This section presents summary data for manufacturing as a whole and more detailed information for major industry groups and selected products. The types of measures shown at the different levels include data for establishments, employment and wages, plant and equipment expenditures, value and quantity of production and shipments, value added by manufacture, inventories, and various indicators of financial status.

The principal sources of these data are U.S. Census Bureau reports of the censuses of manufactures conducted every 5 years, the Annual Survey of Manufactures, and Current Industrial Reports. Reports on current activities of industries or current movements of individual commodities are compiled by such government agencies as the Bureau of Labor Statistics; the Economic Research Service of the Department of Agriculture; the International Trade Administration; and by private research or trade associations such as The Conference Board, Inc., the American Iron and Steel Institute, the Electronic Industries Association, and several others.

Data on financial aspects of manufacturing industries are collected by the Bureau of Economic Analysis (BEA) and the U.S. Census Bureau. Industry aggregates in the form of balance sheets, profit and loss statements, analyses of sales and expenses, lists of subsidiaries, and types and amounts of security issues are published for leading manufacturing corporations registered with the Securities and Exchange Commission. The BEA issues data on capital in manufacturing industries and capacity utilization rates in manufacturing. See also Section 15, Business Enterprise.

Several private trade associations provide industry coverage for certain sections of the economy. They include the Aluminum Association (Table 976), American Iron and Steel Institute (Tables 977-979), Consumer Electronics Association (Tables 987 and 988), and the Aerospace Industries Association (Tables 995-997). Machine tool consumption data (Table 980) is produced jointly by the Association for Manufacturing Technology and American Machine Tool Distributors Association.

Censuses and annual surveys-Thefirst census of manufactures covered the year 1809. Between 1809 and 1963, a census was conducted at periodic intervals. Since 1967, it has been taken every 5 years (for years ending in ‘‘2’’ and ‘‘7’’). Results from the 1997 census are presented in this section utilizing the new NAICS (North American Industry Classification System). For additional information see text, Section 15, Business Enterprise, and the Census Bureau Web site at http://www.census.gov/epcd/www/naics.html. Census data either direct reports or estimates from administrative records, are obtained for every manufacturing plant with one paid employee or more.

The Annual Survey of Manufactures (ASM), conducted for the first time in 1949, collects data for the years between censuses for the more general measure of manufacturing activity covered in detail by the censuses. The annual survey data are estimates derived from a scientifically selected sample of establishments. The 1999 annual survey is based on a sample of about 55,000 establishments of an approximate total of 230,000. These establishments represent all manufacturing establishments of multiunit companies and all single-establishment manufacturing companies mailed schedules in the 1997 Census of Manufactures. For the current panel of the ASM sample, all establishments of companies with 1997 shipments in manufacturing in excess of $500 million were included in the survey with certainty. For the remaining portion of the mail survey, the establishment was defined as the sampling unit. For this portion, all establishments with 250 employees or more and establishments with a very large value of shipments also were included. Therefore, of the 58,000 establishments included in the ASM panel, approximately 33,000 are selected with certainty. These establishments account for approximately 80 percent of total value of shipments in the 1992 census. Smaller establishments in the remaining portion of the mail survey were selected by sample.

Establishments and classification- The censuses of manufactures for 1947 through 1992 cover operating manufacturing establishments as defined in the Standard Industrial Classification Manual (SIC), issued by the U.S. Office of Management and Budget (see text, Section 12). The Manual is also used for classifying establishments in the annual surveys. The comparability of manufactures data over time is affected by changes in the official definitions of industries as presented in the Manual. It is important to note, therefore, that the 1987 edition of the Manual was used for the 1987 and 1992 censuses; and the 1972 edition of the Manual and the 1977 Supplement were used for the 1972 through 1982 censuses.

The Manual defines an industry as a number of establishments producing a single product or a closely related group of products. In the manual, an establishment is classified in a particular industry if its production of a product or product group exceeds in value added its production of any other product group. While some establishments produce only the products of the industry in which they are classified, few within an industry specialize to that extent. The statistics on employment, payrolls, value added, inventories, and expenditures, therefore, reflect both the primary and secondary activities of the establishments in that industry. For this reason, care should be exercised in relating such statistics to the total shipments figures of products primary to the industry.

Most tables in this section use the new way of organizing economic statistics called the North American Industry Classification System (NAICS). For more information on this system, see NorthAmerican Industry Classification System (NAICS) - United States, 1997.

Establishment-Establishment signifies a single physical plant site or factory. It is not necessarily identical to the business unit or company, which may consist of one or more establishments. A company operating establishments at more than one location is required to submit a separate report for each location. An establishment engaged in distinctly different lines of activity and maintaining separate payroll and inventory records is also required to submit separate reports.

Durable goods-Items with a normal life expectancy of 3 years or more. Automobiles, furniture, household appliances, and mobile homes are common examples.

Nondurable goods-Items whichgenerally last for only a short time (3 years or less). Food, beverages, clothing, shoes, and gasoline are common examples.

Statistical reliability-For a discussion of statistical collection and estimation, sampling procedures, and measures of statistical reliability applicable to Census Bureau data, see Appendix III.