SAS estimates are computed using the Horvitz-Thompson estimator on a 2012 NAICS basis (see https://www.census.gov/programs-surveys/sas/technical-documentation/methodology.html for a complete description of the SAS estimation methodology). Prior to benchmarking to the 2022 Economic Census, those computed SAS estimates were benchmarked to the 2017 Economic Census, and the benchmarked estimates were then updated from 2012 NAICS definitions to reflect the 2017 NAICS definitions.
The resulting revenue estimates will be referred to as "modified" revenue estimates for the remainder of this paper.
These modified SAS estimates are then benchmarked to the final results of the 2022 Economic Census. Benchmarking to the 2022 Economic Census is performed on a 2017 NAICS basis.
Benchmarking of total revenue estimates is executed first, followed by benchmarking of total expenses. Next, detail data items that sum to the benchmarked total revenue or total expense estimates are benchmarked. Finally, remaining data items that do not sum to benchmarked total revenue or total expenses are benchmarked. The details of each step are outlined below.
Total Revenue
The “modified" revenue estimates are input to the benchmarking program. Using this program, the modified revenue estimates for survey years 2018 and later are revised in a manner that:
Refer to the revised total revenue estimates output from the benchmarking operation as "benchmarked" estimates.
Exceptions to performing benchmarking operations occurred in industries that did not use any Economic Census revenue constraints: NAICS 485111, 485112, 485113, 485119, 488510, 521110, and 541840. For NAICS 48511x and 488510, this was due to there being too much difference in instructions of what to count as revenue between SAS and the Economic Census. For 521110, this was due to there being differences in collection strategy between SAS and the Economic Census (SAS being company based and the Economic Census being an establishment based survey). For NAICS 541840, the Economic Census is able to assign/divide revenue to multiple product classifications (i.e. kinds of business) for an establishment while SAS can only assign revenue to one primary kind of business for an establishment. This distinction created too much difference for what is counted as revenue in NAICS 54184 between SAS and the Economic Census. For all these industries, the benchmarked estimates are set equal to the modified estimates and their associated aggregate estimates will not match the 2017 and 2022 Economic Census results.
Note that total revenue estimates for 2017 and prior years are not generally revised. However, exceptions occurred in industries where updated prior Economic Census levels were believed to be more reflective of industry activity. In those cases, survey data prior to 2017 was recalculated. In addition, Economic Census revenue totals from 2017 or prior were updated and used in the benchmarking process as fixed constraints.
A 2022 revenue ratio can be defined as the ratio of the benchmarked-to-modified estimate for the 2022 benchmark year.
Total Expenses
A method similar to the one for benchmarking total revenue is used to benchmark total expenses. First, the revenue ratio described above is applied to the modified 2022 total expense estimate for each detailed industry, resulting in benchmarked total expense estimates.
The resulting total expense estimates are input to the benchmarking program. Using the benchmarking program , the modified total expense estimates for 2017 through the end of the time series are revised in a manner that:
For industries with updated 2017 Economic Census revenue, an additional constraint is added: the modified 2012 total expense estimate.
All exceptions mentioned for benchmarking total revenue also apply for total expenses.
Detail Revenue and Expense Items
Modified estimates for data items that sum to total revenue or total expense are indirectly benchmarked by raking them to the benchmarked total estimates, keeping the ratio of each benchmarked detail item to the benchmarked total estimate equal to the ratio of the corresponding modified detail item to the modified total.
Other Items
Revenue-based items have their modified estimates multiplied by the benchmarked-to-modified total revenue ratios for each year and expense-based items have their modified estimates multiplied by the benchmarked-to-modified total expenses ratios for each year to produce benchmarked estimates for these data items.
For all items, benchmarked estimates at aggregate levels are computed by summing the benchmarked estimates for the appropriate detailed series comprising the aggregate.
Nonemployers
Nonemployer total revenue estimates are based on data from the Nonemployer Statistics program and are not benchmarked to the 2022 Economic Census.