shipments; and
total miscellaneous receipts.
Value added - This measure of manufacturing
activity is derived by subtracting the cost of materials, supplies,
containers, fuel, purchased electricity, and contract work from
the value of shipments (products manufactured plus receipts for
services rendered). The result of this calculation is adjusted
by the addition of value added by merchandising operations (i.e.,
the difference between the sales value and the cost of merchandise
sold without further manufacture, processing, or assembly) plus
the net change in finished goods and work-in-process between the
beginning- and end-of-year inventories. For those industries where
value of production is collected instead of value of shipments,
value added is adjusted only for the change in work-in-process
inventories between the beginning and end of year. For those industries
where value of work done is collected, the value added does not
include an adjustment for the change in finished goods or work-in-process
inventories. “Value added” avoids the duplication
in the figure for value of shipments that results from the use
of products of some establishments as materials by others. Value
added is considered to be the best value measure available for
comparing the relative economic importance of manufacturing among
industries and geographic areas.
Value of product shipments - Includes the total
value of all products produced and shipped by all producers, not
just those with values of $100,000 or more. However, for selected
products, this can represent value of receipts, value of production,
or value of work done. Industries that are published on these
unique basis are separately.
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