Part III--Proposed New Industry Structure for Computer and Electronic Product
Manufacturing

Section A--NAICS Structure

North American Industry Classification System

(NAICS)
      
Agreement Number 13

  This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following subsector:  
Computer and Electronic 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 September 27, 1995 - September 29, 1995 in
Mexico City,  Mexico.

Accepted                       Signature                         Date

Canada         /S/   Jacob Ryten             9/29/95
Mexico         /S/   Enrique Ordaz           9/29/95
United States       /S/   Jack E.  Triplett            9/29/95

ATTACHMENT 1--NAICS STRUCTURE

XX       Computer and Electronic Product Manufacturing
XXX        Computer and Peripheral Equipment Manufacturing
XXXX         Computer and Peripheral Equipment Manufacturing
XXX        Communications Equipment Manufacturing
XXXX         Telephone Apparatus Manufacturing
XXXX         Broadcast and Studio Equipment for Radio, TV, and Cable                      Manufacturing
XXXX         Other Communications Equipment Manufacturing
XXX        Audio and Video Equipment Manufacturing
XXXX         Audio and Video Equipment Manufacturing
XXX        Semiconductor and Electronic Component Manufacturing
XXXX         Semiconductor and Electronic Component Manufacturing
XXX        Navigational, Measuring, Medical and Control Instrument                        Manufacturing
XXXX       Navigational, Measuring, Medical and Control Instrument                        Manufacturing
XXX        Manufacturing and Reproduction of Magnetic and Optical Media
XXXX         Manufacturing and Reproduction of Magnetic and Optical Media 
             (Includes the manufacturing of blank audio and video tapes, diskettes and
             CD-ROMs, and reproduction of software, audio, video, and multimedia
             products)

Attachment 2--North American Industry Classification System

Draft Classification for:
  Computer and Electronic 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, Computer and Electronic Product
Manufacturing.  This subsector is further subdivided into six industry groups and eight
industries.  The subsector will be part of the Manufacturing sector of the classification.

A General Outline

  The Computer and Electronic Product Manufacturing industries produce computers,
computer peripherals, communications equipment, and similar electronic products, together with
components for such products.  The treatment of this subsector in NAICS differs substantially
from past national classifications in all three countries, and also from other international
classifications.
  First, in NAICS the computer and electronic product manufacturing industries have been
elevated to a separate subsector that brings together in the classification the manufacture of
electronic products and their components.  In previous national classification systems, and in the
International Standard Industrial Classification of All Economic Activities (ISIC, Revision 3) of
the United Nations, these industries are placed in machinery industries or with electrical
equipment.  Computer and electronic product manufacturing industries have been elevated in the
hierarchy of NAICS because of the economic importance they have attained, because their rapid
growth suggests that they will become even more important in the economies of all three North
American countries in the future, and because their manufacturing processes are fundamentally
different from the manufacturing processes of other machinery and electrical components with
which they have been grouped in the past, and are grouped in ISIC.
  Computers, communications equipment, and other electronic devices can of course be
regarded as types of machines, which has been the view embodied in past classification systems. 
However, in NAICS the application of mechanical principles defines the Machinery subsector,
because it describes the production processes (gear cutting and so forth) that must be used to
manufacture machinery that functions on mechanical principles.  Mechanical principles are not
significant in the operation of computers and other electronic devices, and the production of
computers, communications equipment and other electronic devices is not characterized by the
processes that are used in the Machinery subsector.
  Instead, the design and use of integrated circuits and the application of highly specialized
miniaturization technologies are common elements in the production technologies of the
Computer and Electronic Product Manufacturing subsector.  The production processes are in a
constant state of technological development, such that heavy research and development
expenditures are necessary to cope with rapid obsolescence of tangible and intangible assets. 
The manufacture of these products is grouped together because similar production processes are
used.
  A second substantive difference between NAICS and most other classification systems
involves the grouping itself.  In NAICS, the manufacture of integrated circuits and related
electronic components is placed in the same subsector as the manufacturing of computers,
communications equipment and other end products for which these components are an essential
part of the end-product technology.  Moreover, NAICS combines in the same subsector end
products that have different uses--for example, computers, communications equipment, and
audio equipment--but have similar and converging technologies.
  Convergence of technology motivates the NAICS groupings.  Digitalization of sound
recording, for example, causes both the medium (the "compact disk") and the equipment to
resemble the technologies for recording, storing, transmitting and manipulating data. 
Communications technology and equipment have been converging with computer technology. 
Machines already exist that can send fax messages, copy electronically, and print documents. 
Transmission technology may take the form of a dedicated, separately-housed machine (end
product), or the same technology may be incorporated into a board mounted inside a computer
(in which case it is technically an electronic component); thus, the component/end product
distinction no longer justifies separating electronic components in a separate part of the
classification system from electronic end products.  Combining in the same subsector the
production of equipment designed for different end uses, and also combining in the same
subsector the components with the end-use equipment, is justified by rapid convergence in the
production technologies and by the expected continued convergence of technology.
  When technologically related components are in the same sector, it makes it easier to adjust
the classification for future changes, without needing to redefine its basic structure.  The creation
of the Computer and Electronic Product Manufacturing subsector will assist in delineating new
and emerging industries because the activities that will serve as the probable sources of new
industries--such as computer manufacturing and communications equipment manufacturing, or
computers and audio equipment--are brought together.  As new activities emerge, they are less
likely therefore to cross the subsector boundaries of the classification.
  In addition, the three countries put a priority in NAICS on the delineation of industries
engaged in the production of advanced technologies.  The creation of this subsector is a response
to that priority.  It groups activities that are constantly developing and applying new scientific
and engineering knowledge.  
  Though the three countries' statistical agencies agree that the growth of computer and
electronic components in all three countries is likely to be significant in the future, and that
accordingly it merits treatment as a subsector in NAICS, many differences currently exist in the
degrees of specialization and differentiation in the three countries.  The United States has more
diversification and more specialization in these high technology sectors than does either Canada
or Mexico.  For this reason, it was necessary to specify NAICS 4-digit industries in this sector at
a relatively broad level of detail.  By setting up a forward-looking classification, it will be easier
to subdivide NAICS 4-digit industries in the future, as the sector expands in all three countries,
without requiring major shifts in the classification system.  This is especially important in view
of the fact that the technologies that are common across all of the industries in this subsector
may converge in the future as well as differentiate.
  The Computer and Electronic Product Manufacturing subsector is subdivided into six
industry groups.  Computer and Peripheral Equipment Manufacturing comprises the production
of computers and associated products such as storage devices and monitors.  Communication
Equipment Manufacturing includes the manufacture of telephone apparatus and radio and
television studio and broadcast equipment.  Audio and Video Equipment Manufacturing covers
household and commercial radios, televisions, video equipment and similar articles. 
Semiconductor and Electronic Component Manufacturing includes the manufacture of a broad
range of components used as parts in this subsector.  The loading of circuit boards is classified
here.  Navigational, Measuring, Medical and Control Instrument Manufacturing includes the
manufacture of such products as radar and sonar equipment and industrial process control
equipment.
  The sixth industry group, Manufacturing and Reproduction of Magnetic and Optical Media,
includes the production of media such as video tapes and CD-ROMs, and the mass duplication of
these media.  It should be noted that the manufacture of packaged software is placed in this
sector; however, the publishing of software, and its distribution electronically, is placed in the
new NAICS Information sector, to be published separately, while traditional custom applications
of software to client specification are in the Professional, Scientific and Technical Services
subsector.  These changes were made to represent better the different ways that software is
produced and distributed.  Sources within the industry and without have noted that the attempt,
in past classification systems, to locate all software in a single portion of the classification
system (the Services sector, or the Manufacturing sector) obliterates useful distinctions in
software production and distribution, and tends, whatever the decision, to become rapidly
obsolete as the nature and use of software changes.  The NAICS structure is intended to facilitate
the production of data on such changes, rather than obliterating them.
  Consideration was given to subdividing this industry.  Two possibilities were considered. 
Establishments could be distinguished based on the type of media, for example, CD-ROMs and
diskettes or on the type of application, for example software and entertainment.  This was not
done for two reasons.  First, the production process is often the same for a particular medium
regardless of the application.  For example, a blank CD-ROM can be used for recording music or
for recording software.  The format used for recording music CD-ROMs is also commonly used
in multimedia software applications.  Secondly, some establishments combine the production of
the possible subdivisions.  Establishments exist that produce both diskettes and CD-ROMs. 
These technological and establishment organization issues precluded a subdivision of the
industry for NAICS.  It is also the case that any subdivisions would be very small in Canada and
Mexico.  

Limitations and Constraints of the Classification

  In the Computer and Electronic Product Manufacturing subsector, most activities that were
identified in one country exist in the others.  However, as noted above, often an activity is not
economically significant to the same degree in all countries.  For example, a broad NAICS
Computer and Peripheral Equipment Manufacturing industry was created because in Canada and
Mexico establishments that primarily manufacture computers also produce peripherals to a
significant degree.  In Canada, a computer manufacturing industry would have a specialization
ratio of only 70%.  In addition, there is evidence that the lines between computer and peripheral
equipment manufacturing are becoming less precise even in the U.S.  The U.S. specialization
ratio for computer manufacturing declined from 87% to 82% between 1987 and 1992.  As
another example, a relatively broad NAICS industry was created for Semiconductor and
Electronic Component Manufacturing, partly because any possible subdivisions are small or
confidential in Canada and Mexico.
  Each country may publish additional national industries that comprise subdivisions of
NAICS industries, to present data for activities that are nationally significant.  Though these
national industries are also constrained by the desire to preserve time series comparability within
each country's statistics, so far as possible, the three countries are committed to increased
international comparability of industrial statistics in these high technology sectors, as
development in the three economies makes it feasible.
  Bringing electronic components and end products together in the classification has inevitably
produced some anomalies at the boundary of the sector.  For example, most of the traditional
instrument industries have been located in this subsector because electronic measuring devices
and instruments have rapidly displaced mechanical and electrical types that served similar
functions.  It was, however, not practical to split off all of the traditional forms of instruments,
partly for the sake of preserving time series, partly because the establishments themselves have
shifted from the old to the new technology, and partly because the rapid eclipse of some
traditional instrument types may mean that an industry or industries for mechanical instrument
manufacturing (in Miscellaneous Manufacturing) would soon become obsolete, even if it were
established in NAICS.  As a consequence, however, some activities that are neither electronic
nor "high tech" (watch springs, for example) appear anomalously in this subsector.
  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

  The Computer and Electronic Product Manufacturing subsector does not closely match any
existing Division of the current International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations.  Computers and peripherals are classified in
ISIC Division 30, Manufacture of Office, Accounting and Computing Machinery. 
Communications equipment, audio and video equipment and most electronic components are in
ISIC Division 32, Manufacture of Radio, Television and Communication Equipment and
Apparatus.  Navigational, measuring and controlling equipment are included in ISIC Division
33, Manufacture of Medical, Precision and Optical Instruments, Watches and Clocks.  Other
activities in this subsector are classified in three additional ISIC Divisions.
  However, of the eight NAICS 4-digit industries in this subsector, six of them are each
contained entirely within a single ISIC Division.  The other two NAICS industries cross two
ISIC Divisions:  Semiconductor and Electronic Component Manufacturing is largely included in
ISIC Division 32, but includes the manufacture of electronic coils, transformers, connectors and
switches that are classified in ISIC Division 31, Manufacture of Electrical Machinery and
Apparatus, NEC.  Manufacturing and Reproduction of Magnetic and Optical Media is split
between ISIC Division 24, Manufacture of Chemicals and Chemical Products (the manufacture
of media) and ISIC Division 22, Publishing, Printing and Reproduction of Recorded Media
(mass duplication); in North America, these activities take place in the same establishments, so
they are combined in NAICS.
  Most of ISIC Division 32 is included in this subsector.  However, the other ISIC Divisions
(31, 24 and 22) linked to the Computer and Electronic Component Manufacturing subsector all
have significant activities that are classified elsewhere in NAICS.

Some Changes to the National Classifications

  For all countries, the creation of the Computer and Electronic Product Manufacturing
subsector represents a significant change to the structure of the current national classifications.
  For Canada, the subsector is largely the sum of three industry groups in Electrical and
Electronic Products Industries (CSIC 334, 335 and 336) and  instruments now in Other
Manufacturing Industries (part of 391).  The amount of detail of this NAICS subsector is less
than that contained in the Canadian classification.
  For Mexico, the Computer and Electronic Product Manufacturing subsector has coverage
similar to the Mexican classification s Manufacture and Assembly of Electronic Radio,
Television, Communications and Medical Equipment (CMAP 3832), combined with the
computers and peripherals activities from Manufacture and Assembly of Office Calculating and
Data Processing Machines (3823).  The amount of detail of this NAICS subsector is similar to
that of these areas of the Mexican classification.
  For the United States, this subsector includes activities from three major groups.  Computers
and peripherals are now in Computer and Office Equipment, 1987 Industry Group 357;  
instruments are now a large part of  1987 SIC Major Group 38, Measuring, Analyzing, and
Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks; and
the remaining NAICS activities in this subsector are largely classified in 1987 Major Group 36,
Electronic and Other Electric Equipment (especially 365, 366 and 367).  NAICS provides much
less industry detail than the 1987 U.S. SIC.  However, the U.S. national industries will provide
similar detail below the NAICS industry level.

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.  The hierarchical
structure of the classification also follows the production concept.  For example, computer
peripherals and electronic components are both used in the manufacture of computers; however,
components are separated from peripherals in the hierarchy because the production process used
in the manufacture of peripherals is more like that of computers, with assembly of parts being
important, while the manufacture of electronic components is driven by miniaturization
techniques.
  The industries have high specialization ratios, and they are economically significant.  Some
are much larger than others, but this was necessitated by the considerations discussed above
under Limitations and Constraints of the Classification.  The classification is still suitable for
sampling, data-publishing and other aspects of survey operations.  Finally, while disruptions to
time series exist, they are mostly at the level of the aggregation structure.  The statistical
agencies can develop statistical "links" to enable the re-tabulation of time series on the new
NAICS classification structure.
  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 III, 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 subsector covered in Part
III 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; 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
Computer and Electronic Product Manufacturing

XXX
     Computer and Peripheral Equipment Manufacturing

XXXX
          Computer and Peripheral Equipment Manufacturing

XXXXX
               Electronic Computer Manufacturing 
E
 3571 
Electronic Computers

XXXXX
               Computer Storage Device Manufacturing 
E
 3572 
Computer Storage Devices

XXXXX
               Computer Terminal Manufacturing 
E
 3575 
Computer Terminals

XXXXX
               Other Computer Peripheral Equipment Manufacturing
R
 3577 
Computer Peripheral Equipment, NEC

*3578
Calculating and Accounting Machines, Except 
Electronic Computers (point of sale terminals and fund
transfer devices)

*3699
Electrical Machinery Equipment and Supplies, NEC
(bar code scanners)

XXX
     Communication Equipment Manufacturing

XXXX
          Telephone Apparatus Manufacturing 
R
*3661
Telephone and Telegraph Apparatus (except telephone
transformers and external PC consumer modems)

XXXX
          Broadcast and Studio Equipment for Radio, TV, and Cable
          Manufacturing
R
 3663
Radio and Television Broadcasting and 
Communication Equipment

*3679
Electronic Components, NEC (communication 
equipment)

XXXX
          Other Communication Equipment Manufacturing
E
  3669
Communications Equipment, NEC

XXX
     Audio and Video Equipment Manufacturing

XXXX
          Audio and Video Equipment Manufacturing
E
 3651
Household Audio and Video Equipment

XXX
     Semiconductor and Electronic Component Manufacturing

XXXX
          Semiconductor and Electronic Component Manufacturing

XXXXX
               Electron Tube Manufacturing
E
 3671
Electron Tubes

XXXXX
               Printed Circuit Board Manufacturing
E
 3672
Printed Circuit Boards

XXXXX
               Semiconductor and Related Device Manufacturing
E
 3674
Semiconductors and Related Devices

XXXXX
               Electronic Capacitor Manufacturing
E
 3675
Electronic Capacitors

XXXXX
               Electronic Resistor Manufacturing
E
 3676
Electronic Resistors

XXXXX
               Electronic Coil, Transformer, and Other Inductor
               Manufacturing
R
*3661
Telephone and Telegraph Apparatus (telephone
transformers)

 3677
Electronic Coils, Transformers, and Other Inductors

*3825
Instruments for Measuring and Testing of Electricity
and Electrical Signals (portable instrument
transformers)

XXXXX
               Electronic Connector Manufacturing
E
  3678
Electronic Connectors

XXXXX
               Other Electronic Component Manufacturing
R
*3661
Telephone and Telegraph Apparatus (external PC
consumer modems)

*3679
Electronic Components, NEC (other electronic
components including loaded printed circuit boards)

XXX
     Navigational, Measuring, Medical, and Control Instrument
     Manufacturing

XXXX
          Navigational, Measuring, Medical, and Control Instrument
          Manufacturing

XXXXX
               Search, Detection, Navigation, Guidance, Aeronautical, and 
               Nautical System and Instrument Manufacturing
E
 3812
Search, Detection, Navigation, Guidance, 
Aeronautical, and Nautical Systems and Instruments

XXXXX
               Automatic Control for Regulating Residential and Commercial
               Environment and Appliance Manufacturing
E
 3822
Automatic Controls for Regulating Residential and 
Commercial Environments and Appliances

XXXXX
               Industrial Instrument for Measurement, Display, and Control of
               Process Variables, and Related Products 
E
 3823
Industrial Instruments for Measurement, Display, and 
Control of Process Variables; and Related Products

XXXXX
               Totalizing Fluid Meter and Counting Device Manufacturing
E
 3824
Totalizing Fluid Meters and Counting Devices

XXXXX
               Instruments for Measuring and Testing of Electricity and
               Electrical Signal Manufacturing
R
*3825
Instruments for Measuring and Testing of Electricity 
and Electrical Signals (except portable instrument
transformers)

XXXXX
               Analytical Instrument Manufacturing
E
 3826
Laboratory Analytical Instruments

XXXXX
               Other Measuring and Controlling Device Manufacturing
R
*3829
Measuring and Controlling Devices, NEC  (except
medical thermometers) 

XXXXX
               Watch, Clock, and Part Manufacturing
R
*3495
Wire Springs (clock and watch springs)

*3579
Office Machines, NEC (time clocks and other time 
recording devices)

 3873
Watches, Clocks, Clockwork Operated Devices, and
Parts

XXXXX
               X-Ray Apparatus and Tubes and Related Irradiation Apparatus
E
3844
X-Ray Apparatus and Tubes and Related Irradiation
Apparatus

XXXXX
               Electromedical and Electrotherapeutic Apparatus
R
*3842
Orthopedic, Prosthetic, and Surgical Appliances and
Supplies (electronic hearing aids)

3845
Electromedical and Electrotherapeutic Apparatus

XXX
     Manufacturing and Reproduction of Magnetic and Optical Media

XXXX
          Manufacturing and Reproduction of Magnetic and Optical Media

XXXXX
               Reproduction of Software
R
*7372
Prepackaged Software (reproduction of software)

XXXXX
               Prerecorded Compact Disk, Except Software, Tape, and Record
               Manufacturing 
N
*3652
Phonograph Records and Prerecorded Audio Tapes  and
Disks (reproduction of all other media except video)

*7819
Services Allied to Motion Picture Production 
(Reproduction of video)

XXXXX

               Magnetic and Optical Recording Media Manufacturing
E
 3695
Magnetic and Optical Recording Media

                                              TABLE 2

The abbreviation "pt" means "part of", @ means time series break has been created that is greater than 3% of the 1992 value of shipments for the 1987 SIC industry.  The abbreviation NEC is used
for Not Elsewhere Classified.

1987 SIC code
1987 SIC description
1997 U.S. description

3495
Wire Springs

     Clock and Watch Springs
Watch, Clock and Part Manufacturing (pt) 

     Wire Springs, Except Clock and Watch Springs
Wire Spring Manufacturing (Included in Fabricated Metal Product
Manufacturing subsector)  

3571 
Electronic Computers
Electronic Computer Manufacturing

3572
Computer Storage Devices            
Computer Storage Device Manufacturing

3575
Computer Terminals
Computer Terminal Manufacturing

3577
Computer Peripheral Equipment, NEC
Other Computer Peripheral Equipment Manufacturing (pt)

3578@
Calculating and Accounting Machines, Except Electronic Computers

     Point of Sales Terminals and Fund Transfer Devices
Other Computer Peripheral Equipment Manufacturing (pt)

     Calculating and Accounting Machines, Except Point of Sales Terminals and Fund
     Transfer Devices 
Office Machinery Manufacturing (pt) (Included in Machinery 
Manufacturing subsector)

3579@
Office Machines, NEC

     Pencil Sharpeners and Staplers
Lead Pencils, Crayons and Artists' Supplies (pt) ( Included in Miscellaneous
Manufacturing subsector)

     Timeclocks and Other Time Recording Devices
Watch, Clock, and Part Manufacturing (pt) 

     Other
Office Machinery Manufacturing (pt) (Included in Machinery 
Manufacturing subsector)

3651 
Household Audio and Video Equipment
Audio and Video Equipment Manufacturing

3652@
Phonograph Records and Prerecorded Audio Tapes and Disks

     Record Publishing
(Included in Information subsector) 

     Reproduction of All Other Media Except Video
Prerecorded Compact Disk, Tape and Record Manufacturing (pt) 

     External PC Consumer Modems
Other Electronic Component Manufacturing (pt)

     Telephone Transformers
Electronic Coil, Transformer, and Other Inductor Manufacturing (pt) 
(Included in Electrical Equipment, Appliance and Component
Manufacturing subsector)

     Telephone and Telegraph Apparatus, Except Telephone Transformers and 
     Consumer External Modems
Telephone Apparatus Manufacturing

3663
Radio and Television Broadcasting and Communication Equipment
Broadcast and Studio Equipment for Radio, TV, and Cable  (pt)
Manufacturing

3669 
Communications Equipment, NEC
Other Communication Equipment Manufacturing

3671
Electron Tubes
Electron Tube Manufacturing

3672
Printed Circuit Boards
Printed Circuit Board Manufacturing

3674
Semiconductors and Related Devices
Semiconductor and Related Device Manufacturing

3675
Electronic Capacitors
Electronic Capacitor Manufacturing

3676
Electronic Resistors
Electronic Resistor Manufacturing

3677
Electronic Coils, Transformers, and Other Inductors
Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)

3678
Electronic Connectors
Electronic Connector Manufacturing

3679
Electronic Components, NEC

     Communication Equipment
Broadcast and Studio Equipment for Radio, TV and Cable Manufacturing
(pt)

     Electronic Control Modular Chips for Motor Vehicles
 Electrical Equipment for Internal Combustion Engine Manufacturing (pt)
(Included in Transportation Equipment Manufacturing subsector)

     Other Electronic Components Including Loaded PC Boards
Other Electronic Component Manufacturing (pt)

3695
Magnetic and Optical Recording Media
Magnetic and Optical Recording Media Manufacturing

3699@
Electrical Machinery, Equipment, and Supplies, NEC

     Bar Code Scanners
Other Computer Peripheral Equipment Manufacturing (pt)

     Christmas Tree Lighting Sets and Electric Insect Lamps
Other Lighting Equipment Manufacturing (pt) (To Be Included in Electrical
Equipment,  Appliance and Component Manufacturing subsector)

     Electric Outboard Motor;
Other Engine Manufacturing (pt) (Included in Machinery  Manufacturing
subsector)

     Lasers
Classified according to function

     Other Electrical Machinery, Equipment, and Supplies
Other Electrical Industrial Apparatus Manufacturing (pt) (Included in
Electrical Equipment, Appliance, and Component Manufacturing subsector)

3812
Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and 
Instruments 
Search, Detection, Navigation, Guidance, Aeronautical, and Nautical
System and Instrument Manufacturing

3822
Automatic Controls for Regulating Residential and Commercial Environment and
Appliances
Automatic Control for Regulating Residential and Commercial
Environment and Appliance Manufacturing

3823
Industrial Instruments for Measurement, Display, and Control of Process Variables;
and Related Products
Industrial Instrument for Measurement, Display, and Control of Process
Variables; and Related Product Manufacturing

3824
Totalizing Fluid Meters and Counting Devices
Totalizing Fluid Meter and Counting Device Manufacturing

3825
Instruments for Measuring and Testing of Electricity and Electrical Signals

     Portable Instrument Transformers
Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)

     Except Portable Instrument Transformers
Instruments for Measuring and Testing of Electricity and Electrical Signal 
Manufacturing

3826
Laboratory Analytical Instruments
Analytical Instrument Manufacturing

3829
Measuring and Controlling Devices, NEC

     Medical Thermometers
Surgical Appliance and Supply Manufacturing (pt) (Included in
Miscellaneous Manufacturing Subsector)

     Except Medical Thermometers
Other Measuring and Controlling Device Manufacturing

3842@
Orthopedic, Prosthetic, and Surgical Appliances and Supplies

     Electronic Hearing Aids
Electromedical and Electrotherapeutic Apparatus (pt.)

     Other
Surgical Appliance and Supply Manufacturing (pt.)  (To be Included in
Miscellaneous Manufacturing subsector)

3844
X-Ray Apparatus and Tubes and Related Irradiation Apparatus
X-Ray Apparatus and Tubes and Related Irradiation Apparatus

3845
Electromedical and Electrotherapeutic Apparatus
Electromedical and Electrotherapeutic Apparatus (pt.)

3873
Watches, Clocks, Clockwork Operated Devices and Parts
Watch, Clock, and Part Manufacturing (pt)

7372@
Prepackaged Software

     Reproduction of Software
Reproduction of Software

     Other
(Included in Information subsector)

7819@
Services Allied to Motion Picture Production

     Reproduction of Video
Prerecorded Compact Disk, Tape and Record Manufacturing (pt) 

     Other
(Included in Services subsector)

     Description of Changes to the U.S. System
     
                                           A number of the changes listed in this section were made for reasons of international
     comparability.  Where one or more of the three North American countries had different
     definitions of an industry classification, adjustments to the definitions in one or more
     countries were required.  In constructing NAICS, the three countries agreed to move,
     where change was required to attain international comparability, in the direction of the
     country or countries whose existing classification definitions most closely corresponded
     to the production-oriented concept adopted for NAICS.  Cases where the U.S. changed
     are listed below; other cases where Canada  Mexico moved toward the U.S. classification
     are not, of course, listed in this section.
                                           This is a new subsector for 1997.  Computer and Electronic Product Manufacturing is
     composed of industries from 1987 Major Group 35, Industrial Commercial Machinery
     and Computer Equipment; 1987 Major Group 36, Electronic and Other Electrical
     Equipment and Components, Except Computer Equipment; and 1987 Major Group 38,
     Measuring, Analyzing and Controlling Instruments; Photographic, Medical and Optical
     Goods; Watches and Clocks.  
                                           The following four complete industries were transferred into this subsector from 1987
     Major Group 35, Industrial Commercial Machinery and Computer Equipment:
                                           SIC 3571, Electronic Computers
                                           SIC 3572, Computer Storage Devices
                                           SIC 3575, Computer Terminals
                                           SIC 3577, Computer Peripheral Equipment, NEC
                                           The following twelve complete industries were transferred into this subsector from
     1987 Major Group 36, Electronic and Other Electrical Equipment and Components,
     Except Computer Equipment:
                                           SIC 3651, Household Audio and Video Equipment
                                           SIC 3661, Telephone and Telegraph Apparatus
                                           SIC 3663, Radio and Television Broadcasting and Communication Equipment
                                           SIC 3669, Communications Equipment, NEC
                                           SIC 3671, Electron Tubes
                                           SIC 3672, Printed Circuit Boards
                                           SIC 3674, Semiconductors and Related Devices
                                           SIC 3675, Electronic Capacitors
                                           SIC 3676, Electronic Resistors
                                           SIC 3677, Electronic Coils, Transformers, and Other Inductors
                                           SIC 3678, Electronic Connectors
                                           SIC 3695, Magnetic and Optical Recording Media
                                           Eight complete industries were transferred into this subsector from 1987 Major
     Group 38, Measuring, Analyzing and Controlling Instruments; Photographic, Medical
     and Optical Goods; Watches and Clocks.  Those industries are:
                                           SIC 3812, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical
     Systems and Instruments
                                           SIC 3822, Automatic Controls for Regulating Residential and Commercial
     Environments and Appliances
                                           SIC 3823, Industrial Instruments for Measurement, Display, and Control of Process
     Variables; and Related Products
                                           SIC 3824, Totalizing Fluid Meters and Counting Devices
                                           SIC 3826, Laboratory Analytical Instruments
                                           SIC 3844, X-Ray Apparatus and Tubes and Related Irradiation Apparatus
                                           SIC 3845, Electromedical and Electrotherapeutic Apparatus
                                           SIC 3873,  Watches, Clocks, Clockwork Operated Devices, and Parts
                                           These 34 complete industries were transferred into this new subsector for one or more
     of the following reasons: (1) the changes were in response to public requests; (2) the
     changes were supported by similar processes; and (3) the changes produced international
     comparability.
                                           One industry, SIC 3825, Instruments for Measuring and Testing of Electricity and
     Electrical Signals, moved in its entirety to this subsector, but was split; portable
     instrument transformers to NAICS industry, Electronic Coil, Transformer, and Other
     Inductor Manufacturing, and the rest going to NAICS industry, Instruments for
     Measuring and Testing of Electricity and Electrical Signal Manufacturing. 
                                           Two new industries were formed from very similar activities that were formerly
     partly included in manufacturing and partly in services.
                                           Prerecorded Compact Disk, Except Software, Tape, and Record Manufacturing was
     formed from part of 1987 SIC 3652, Phonograph Records and Prerecorded Audio Tapes
     and Disks, and from part of 1987 SIC 7819, Services Allied to Motion Picture
     Production.
                                           Reproduction of Software was created from part of 1987 SIC 7372, Prepackaged
     Software.  The ECPC recognizes that some establishments combine the production of
     prepackaged software and the production of other prerecorded compact disks, tapes, and
     records and that the production process is often the same.  Therefore, it may be necessary
     to combine these activities into one industry.  The ECPC requests specific comments on
     this proposal.  (The publishing portions of these three 1987 SIC industries have been
     moved to the new NAICS Information sector.)  These changes are made in response to an
     industry proposal, to improve international comparability, and to recognize that the
     production of prepackaged software is a manufacturing, not a services, activity.
                                           Eleven activities were transferred into 1997 Computer and Electronic Product
     Manufacturing.
                                           Point of sales terminals and fund transfer devices were transferred from 1987 SIC
     3578, Calculating and Accounting Machines, Except Electronic Computers, into Other
     Computer Peripheral Equipment Manufacturing, in response to a proposal from the
     industry and to create a better production-oriented industry.
                                           Time clocks and other time recording devices were transferred from 1987 SIC 3579,
     Office Machines, NEC, into Watch, Clock and Part Manufacturing.  This improves
     international comparability and is supported by similarity in production processes.
                                           Phonograph records and prerecorded audio tapes and disks, except record publishing,
     were transferred from 1987 SIC 3652, Phonograph Records and Prerecorded Audio
     Tapes and Disks, into Prerecorded Compact Disk, Tape, and Record Manufacturing. 
     This improves international comparability and is supported by similarity in production
     processes.  
                                           Telephone and telegraph apparatus, except telephone transformers and consumer
     external PC modems, were transferred from 1987 SIC 3661, Telephone and Telegraph
     Apparatus, into Telephone Apparatus Manufacturing.  This improves international
     comparability and is supported by similarity in production processes.
                                           The communication equipment formerly in 1987 SIC 3679, Electronic Components,
     NEC, was transferred into Broadcast and Studio Equipment Manufacturing for Radio,
     TV, and Cable.  This improves international comparability and is supported by similarity
     in production processes.
                                           Other electronic components, including loaded printed circuit boards, were
     transferred from 1987 SIC 3679, Electronic Components, NEC, into Other Electronic
     Component Manufacturing.  This improves international comparability and is supported
     by similarity in production processes.
                                           Other measuring and controlling devices, except medical thermometers, were
     transferred from 1987 SIC 3829, Measuring and Controlling Devices, NEC, into Other
     Measuring and Controlling Device Manufacturing. This improves international
     comparability and is supported by similarity in production processes.
                                           Bar code scanners were transferred from 1987 SIC 3699, Electrical Machinery,
     Equipment and Supplies, NEC, into Other Computer Peripheral Equipment
     Manufacturing. This improves international comparability and is supported by similarity
     in production processes.  
                                           Reproduction of software was transferred from 1987 SIC 7372, Prepackaged
     Software, into Reproduction of Software.  This improves international comparability and
     is supported by similarity in production processes.
                                           Reproduction of video was transferred from 1987 SIC 7819, Services Allied to
     Motion Picture Production, into Magnetic and Optical Media Manufacturing.  This
     improves international comparability and is supported by similarity in production
     processes.
                                           Clock and watch springs were transferred from 1987 SIC 3495, Wire Springs, into
     Watch, Clock, and Part Manufacturing.  This improves international comparability with
     Mexico, Canada, and the ISIC.
                                           There are 29 industries in this new subsector.  For time series linkage 19 of the 29
     1997 industries are comparable within three percent of the old 1987 industries.