History of the 1997

Economic Census

U.S. Department of Commerce

Economics and Statistics Administration

U.S. CENSUS BUREAU

Issued July 2000

POL/00-HEC
This history was prepared by Michael A.

Hovland and Jason G. Gauthier, under

the direction of William F. Micarelli,

Chief, History Staff.

The following individuals provided

valuable information and/or reviewed

the manuscript: Irma F. Harahush,

Lillyana Najafzadeh, Valerie A. Strang,

Ewen M. Wilson, and Sheldon Ziman,

Company Statistics Division; Shirin A.

Ahmed, Larry A. Blum, Bernard J.

Fitzpatrick, Kathleen V. Friedman,

Paul S. Hanczaryk, James E. Kristoff,

Robert A. Marske, Douglas J. Miller,

Jeannette K. Mon, Dennis Shoemaker,

Mark E. Wallace, and Paul T. Zeisset,

Economic Planning and Coordination

Division; Pamela Coan and Mark I.

Kronisch, Economic Statistical Methods

and Programming Division; Patricia A.

Angus and Robert W. Marx, Geography

Division; William G. Bostic, Jr.,

Tamara A. Cole, and Judy Dodds,

Manufacturing and Construction Statistics

Division; Carol A. Ambler, Ruth Ann

Bramblett, John L. Fowler, and

Kimberly P. Moore, Services Sector

Statistics Division.

Kim D. Ottenstein, Bernadette J.

Gayle, Crystal M. Pate, Theodora S.

Forgione, and Laurene V. Qualls of the

Administrative and Customer Services

Division, Walter C. Odom, Chief,

provided publications and printing

management, graphics design, composition, and editorial review for print and

electronic media. General direction and

production management were provided by

Michael G. Garland, Assistant Chief, and

Gary J. Lauffer, Chief, Publications

Services Branch.

Dedication

John P. Govoni

March 6, 1943 - January 21, 2000

The 1997 Economic Census was the last to benefit from the leadership of

John P. Govoni, Chief, Economic Planning and Coordination Division.

The history of this census is just a small part of the history of John’s tremendous

contribution to the Economic Programs Directorate, to the U.S. Census Bureau,

and to the people the world over whose lives he touched throughout

a long and inspired career of public service.

ACKNOWLEDGMENTS
History of the 1997

Economic Census

Issued July 2000

POL/00-HEC

U.S. Department Of Commerce

William M. Daley,

Secretary

Robert L. Mallet,

Deputy Secretary

Economics

and Statistics

Administration

Robert J. Shapiro,

Under Secretary for

Economic Affairs

U.S. Census Bureau

Kenneth Prewitt,

Director
Nancy A. Potok,

Principal Associate Director

and Chief Financial Officer

Gerald W. Gates,

Chief, Policy Office

William F. Micarelli,

Chief, History Staff

ECONOMICS

AND STATISTICS

ADMINISTRATION

Economics

and Statistics

Administration

Robert J. Shapiro,

Under Secretary

for Economic Affairs

U.S. CENSUS BUREAU

Kenneth Prewitt,

Director

William G. Barron,

Deputy Director
CHAPTERS

1. Introduction ................................ 1

2. The Players and the Plans ......................... 7

3. Introduction of the North American Industry Classification System

(NAICS) .................................. 13

4. Questionnaire Design and Development ................. 25

5. Promoting Census and Product Awareness ................ 35

6. Geographic Area Coding ......................... 47

7. Preparations for Census Mailout ..................... 57

8. Data Collection and Processing ...................... 71

9. The 1997 Economic Census in the Outlying Areas ............ 87

10. Transportation Surveys .......................... 95

11. Economy-Wide Programs ......................... 105

12. Publication Program............................ 117

13. Completing the Census Bureau’s Mission Through Data Integration . . 127

APPENDIXES

A. Provisions of Title 13, United States Code, Relating to the 1997

Economic Census............................. A-1

B. Historical Development of the Economic Census of the United States . B-1

C. Principal Advisory Committees on the 1997 Economic Census ..... C-1

D. Consultation on the Census Questionnaires ............... D-1

CONTENTS

History−1997 Economic Census Contents iii
Chapter 1. INTRODUCTION

What Is the Economic Census? ......................... 2

Legal Authority ................................. 2

The Evolution of the Economic Census..................... 2

What’s New About the 1997 Economic Census? ................ 3

The North American IndustryClassification System (NAICS) ........ 3

Expanded Role of Electronic Technology................... 3

Major Users and Uses of Economic Census Data................ 4

Data Collection and Basic Content ....................... 4

How the Data Were Classified ......................... 5

Summary .................................... 5

CONTENTS

History−1997 Economic Census Chapter 1 1
Introduction

WHAT IS THE ECONOMIC CENSUS?

The economic census can be defined as the systematic

measurement of the following:

• Almost all economic activityin the U.S. (During the

1997 Economic Census, approximately97 percent of

the Gross Domestic Product (GDP) was covered. Only

agriculture [1.6 percent of GDP] and a few other activities [1.2 percent of GDP] did not fall under the purview

of the 1997 Economic Census.)

• Major business activityin Puerto Rico, the Virgin Islands

of the United States, Guam, and the Commonwealth of

the Northern Mariana Islands.

• Business activitywithin the scope of special programs,

including—the Surveyof Minority-Owned Businesses,

Surveyof Women-Owned Businesses, Business Expenditures Survey, Vehicle Inventory and Use Survey, and

CommodityFlow Survey.

The economic census is the major economic statistical

program of the United States. It constitutes the chief

source of data about the structure and functioning of the

Nation’s economy, and provides the foundation and framework for a host of other statistical endeavors bypublic

and private sector alike.

LEGAL AUTHORITY

The 1997 Economic Census was carried out bythe U.S.

Census Bureau, an agencyof the U.S. Department of

Commerce, under the authoritygranted byTitle 13, United

States Code—Census. (Appendix A shows Title 13, United

States Code.) Title 13 directs the Census Bureau to

conduct economic censuses every 5 years, for years

ending in ‘‘2’’ and ‘‘7.’’ The title’s language also makes

response mandatorybybusiness firms or individuals

queried bythe census, establishes penalties for noncompliance, and requires that the Census Bureau maintain the

confidentialityof the information provided byindividual

respondents.

THE EVOLUTION OF THE ECONOMIC CENSUS

The economic census has come a long waysince 1810,

when a few questions on manufacturing activitywere

added to the population census schedule.

The U.S. Constitution requires that a census of population be carried out every10 years to apportion representation of each state in the U.S. House of Representatives.

Even as delegates to the Constitutional Convention

discussed various provisions James Madison—principal

author of the Constitution—urged that the census be used

for more than a head count. Nothing came of his initial

recommendations until 1810, after he had become President. In that year, the census collected data not only on

the population, but also some data on manufacturing

establishments. Questions were asked about—

• The kind, quantity, and value of goods manufactured.

• The number of manufacturing establishments.

• The number of machines of various kinds used in

selected types of manufacturing establishments.

From this modest beginning, the economic census

evolved into a major institution involving—

• The successive expansion in scope of business activity

measured.

• An accompanying increase in the systematization of

data collection.

• Advances in the systematization of data processing.

• Increasing standardization of formats for data presentation and dissemination.

• Increasing realization of the potential for integrating

the data sets to disseminate to the data user, not just

raw data, but value-added, integrated information—

particularlyvia the Internet.

The few manufacturing questions asked in 1810

burgeoned, by1997, into a separate economic census,

using 479 questionnaire variations to collect data from 3.7

million companies representing over 5 million business

establishments in 1,056 industryclassifications. (See

Chapter 4, ‘‘Questionnaire Design and Development,’’ for

more information on the census questionnaires.) In

addition, through the use of administrative records, the

Census Bureau compiled data on 14 million businesses

without paid employees (‘‘mom and pop’’ businesses) and

on 1.5 million small employers.

2 Chapter 1 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
WHAT’S NEW ABOUT THE 1997 ECONOMIC CENSUS?

The North American Industry Classification

System (NAICS)

The 1997 Economic Census collected, tabulated, and

disseminated the bulk of the data in terms of the new

North American IndustryClassification System (NAICS).

(Chapter 3, Introduction of the North American Industry

Classification System (NAICS) describes the new system in

detail). The NAICS was developed after extended negotiations among the United States, Canada, and Mexico. This

international effort was undertaken to create an integrated

industrial classification system for use throughout North

America, providing comparable economic statistics for all

three national economies. The 1997 Economic Census was

the first major statistical activityconducted byone of the

three signatorynations to collect and publish data in

terms of the new system.

In addition to providing comparable statistics, the

NAICS was designed to articulate a consistent conceptual

system for classification. Since industrial statistics require

that information on outputs and inputs be used together,

it was agreed that the NAICS measures of economic activitywould be ‘‘production-based.’’ Carving the economic

activityinto 20 sectors, instead of the 10 sectors used by

the Standard Industrial Classification (SIC) system, the

NAICS provided a more detailed and accurate measurement of industrial activityin the United States. This level

of detail within NAICS was particularlytrue for industries

providing services. For example, gone was the old ‘‘Services’’ sector, as such, and in its place was a host of far

more specific industrial classifications for the services

that— today—account for 34 million jobs. The SIC, developed in the late 1920s, was appropriate for measuring a

manufacturing-based economy. The NAICS is more suited

to a services and information-oriented economy.

The NAICS divides economic activityinto these sectors:

Agriculture, Forestry, Fishing, and Hunting; Mining; Utilities; Construction; Manufacturing; Wholesale Trade; Retail

Trade; Transportation and Warehousing; Information;

Finance and Insurance; Real Estate and Rental and Leasing;

Professional, Scientific, and Technical Services; Management of Companies and Enterprises; Administrative and

Support, Waste Management and Remediation Services;

Educational Services; Health Care and Social Assistance;

Arts, Entertainment, and Recreation; Accommodation and

Food Services; Other Services [except Public Administration]; and Public Administration.

Figure 1-1.

Employment by NAICS Sector

Sector 1997 employment

Not covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000

Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000

Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000

Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547,590

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711,053

Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,732,691

Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,999,584

Wholesale Trade . . . . . . . . . . . . . . . . . . . . . . . . . . 5,820,391

Retail Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,115,559

Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,927,060

Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,221,988

Finance and Insurance. . . . . . . . . . . . . . . . . . . . . 5,767,840

Real Estate and Rental . . . . . . . . . . . . . . . . . . . . 1,761,179

Professional/Scientific/Technical. . . . . . . . . . . . . 5,416,055

Management of Companies . . . . . . . . . . . . . . . . 2,656,196

Administrative Waste Mgmt. . . . . . . . . . . . . . . . . 7,439,208

Educational Services ...................... 332,490

Health Care and Social Asst. . . . . . . . . . . . . . . . 13,616,915

Art/Entertainment/Recreation . . . . . . . . . . . . . . . 1,571,886

Accommodation/Foodservices . . . . . . . . . . . . . . 9,496,136

Other Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,317,947

Figure 1-2, illustrates the basic structure of the NAICS

coding. The first five digits are common to industrial activityin the three participating nations. The NAICS, however,

provides for a sixth digit in the code. This digit is for economic activityclassifications that mayvaryfrom country

to country.

Figure 1-2.

NAICS Coding Structure

NAICS Code Description

Sector 51 Information

Subsector 513 Broadcasting and telecommunications

Industry group 5133 Telecommunications

Industry 51332 Wireless telecommunications carriers, except

satellite

U.S. Industry 513321 Paging

Expanded Role of Electronic Technology

Other 1997 Economic Census innovations include a

significant expansion of the use of electronic technology

in data collection, processing, and dissemination. A few

examples include—

• The DocuPrint technology used to print the

census questionnaires. DocuPrint made it possible to

print simultaneouslyall forms—including questionnaires, cover letters and inserts—that would be mailed

to a single company. This eliminated the need for a

complex clerical assemblyline, used in all previous

censuses, to assemble the mailing packages.

History—1997 Economic Census Chapter 1 3

U.S. Census Bureau, 1997 Economic Census
• Computer Self-Administered Questionnaires

(CSAQ). This newlydeveloped technology, providing

companies the capabilityof sending in their census

reports electronically—was extended well beyond 1992

Economic Census capabilities. The Census Bureau

authorized a private companyto develop a diskettebased questionnaire that would run on a personal

computer.

• Standardization, across economic sectors, of the

table formats. Increased consistencyin data presentation greatlyassisted data users in making nearlyinstantaneous comparisons across databases.

• The expanded use of the Internet. The Internet was

used, among other purposes, to promote awareness of

the census at the data collection stage and to disseminate data products over the ensuing years of the census

cycle.

• The development of new products, including new

software, for data users. In response to data user

requests for timelydata with easynavigational capabilities, the Census Bureau augmented its electronic publication system and products. The majority of data from

the 1997 Economic Census were released through

improved CD-ROMs and on the Internet, with most data

available free of charge.

As part of the increased use of electronic technology

in the 1997 Economic Census, the issuance of paper

products was reduced. The Census Bureau bridged the

transition from hard copyto electronic media byproviding

users with the capabilityto access page images via portable document format (pdf) files. Users with the free

Adobe Acrobat reader could print high qualitypages for

all keyreports that—for earlier economic censuses—were

issued in print.

For previous censuses, the production processes leading up to the printed reports delayed data release, sometimes, for months. Releasing data electronicallygave users

far more immediate access—often on the dayof release.

MAJOR USERS AND USES OF ECONOMIC CENSUS

DATA

Federal Reserve Board Chairman, Alan Greenspan,

called the economic census ‘‘indispensable to understanding the American economy.’’ Economic census data are

studied and recombined into a vast arrayof patterns to

yield essential information for government, business,

industry, and the general public. The following were major

users of economic census data:

• The Federal Government uses the data for composite

measures such as the Gross Domestic Product (GDP),

input-output measures, production and price indexes,

and for other statistical series that measure short-term

changes in economic conditions.

• Policymaking agencies of the Federal Government use

the data for, among other things, monitoring economic

activity.

• State and local governments use the data to assess

business activities and tax bases within their jurisdictions and to develop programs to attract new

businesses.

• Business firms compare their own internal statistics

with published figures for their industryor geographic

area. Then, theycompute market shares and evaluate

their own growth and product lines relative to how, and

what, other businesses are doing.

• Manufacturers and distributors that sell their products

to (or through) other businesses use the data to study

those markets to plan sales territories; locate plants,

warehouses, and stores; and make economic or sales

forecasts.

• Small businesses use the data about their markets or

their industryto enhance their business opportunity

presentations to bank officers or venture capitalists, as

theyseek funds for expansion.

• In colleges and universities, the data are used to teach

marketing and business management.

• In research units of all types, researchers apply the data

in their studyof long-term economic trends.

• Trade associations, business journals, and the daily

press widelydisseminate facts derived from the economic census. Business magazines use census statistics

as technical background for articles.

Census statistics are available in most major public and

college libraries designated as government depositories.

Information services specialists in the Census Bureau’s

regional offices (located in 12 large cities) and the staffs of

the Census Bureau’s State Data Center and Business and

IndustryData Center programs throughout all 50 states,

the District of Columbia, Puerto Rico, the Virgin Islands of

the United States, Guam, and the Commonwealth of the

Northern Mariana Islands have economic census reports.

Finally, the Department of Commerce’s International Trade

Administration staff answers questions about the availabilityand uses of economic census data.

DATA COLLECTION AND BASIC CONTENT

For the 1997 Economic Census, questionnaires were

mailed out in December 1997 to about 3.7 million companies to collect data on 5 million business locations. The

Census Bureau requested that responses be mailed to

the National Processing Center ((NPC)—the NPC was the

Data Preparation Division until the Census Bureau’s

reorganization effective May, 1998) in Jeffersonville, IN,

byFebruary12, 1998.

4 Chapter 1 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Responding to the census can be particularlyburdensome on small businesses. To save verysmall businesses

the expense and effort of filling out census questionnaires, the Census Bureau used administrative records

provided bythe Internal Revenue Service (IRS) and the

Social SecurityAdministration (SSA) to obtain basic business information—such as payroll, total receipts, and the

like—for approximately1.5 million small employer and 14

million nonemployer businesses. (The sharing of records

bythese agencies was strictlyone-way; IRS and SSA provided their records to the Census Bureau, but the Census

Bureau did not share its respondents’ data with anyother

agency.)

Economic census data are collected at the level of the

‘‘establishment.’’ An establishment is defined as a business

or industrial unit at a single-physical location that produces or distributes goods or that performs services. An

example would be a factoryor a store. Each ‘‘establishment’’ is owned bya ‘‘company.’’ A companymayown just

one establishment (a ‘‘single-establishment’’ company) or

it mayown manyestablishments spread across different

geographic or political jurisdictions, or across industry

types. These are ‘‘multiestablishment’’ companies. A set of

companies under common ownership is an ‘‘enterprise.’’

Economic census questionnaires are mailed to company

headquarters. One mailing package to a companyheadquarters might contain scores or even hundreds of questionnaires for all the company’s many establishments. The

questionnaires requested basic information about each

establishment, including—

• Kind-of-business activity(manufacturing, wholesale,

retail, etc.).

• Physical location.

• Form of ownership.

• Dollar volume of business in 1997.

• Number of employees.

• Dollar amount of the payroll.

In addition to these core items, the questionnaires

asked industry-specific questions (for, respectively, retail,

wholesale, manufactures, and the like). For example, the

Census Bureau gave high priorityto establishing product

lines because of the need to compare domestic output

with imports and exports.

HOW THE DATA WERE CLASSIFIED

After collecting the data, the Census Bureau classified

each data item into a categorythat made them manageable for data users, namely—

• ‘‘Kind-of-business activity’’ translated into industrial categories, also called ‘‘economic sectors,’’ such as manufacturing, retail trade, and the like. For the 1997 Economic Census, this meant that the activitywas

classified into one of the 20 NAICS-defined economic

sectors. The classification of industrial data formed the

starting point for the Census Bureau’s Industrial Report

series.

• ‘‘Physical location’’ translated into geographic categories, and at the Census Bureau’s NPC the data were subclassified into the following levels of geography:

• Nation.

• State.

• Metropolitan area.

• County.

• Cityor place.

• ZIP Code.

The classification of geographic data led, ultimately,

to the Census Bureau’s Geographic Area Report series;

however, not all data items were published for each

geographical level. The most detailed 1997 Economic

Census statistics were published onlyfor the United

States as a whole. Keydata were published for states,

metropolitan areas, counties, and places with 2,500 or

more inhabitants. Selected data also were provided at

the five-digit ZIP Code level. The smaller the geographic

area, the less detailed were the data released for that

area. The Census Bureau follows this practice to make

sure that the identityof the individual businesses that

provided the data cannot be inferred.1

• ‘‘Form of ownership’’ translated into categories of

organizational structure, namely, single- or multiestablishment companies or enterprises.

SUMMARY

Each time economic data have been collected in a

census—from 1810 to 1997—there has been a progression toward—

• Expansion in scope or content of business activity

covered.

• Increasing systematization in data collection, processing, presentation, or dissemination.

1

For example, if there were just one auto dealership in a particular ZIP Code, it would violate the confidentialityof the

answers provided bythe dealership to publish payroll or sales

receipts data on ‘‘Auto dealers byZIP Code.’’ In order to keep individual business identityconfidential, in this example auto dealership data would need to be published for a larger geographic

entitythan for a ZIP Code. Perhaps countywide or even statewide

data would be the onlystatistic that could protect the identityof

the auto dealership. At the opposite end of the spectrum, of

course, would be the publication of sales receipts for auto dealerships nationwide. Since no one can infer a single dealership from

data covering an entire Nation, national level data can be published in great detail.

History—1997 Economic Census Chapter 1 5

U.S. Census Bureau, 1997 Economic Census
• Further integration of data sets to provide the user with

greater value-added.

The 1997 Economic Census represents a substantial

leap forward on most of these dimensions. Where appropriate, these advances will be emphasized throughout the

History of the 1997 Economic Census. One fact is certain—

1997 was the year for a state-of-the-art U.S. Economic

Census to close out both the centuryand the millennium.2

2

In November 1997, the Government Information Quarterly

Journal published a special issue on the 1997 Economic Census.

It can be found at www.census.gov/econ97 under ‘‘Government

Information Quarterly: Symposium on the 1997 Economic Census.’’ The Journal contains six articles with extensive information

on how this census was planned and conducted.

6 Chapter 1 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Chapter 2. THE PLAYERS AND THE PLANS

Introduction ................................... 8

The Economic Directorate Reorganization ................... 8

Consultation on the Census .......................... 9

The Census Advisory Committee of Professional Associations ....... 9

Survey of 1992 Economic Census Data Users ................ 9

The Economic Census Planning Teams ..................... 9

Organization and Objectives ......................... 9

‘‘Must Do’’ Lists ................................ 10

Planning Team Recommendations ...................... 10

General information ............................ 10

Productsand data user needs ....................... 10

SSEL improvements............................. 10

Data collection ............................... 11

Multiestablishment processing improvements .............. 11

Post-collection activities .......................... 11

Budget Concernsand Contingency Planning.................. 11

CONTENTS

History—1997 Economic Census Chapter 2 7
The Players and The Plans

INTRODUCTION

While an economic censusisconducted every 5 years,

preparationsfor each enumeration start well before the

previousone isfinished. Typically, preliminary planning

for an upcoming censusbeginsat about the time the

principal data collection effort for the preceding census

hasbeen completed, and may continue (due to changesin

perceived data publication requirements, available funding

or even technological advances) well into the operational

phase of the census.

In planning and conducting the economic census, the

U.S. Census Bureau must weigh the data needs of the

Federal government and other public and private data

users against the ability and willingness of private companies to provide the information requested. Every census

planning effort involvesextensive review of the data

content of the questionnaires to make certain that only

the most urgently required information is collected, while

response burden is kept to a minimum. (Chapter 4, ‘‘Questionnaire Design and Development,’’ treatsthissubject.)

Costs are another major consideration. This was

particularly true for the 1997 Economic Census: the

continuing effort by the Administration and the Congress

to reduce Federal spending had a significant impact on the

CensusBureau’sactivities. Thisled the 1997 Economic

Census planners, at one point, to prepare several alternative census plans based on the possible reduced appropriation levels. Continued funding uncertainty, from fiscal

year to fiscal year, at timesled to delaysin finalizing

plans.

A significant new factor that had to be considered in

planning the 1997 censuswasthe decision by the Office

of Management and Budget (OMB) to develop and adopt a

new industrial classification system—the North American

Industry Classification System (NAICS)1—to replace the

Standard Industrial Classification (SIC) code. Since classification of economic activity is at the heart of the statistical

tabulations derived from the census, the Census Bureau

needed to integrate the new classification system at every

level of the census, from mailout to publication.

THE ECONOMIC DIRECTORATE REORGANIZATION

In June 1994, the Census Bureau reorganized the

Economic Directorate to facilitate conducting both the

1997 Economic Censusand the agency’scurrent economic

programs. The Census Bureau established the Economic

Planning and Coordination Division (EPCD) to provide centralized planning. The EPCD wascharged with (1) formulating and developing comprehensive plans and programs

for the Economic Directorate, aswell as(2) coordinating

the planning effortsand related activitiesfor conducting

the census. These activities included mailout, data capture, editing, tabulation, and the like.

The reorganization created a second new division—the

Economic Statistical Methods and Programming Division

(ESMPD)—to support and improve economic census and

survey programs. This division was responsible for overseeing joint development and implementation of statistical

programming and survey methods. In addition, the ESMPD

ensured the consistent development and application of

statistical methodologies, survey operations, automated

processes, and computer programs and systems throughout the Census Bureau’s economic statistical activities.

Also in 1994, the Census Bureau merged the Construction Statistics and Industry Divisions to establish a new

Manufacturing and Construction Division (MCD). The

Business Division transferred its financial statistics functions and staff to the Agriculture Division (which became

the Agriculture and Financial Statistics Division [AGFS])

and Business Division was renamed Services Division

(SVSD).

After the transfer of the agriculture census (and part of

the personnel of the AGFS) to the Department of Agriculture,2 the remaining staff was reorganized once again. In

June 1998, the AGFS wasrenamed the Company Statistics

Division (CSD). At the same time, the SVSD was renamed

the Service Sector Statistics Division (SSSD).

MCD and SSSD retained responsibility within the

1997 censusfor developing plansfor data content,

questionnaire design, and publication of statistical data

for business enterprises falling within their respective

areas. These activities were coordinated by the EPCD. The

CSD was primarily responsible for the 1997 Surveys of

Minority- and Women-Owned Business Enterprises, and the

1997 BusinessExpendituresSurvey—both componentsof

the 1997 Economic Census industry-wide programs—as

1

Chapter 3 describes the North American Industry Classification System (NAICS) in detail.

2

Funding and responsibility for the Census of Agriculture was

transferred from the Census Bureau, Department of Commerce,

to the Department of Agriculture (USDA), National Agricultural

Statistics Service (NASS) effective October 1, 1996. Effective

February 2, 1997, NASS also received the transferred program

positions and staff from the Census Bureau.

8 Chapter 2 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
well asthe Quarterly Financial ReportsSurvey and other

current financial statistics reports.

The CensusBureau’sData Preparation Division (DPD),

located in Jeffersonville, IN, was renamed the National

Processing Center (NPC) in a reorganization effective

May 1, 1998. The NPC was responsible for much of the

mailout, and handled receipt and check-in of responses to

the questionnaires, initial processing of questionnaires,

and data entry. (Chapter 7, ‘‘Preparationsfor CensusMailout,’’ treats these issues.) Computer editing, tabulation,

disclosure analysis, and final preparations for data publication were carried out by EPCD, ESMPD, and staffs of the

subject divisionsat the CensusBureau’sheadquartersin

Suitland, MD. (Chapter 8, ‘‘Data Collection and Processing,’’ provides more information on these activities.)

CONSULTATION ON THE CENSUS

The Census Advisory Committee of

Professional Associations

In planning any census, the Census Bureau seeks the

advice of a variety of experts, both within and outside the

Federal government. The primary sources of advice for the

Census Bureau, from the nongovernment sector, are its

public advisory committees. Prior to April 1994, the

Census Bureau had nine public advisory committees3 that

provided recommendationsand advice to the Director on

various Census Bureau programs. Four of these committees, one each made up of representatives of the American

Statistical Association (ASA), the American Economic Association (AEA), the American Marketing Association (AMA),

and farm and agribusiness organizations, were the most

actively involved in advising the Director on the economic

and agriculture censuses.

Presidential Executive Order 12838 (signed in February

1993 and implemented the following year) reduced the

total number of advisory committees and reorganized

those that remained. The order created a combined

advisory committee drawing its membership from four

professional associations that previously had each

provided a separate committee.

The new committee of professional associations

consisted of representatives of the ASA, AEA, and AMA,

together with the Population Association of America (PAA).

Participating organizationssubmitted nominationsof

representatives for membership on the committee to the

Director of the CensusBureau. Termsof appointment were

3 yearsand could be renewed, although membersgenerally were limited to a maximum of 6 yearscontinuous

service. No member received pay, other than per diem and

travel expenses, for attending meetings. The new committee made recommendationson the scope, content, methodology, tabulation plans, and data product plans for the

1997 Economic Census(aswell asfor the CensusBureau’s

current survey programsand other facetsof the agency’s

work). The committee usually met twice a year. From

April 1, 1994, when the new organization wasimplemented, through September 31, 2000, when the bulk of

the 1997 Economic Censusactivitieswere completed, the

Committee met 14 times. (For more information on the

advisory committees, including a list of members during

the census period, see Appendix C, ‘‘Principal Advisory

Committees on the 1997 Economic Census.’’)

Survey of 1992 Economic Census Data Users

In mid-July 1995, the Census Bureau surveyed 5,147

users of economic and agriculture census data. Included

were subscribers to census publications through the

Government Printing Office (GPO), the economic program

area’s list of associations maintained by the (then-named)

DPD, and the Census Bureau’s Customer Services’ list of

subscribers to the 1992 Economic Census CD-ROMs.

The survey also extended to State Data Center lead agencies, Census Bureau Information Centers, Business and

Industry Data Centers, and Census Bureau Regional

Offices, together with a 1-in-4 sample of State Data Center

affiliates and a 1-in-10 sample of Federal Depository

Libraries.

The survey was designed to identify users of economic

census data, understand their product needs and uses,

and obtain feedback to help the Census Bureau plan future

products and/or adjust services provided.

THE ECONOMIC CENSUS PLANNING TEAMS

Organization and Objectives

After the June 1994 reorganization of the Economic

Directorate, the planning effort wasexpanded toward a

more comprehensive redesign and reengineering of the

economic census and its associated processes and products. In September 1994, the Directorate established

several cross-divisional planning teams, each assigned to

evaluate and recommend improvementsfor a specified

census program area or activity. These Economic Planning

Teams(EPTs), 15 in all, were to identify problemsencountered in the 1992 census and to recommend solutions.

Their overall objectiveswere to—

• Improve the Census Bureau’s Standard Statistical Establishment List (SSEL), the Census Bureau’s Business Register, which served as the primary source of business

establishment addresses for the census mailing list and

also as the sampling frame for the current economic

survey programs.

3

A ‘‘public advisory committee’’ is any group of persons—not

composed wholly of Federal employees or officials—organized

under Government authority for the purpose of obtaining advice,

recommendations, or other assistance. The Census Bureau’s advisory committees operated under the provisions of the Federal

Advisory Committee Act of 1973, which stipulatted that the Director of OMB prescribe administrative guidelines and management

controls.

History—1997 Economic Census Chapter 2 9

U.S. Census Bureau, 1997 Economic Census
• Improve the dissemination, as well as the usefulness of

1997 Economic Census data products.

• Improve the toolsavailable to the CensusBureau’s

analysts and programmers.

• Introduce a generalized processing system to eliminate

redundancy among the subject areas.

Each team wasgiven an objective and wasasked to

estimate the resources (in terms of the number of

‘‘full-time employee’’ years) each proposal would require.

The EPTsfocused on identifying changesrequired for

existing processing systems that could be implemented by

January 1998—i.e., by the time respondents would start

returning their 1997 census questionnaires.

‘‘Must Do’’ Lists

During the latter half of 1994, representatives of EPCD

and ESMPD met with subject division staff (CSD, MCD, and

SSSD) to develop the ‘‘must do’’ lists. These were the lists

of improvementsor changesthat were considered critical

to the success of the 1997 Economic Census. The EPTs, in

turn, continued to work on the lists through January 1995.

Ultimately, the lists from the subject divisions and the

planning teamsamounted to dozensof proposals, ranging

from narrowly specific suggestions to major changes in

Census Bureau procedures.

EPCD established an evaluation group composed of the

Division Chief and Assistant Division Chiefs to review and

determine the value of each item, aswell asthe likelihood

that the Economic Directorate could implement the

changesby January 1998. In considering each item, the

evaluation group assumed that—

• Available resources would be limited.

• The Census Bureau would maintain the timing and quality of itskey current survey programs(i.e., the census

would not have absolute priority over survey needs).

• Several census-related activities had an overriding

‘‘must’’ priority. These included implementing the NAICS

and correcting the systems programming problems

identified in the 1992 census.

• Data infrastructure improvements would be necessary.

• The Census Bureau would improve the product offerings

from the 1997 Economic Census compared to the 1992

census.

• Response burden must be reduced.

EPCD staff conducted itsevaluationsof the listsduring

the last quarter of 1994 through January 1995. In February and March 1995, EPCD met with EPT leaders to discuss

evaluation results and to specify the direction of each

team’sactivitiesthereafter.

Planning Team Recommendations

General information. May 15, 1995 wasthe target date

for establishing the Economic Directorate’s processing

goals for the 1997 census. The principal recommendations

made by the planning teamsand implemented for the

1997 Economic Census fell into five functional areas—

(1) products and data user needs, (2) SSEL improvements,

(3) data collection, (4) multiestablishment processing

improvements, and (5) post-collection activities— outlined

below.

Products and data user needs. The Census Bureau

used the results of the July 1995 survey of 1992 census

data usersto develop plansfor the 1997 Economic Census

data products. The agency wanted to make data available

in a more timely manner, make them easier for its customers to use, and increase the perception of the Census

Bureau’seconomic productsasa unified whole rather than

as a disjointed set of discrete products.

The planning teamsrecommended that the census

publication program focuson electronic data products

asitsinitial and primary dissemination media. In addition,

the teamsrecommended that the CensusBureau implement a print (and FAX) on demand capability for data

otherwise available only in electronic files. The teams suggested that data presentation be improved by standardizing file formatsacrosssubject areasto the greatest degree

possible, and that data files be as comprehensive as possible to preclude the need to use multiple files. Also, the

EPTs recommended that the Census Bureau issue, by early

1999, an Advance Report—at the trade sector level and

using national data on both the NAICS and SIC bases.

Using these recommendations, the ensuing product

implementation phase concentrated on fulfilling user

requirements, including the provision of—

• Timely and relevant data, particularly electronic data

files.

• Electronic data products that ease the transition from

‘‘hard’’ copy to new electronic media.

• User capability to quickly find and manipulate data for

multiple sectors and census/survey years.

• Easy access to free and ‘‘for fee’’ data sets, together

with easy and secure electronic product purchasing

procedures.

SSEL improvements. Improvement initiativesfor the

Census Bureau’s Business Register—the SSEL—included

editing, imputation, and multiestablishment processing.

A primary objective of the planning teamswasto improve

data infrastructure. This also would mean substantial cost

savings, as well as improvement in both the timeliness of

variouscensusactivitiesand in the data publication program. The specific recommendations cited a strong need

for more effective editing and imputation of employment

10 Chapter 2 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
and payroll data. Previously the Census Bureau’s approach

had been to spread this work across several processing

steps belonging to Business Register (that is, SSEL), activities, the County Business Patterns program, and the

subject divisions’ census programs.

The teams also made suggestions that would have

substantial short-term benefits while the Census Bureau

carried out the major redesign of the SSEL (scheduled for

completion by 2002). These recommendations focused

upon quality assurance measures; user documentation;

linkagesfor company organizationsand longitudinal continuity; improved interactive query tools; expanded coverage of nonemployers, railroads, and municipal utilities;

and the assignment of Congressional District geographic

codes.

In addition, the teams wanted to strengthen basic

SSEL conceptsto provide a basisfor the comprehensive

Business Register redesign, particularly with regard to

enterprise definition and sub-enterprise organizational

structuresand methodsfor maintaining them.

Data collection. The teamsrecommended using the

CensusBureau’sDocuPrint equipment for electronic printing of questionnairesand other materialsfor the 1997

Economic Census multiestablishment mailout, remails,

and follow-ups.4 Ultimately, thisrecommendation was

expanded to include censusmailing packagesfor singleestablishment companies in the manufacturing and

mineral industries.

To reduce response burden, the planning teams

suggested expanding electronic reporting. Electronic

media were already in place, such as the electronic data

interchange, and computerized self-administered questionnaires (CSAQ). The Census Bureau had previously used

these methods, mainly for the Company Organization

Survey (COS) and the Annual Survey of Manufactures

(ASM). The 1992 census had used electronic reporting on

a limited basis; about 80 companies responded electronically, mostly on magnetic tape. EPCD staff estimated that

nearly 600 respondents might elect to report their data

electronically in the 1997 census. Ultimately, CSAQs were

extended to companiesin retail; finance, insurance, and

real estate; and other sectors.5 In addition, the teams

recommended that data could be accepted on magnetic

tape provided by respondents.

Multiestablishment processing improvements. Multiestablishment processing had been a chronic bottleneck

for previous economic censuses. Completeness and

coverage edits were essential for maintaining up-to-date

multiestablishment coverage, but they complicated the

workflow and delayed data release. The EPTs recommended streamlining multiestablishment workflow by—

• Consolidating or eliminating steps in the processing

flow.

• Focusing completeness and coverage edits on critical

problems.

• Improving control and tracking systems.

• Imputing for multiestablishments earlier in the processing flow.

Post-collection activities. The teams’ principal recommendations on data processing and other post-collection

activitiesinvolved the development and adoption of a

generalized edit system, aswell asimprovementsto the

Census Bureau’s analytical capabilities. Time constraints

and the complexities of developing such a system for the

entire censusoriginally led plannersto consider that it

wasunlikely that one could be designed and fully implemented for the 1997—census the custom coding edits for

all economic sectors would need to be revised as part of

the implementation of the NAICS. Hence, the Generalized

Edit and Imputation System—better known as ‘‘Plain

Vanilla’’—wasdeveloped. (Chapter 8, ‘‘Data Collection and

Processing,’’ elaborates on ‘‘Plain Vanilla.’’) It replaced the

complex editsfor the 1996 Annual Survey of Manufactures (ASM) and for the 1997 census.

The EPCD established an independent cross-divisional

planning team in May 1995 to develop ‘‘Plain Vanilla.’’ Key

to the team’seffectivenesswasthe release of itsmembers

from day-to-day operational responsibilities to enable

them to devote time to developing the edit system as

quickly as possible.

To improve the agency’sanalytical capabilities, the

teamsrecommended that EPCD and ESMPD develop tools

for analysts that would (1) enable them to access data sets

across programs, (2) use graphic data analysis to supplement conventional reviews, and (3) provide a common

menu for these items across both the census and the current economic surveys. This would require a significant

planning and design effort. A new planning team was

organized, composed of staff from the EPCD, ESMPD, and

the subject divisions. The team evaluated existing software systems and developed plans for acquiring and

installing new highspeed, high-capacity personal computersand the appropriate software.6

BUDGET CONCERNS AND CONTINGENCY PLANNING

From the latter part of 1993 into 1995, planning for

the 1997 Economic Census was based on the assumption

that both the censusand itsfunding would be comparable

to that of the 1992 census. However, an increased

emphasison funding reductionsfor all Federal agencies

eventually weakened this assumption.

4

Thissubject iscovered in detail in Chapter 7, ‘‘Preparations

for Census Mailout.’’ 5

Chapter 8, ‘‘Data Collection and Processing,’’ discusses electronic reporting.

6

The processing infrastructure upgrade is discussed in

Chapter 7, ‘‘Preparationsfor CensusMailout.’’

History—1997 Economic Census Chapter 2 11

U.S. Census Bureau, 1997 Economic Census
Pressures to hold down costs were constant, but

became most severe during debate on the fiscal year (FY)

1998 Federal budget. This was, in large part, due to pressure for a balanced budget agreement and the determination of the political leadership of both the Administration

and Congress to reduce, and eventually eliminate, the

budget deficit. Congress considered significant ‘‘acrossthe-board’’ budget cutsfor the CensusBureau and for the

1997 Economic Census. These reductions would have

come at just the point in the census budget cycle when

funding normally would have been sharply increased in

order to support final preparations for the economic censusmailout, aswell asfor a major proportion of the data

collection phase of the census.7

Facing the possibility of large cuts in the requested

budget for FY 1998, the CensusBureau’sexecutive staff

decided that, rather than undermine the statistical credibility of the entire census, potential reductions would be

accommodated by eliminating discrete programs within

the overall census. The principal casualty of the budget

reductionswasthe Enterprise StatisticsProgram, which

was dropped from the 1997 Economic Census.

The Administration requested $63.7 million for the

1997 Economic Censusin itsFY 1998 budget. However,

based upon Congressional views with respect to the

Administration’s budget request, the Census Bureau prepared contingency plansfor variousalternatives: (1) full

funding at the requested level ($63.7 million), (2) a $45

million budget, and (3) a $35 million budget.

Fortunately, Administration and Congressional negotiatorswere able to reach an agreement that provided funding at the $63.7 million level.

The expenditures for the 1997 Economic Census, by

fiscal year, were as follows:

Fiscal year Expenditure

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $220,273,000

1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550,000

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,386,000

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,681,000

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,129,000

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,083,000

7 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,444,000 Previousbudget constraintshad already led the Census

Bureau to drop test plans for the 1997 Economic Census.

12 Chapter 2 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Chapter 3. INTRODUCTION OF THE NORTH AMERICAN INDUSTRY

CLASSIFICATION SYSTEM (NAICS)

The Standard IndustrialClassification Code (SIC) ............... 14

The Development of the SIC Code ...................... 14

Limitations of the SIC Code.......................... 14

The Economic Classification Planning Committee (ECPC) ........... 15

Joint Planning of the NAICS ........................... 15

The Need for Comparative Data ....................... 15

Design Principles ............................... 16

Industry Structure Agreements........................ 16

Schedule for Implementing NAICS ...................... 17

SIC and NAICS Compared ............................ 17

Revisions of SIC................................ 17

New Sectors.................................. 17

The NAICS Numbering System ........................ 19

Implementing NAICS .............................. 19

Implementation Procedures ......................... 19

The 1997 Refile Survey ............................ 20

The 1996 Company Organization Survey .................. 20

‘‘Birth’’ Classification ............................. 21

Changes to the 1997 Census Questionnaires ................ 21

1997 Economic Census Classification Questionnaire Mailout........ 21

Processing System Modifications....................... 21

Comparability of the Data and Maintenance of Time Series .......... 22

Scope of Data Comparability ......................... 22

Maintenance of Time Series ......................... 22

NAICS and economic census time series ................. 22

Publication plans .............................. 22

The reclassification of 1992 Economic Census data ........... 23

CONTENTS

History—1997 Economic Census Chapter 3 13
Introduction of the

North American Industry Classification System (NAICS)

THE STANDARD INDUSTRIAL

CLASSIFICATION CODE (SIC)

The Development of the SIC Code

The economic census is the principalsource of detailed

information on economic activity in the United States, but

is not, and never was, the only source of that information,

even within the FederalGovernment. One of the major

problems with multiple sources of information is that they

may not, indeed probably do not, share the same concepts

and definitions of the information they collect and disseminate. Standardization in collecting and publishing

economic statistics has, consequently, been a primary goal

for the FederalGovernment. To this end, in 1939 the CentralStatisticalBoard of the Bureau of the Budget (BOB—the

predecessor of today’s Office of Management and Budget

[OMB]) established an Interdepartmental Committee on

IndustrialClassification, together with a TechnicalSubcommittee on IndustrialClassification, and directed them

to develop a standardized list of industries that could be

used by all agencies or organizations and could facilitate

comparisons of industrialdata produced by different

agencies. By 1940 the committees had produced separate

draft lists and descriptions of industries and alphabetical

indexes for manufacturing and nonmanufacturing industries. After review, the BOB published the first Standard

Industrial Classification (SIC) Manual for manufacturing

industries in 1941. In the following year, the BOB

published a similar manual for the nonmanufacturing

industries. The dualclassification systems continued in

use until1954, when they were combined into a single

Manual, which was periodically revised and reissued

through 1987. The 1987 revision was used for the 1992

Economic Census.

Limitations of the SIC Code

The SIC Code system was developed during a time

when the bulk of the American economy was involved

with manufacturing. After World War II, the American

economy not only began a prolonged period of expansion,

but became more and more complex. New industries

appeared in the manufacturing sector, as did entirely new

areas of commercialeconomic activity. The OMB and concerned agencies (including the Census Bureau, the Bureau

of Economic Analysis [BEA], and the Bureau of Labor Statistics [BLS]) updated the SIC Code approximately every 10

years to try to compensate for the dislocations within the

economic statisticalsystem caused by the development

and growth of these new industries and activities.

Nevertheless, the basic structure became increasingly

obsolescent.

The problem was exacerbated by the explosion of new

industries that appeared in the 1970s. Collecting and

tabulating economic statistics became increasingly

difficult when more and more economically active and

important establishments could not be defined using the

SIC Code. Even before the 1992 Economic Census, anomalies within the SIC Code had become painfully obvious; for

example—

• While technology and the economy moved rapidly to

implement and expand electronic information dissemination and telecommunication, the SIC placed print

publishing activities in the Manufacturing Division,

online services in the Services Division, and communications (including radio and television broadcasting, cable

television services, paging services, and satellite master

antenna systems services) in the Transportation,

Communications, Electric, Gas, and Sanitary Services

Division.

• The SIC industry 7389, Business Services, Not Elsewhere

Classified, included everything from bronzing baby

shoes, to telemarketing, to sound recording studios.

• Satellite communications systems were not recognized

by the SIC Code.

• At a time when the Nation’s medicalcare system was a

major focalpoint of public and economic interest, the

1987 SIC lacked any classification that separately identified health maintenance organizations (HMOs).

The SIC Code’s bias toward manufacturing industries

caused considerable dissatisfaction as well. The system

did not reflect the accelerating trend within the economy

toward growth in the nonmanufacturing sectors, particularly the various services industries. By the late 1980s,

there was increased interest within the FederalGovernment and throughout the U.S. economy in improving the

ability of economists and statisticians to assess the impact

of internationaltrade and industrialpractices on the

domestic economy. In addition, the growing need to relate

U.S. output to that of Canada and Mexico under the proposed North American Free Trade Area (NAFTA) agreement

required a major overhaulof the SIC.

14 Chapter 3 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
THE ECONOMIC CLASSIFICATION PLANNING

COMMITTEE (ECPC)

In November 1991, the Census Bureau sponsored the

InternationalConference on the Classification of Economic

Activities, in Williamsburg, VA (the ‘‘Williamsburg Conference’’), which focused on the need to reexamine the entire

industry classification system. The conference involved

participants from Federaland state agencies, academia,

and the internationalstatisticalcommunity, including

representatives of Statistics Canada. Acting on recommendations from the Conference, the OMB, in March 1993,

established the Economic Classification Policy Committee

(ECPC) to consider a thorough overhaulof the classification system in place. The ECPC was chaired by the BEA

and consisted of representatives from the BEA, the Census

Bureau, and the BLS.

The Committee was charged with carrying out a ‘‘fresh

slate’’ examination of economic classifications for statistical purposes, including the following:

1. Identifying the essentialstatisticaluses of economic

classifications.

2. Identifying and developing, if needed, economic concepts, new structures, and statisticalmethodologies

that address the essentialstatisticaluses of economic

classifications.

3. Developing classification systems based on concepts

developed under No. 2 above.

4. Planning the implementation of the new classification

system.

5. Ensuring an opportunity for public participation in the

review and planning process.

Between March 1993 and March 1994, the ECPC

compiled and released six papers addressing specific

issues involved in the development of a new industrial

classification system—

1. ‘‘Conceptual Issues,’’ reviewed the purpose of an

economic classification system, the need for a consistent conceptualframework for such a system, what

grouped or classified data were needed, which classification approach or approaches should be adopted in

designing a new system, and the classification unit to

be used.

2. ‘‘Aggregation Structures and Hierarchies,’’

described classification hierarchies and reviewed the

possibility of using multiple hierarchies and whether

any new classification system should have a flexible

aggregation structure.

3. ‘‘Collectibility of Data,’’ reported on the coding

practices and requirements of the U.S. statistical

agencies that would be the most frequent users of the

new classification system, together with the ability of

businesses to supply data, and the kinds of data

required for reclassification under a new system.

4. ‘‘Criteria for Determining Industries,’’ reviewed

the criteria of economic significance, specialization,

and coverage ratios in determining industry classification and considered alternative criteria.

5. ‘‘The Impact of Classification Revision on Time

Series,’’ considered the need for historicalcontinuity,

the problems involved with time series continuity, the

impact of previous classification code revisions, and

the implications of a fundamental SIC revision.

6. ‘‘Services Classifications,’’ reviewed questions

relating specifically to the services sector of the

economy, including the boundary between ‘‘goods’’

and ‘‘services,’’ the impact of production-oriented

and/or supply-oriented classification for services,

examples of market-oriented classification, questions

about specific services industries (e.g., nonprofit organizations), past approaches to classifying services,

and the services classifications in the restructured

classification system.

The ECPC asked for comments on each paper from

interested users and reviewed these comments as part of

its study.

In addition to the studies described in the issues

papers, the ECPC evaluated the U.S. and Canadian SIC

structures to determine the conformance of the respective

systems to economic concepts. To this end, the Committee undertook a study of the ‘‘heterogeneity index’’ proposed for U.S. industries to decide whether establishments in the old SIC industries met the conditions

required for the production-oriented classification system

described in ‘‘ConceptualIssues,’’ Paper No. 1.1

JOINT PLANNING OF THE NAICS

The Need for Comparative Data

The SIC Code system was not compatible with industry

classification systems used in other countries, and analysts had difficulties comparing industrial characteristics,

trends, and developments internationally. The advent

of the North American Free Trade Agreement (NAFTA)

spurred consideration of a new system that would be

more comparable with those of the other NAFTA

signatories.

1

The results of the joint U.S. Canadian SIC study were released

in two reports, one covering the U.S. and the other the Canadian

SIC Codes. The U.S. report was ECPC Report No. 1, ‘‘Economic

Concepts Incorporated in the Standard IndustrialClassification

Industries in the United States.’’ The Canadian SIC was covered in

‘‘The ConceptualBasis of the Standard IndustrialClassification,’’

published by Statistics Canada. ECPC Report No. 2, ‘‘The Heterogeneity Index: A Quantitative Toolto Support IndustrialClassification’’ evaluated U.S. industries’ new ‘‘index of heterogeneity.’’

History—1997 Economic Census Chapter 3 15

U.S. Census Bureau, 1997 Economic Census
Statistics Canada, a participant in the Williamsburg

conference, also planned to revise its 1980 SIC. Shortly

after the establishment of the ECPC, the Canadians joined

the discussions on restructuring the respective national

classification systems and creating a joint system, followed thereafter by Mexico’s Instituto Nacional de Estadistica, Geografia e Information (INEGI). As a result of these

talks, the OMB announced in the July 26, 1994, Federal

Register, that the statisticalagencies of the North American countries had agreed to develop a North American

Industry Classification System (NAICS) to introduce common industry classifications for all three countries.

Design Principles

Planning an integrated industry classification system

required agreement on a basic conceptualframework.

Statistics Canada, INEGI, and the ECPC agreed to develop

and put in place a single system based on the following

major principles:

• Using industrialstatistics requires that information on

outputs and inputs be used together. The NAICS should

conform to a production-oriented economic

concept—i.e., industries that use like processes to produce goods or services should be grouped together.

• The respective nationalstatisticalsystems should compile product data to meet the need for market-oriented

or demand-based groupings of economic information.

Each country agreed to improve commodity classification systems, including the Harmonized System of the

Customs Cooperation Counciland the United Nations

provisionalCentralProduct Classification system.

• The long-term goal of the NAICS should be to implement a production-oriented framework for economic

classification. The framework would be used in 1997

and subsequently in reviewing changes to the existing

list of industries.

• Any new system should include developing classifications for (1) new and emerging industries, (2) services

industries in general, and (3) industries engaged in the

production of advanced technologies.2

• Time series continuity should be maintained to the

extent possible, but changes in the economy and evolving user needs must be taken into account. Proposals

relating to all parts of the classification will be considered, so long as they are supported by a rationale and

by factual information that furthers the long-term goals

of NAICS.

• The participating countries’ statisticalagencies agreed

to conduct a detailed review of their current industry

definitions to determine where differences existed

between the three systems, and to move toward full

commonality and the implementation of productionoriented reasoning into the new classification system.

• The participants agreed to try to develop a NAICS

compatible at the two-digit level to the current InternationalStandard IndustrialClassification of AllEconomic

Activities (ISIC, Revision 3) of the United Nations.

• When changes were required to classifications to attain

international comparability, those changes would be

made in the direction of the country or countries whose

existing classification definitions most closely corresponded to the production-oriented concept.

The ECPC established seven subcommittees—agriculture; mining and manufacturing; construction; distribution

networks; finance, insurance, and realestate; business

and personalservices; and health, socialassistance, and

public administration—composed of economists, statisticians, and classification specialists representing 19

Federalagencies that used the SIC in their work. The ECPC

also established a U.S. Coordinating Committee to coordinate the work of the subcommittees with that of INEGI and

Statistics Canada.

Industry Structure Agreements

The ECPC subcommittees and representatives of INEGI

and Statistics Canada developed the structure of the

proposed NAICS in a series of meetings. Proposals for individualindustries from allthree countries were considered

for acceptance if the recommended industry was based on

the production-oriented concept required for the general

system. As the subcommittees considered and agreed on

groups of subsectors of NAICS, the ECPC published the

industries proposed for inclusion in those subsectors.

Between May and December 1995, a totalof 31 separate

agreements were developed and approved by the participating statisticaloffices. Each agreement described the

sector and the industries included in the sector, outlined

the limitations and constraints of the classification, related

the NAICS industries to the United Nations’ ISIC (Revision

3), and summarized changes to the respective national

classification systems.

Agreement 18, for example, covered NAICS sector 51,

‘‘Information.’’ The ‘‘Information’’ sector drew many of

its industries from SIC divisions D, ‘‘Manufactures’’; E,

‘‘Transportation, Communications, Electric, Gas, and

Sanitary Services’’; and I, ‘‘Services.’’ Some 20 new

industries were created in the NAICS Information sector,

including—

• One new five-digit industry in the Publishing Industries

subsector (511) for database and directory publishers.

2

‘‘Advanced technologies’’ included, but were not limited to,

electronic components, telecommunications equipment, computers and associated equipment, computer software, medicalequipment, and advanced materials.

16 Chapter 3 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• A NAICS industry for software publishers was created

from part of the SIC industry 7372, ‘‘Prepackaged

Software.’’

• Eleven five- and six-digit industries were created in the

‘‘Motion Picture and Sound Recording Industries’’

subsector (512).

• Eleven five- and six-digit industries were created in the

‘‘Broadcasting and Telecommunications’’ subsector

(513).

The individualagreements were approved by the

respective nationalauthorities in five groups, the first (of

three agreements) on May 19 and the last (for a single

sector—finance and insurance) on December 13, 1995. As

the agreements were approved, the OMB published the

proposed industries for those sectors and subsectors and

asked for public comment in the Federal Register. Five

notices were published between May 1995 and November

1996, with finalcomments requested by December 20,

1996. (The OMB received approximately 400 comments on

the proposed new classification system, most involving

suggestions for additional industry classifications, or title

changes for industries covered by NAICS.)

The ECPC submitted its finalproposals for NAICS to the

OMB based on the proposals published in the last (November 5, 1996) Federal Register notice. In general, the OMB

accepted ECPC’s recommendations, with a number of

relatively minor exceptions. These exceptions typically

involved renaming or renumbering specific industries. In

the manufacturing sector, however, NAICS subsector 337,

‘‘Furniture and Related Product Manufacturing,’’ was

revised to emphasize furniture manufacture by type of

furniture, rather than by material(i.e., wood, metal, and

other materials).

Schedule for Implementing NAICS

Having designed a new industry classification system,

the three countries faced the task of implementing that

system. Delay would only exacerbate the problems inherent in the originalsystem, so the participants determined

that NAICS should be applied as soon as possible.

The Census Bureau agreed to implement the new

system beginning with the 1997 Economic Census, which

was scheduled to begin collecting data less than a year

after the finalapprovalof NAICS.3 The Census Bureau

planned to begin publishing advance general statistics

data using the NAICS system early in 1999. Industry,

geographic area, and subject series reports, using NAICS

classifications only, would be published beginning in the

second quarter of 1999. A final—report with bridging

tables to enable users to relate NAICS statistics to data

published using the SIC Code—was scheduled for publication in March 2000.

Severalcomponents of the 1997 Economic Census were

not to be converted to NAICS; these were the economic

census in the outlying areas (Puerto Rico, Guam, the Virgin

Islands of the United States), the Commodity Flow Survey,

and the Vehicle Inventory and Use Survey. The Census

Bureau’s current economic surveys—programs e.g., the

1998 AnnualSurvey of Manufactures (scheduled to

publish using NAICS in March 2000), monthly wholesale

and retailtrade surveys (both in 2001), 1999 Annual

CapitalExpenditures Survey (Feb. 2001), Quarterly FinancialReports (March 2001, for the fourth quarter of 2000),

etc. would begin using NAICS classifications after the

1997 census.

SIC AND NAICS COMPARED

Revisions of SIC

The SIC Code had been revised periodically since its

inception over 50 years ago. The most recent changes to

the SIC were made in 1987, when the system was modified to identify new high-tech industries, particularly those

involved with computers and other electronic equipment.

These revisions, while updating the detail of the classification system left the core characteristic of the SIC Code—its

classification of industries using a mix of production- and

market-based (i.e., commodities or services that have

similarities in use, that belong together, or are used

together for some purpose) categories—largely unaltered.

The 1997 ‘‘revision’’ changed all this in an integrated

effort to create a unified classification system for the

North American free trade area based on grouping

together industries that used similar production

processes.

New Sectors

The new system that was created (in the 31 industry

structure agreements) grouped industries into 20 broad

sectors, doubling the number of major groupings compared to the SIC Code system.4 Many of the ‘‘new’’ sectors

were recognizable as similar or modified versions of the

old SIC divisions; for example, NAICS Agriculture (sector

11), Mining (sector 21), and Construction (sector 23)

sectors were virtually identical in coverage to the SIC

Agriculture (division A), Mineral Industries (division B), and

Construction (division C) divisions respectively.

There were, however, significant changes in other

areas. Under NAICS, the old Finance, Insurance, and Real

Estate Division (H) was split into separate Finance and

Insurance (52), and Realestate and Rentaland Leasing 3

The BEA and BLS also were scheduled to implement NAICS as

quickly as possible; the earliest published data for BEA would be

the 1997 Foreign Direct Investment Benchmark Survey (to be collected 1999), whole BLS would begin releasing NAICS-based data

in 2002 (for the 2001 Employment and Wages Report).

4

The SIC Code classified industries in 10 divisions (A-J), with

an eleventh division (K) used for unclassifiable establishments.

History—1997 Economic Census Chapter 3 17

U.S. Census Bureau, 1997 Economic Census
(53) Sectors; Wholesale Trade (43) and Retail Trade (44-45)

were redefined. The most extensive changes involved the

SIC Services Division I, which was broken up under NAICS

and furnished industries to eight new sectors, including

four (Education Services; Health Care and Social Assistance; Arts, Entertainment, and Recreation; and Other

Services, Except Public Administration) drawn entirely

from the former Services Division.

The NAICS sectors and their corresponding SIC divisions are as follows:

Table 3-1.

NAICS Sectors and Their Corresponding SIC Divisions

NAICS

code NAICS sector

SIC

code SIC divisions making the largest contribution

11 Agriculture, Forestry and Hunting and Fishing (The Census of A Agriculture, Forestry and Fishing

Agriculture is conducted by the Department of Agriculture.)

21 Mining B Mineral Industries

22 Utilities E Transportation, Communications, and Public Utilities

23 Construction C Construction Industries

31-33 Manufacturing D Manufacturing

42 Wholesale Trade F Wholesale Trade

44-45 Retail Trade G Retail Trade

48-49 Transportation and Warehousing (The economic census excludes E Transportation, Communications, and Public Utilities

the U.S. Postal Service, large certificated passenger air

transportation, and all rail transportation.)

51 Information D Manufacturing

E Transportation, Communications, and Public Utilities

I Service industries

52 Finance and Insurance (The economic census excludes funds H Finance, Insurance, and Real Estate

and trusts.)

53 Real Estate and Rental and Leasing H Finance, Insurance, and Real Estate

I Service Industries

54 Professional, Scientific, and Technical Services (The economic I Service Industries

census excludes landscape architecture and veterinary

services.)

55 Management of Companies and Enterprises Parts of all divisions

56 Administrative Support; Waste Management and Remediation I Service Industries

Services (The economic census excludes landscaping

services.) E Transportation, Communications, and Public Utilities

61 Educational Services (Census excludes elementary and I Service Industries

secondary schools, colleges, and professional schools.)

62 Health Care and Social Assistance I Service Industries

71 Arts, Entertainment, and Recreation I Service Industries

72 Accommodation and Food Services G Retail Trade

I Service Industries

81 Other Services Except Public Administration (Census excludes I Service Industries

pet care; labor, political, and religious organizations; and private

households.)

93 Public administration (Separate census of governments does not J Public Administration

present data according to the NAICS or SIC systems.)

18 Chapter 3 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
The NAICS not only doubled the number of sectors/

divisions, it also increased the number of defined industries in the U.S. economy from 1,004 under the SIC to

1,170. The new system defined over 350 new industries

not previously identified separately (including 250 new

service industries), and revised the scope of over 330

more. Under the SIC, 45 percent of industries defined had

been manufacturing activities. In NAICS, 473 of the total

of 1,170 defined industries (40.3 percent) still represented

manufacturing.

The NAICS Numbering System

The SIC Code used a four-digit numbering system in

which the first two digits identified the major group, the

third digit the industry group, and the fourth the specific

industry. The Census Bureau had developed its own

supplement to the SIC in the form of five-digit product

class codes, and seven-digit product codes, to enable it

to apply SIC Codes to specific products. It also had created

six-digit ‘‘kind-of-business’’ codes in the services (or nongoods producing) sectors.

NAICS planners decided that the first two characters of

the new system should designate the sector (in NAICS, the

term ‘‘sector’’ replaced ‘‘division’’ as used in the 1987 SIC).

They also thought that modern economies were too complex to be described adequately if the first character of

the coding system restricted the number of sectors to 9 or

10 as in the SIC. Therefore, NAICS used a six-digit code in

which the first two digits designated the sector, the third

the subsector, the fourth the industry group, and the fifth

NAICS industry. The five-digit industry level is the most

detailed level at which comparable data will be available

for all three participating countries’ economies. A sixth

digit identifies specific nationalindustries—under NAICS,

the United States has 659 such industries, i.e., those with

six-digit classifications unique to the United States. The

structure may be illustrated as follows:

NAICS

level

NAICS

code Description

Sector 72 Accommodations and foodservices

Subsector 722 Food service and drinking places

Industry group 7222 Limited service eating places

Industry 72221 Limited service eating places

U.S. industry 722211 Limited service restaurants

722212 Cafeterias

722213 Snack and nonalcoholic beverage bars

The Census Bureau added additionaldigits for still

more detailed classification in some industries. For

example, for Sector 72, the six-digit ‘‘national’’ industry

722213, ‘‘Snack and Nonalcoholic Beverage Bars’’ was

further broken down into three seven-digit industries:

7222131, ‘‘Ice Cream and Soft Serve Shops’’; 7222132,

‘‘Frozen Yogurt Shops’’; 7222133 ‘‘Donut Shops.’’

IMPLEMENTING NAICS

Implementation Procedures

The adoption of NAICS for the 1997 Economic Census

required the Census Bureau to introduce about 300 new

industry classifications and to revise about the same number of existing SIC industries. The extent of these changes

meant that implementing the new system required far

more complex procedures than had been necessary for

previous revisions of the classification system. These

procedures included the following:

• Developing a bridge code system using the 1987 SIC.

The Census Bureau assigned two extra digits for each

part of the 1987 SIC that had been reclassified to a different NAICS sector or industry. This allowed previous

census data collected and tabulated using the SIC to be

compared with the 1997 census tabulations done using

NAICS.

• Conducting a ‘‘refile survey’’ in December 1996. This

involved a mailout and follow-up to approximately

215,000 business establishments on the Standard

StatisticalEstablishment List (SSEL) where the SIC Code

for the establishment would be reclassified under a

different sector in the NAICS. The SICs involved were

those activities that were reclassified into multiple

NAICS codes and establishments that had to be classified into a correct NAICS code. The results of the 1997

Refile Survey were used to determine which economic

census questionnaire the establishment would receive.

• Using the 1996 Company Organization Survey—an

annualsurvey used to update the SSEL’s address files on

multiestablishment companies—to request classification

information from approximately 51,000 multiestablishment companies.

• Modifying the 1997 Economic Census questionnaires to

enable the Census Bureau to accurately classify establishments that were transferred to different industries

within the same sectors or to industries in new sectors,

as a result of the adoption of the NAICS.

• Mailing classification questionnaires in November 1997

to approximately 1.6 million small, single-establishment

companies that were classified in SICs affected by the

change over to the NAICS.

Once the businesses included in the economic census

had been reclassified, the Census Bureau’s data-processing

systems had to be able to identify, edit, tabulate, and correct the individualdata records, as wellas the tabulations

and cross-tabulations made from those records. This

required modifying the Census Bureau’s data-processing

History—1997 Economic Census Chapter 3 19

U.S. Census Bureau, 1997 Economic Census
procedures to produce the tables needed for comparisons

of 1997 data tabulations with those of previous censuses

and for publishing data using NAICS classifications and

hierarchy.

The 1997 Refile Survey

The 1997 Refile Survey covered establishments on the

SSEL for which economic activities were reclassified in a

new industrialsector under NAICS. The survey was

designed to classify establishments in the correct NAICS

code and so ensure that the correct questionnaire was

mailed in the census. The Census Bureau mailed the survey questionnaires in December 1996 so that the information could be collected and the affected establishments

identified prior to the census mailout late in 1997.

The Census Bureau’s Economic Planning and Coordination Division (EPCD) identified the 80 SIC Codes that were

moving to new sectors because of the change to NAICS.

The Census Bureau established payroll cutoffs for each

group of establishments (most did not have a minimum

payroll required, but 23 had minimums ranging from

$15,000 to $225,000 to use in selecting the sample. The

final sample consisted of 215,829 establishments.

The Census Bureau designed a specialclassification

questionnaire, Form NC-9922, ‘‘1997 Economic Census

Classification Report,’’ to use in the survey, in 17

variations—Forms NC-9922(V01) through (V17)—for specified groups of industries. The questionnaires were single

sheets of paper, with a cover letter on the front side and a

data-collection section on the reverse, asking the respondent to identify the establishment’s principal economic

activity. This provided the information for the Census

Bureau to use to assign the establishment to an industry

classification.5 Check boxes were used to minimize

response burden.

The questionnaires and other materials were printed

at the Census Bureau’s Data Preparation Division

(DPD—renamed the NationalProcessing Center [NPC] in

the agency’s reorganization effective May 1, 1998) in

Jeffersonville, IN, whose staff also assembled the mailing

packages. Each mailout package included the appropriate

version of Form NC-9922, 1997 Economic Census Classification Report, instructions on completing it, and a return

envelope.

The DPD conducted a single mail follow-up on March

10, 1997, remailing survey packages (with the outgoing

envelopes overprinted ‘‘Second Request’’) to 47,819

addresses still nonrespondent at that time. The survey

questionnaires were returned to the Jeffersonville office,

where DPD staff processed the responses, sorting, screening, and keying the data from the NC-9922 to a computerized data file. (This file was later used to update the SSEL

prior to the 1997 Economic Census classification questionnaire mailout in November 1997.)

Processing returns from the 1997 Refile Survey continued into the summer of 1997 to enable the data obtained

to be used for preparing the 1997 census maillists.

Establishments that did not respond to the survey by the

end of July were added to the 1997 census classification

questionnaire mailing list as establishments with doubtful

classifications.

The 1996 Company Organization Survey

Further reclassification information was collected as

part of the 1996 Company Organization Survey (COS).

The Census Bureau uses the annualCOS to update the

SSEL’s address files on multiestablishment companies.

The survey involves sending Form NC-9901, ‘‘Report of

Organization,’’ questionnaires to all multiestablishment

companies with 50 or more employees, and to a sample of

smaller multiestablishment companies. As part of the

1996 COS, the Census Bureau requested information

needed to classify the individual establishments of multiestablishment companies in SIC Codes significantly

affected by the adoption of NAICS. This effort particularly

involved those establishments whose reclassification

crossed ‘‘division/sector’’ boundaries (e.g., from SIC

Division D, ‘‘Manufacturing,’’ to NAICS Sector 51,

‘‘Information’’).

The Census Bureau reviewed the 1996 COS sample

(about 53,000 addresses in all) of smaller companies,

retaining those with SICs impacted by the change over to

NAICS and dropping the remainder (about 20,000 firms)

from the sample. It then added approximately 18,000

more small multiestablishment companies from affected

SICs, for a total sample mailing of 51,000. The COS mailing package contained not only the Form NC-9901, but

also any 1 or more of 11 specialized inserts requesting

classification information for establishments in industries

most affected by NAICS.

Each of the inserts listed a set of industry descriptions,

together with the bridge classification code for each

industry described. Form NC-9901-IG, ‘‘PersonalServices,’’

for example, listed six-digit industry bridge codes for 10

‘‘personalcare and related services’’ and for 12 ‘‘other

services to individuals.’’6 The form listed the bridge

classification codes covering the respondents’ general

area of economic activity, and asked them to enter the

appropriate code in the ‘‘Major activity’’ section of the

questionnaire.

5

Form 9922(V04), for example, asked whether 50 percent or

more of sales were to businesses that would resell merchandise

or to household consumers, what primary format the establishment used to sell in 1996, how the establishment attracted new

customers (e.g., location and store attractiveness, advertising to

the generalpublic, etc.), and what was the principalline of merchandise in 1996.

6

The various services listed were drawn from the 1987 SIC,

with the corresponding NAICS Code shown for each. In several

cases, a single six-digit NAICS Code covered several industries;

e.g., under personal care and related services; massage salons;

tanning salons; saunas, steam baths, and Turkish baths; and tattoo parlors were all classified as NAICS industry 729998.

20 Chapter 3 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
The Census Bureau mailed the COS packages in

December 1996, requesting response in 30 days. Three

mail follow-ups were carried out between the beginning of

February and the end of May 1997. Responses were

received from approximately 44,000 companies.

‘‘Birth’’ Classification

The Census Bureau used administrative records from

various Federalagencies (primarily the InternalRevenue

Service [IRS], the SocialSecurity Administration [SSA], and

the BLS) to update the SSEL.7 The Census Bureau incorporated data identifying ‘‘births’’ during the first three quarters of 1997 into its census maillist preparation, and used

the individualrecords to classify as many new companies

as possible. Those companies for which no information

was available, or that could not be classified using administrative records, were referred for the November 1997

classification mailout and were sent the Form NC-9923

‘‘GeneralClassification’’ questionnaire. When sufficient

information existed to classify the company by economic

sector or industry group, but not at the industry level, the

companies also were added to the November mailout, but

were sent either a Form NC-9926 (manufactures and mining companies) or the appropriate ‘‘services’’ sectors (i.e.,

virtually every other economic sector except manufacturing and mineralindustries) classification questionnaire.

Data on fourth-quarter births were compiled by the

Census Bureau from monthly transfers of IRS and SSA

administrative records. The Census Bureau prepared an

additional mailing list of new businesses and conducted a

second classification mailing in February 1998 for those

fourth quarter births it was unable to classify from the

administrative records.

Changes to the 1997 Census Questionnaires

The technical committee that had periodically reviewed

the SIC following its adoption in the 1940s, rarely moved

many industries from one SIC division to another. The

adoption of NAICS involved doubling the number of economic divisions, called ‘‘sectors’’ under NAICS. This extensive reorganization involved the creation of scores of new

industries and required not only establishing entirely new

product and industry codes, but moving significant numbers of industries between sectors and into the new sectors. The designs of over 450 1997 Economic Census

questionnaires were modified to accurately categorize

establishments.

The changes made to the questionnaires specifically to

implement NAICS generally fell into two categories—

• Additionalproducts, product codes, and activities were

listed where necessary to provide for the movement of

an activity from an SIC division or industry to a new

NAICS sector or industry.

• Specialinquiries were added to the questionnaires to

aid in identifying specific types of economic activities

not previously identified under SIC. Any additional products or activities were added to one of the following

items on the questionnaires:

• Kind of business or selling characteristics.

• Method of selling.

• Merchandise lines (retail trade).

• Commodity lines (wholesale trade).

• Sources of receipts or revenues.

• Type of construction (construction industries).

• Consumption of selected materials (manufactures and

mineralindustries).

• Products and services of this establishing during 1997.

The ‘‘specialinquiries’’ questions frequently were incorporated into other items on the questionnaires. That is,

the response to items on the questionnaires enabled analysts to confirm the classification of the respondent establishment. (For more information on changes to the questionnaires, and for examples of changes made specifically

to accommodate NAICS, see Chapter 4, ‘‘Questionnaire

Development.’’)

1997 Economic Census Classification

Questionnaire Mailout

Once the 1997 Economic Census maillist had been

compiled from the SSEL in the fall of 1997 (see Chapter 7,

‘‘Preparation for Census Mailout,’’ for details), the Census

Bureau sampled the list for small companies or establishments from the SICs most affected by the introduction of

NAICS. In November 1997, the Census Bureau conducted a

mailout to those establishments considered most likely to

require reclassification once NAICS was adopted, sending

classification questionnaires to approximately 1.6 million

addresses. (By comparison, the 1992 Economic Census

mailing had included 886,120 classification forms of all

kinds.) Addressees were asked to complete and return the

questionnaires within 30 days. This mailing was timed to

enable the DPD, which carried out the mailing and to

which allthe census mailquestionnaires were to be

returned, time to process at least part of the responses

before the main census mailout. (For further details of the

census classification mailing, see Chapter 8, ‘‘Data

Collection and Processing.’’)

Processing System Modifications

The problems created for the Census Bureau’s 1997

Economic Census data-processing systems by the adoption of NAICS involved the systems’ capacity to account

for the new classifications in both the microdata (i.e., processing individualcensus records from the questionnaires)

7

These records were supplied by the agencies monthly and

quarterly on a flow basis. The IRS provided the Census Bureau

with its complete Business Master File (BMF) each May.

History—1997 Economic Census Chapter 3 21

U.S. Census Bureau, 1997 Economic Census
and the macrodata (the census data file) areas. Changes

for microdata processing involved the complex edit of

records and the interactive editing systems that enabled

edit clerks and/or subject-matter specialists to review

and edit individualrecords. The complex edit had to be

modified by:

• Adding classification routines to bridge NAICS and the

SIC Code systems.

• Modifying code validation procedures to account for the

new code ranges and lengths.

• Rewriting the classification programs to enable the system to properly classify establishments that were new

to the specific economic sector involved (i.e., industries

previously part of a different division under SIC).

The Census Bureau used interactive systems to key

data from questionnaires to the economic census data

files and also to review and edit the individual data

records created when the data were keyed from the

questionnaires. The adoption of NAICS required that the

interactive systems originally designed for use with the

SIC Code be modified to account for the new bridge codes

allowing linkages between the NAICS and SIC Code.

Similar modifications had to be made to the economic

census tabulation programs.

COMPARABILITY OF THE DATA AND

MAINTENANCE OF TIME SERIES

Scope of Data Comparability

Data users will be able to derive NAICS data for roughly

two-thirds of the four-digit SIC Code industries, either

because the industries have not been changed (other than

the numericalcode), or because any new industries are

subdivisions of an old industry. For example, the SIC

industry 4953, ‘‘Refuse Systems,’’ was subdivided under

NAICS into eight new industries. These eight differentiated

among collection and disposal, separating hazardous

waste, materials recovery, landfills, and incinerators.

However, many other industries were significantly altered

by the adoption of NAICS—544 SIC industries either were

not continued or could not be identified under the new

system. In turn, 710 industries were created, or had their

classifications significantly revised by NAICS. To assist

data users, OMB published tables showing the full NAICS

hierarchy, as well as tables showing NAICS industries

matched to the equivalent 1987 SIC Code, and vice versa.

Maintenance of Time Series

NAICS and economic census time series. Economic

data are generally most useful in time series, providing

comparable data over a significant period of time. The

adoption of a new classification system breaks time series,

since the data collected using the new definitions and

codes willnot be identicalto that produced by the old system. In the best of all statistical worlds, the need to enable

data users to familiarize themselves with the new system

would require the application of the new classifications to

existing data before (or at least contemporaneously with)

the collection and publication of new data using the new

classifications. In the case of the census, it would be desirable to reclassify the data from the 1992 Economic Census

prior to the publication of 1997 statistics. However,

for accurate classification, NAICS requires more and/or

different information about the operations of individual

establishments than did the SIC, so that while some of the

1992 data will have direct counterparts in the 1997 statistics, much of the statisticaldata produced willhave no

such immediate connection. The Census Bureau recognized that users need to maintain criticaltime series data

for comparability, and the agency addressed this problem

in two ways— through its plans for data publication and in

a research program to determine the feasibility of reclassifying 1992 census data using NAICS.

Publication plans. The sheer volume of data that would

be generated by the census, as well as time and cost

restraints, meant that any reasonable response to the

problem of complete tables ‘‘bridging’’ between the old

and new classification systems necessarily would be

extremely difficult and costly. Ideally, a complete parallel

publication program, showing all the data classified under

both systems, would have been done. Since that was

impossible if the data were to be published on a timely

basis and within any possible budget, the Census Bureau

had to develop a more limited plan.

The 1997 Economic Census data were published in

three phases—an Advance Report, detailed data, and

bridge reports. Early in 1999, the agency released the

Advance Report, covering all sectors—at the national

level—included in the 1997 Economic Census. This report

showed data down to the three-digit industry group level,

using NAICS. Preliminary ‘‘comparative statistics’’—that is,

tables presenting 1997 and 1992 data on the 1987 SIC

basis also were shown at the two-digit levels for the

United States. (A separate Comparative Statistics report

was released later in the publishing cycle, with two-,

three-, and four-digit SIC summaries that superceded the

data in the Advance Report.)

Detailed data from the Industry Series and Geographic

Area Series reports were released throughout 1999, covering industry and summary statistics for various NAICS and

geographic area levels. In early 2000, a final Comparative

Statistics Report was issued, covering 1997 and 1992

basic data items at the SIC trade area and selected two-,

three-, and four-digit levels for all establishments for the

United States and states.

At approximately the same time, the Census Bureau

released ‘‘bridge tables’’ for the United States that included

1997 statistics showing the distribution of NAICS-based

22 Chapter 3 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
industries at the more detailed level among SIC-based

industries at the four-digit level, as well as 1997 statistics

showing the distribution of SIC-based industries at the

four-digit level among NAICS-based industries at the more

detailed level.

All other data from the 1997 census were published

using only NAICS. The first industry-specific numbers

published in 1999 did not enable comparisons to be made

to earlier censuses for any industries that changed in definition. Only limited historical data appeared for industries

that were unmodified by the change to NAICS, or that

could easily and cleanly (i.e., without fragmentation of the

SIC Coded industry) be connected to NAICS. As in previous

censuses following changes in the SIC, no comparability

tables were available below the state level—i.e., substate

level statistics were published using NAICS only.

The reclassification of 1992 Economic Census

data. The disruption of data time series occasioned by

the adoption of NAICS caused considerable concern

among many economic census data users. The Census

Bureau’s ProfessionalAssociations’ Advisory Committee

urged that the agency try to alleviate this situation to the

greatest extent possible. While it proved impossible to

completely reclassify the 1992 Economic Census data, the

Census Bureau’s Center for Economic Studies (CES) undertook a study of the possibility of reclassifying at least part

of the 1992 statisticaldata to conform to NAICS.

CES staff found that, by making extensive use of

modeling, some degree of reclassification could be accomplished, although the resultant data would have to be

used with considerable caution. Accordingly, the CES staff

carried out the reclassification of the 1992 manufacturing,

retail, and wholesale data, completing the process by

mid-1999. The services industries, which had undergone

perhaps the most extensive changes in the adoption of

the new system (e.g., the creation of eight new major

services economic sectors under NAICS), was considered

the most difficult sector to attempt to reclassify, and the

CES was still working on that reclassification at the time of

this writing.

History—1997 Economic Census Chapter 3 23

U.S. Census Bureau, 1997 Economic Census
Chapter 4. QUESTIONNAIRE DESIGN AND DEVELOPMENT

Introduction ................................... 26

Design Considerations ............................. 26

Consultation on the Questionnaires ...................... 27

General Information ............................. 27

Retail Trade; Wholesale Trade; Service Industries; Finance, Insurance, and

Real Estate; Transportation, and Utilities .................. 27

Manufacturing, Construction, and Mining .................. 27

Design and Content............................... 27

General Information ............................. 27

Retail Trade; Wholesale Trade; Service Industries; Finance, Insurance, and

Real Estate; Transportation, and Utilities .................. 27

Construction ................................. 28

Manufacturing and Mining .......................... 28

Changes to the Questionnaires ......................... 29

Retail Trade .................................. 30

Wholesale Trade................................ 30

Manufacturing ................................ 31

Construction ................................. 31

Mining..................................... 32

Service Industries ............................... 32

Finance, Insurance, and Real Estate ..................... 33

Transportation and Utilities Industries .................... 33

Summary .................................... 33

CONTENTS

History—1997 Economic Census Chapter 4 25
Questionnaire Design and Development

INTRODUCTION

Questionnaire design and development began in

January 1994. The majority of the work on the design

and content of the census questionnaires was done by

the staffs of the Census Bureau’s economic subject

divisions—Manufacturing and Construction Division

(MCD), Company Statistics Division (CSD), and Service

Sector Statistics Division (SSSD). These divisions were

assisted by Economic Planning and Coordination Division

(EPCD) and Administrative and Customer Services Division

(ACSD). Subject specialists, together with forms design

specialists and EPCD staff, made many decisions: size and

format of the questionnaires, questionnaire identification

(i.e., form numbers and titles), wording and sequencing of

standard questions, file copy requirements, design techniques, color schemes for the paper and ink, shading, type

of processing equipment to be used, and microfilming

requirements.

The Census Bureau developed separate questionnaires

for each of the economic sectors covered by the census,

and, within each sector, developed questionnaire variations for the different industries. Table 4-1 shows the

numbers of questionnaires used for the major economic

areas covered by the 1997 Economic Census.

Table 4-1.

1997 Economic Census Questionnaires

Total 479*

Manufacturing 253

Mining 12

Construction 11

Retail Trade and Accommodations and

Foodservices

44

Wholesale Trade 48

Service Industries 54

Finance, Insurance, and Real Estate 24

Utilities (utilities, transportation, and

communications)

8

Vehicle Inventory and Use Survey 4

Business Owners and Self-Employed Persons 2

Business Expenditures Survey 9

Economic Census of Outlying Areas 6**

General Schedules 4

*The Economic Directorate also was responsible for coordinating

the design and printing of the 48 kinds of envelopes used in the

census, and the report forms for the 1997 Census of Agriculture (43

questionnaires and 37 envelopes).

**Includes Spanish and English questionnaires for Puerto Rico and

the Virgin Islands of the United States.

While the Census Bureau designed the questionnaires,

the Office of Management and Budget (OMB) exercised

final authority for approving or denying approval for all

economic census forms. The OMB was required, by law,

to review the questionnaires and to determine that the

information requested—

• Was necessary.

• Was not available from other government or private

sector sources.

• Was available from the records customarily maintained

by businesses or organizations being enumerated, or

that reasonable estimates of the requested information

could be made by respondents.

The OMB also verified conformance to the reporting

burden control program for Federal agencies, the objective

of which is to keep the response burden of the business

community to a certain minimum number of hours.

Prior to its submission of the draft questionnaires for

OMB approval, the Census Bureau was required to publish

a notice in the Federal Register of its intention to carry

out the economic census. This was to inform interested

parties of their opportunity to comment on the questionnaire content. For the 1997 Economic Census, the Census

Bureau made draft versions of the questionnaires available

at its economic census Web site, www.census.gov/econ97.

DESIGN CONSIDERATIONS

The chief goal of questionnaire design was to obtain

information, while imposing the least possible respondent

burden. This task was complicated by the requirement

that the 1997 census collect, tabulate, and publish data

using the new North American Industry Classification

System (NAICS). (The NAICS is described in detail in Chapter 3, ‘‘Introduction of the North American Industry Classification System (NAICS).’’) Replacing the Standard Industrial Classification (SIC) Code in use in the U.S. since the

1930s, the NAICS doubled the classification of sectors at

the two-digit level from 10 to 20, and added over 300 new

industry classifications to capture business activity in the

U.S. economy.

The adoption of the NAICS, only a year before the

mailout of the census questionnaires, imposed a very tight

schedule for designing, approving, and printing the

questionnaires. Given the additional requirements for

classification information, the Census Bureau decided that

minimal changes should be made to the overall content

26 Chapter 4 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
and format of the questionnaires. To avoid complications

and possible delays in the design and approval of the various economic census forms, the Census Bureau simplified

and standardized the designs to the greatest extent possible.

CONSULTATION ON THE QUESTIONNAIRES

General Information

The Census Bureau asked for comments and suggestions on questionnaire content and design from a wide

variety of professional, industry, and business associations.1 Since this process began before the final proposals

for the adoption of the NAICS were published in the

Federal Register (November 1996), the Census Bureau’s

consultations with the various associations were based on

SIC industry divisions. In the discussion that follows,

therefore, the consultations are described in terms of SIC

categories.

Mailing packages sent to the associations each

consisted of a cover letter explaining the request for

comments, a draft copy of the questionnaire for the

respective industry, a response sheet that provided both

space for comments as well as a check box for respondents who had no comments, and a return envelope.

Census Bureau staff also consulted various Federal

agencies (e.g., the Federal Reserve Board, the Bureau of

Labor Statistics, the Office of Trade and Economic Analysis, and the Bureau of Economic Analysis) that use economic census data as benchmarks for their own statistical

work, or as primary data for their own programs. In

addition, the Census Bureau sought comments on questionnaire content from its advisory committees.

Retail Trade; Wholesale Trade; Service Industries;

Finance, Insurance, and Real Estate;

Transportation and Utilities

In January and February of 1995, the Census Bureau

canvassed national professional and trade associations

in services; retail and wholesale trades; transportation;

and finance, insurance, and real estate sectors. Packages

were mailed to 558 business associations, Federal agencies, and other organizations with response requested by

March 31, 1995. The Census Bureau followed up selected

nonrespondents by mail and telephone, receiving 160

replies by the end of August. Census Bureau staff carefully

reviewed the responses, and also met with selected public

and private organizations for detailed discussions of their

recommendations.

Manufacturing, Construction, and

Mining

The Census Bureau mailed requests for comments on a

flow basis beginning in the spring of 1995, as drafts of

the proposed questionnaires became available. Requests

went to over 700 manufacturing, construction, and mining

business and trade associations, and to various Federal

agencies that use data from these sectors. The packages

for the manufacturing, construction, and mining differed

from those used in the round of consultations for the

other economic sectors in that they included descriptions

of both proposed changes to the questionnaires and publication formats for the 1997 census. Many of the organizations on the mailing list received multiple packages—over

2,000 were mailed in all—because they conducted business across several industrial classifications.

By the end of August 1996, the Census Bureau had

received comments on over 960 of the packages sent for

review. The MCD staff reviewed the responses and met

with selected respondents to discuss their recommendations before finalizing the questionnaire content.

DESIGN AND CONTENT

General Information

The enormous variety of activities within the economy

and within the major economic sectors precluded conventional standardization in questionnaire design and

content.2 However, the following basic data items were

requested of all respondents to the 1997 Economic

Census:

• Employer identification number (EIN).

• Physical location of the economic activity.

• Number of employees.

• Payroll.

• Value of sales, receipts, work done, or equivalent.

The general instructions and certification (name,

address, telephone number, etc., of the person completing

the questionnaire) were similar for all questionnaires.

Within each major economic sector, the Census Bureau

customized the questionnaires to the greatest extent

possible for ease of response, but the data requested

varied enormously from sector to sector. For example,

product data for manufacturing establishments was

necessarily different from product data for financial and

insurance businesses. The sector-specific data content

of the questionnaires for each major economic sector

covered in the 1997 Economic Census is outlined below.

Retail Trade; Wholesale Trade; Services Industries;

Finance, Insurance, and Real Estate;

Transportation and Utilities

The questionnaires for the retail and wholesale trades;

the service industries; and for finance, insurance, and real

estate, asked for legal form of organization (i.e., individual

1

The names of these organizations are contained in Appendix

D, ‘‘Consultation on the Census Questionnaires.’’

2

For example, 48 separate questionnaires ultimately were used

to enumerate wholesale trades.

History—1997 Economic Census Chapter 4 27

U.S. Census Bureau, 1997 Economic Census
proprietorship, partnership, cooperative association,

government, corporation, other), and operational status

(in operation, temporarily or seasonally inactive, ceased

operation). The wholesale trade questionnaires included

additional items on type of operation, operating expenses,

and inventories, while the service industries’ questionnaires asked for Federal tax status and operating

expenses for tax-exempt organizations. The transportation and utilities industries’ questionnaires included an

item on operational status, and requested data on sources

of revenue. Many of the questionnaires included special

inquiries—e.g., sales by merchandise, commodity, or

receipts line; sales by class of customer; and employment

by occupation.

Construction

Eleven questionnaires were used for enumerating construction firms. These forms included relatively detailed

inquiries on costs, as follows:

• Employers’ cost of fringe benefits (voluntary and legally

required).

• Costs of (1) work subcontracted out; (2) materials,

components, and supplies; (3) selected power and fuels;

(4) selected purchased services; (5) rental machinery,

equipment, and buildings.

• Value of business done.

• Estimated percentage of dollar value of construction

work done for various kinds of business.

• Estimated percentage of dollar value of construction

work done for various types of construction and how

much was new construction, additions, alterations, or

reconstruction; or maintenance and repair work.

• Percentage breakdowns of government-owned and

privately-owned construction, of construction work

subcontracted from other contractors, and for the

location of construction work by state.

• Capital expenditures, depreciable assets, and

inventories.

Manufacturing and Mining

The Census Bureau used 35 short- and 218 long-form

questionnaires for the manufacturing sector. The short

questionnaires were two pages each, with a standardized

first page that requested—

• Employer identification number.

• Physical location.

• Employment in 1997.

• Annual payroll.

• Value of products exported.

• Total capital expenditures and gross value of depreciable assets (excluding land).

• Total rental payments (buildings, machinery, and

equipment, including land).

• Cost of materials for 1997.

• Value of inventories.

• Legal form of organization.

• Operational status.

The second page of the short forms (identified by form

numbers based on the industry-specific NAICS Code)

asked for value of products shipped and other receipts (by

type of product), as well as total value of shipments and

other receipts.

The first four pages of all 218 long questionnaires were

standardized (three pages of questions and one of instructions) and were virtually identical to the general questionnaire used in the Annual Survey of Manufactures (ASM).

The remainder of each questionnaire was designed for

enumerating the specific industries. In fact, the 1997 ASM

questionnaire, Form MA-1000, was used as the first four

pages of the manufacturing questionnaire for companies

on the ASM sample list. A variant of the ASM questionnaire

formed the first four pages of the questionnaires used for

the rest of the census of manufacturing long-questionnaire

mailing list.

The long questionnaires included the following

standardized items:

• Employer’s cost for fringe benefits.

• First-quarter payroll before deductions.

• Plant hours worked by production workers.

• Total shipments and other receipts, value of products

exported, and shipments to other domestic plants.

• Cost of materials and contract work.

• Establishment inventories at end of year. Depreciable

assets, capital expenditures, and retirements (of debt).

• Rental payments.

• Selected purchased services (MA-1000 only).

• Quantity of electricity used (kilowatt hours) (MA-1000

only).

• Total depreciation charges (MA-1000 only).

• Method of valuation for inventories not subject to lastin/first-out (LIFO) costing (MA 1000 only).

• Ownership, control, and location.

28 Chapter 4 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
The individual industry long questionnaires asked

for information on consumption of selected materials,

products and services provided by the respondent establishment, total shipments and receipts, and also included

special inquiries for particular industries (e.g., selected

products that were produced and used to manufacture

other products by the responding establishment).

For mining, the census gathered data using 2short- and

10 long-form questionnaires. All of these included the

standardized questions, as well as many of the items

appearing on the MA-1000 questionnaire. The short-form

questionnaires (Forms 1371 [Oil and Gas Field Operations]

and 1471 [Stone, Sand, and Gravel]) requested data on—

• Capital expenditures and gross value of assets at end of

year.

• Total rental payments and cost of supplies.

• Legal form of organization.

• Operational status.

• Products and services provided in 1997.

• Total shipments and other receipts.

The long-form questionnaires asked for all the data on

the short versions, and the following additional information:

• Establishment inventories.

• Debt retirement.

• Total depreciation.

• Current account expenditures for mineral properties.

• Detailed cost of supplies and contract work. Ownership,

control, and location of operations.

• Detailed cost of supplies used, minerals for preparation,

and purchased machinery installed in 1997.

• Detailed fuels used.

• Detailed rental payments.

• Type of operations.

• Selected purchased services.

CHANGES TO THE QUESTIONNAIRES

The 1997 Economic Census questionnaires were based

on those used in the 1992enumeration, and were updated

as necessary. The specialized nature of the questionnaires

for each economic sector meant that most of the content

modifications for the 1997 census applied only to a single

questionnaire, or to a small group of questions covering a

particular economic sector or group of sectors. By contrast, the general design changes focused primarily on

identification of the questionnaires and their handling

prior to data processing. For example, the most prominent

change in the overall design of the questionnaires was the

title ‘‘1997 Economic Census’’ in place of the specific census designations previously used (e.g., ‘‘1992Census of

Manufactures,’’ ‘‘1992Census of Retail Trade,’’ etc). This

change applied to questionnaires for all trade areas

covered by the census except mineral industries and (part

of) transportation, which retained their individual census

designations (e.g., ‘‘1997 Census of Mineral Industries,’’

‘‘1997 Census of Transportation, Vehicle Inventory and

Use Survey’’). The trade area identifiers appeared in the

individual form numbers; that is, an alphabetic prefix

identified the general economic area that would process

the forms:

Prefix Economic area

AU Auxiliaries

CC Construction

FI Finance and insurance, and real estate

and rental and leasing industries

MC Manufacturing

MI Mining

RT Retail trade and accommodations and

foodservices

SV Service industries

TC Vehicle inventory and use survey

UT Transportation and utilities

WH Distributive (wholesale) trades

The Census Bureau also added a barcode to the right

margin of each page of the questionnaire. This served as

an alignment aid for microfilming equipment. The census

due date was changed from February 15, in 1993 to

February 12, in 1998.

The adoption of the NAICS was a substantial factor

leading to changes in the content of individual questionnaires. These changes were primarily of two kinds—

• Additional products shipped and materials consumed or

kinds of business activities were listed on the questionnaires where necessary to provide for the movement of

an activity from an SIC sector or industry to a new

NAICS sector or industry. It also provided for comparability between data from previous censuses—published

using the SIC—and 1997 data collected and published

under the NAICS.

• Special inquiries were added to the questionnaires to

aid in classifying specific types of economic activities

not previously covered.

Depending on the specific sector, additional or ‘‘new’’

products shipped and product or activities codes were

added to one of the following items on the questionnaires;

(1) kind of business or selling characteristics, (2) method

of selling, (3) merchandise lines (retail trades), (4) commodity lines (wholesale trade), (5) sources of receipts or

History—1997 Economic Census Chapter 4 29

U.S. Census Bureau, 1997 Economic Census
revenue, (6) type of construction (construction), or (7) consumption of selected materials (manufacturing and mining). The ‘‘special inquiries’’ questions frequently appeared

in separate items at the end of the questionnaire, but also

could be incorporated in other items. In the latter case,

responses could be used by analysts to confirm the classification of the establishment without asking an explicit

question.

The changes made to the questionnaires are summarized below, by industry sector or related sectors, together

with some illustrative examples of specific additions,

deletions, or changes to the questionnaires.

Retail Trade

The retail trade sector expanded under the NAICS to

include establishments primarily engaged in providing

accommodations (e.g., motels) and food services (e.g.,

restaurants). The changes made to the 48 retail trade

questionnaires generally fell into three broad categories—

• Deletion of special inquiries not critical for kind-ofbusiness classification.

• Changes to the merchandise lines (item 10) of the questionnaires, made at the request of the industry to collect

more useful data.

• Changes made to facilitate kind-of-business classification under the NAICS.

A considerable variety of special inquiries were added

to the retail trade questionnaires, primarily to provide

detailed data on specific characteristics of limited sectors

of the retail sector.

Retail trade is a relatively volatile sector of the

economy, in terms of the importance of specific kinds of

merchandise at any given time. There were considerable

changes made to Item 10, ‘‘Merchandise Lines,’’ on many

questionnaires. For example, on Form 5901, ‘‘Health and

Personal Care Stores,’’ lines of merchandise considered no

longer relevant to the establishments covered—e.g., major

household appliances, furniture and sleeping equipment,

floor coverings, automotive fuels, and paint and related

preservatives and supplies—were deleted, and new lines

requesting data on hearing aids and seasonal decorations

were added.

The adoption of the NAICS also had an impact on the

retail questionnaires, including the addition of two new

questionnaires—Forms RT-7001, ‘‘Traveler Accommodations,’’ and RT7002, ‘‘Recreational and Other Accommodations.’’ These covered industries reclassified from services

to retail trade. Other changes made to facilitate kind-ofbusiness classification under the NAICS required modification of existing forms, such as combining items on paint,

glass, wallpaper, and hardware dealers from two 1992

census questionnaires into Form 5201, ‘‘Building Materials

and Supplies Dealers.’’ Also, a single 1992questionnaire

on contract feeding and vending operators was split into

Forms RT-5802, ‘‘Contract Feeders,’’ and RT5803, ‘‘Vending

Operators.’’

Wholesale Trade

The bulk of the changes to individual questionnaires in

the wholesale trade sector involved either Item 11, ‘‘Kind

of Business,’’ or Item 13 (13a on some forms), ‘‘Commodity Lines.’’ However, there also were some general content

changes to nearly all questionnaires for wholesale establishments, as follows:

• An additional option was added to Item 6, ‘‘Employment,’’ section b, ‘‘List the above employees by the

employee’s primary function’’—‘‘Sales support (including

office and clerical, warehousing, customer service,

maintenance employees, and drivers).’’

• The Census Bureau added Item 11b, ‘‘Selling Characteristics,’’ asking (1) ‘‘In what format did this establishment

primarily sell in 1997?’’ and (2) ‘‘How did this establishment primarily attract new customers in 1997?’’ to all

long-form questionnaires (except Form WH-5170,

‘‘Petroleum and Petroleum Products’’).

• In Item 10, ‘‘Sales by Class of Customer,’’ choices ‘‘b’’

through ‘‘f’’ were reworded to accommodate changes

required by the adoption of the NAICS (e.g., Item 10b,

originally read ‘‘Restaurants, food services, and contract

feeding,’’ and was changed to ‘‘Restaurants, hotels, food

services, and contract feeding,’’ while Item 10d, originally ‘‘Other wholesale establishments’’ was reworded

‘‘Other wholesale establishments for resale.’’

Most other changes made to individual questionnaires

stemmed from the NAICS classification requirements, or

resulted from the aforementioned consultations. For

example, under the NAICS, all fluid-power equipment was

classified under industrial machinery and equipment.

Consequently, the Census Bureau added a line to Item 11,

‘‘Kind of Business,’’ on ‘‘Hydraulic and pneumatic valves,

cylinders, rotary actuators, connectors, and assemblies,

filters, accessories, and parts,’’ to Form WH-5084, ‘‘Industrial Machinery and Equipment.’’ This, in turn, led to

changes in Item 13, ‘‘Commodity Lines,’’ of the same form,

adding lines for hydraulic and pneumatic valves, cylinders

and rotary actuators, and connectors.

Consultation with the industry led to considerable

rewording of the detail lines in Item 13 of Form WH-5060,

‘‘Electrical Goods,’’ where 10 new lines—on power and

distribution transformers; switchgear and switchboard

apparatus; motors and generators; conduits, raceways,

and fittings; electric bulbs; interior wiring; exterior wiring;

lighting fixtures; industrial controls; and other electrical

apparatus and equipment—were added to the item.

30 Chapter 4 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Six of the 48 wholesale questionnaires were intended

for small companies.3 Aside from the prefix (i.e., ‘‘WH’’)

change and the request for county in the item on location,

the principal changes made to the short-form questionnaires was the adoption of the items on ‘‘Sales By Class of

Customer’’ (Item 9 on most questionnaires) and ‘‘Selling

Characteristics’’ (Part b of Item 11, ‘‘Kind of Business’’) on

the long forms.

Manufacturing

The adoption of the NAICS that had the greatest impact

on content changes for the manufacturing sector. These

changes required additions and elaborations of product

lines on most of the manufacturing questionnaires. For

example, Form 2023, ‘‘Dried Food, Pickles, and Macaroni,’’

added ‘‘Vegetable flour’’ (product code 20343 38) to Item

18. Form MC-2207, ‘‘Spinning and Throwing of Yarn and

Thread,’’ expanded the 1992equivalent product line for

‘‘rewound and novelty yarns’’ (1992 product code 22822

21 7) into two new product lines: ‘‘Rewound yarns, other

than wool, ...’’ (product code 22822 22 5) and ‘‘Novelty

yarns, other than wool, ...’’ (product code 22822 23 3).

For the 1997 census, the Census Bureau made several

changes to the standardized portion of the manufacturing

questionnaire by eliminating the following items that

appeared on the 1992questionnaire:

• Separate data for voluntary and legally required fringe

benefits. This item was dropped in order to reduce

response burden.

• Separate data for new and used assets and expenditures

and detail for new machinery expenditures. These data

were collected in the Census Bureau’s Annual Capital

Expenditures Survey (ACES).

• Request for data on methods of inventory valuation not

subject to last-in, first-out (LIFO) costing (eliminated

from the MA-1000 only).

The industry-specific items of the manufacturing questionnaires (pp. 5-11 for long-form questionnaires, p. 2

for the short-form questionnaires) covered the particular

characteristics of the individual establishments’ operations. Changes in these items were made based on (1)

expected growth or decline in importance of a material,

product, or special inquiry item, (2) revisions required

to promote comparability between the Census Bureau’s

classification system and the international Harmonized

Commodity Description and Coding System (HS)4, and (3)

revisions needed to implement the change over from SIC

to NAICS. For example, Form MC 2004, ‘‘Dairy Products,’’

Item 18, ‘‘Products and Services of This Establishment in

1997,’’ was modified to add new product lines on ‘‘Lowfat

Natural Cheese, Except Cottage Cheese’’ (shipped in packages of less than three pounds, and three pounds or

more). The Census Bureau added the new product lines

because it expected the total value of these products

shipped in 1997 to exceed $50 million. A product line

could be deleted if the value to be shipped was expected

to fall below $25 million.

Construction

For the 1992census, the Census Bureau used 22

questionnaires to cover construction—11 long and 11

short. Both the long and short questionnaires were 4

pages, with virtually identical layout and design for pages

1, 2, and 4. Page 3 on each questionnaire was customized

and contained items requesting information on kind of

business and type of construction.

For the 1997 Economic Census, MCD reevaluated the

1992questionnaire designs and decided that there were

few, if any, advantages to using short questionnaires. The

short questionnaires requested information from a sample

of small construction firms and, for 1997, the Census

Bureau planned to reduce such sampling.

There were limited changes to the overall design and

format of the long questionnaires, as follows:

• On page 2, an additional instruction (to include receipts

or billings derived from contract construction, design/

build contracts, and construction management) was

added to two of the questionnaires (Forms 1508 and

1608).

• Page 3 of each questionnaire, which contained Items 13,

‘‘Kind of Business,’’ and 14, ‘‘Type of Construction,’’ was

customized for each questionnaire. The Census Bureau

deleted requests for detail on new and used depreciable

assets and detail on buildings, structures, and machinery from Item 18, ‘‘Assets, Capital Expenditures, and

Depreciation in 1997.’’

• On page 4, Form 1508 included new items asking for

data on housing starts and nonresidential design/build

work and Form 1608 asked for information on nonresidential design/build work.

3

Payroll cutoffs for small wholesale establishments varied by

kind of business, but small establishments typically included

firms with one to three employees. These companies represented

about 10 percent of total annual wholesale sales.

4

The U.S. adopted the Harmonized Commodity Description

and Coding system (HS) in 1989 for classifying commodities in

international trade. Under HS, both exported and imported commodities carried the same codes to the six-digit level. This

allowed closer comparisons than under previous systems (the

process was assisted by adjustments made to the SIC Code). The

HS was intended to serve as a universally accepted product

nomenclature and could be used for classifying goods for customs programs, as well as for collecting data on exports and

imports.

History—1997 Economic Census Chapter 4 31

U.S. Census Bureau, 1997 Economic Census
Other relatively minor wording changes were made,

primarily to clarify the data requested. Since write-in

responses to the kind-of-business and type-of-construction

questions would require time-consuming manual coding

by analysts during processing, the MCD tried to reduce

the need for write-in response by anticipating activities

and adding ready-made codes.

As with the questionnaires for other sectors, construction industry forms underwent certain changes to accommodate adoption of the NAICS. Reclassified activities and

their attendant codes were added to the appropriate questionnaires. For example, stucco contractors were part of

SIC Industry 1771, ‘‘Concrete Work.’’ Under the NAICS,

stucco construction was transferred to NAICS Industry

23542, ‘‘Drywall, Plastering, Acoustical and Insulation

Construction.’’

Mining

The 1997 Economic Census used 12questionnaires to

enumerate mining. Content changes to the questionnaires

paralleled those made for manufacturing, deleting—

• Breakdown between legally required and voluntary

fringe benefits paid to employees.

• Detailed breakdowns of (1) beginning and ending

assets, (2) retirements, and (3) depreciation/depletion

changes between buildings, machinery, mineral

exploration/ development, and land and rights. Detailed

breakdown of capital expenditures between buildings

and machinery.

• Detailed breakdown of current account expenditures for

mineral properties between mineral exploration/

development, and mineral land and rights.

Industry-specific changes also were made to the questionnaires, primarily to Item 17, ‘‘Supplies Used, Ores for

Treatment, and Purchased Machinery Installed During

1997,’’ and 18B, ‘‘Products and Services of This Establishment in 1997.’’ For example, on Form MI-1001, lines in

Item 17C for ‘‘Iron ore concentrate’’ and ‘‘Bauxite’’ were

combined with ‘‘Other ores and concentrates’’ for 1997.

Separately, they were no longer as significant to the industry as was the case in 1992. Other changes to Item 18B

stemmed from the transition to the NAICS. On Form 1303,

‘‘Oil and Gas Field Services,’’ a product line on ‘‘Geophysical surveying for oil and gas’’ was added to facilitate classifying establishments in the NAICS. Similarly, Form 1403,

‘‘Chemical and Fertilizer Minerals and Nonmetallic Minerals,’’ split ‘‘Bituminous limestone and bituminous sandstone’’ from the product line for ‘‘Native asphalt and

bitumens’’ to attain comparability within the NAICS. On

several questionnaires, ‘‘Lubricating oils and greases’’ were

combined with ‘‘All other supplies’’ because separate data

could not be published without disclosure problems.

Service Industries

For the 1997 census, the former SIC Service Industries

division was expanded and reorganized into eight NAICS

service sectors. The new NAICS sectors, derived largely,

but not exclusively, from Service Industries were as follows: Information; Professional, Scientific, and Technical

Services; Administrative Support, Waste Management and

Remediation Services; Educational Services; Health Care

and Social Assistance; Arts, Entertainment, and Recreation;

Other Services (Except Public Administration); and

Management of Companies and Enterprises (the latter

drew elements from all the SIC divisions).

The items asking for the EIN and physical location on

the 54 services questionnaires were changed to conform

to those used on the rest of the census questionnaires.

Specific lines or items were dropped from various questionnaires due to poor response or to budget limitations

(e.g., for Form SV-7903, ‘‘Gambling, Amusement and

Gambling,’’ lines asking for data on docking and storage

capacity, as well as on bowling, were deleted from Item 9,

‘‘Sources of Revenue’’). On taxable and nontaxable

businesses questionnaires (e.g., Form 8704, ‘‘Management

and Consulting Services’’ (taxable) and Form SV 8004,

‘‘Hospitals’’ (nontaxable), instructions were added to Item

4, ‘‘Legal Form of Organization,’’ to help companies select

the appropriate check box and to resolve problems with

data on limited liability partnerships.

The adoption of the NAICS also led to the creation of

several new questionnaires, including long-form questionnaires Forms 7303, ‘‘Specialized Design Services,’’ and

7309, ‘‘Miscellaneous Professional Services,’’ and five

short-form questionnaires, to cover newly identified industries. In addition, communications industries (former SIC

Major Group 48, covering telecommunications, including

telephone and telegraph, radio and television broadcasting, cable and other pay television services, and communications services not elsewhere classified) was transferred

from Transportation, Communications, Electric, Gas, and

Sanitary Services to the NAICS ‘‘Telecommunications

(consolidated)’’—one of the new service classifications.

Most changes to the service questionnaires added

inquiries to Items 8, ‘‘Kind of Business,’’ and 9, ‘‘Sources of

Receipts.’’ These changes either improved the level of

detail data available from the census or facilitated industry

classification. For example, Form 7302, ‘‘Administrative

and Other Support Services,’’ combined inquiries from

three 1992questionnaires into eight new lines in Item 8,

‘‘Kind of Business’’—(1) collection services, (2) adjustment

bureau, (3) secretarial services, (4) court reporting, (5) all

other support services, (6) all other administrative services, (7) telemarketing bureau and soliciting services, and

(8) recovery and repossession services—while deleting

two lines (blueprinting and photocopying, and duplicating

services) to facilitate classification under the NAICS.

Form 7301, ‘‘Advertising and Related Services,’’ had

seven new lines added to Item 9—(1) display advertising

32Chapter 4 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
services, (2) direct mail, (3) distribution or delivery of

advertising materials, (4) fees for soliciting advertising for

media, (5) commissions from buying advertising space or

time and reselling, (6) sales of ‘‘specialty advertising’’

products, and (7) sales of merchandise except special

advertising products—to provide support for industry

coding and improved industry detail.

Finance, Insurance, and Real Estate

Changes made to the 24 questionnaires for these industries reflected (1) improvements from experience gained in

earlier census coverage, (2) detail needed for classification

under the NAICS, and (3) items deleted because of poor

response in previous censuses or because of budget limitations. Based on previous experience, the Census Bureau

added ‘‘Subchapter ‘S’ corporations’’ to Item 7, ‘‘Legal

Form of Organization’’ on all questionnaires to help

respondents select the correct check box. The 1992Form

CB-6000, ‘‘Depository Institutions,’’ was split into three

questionnaires for the 1997 census—FI-6001, ‘‘Banks and

Depository Credit Intermediaries, Except Credit Unions’’;

FI-6002, ‘‘Credit Unions’’; and FI-6300, ‘‘Foreign Banks and

International Trade Finance’’—because the amount of

detail required to cover all these industries on a single

questionnaire had confused the respondents. Items on

questionnaires directed to insurance agencies and to real

estate agents and managers were reworded to improve

data

capture on commissions paid to independent agents.

Changes made to accommodate the NAICS required

adding, deleting, or rewording lines in Item 8, ‘‘Kind of

Business or Activity,’’ and Item 9, ‘‘Sources of Revenue.’’

For example, on Form FI-6102, ‘‘Activities Related to Credit

Intermediation,’’ the Census Bureau added a kind-ofbusiness check box and a revenue line for loan servicing.

This activity is recognized in the NAICS industry 52239,

‘‘Other Activities Related to Credit Intermediation.’’ Three

new questionnaires were added to cover rental and leasing of automotive and other machinery and equipment

were FI-6504, ‘‘Automotive Equipment’’; FI-6505, ‘‘Rental

and Leasing of Machinery and Equipment’’; and FI6506,

‘‘Miscellaneous Rental and Leasing.’’

Finally, certain inquiries originally intended to assist in

assigning industry classification codes were dropped due

to poor response or to budget limitations (e.g., from the

1992Form FI6501, ‘‘Real Estate Operators and Lessors,’’

an item asking about managed or leased properties).

Transportation and Utilities Industries

The biggest change within this group of questionnaires

resulted from the transfer of communications industries

out of the sector. Also, in previous censuses, transportation, communications, and utilities industries had covered

telecommunications firms, but for the 1997 Economic

Census, this subsector was transferred into one of the

service industries.

For the 1992census, the design of the transportation,

communications, and utilities industries questionnaires

differed from those for other economic sectors in the

placement of the kind-of-business and source-of-revenue

items. By contrast, in the 1997 census—for the transportation and utilities industries—this organization was

changed to conform with that of other questionnaires. The

effect was to standardize overall design and to facilitate

processing of all census materials. As with other questionnaires, minor wording changes were made and the question on physical location of the establishment was

changed to request the county.

Most of the more substantial changes in the transportation questionnaires were made to individual lines (i.e.,

sources) listed in Item 9, ‘‘Sources of Revenue,’’ either to

facilitate classification or to improve comparability under

the NAICS. For example, on Form UT-4200, ‘‘Trucking and

Warehousing,’’ the Census Bureau—

• Added a line asking for revenue from ‘‘Process, physical

distribution, and logistics consulting.’’

• Deleted the line on ‘‘waste collection—operation of

incinerator, landfill, transfer station, or other disposal

site.’’

• Modified the wording on several lines to conform to the

NAICS language (e.g., ‘‘sanitary services’’ was changed

to ‘‘waste collection,’’ and ‘‘...and disposal’’ was deleted

from the line originally reading ‘‘hazardous waste collection and disposal’’).

The NAICS classification requirements also affected the

content of the utilities questionnaires. On Form 4900,

‘‘Electric, Gas, and Water Utilities,’’ the Census Bureau

added a line to Item 9, ‘‘Sources of Revenue,’’ for ‘‘electric

power transmission,’’ and deleted lines on ‘‘sanitary

services’’ and ‘‘sales of scraps and waste materials.’’

SUMMARY

Questionnaire design and development for the 1997

Economic Census was a carefully considered and lengthy

process. From the consultations, to notifications in the

Federal Register, and the incorporation of the NAICS, the

Census Bureau created questionnaires gathering the most

specific data ever reported on the Nation’s business

activity.

History—1997 Economic Census Chapter 4 33

U.S. Census Bureau, 1997 Economic Census
Chapter 5. PROMOTING CENSUS AND PRODUCT AWARENESS

Introduction ................................... 37

Two Moments of Truth: 1954 and 1997 ................... 37

NAICS and the 1997 Promotional Campaign................. 37

Lessons Derived From the 1992 Economic Census .............. 38

Unify and Clarify the Economic Census ................... 38

Integrated Response and Product Marketing ................ 38

Objectives of response marketing ..................... 38

Objectives of product and services marketing .............. 39

Remind Respondents That Response is Mandatory by Law ......... 39

Improve the Ease/Reduce the Costs of Business Response to the Census . 39

Target Large Companies ........................... 39

Promotional Roles Played by Various Census Bureau Divisions ........ 40

Economic Planning and Coordination Division (EPCD)............ 40

Lisboa Associates.............................. 40

Public Information Office (PIO) ........................ 40

Congressional Affairs Office (CAO)...................... 41

The Marketing Services Office (MSO)..................... 41

Customer Liaison Office (CLO) ........................ 41

Large Company Program ............................ 41

Groundwork for Identifying and Contacting Large Companies ....... 41

Economic Statistical Methods and Programming Division (ESMPD) .... 41

Governments Division (GOV)........................ 41

Subject divisions .............................. 41

National Processing Center (NPC) ..................... 42

The Account Manager/Company Contact Program ............. 42

Advance information ............................ 42

SSEL search and query tool......................... 42

Electronic company notepad ........................ 42

Account Manager Calling System ...................... 43

Account manager’s calling cycle ...................... 43

The Mail Campaign .............................. 43

Original mailout letters........................... 43

Successive letters.............................. 43

Special Role of the Internet ........................... 43

Writer’s Tool Kit ................................ 44

Product Marketing .............................. 44

Target Markets for Product Marketing ..................... 44

Congress and the Administration ...................... 44

Corporations, Small Businesses, and Communications Sector Trade

Associations ................................. 44

Federal Agencies, State, County, and Local Governments.......... 44

CONTENTS

History—1997 Economic Census Chapter 5 35
Target Markets for Product Marketing—Con.

SDCs/BIDCs, Depository Libraries, Small Business Development

Centers (SBDCs), Chambers of Commerce, Manufactures Extension

Plants (MEPs), Agricultural Extension Offices, Universities and Other

Researchers and Educators ......................... 44

Data retailers ................................. 44

Marketing Tactics to Promote Data Products.................. 44

36 Chapter 5 History—1997 Economic Census
Promoting Census and Product Awareness

‘‘Every census—whether of people or of business establishments—must persuade those from whom they would collect the data to provide the information. No data response, no census results.’’

John P. Govoni, Chief

Economic Planning and Coordination Division

U.S. Census Bureau

INTRODUCTION

In promoting the economic census, the U.S. Census

Bureau must consider howto increase the willingness of

businesses to participate. Even though response is

required by law, many businesses fail to participate. Various causes have been identified, including the cumulative

effects of the paperwork burden, changing attitudes

toward government, and diminishing administrative

resources because of business downsizing.

The economic census is absolutely critical to supporting ongoing survey programs, to maintaining the Standard

Statistical Establishment List (SSEL), which serves as the

Census Bureau’s Business Register, and to providing the

benchmark data upon which many other national economic measures are predicated—including the Gross

Domestic Product (GDP) estimates. Therefore, the Census

Bureau undertakes a wide array of activities to guarantee

that this most important of all business data collection

effort gains notice and obtains responses from the

business sectors. Those activities are the subject of this

chapter.

Two Moments of Truth: 1954 and 1997

Each economic census occurs within unique historical

circumstances that condition the Census Bureau’s

approach to promoting awareness. The 1954 Economic

Census, for example, received tremendous advance coverage. Scheduled to take place in 1953, funds for the census

were never appropriated. Instead, an Intensive Review—

Committee headed by Dr. Ralph J. Watkins—was commissioned in October 1953 by the Eisenhower Administration

to study if the economic census was necessary. Business,

financial, professional, and governmental groups were

represented on the committee which, in February 1954,

issued its unreserved support for the economic census—

We are in the midst of great technological revolution

which is accelerating change, hastening obsolescence,

creating newindustries and transforming old ones,

remaking the industrial map of the country, and bringing within the range of the feasible great heights of

production, productivity, and well-being. . . The need

for the benchmark statistics provided by the Census

Bureau is greater today than ever before, and promises

to growin intensity.— Watkins Commission Report,

1954.

Within months, the economic census was reinstated,

and the 1954 Economic Census had taken its special place

in the history books. No promotional campaign has quite

topped that one, but to promote awareness of the 1997

Economic Census, a booklet was produced, The Economic

Census—Two Moments of Truth: 1954 and 1997. The

booklet drewparallels between the1954 and the 1997

economic censuses. An original print run of 10,000 booklets in September 1997 was quickly followed by another

print run of 14,000 in June 1998: the item was highly

popular in the 1997 promotional effort. (See Appendix B,

‘‘Historical Development of the Economic Census of the

United States,’’ for more information on the history of the

economic censuses.)

NAICS and the 1997 Promotional Campaign

Like the 1954 Economic Census, the 1997 Economic

Census found itself at a special juncture in history—

particularly with reference to the creating of new industries and the transforming of old ones. The 1997 census

was to be the first to collect data in terms of the new

North American Industry Classification System (NAICS)

which replaced the Standard Industrial Classification (SIC)

system. The SIC had been in use, and revised several

times, since the 1930s. The newsystem identified several

hundred newindustries that had not been recognized

separately in earlier censuses, and it revised the classification of many hundreds more. Therefore, in addition to

traditional activities, the promotional campaign for the

1997 took into consideration that—

• Respondents needed to know that their answers would

establish the baseline for a newcoding system.

History—1997 Economic Census Chapter 5 37

U.S. Census Bureau, 1997 Economic Census
• Data users needed to knowthat 1997 Economic Census

products would have many advantages not known to

them before, and that using these products would

present unfamiliar challenges.

Special brochures, question and answer sheets, and

other promotional materials were formulated to explain

the NAICS and its effects on both those preparing the

census forms as well as data users.

The introduction of the NAICS gave additional impetus

to the integration of two objectives for the awareness

campaign:

• Promoting awareness of the economic census during

the data collection effort.

• Promoting awareness of products and services that the

Census Bureau would provide after data were tabulated

and released.

LESSONS DERIVED FROM

THE 1992 ECONOMIC CENSUS

Following the 1992 census, the Census Bureau formed

several committees to evaluate the census and to recommend improvements for the 1997 enumeration. Thus, the

1992 Economic Census Multiunit Response Improvement

Committee came into being and issued a report. In 1995,

this report was used as a departure point by the 1997

Economic Census Response Improvement Team which,

in turn, made additional recommendations of its own.

In effect, these recommendations centered around the

following principles:

• Clarify—in the minds of respondents—that the

economic census is a unified event.

• Coordinate and integrate response and product

marketing.

• Remind respondents of the mandatory nature of their

response.

• Improve the ease—that is, reduce the costs—of

companies in responding to the census.

• Target large companies.

Unify and Clarify the Economic Census

Prior to 1997, the economic census lacked a unified,

recognizable identity. As a whole, it was routinely referred

to as ‘‘the economic censuses.’’ It was perceived and conducted in terms of a series of discrete events, namely, the

census of retail trade, the census of manufactures, and the

like. Therefore, a business executive might read about

‘‘the economic census’’ in the media, but fail to connect it

to the data he may have referenced from a census of

manufactures report of the last census, or to the census of

services industries questionnaire that just arrived in the

mail. Each of these censuses had equal status, and the

economic census was characterized as a unified endeavor

only administratively, via budget submissions.

Lack of a clear identity for the economic census presented a singular task to those charged with promoting

response, given that no business would receive a form by

that name. To correct this situation, the ‘‘1997 Economic

Census’’ was adopted as the formal name for the data

collection effort. This title appeared above—and in larger

print than—references to sector-specific titles on the

census forms, instruction sheets, cover letters, and data

products. Keeping the sector titles in a subordinate status

while publicizing the larger effort enhanced the presentation of the economic census as an integral whole, rather

than as a collection of separate economic measures.

More importantly, this approach raised the profile of the

economic census as the major measurement event of the

Nation’s economy.

Integrated Response and Product Marketing

Response marketing—i.e., making respondents aware

that the census was being taken and that, by law, they

must fill out the census forms and return them to the Census Bureau by the February 12, 1998 due date—was a key

step in successfully conducting the 1997 Economic Census. Even though the Census Bureau had long observed a

‘‘disconnect’’ between the user and the provider of census

information, the agency knew these were two sides of the

same coin. Therefore, in its promotion efforts, it was

important to link collection with dissemination. Awareness

of benefits would motivate some respondents and also

would help legitimize the Census Bureau’s requests for

media attention.

Moreover, the Census Bureau was intent upon showing

appreciation to ‘‘intermediaries’’—i.e., the Chambers of

Commerce, associations, news media, and others that

carried its promotional messages to potential

respondents—by informing those intermediaries about the

results of the census. Since results are always in terms of

products, the close synchronization of census and product

promotion was reinforced.

To coordinate the collection and dissemination functions, staff members at all levels of Census Bureau

divisions participating in this census were informed and

involved in the 1997 awareness campaign. It was imperative that the themes developed in marketing the census

response were carried into the marketing of economic

products and services, providing a focused, consistent

message. In order to accomplish this, the data product

portfolio was developed early on in the census planning

phase. The publicizing of the mix of data products and

services was anticipated from the outset of respondent

outreach efforts.

Objectives of response marketing. The chief goal of

response marketing was to raise awareness that data collection was taking place and that response was important.

38 Chapter 5 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Both those preparing the forms (such as accountants) and

those who might influence the preparers (such as company CEOs, the media, Chambers of Commerce and other

organizations) needed to be targeted with this message.

The Census Bureau expected that increased awareness

would help to increase the overall level of response to

the census, and to accelerate the rate of response—

particularly by very large companies. Also, response

marketing was intended to set the stage for product and

services marketing.

Objectives of product and services marketing. The

chief goals of product and services marketing were to

increase awareness of the Census Bureau’s products and

services and to increase their use by data users. The Census Bureau wished to cultivate satisfied users who could,

in turn, serve as advocates, spokespersons, and role models for the 1997 Economic Census. This would facilitate

future data collection activity. The Census Bureau does,

after all, conduct a population census every 10 years, an

economic census every 5 years, and hundreds of economic and demographic surveys every year.

Remind Respondents That Response Is

Mandatory by Law

Taking a cue from the 1992 Economic Census—in which

it was demonstrated that placing the mandatory message

on the mailout envelope1 was perhaps the most effective

element of 1992 response improvement efforts—planning

for 1997 expanded on this principle as follows:

• Included the message—‘‘Your response is required

by law’’—on all outgoing form packages, multiestablishment companies, as well as single-establishment

companies and on follow-ups and remails.

• Remailed to reinforce the message. In 1992, the Census

Bureau only remailed questionnaires to singleestablishments (3 remails); in 1997, questionnaire

remails also were sent to small and medium multiestablishments companies (1 remail). For 1997, businesses

that had been granted time extensions were reminded

of the reporting requirement; in 1992, businesses with

extensions were excluded from reminder mailings.

Improve the Ease/Reduce the Costs of

Business Response to the Census

Responding to the census takes time. This is the case

whether in-house staff of large companies, or accountants

hired by small companies, complete the questionnaires.

Howmight the Census Bureau make this response less

burdensome? An important lesson in this regard from the

1992 census was applied to the Census Bureau’s focus on

the response rate for the 1997 census. During the 1992

census, the Census Bureau inadvertently exacerbated

unwillingness to respond to the census. That is, two

economic surveys were conducted for the first time—the

Annual Capital Expenditure Survey (ACES) and the Commodity FlowSurvey (CFS)—and responses to these surveys

were to be compiled by businesses already answering the

1992 Economic Census questionnaires. The paperwork

burden was substantial. The Census Bureau took care not

to repeat this error in 1997—the CFS was conducted

throughout the year, previous to the mailout of the 1997

census questionnaires, so that this survey was not in the

‘‘field’’ at the same time as the 1997 Economic Census.

The ACES was done as well, but the survey actually lowered respondent burden by allowing the Census Bureau to

discontinue other surveys of business investment.

Further lessons from the 1992 census were applied for

the 1997 census to ease the way for businesses to

respond in a timely, cost-effective manner. To this end, the

Census Bureau—

• Made electronic reporting easier. For 1997, the Census

Bureau greatly expanded its outreach to the business

sector in this regard, inviting approximately 600 companies to report electronically—using either the Windowsbased Computerized Self-Administered Questionnaire

(CSAQ) or magnetic computer tape. (See the ‘‘Account

Manager/Company Contact Program’’ belowfor more

information on electronic reporting. Chapter 8, ‘‘Data

Collection and Processing,’’ also discusses electronic

reporting.)

• Projected greater accessibility. To answer business questions, the Census Bureau prominently included an 800

number on the questionnaires and provided its Web site

address—www.census.gov/econ97—on all census cover

letters. The web page included an ‘‘Ask Dr. Census’’

feature.

• Provided sample questionnaires on the Internet.

• Uploaded Portable Document Format (pdf) questionnaires to the Internet, so that respondents could previewthe 1997 Economic Census questions specific to

their industry. This was done in March 1997.

Target Large Companies

Multiestablishment companies classified as ‘‘large’’ (‘‘L’’)

companies constituted only 7 percent of all establishments to which forms and classification cards were mailed

in the census, but these companies represented over 30

percent of the economic activity of the country. (The classification mailout is discussed in Chapter 8, ‘‘Data Collection and Processing.’’) Their responses were essential to

ensure data accuracy—particularly because of the need to

obtain correct NAICS Codes. Thus, a significant part of the

census awareness program was devoted—as in previous

economic censuses—to ‘‘large company response.’’ (For

the 1997 Economic Census, the final response rate for

multiestablishment ‘‘L’’ companies was 88.9 percent.)

1

For the 1992 census, the message appeared only on envelopes for mailout to single-establishment companies.

History—1997 Economic Census Chapter 5 39

U.S. Census Bureau, 1997 Economic Census
PROMOTIONAL ROLES PLAYED BY VARIOUS

CENSUS BUREAU DIVISIONS

The following Census divisions and other organizations

coordinated their actions to promote awareness of this

census.

Economic Planning and Coordination Division

(EPCD)

Census and product awareness activities were centered

within the Economic Planning Staff (EPS) of EPCD. This

staff coordinated with, and provided input and guidance

to, the outside contractor advertising agency—Lisboa

Associates, hired in the Fall of 1996. An outside contractor

also had been used in the 1992 Economic Census.

Lisboa Associates. The advertising agency was responsible for implementing most aspects of the communications contract, under oversight by the Contracting

Officer’s Technical Representative. Lisboa Associates’

functions included the following:

• Research: Interviewing Census Bureau staff. Conducting

focus groups with potential respondents (accountants)

and intermediaries (news media, Chambers of Commerce, and trade associations) and interpreting the

results.

• Strategy: Recommending approaches based upon

research findings.

• Creativity: Developing artwork and editorial copy. This

artwork was to convey a unified census, and in that

regard, distinguished itself from the graphics of previous economic censuses.

• Development and distribution of media kits: Facts for

Media contained press releases, sample editorials, fact

sheets, a NAICS brochure, clip art, response dates, information on available assistance, answers to typically

asked questions about the economic census, examples

of howthe data are used, findings from the 1992 census, and Public Service Announcements (PSAs). In all,

10,000 media kits were distributed to general business

publications (1,021), industry associations (2,112),

newspapers (905), regional business publications (823),

Chambers of Commerce (3,027), and Data

Center/Business and Industry Data Center affiliates

(2,189).

• Distribution of over 50,000 Accountants’ Guide to the

1997Economic Census. These booklets were sent to

independent accountants who were members of the

National Accounting Association and the American Society of Certified Public Accountants. The 1987 Economic

Census Advertising & Response Behavior Study showed

that about six percent of small businesses used outside

accountants to complete their census forms.

• Duplication/distribution: Producing print materials and

two radio PSAs. In three waves, print materials in information kits were ‘‘direct-mailed’’ to media, business

groups, and intermediaries. The press releases, editorials, and PSAs were tailored to reflect the census timetable, as follows:

• Wave 1 Message: ‘‘The questionnaires are coming.’’

(for use September to December 1997).

• Wave 2 Message: ‘‘The questionnaires are here. ’’ (for

use January to February 1998).

• Wave 3 Message: ‘‘The questionnaires responses are

past due.’’ (for use March 1998).

• Internet: Creation of digital versions of editorial and ad

copy, radio programs, and other materials. Development

of web pages organizing the material to be posted on

the Census Bureau Internet site.

• Analysis and evaluation: Providing a newspaper clipping

service, maintaining statistics on clips, response cards,

and the like.

• Fulfillment: Sending profiles to media requesting them

(in response to offers contained in response cards), and

sending messages to media who provided coverage or

donated—space thanking them for their help.

After the above activities had been implemented, the

Census Bureau extended the contract of Lisboa Associates

to handle promotion of 1997 census products (see last

section of this chapter).

In addition to coordinating with the ad agency, EPS

handled most media interface and interviews. For use in

its own direct contacts with associations, trade press, and

respondents, EPS also distributed copies of promotional

materials in quantity.

Public Information Office (PIO)

The PIO was responsible for—

• Working with the contractor as part of the creative

team, specifying contract details, developing and

evaluating components of the package, and integrating

contract output with other publicity activity.

• Developing press releases and other publicity materials

related to contract elements.

• Developing video and radio materials, and distributing

them through existing channels, including network

feeds.

40 Chapter 5 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Engineering cooperative efforts, such as the National

Association of Broadcaster satellite transmission on

February 12, 1998.

• Cultivating and/or assisting in interviews between

Census Bureau staff and government officials, business

leaders or data users. These taped interviews were

useful as elements of the media kit, in radio and TV

materials, and in brochures to make appeals to

‘‘stakeholders.’’

Congressional Affairs Office (CAO)

The CAO engaged in—

• Assisting in development of strategies for communicating with the Congress about the 1997 Economic

Census.

• Helping design a version of the media kit for congressional offices.

• Setting up Congressional staff briefings on the

economic census.

The Marketing Services Office (MSO)

The MSO participated by providing guidance with

respect to product marketing activities.

Customer Liaison Office (CLO)

The CLO had jurisdiction over—

• Assisting in development of strategies to communicate

with the business community through State Data

Center/Business and Industry Data Center (SDC/BIDC)

units.

• Helping to develop mailing lists of SDC/BIDC affiliates.

• Setting up briefings for SDC/BIDCs—telling them of the

Census Bureau’s plans.

The promotional roles of Economic Statistical Methods

and Programming Division (ESMPD), Governments Division

(GOV), various subject matter divisions, and the National

Processing Center (NPC)2 in Jeffersonville, IN, are discussed in the next section.

LARGE COMPANY PROGRAM

If the goal of the Census Bureau was to publish results

of the 1997 Economic Census earlier than ever before,

then the corresponding mission of the Large Company

Program was to promote a prompt turnaround time for the

census questionnaires. As mentioned, nearly one-third of

1997 Economic Census data were furnished by seven percent of the Nation’s companies. However, the issue was

not simply one of ‘‘large company response’’—large firms

do respond, eventually. But, responses from some large

firms come in so late that they significantly diminish the

utility of census results. The question addressed by the

1997 Large Company Program, therefore, was ‘‘How can

the Census Bureau motivate large companies to respond

earlier than ever before—while maintaining the excellent

rates of response (89 percent) attained in the 1992 Economic Census?’’

Survey staff from subject divisions served as ‘‘account

managers’’ to specific companies with whom they formed

a direct ‘‘contact.’’ The Account Manager Program will be

detailed below, but first, it is necessary to describe the

work of the many census divisions that established the

foundation for the program.

Groundwork for Identifying and Contacting

Large Companies

Economic Statistical Methods and Programming

Division (ESMPD). ESMPD assembled a list of potential

‘‘L’’ and ‘‘M’’ (medium) companies.3 The Large Company

Response improvement team set the criteria: namely, the

top 1,000 companies—by establishment and by

payroll—in each SIC division were to be chosen. This

resulted in a list of about 10,000 companies—

• At mailout there were 1,000 ‘‘Ls’’ and 9,000 ‘‘ Ms.’’

• After mailout, for purposes of follow-up and Management Information System reporting, the Census Bureau

redefined ‘‘M’’ companies to include any company with

1,000 or more employees.

ESMPD also produced several mailing materials, including the Contact Exchange Card and cover letters, both of

which are referred to below.

Governments Division (GOV). For the 1997 census,

the ESMPD did not have the resources to develop the

account manager Intranet application. Therefore, GOV

developed the application, and account managers used it

to record their contacts with ‘‘L’’ companies. Since there

was no direct interface between the intranet application

and the SSEL, data were downloaded and sent to ESMPD to

be applied to the SSEL. This took place in July 1997, in

order to apply the account manager and Contact Exchange

Card names/addresses to the SSEL before mailout.

Subject divisions. The subject divisions participated in

early planning and fact-finding stages of the census. They

examined the list of potential ‘‘L’’ companies assembled by

ESMPD and then applied criteria for selecting companies

for the Large Company Program. The criteria included

2

Until a reorganization effective on May 1, 1998, the NPC was

called Data Preparation Division (DPD).

3

The designations ‘‘L’’ and ‘‘M’’ do not refer to statistical data

collection, tabulation, and publication categories. ‘‘L’’ and ‘‘M’’ are

simply ways the Census Bureau identifies companies needing successive levels of follow-up (see also footnote 4 in Chapter 8, Data

Collection and Processing).

History—1997 Economic Census Chapter 5 41

U.S. Census Bureau, 1997 Economic Census
importance of the company in the sector, as well as

response history of that company. Subject division staff

also helped evaluate alternative strategies.

The largest involvement of subject division staff was

through serving as account managers in the Large Company Program.4 Selected division staff were so designated,

and each staffer was assigned 5 to 25 companies. The

subject divisions and the number of companies assigned

to each were as follows—

• MCD—400 companies

• SSSD—500 companies

• EPCD—136 companies

National Processing Center (NPC). While ‘‘M’’ companies were not assigned individual account managers, a

Contact Exchange Card sent to these companies listed a

phone number from either MCD or SSSD that the company

could call. In addition, NPC staff conducted several telephone follow-ups from June through August 1999.

The Account Manager/Company Contact Program

Advance information. In November 1996, the NPC

mailed advance materials to ‘‘L’’ and ‘‘M’’ companies. Each

packet contained—

• A customized cover letter (including lists of forms the

company would receive).

• A Contact Exchange Card consisting of two components: (1) a ‘‘rolodex’’ card with either an account manager’s name, phone number, and e-mail address or a list

of census sectors and corresponding phone numbers

for assistance, and (2) a blank form that requested

address correction, name of contact person at the

company, and contact person’s supervisor.

• An electronic reporting flyer inviting about 600

companies to report electronically. Ultimately, 671

companies—representing 317,593 establishments—

availed themselves of the electronic reporting option.

• An Advance Information booklet (featuring a list of

census contacts, a census Question and Answer sheet, a

guide for obtaining census questionnaires from the

Internet, and two sample forms).

One of the key tasks for an account manager was to

identify to whom to address correspondence, phone calls,

questionnaires and the like throughout the duration of the

process until completed census forms were received. The

‘‘addressee’’ was the ‘‘company contact,’’ and was

requested on the Contact Exchange Card, as well as in

telephone calls from the account manager. This name and

address also would be used to mail forms to the company.

For 1997, initial calls by account managers occurred

earlier than at the equivalent juncture in the 1992 census.

The purpose of the calls was to—

• Verify receipt of advance materials, obtain the identity

of the company contact, and verify the mailing address

for sending census forms before the census mail file

was frozen in July 1997.

• Raise awareness of the coming census forms and the

need for the company to begin preparations.

• Offer assistance throughout the census-taking interval.

One of the guiding principles of the Account

Manager/Company Contact Programs was that only

account managers should be able to grant time extensions

or negotiate reporting arrangements. To do this, account

managers had more information than ever before about

their ‘‘L’’ companies—including a company profile and

copies of all advance information sent to companies. In

addition, account managers had access not only to Internet resources (including e-mail, and access to Security and

Exchange Commission filings and company lookups) but

also to several newtools such as the SSEL search and

query tool and the electronic company notepad.

SSEL search and query tool. This feature displayed

companies and their establishments based upon size,

industry, form, extension date, and other factors. With

search and query, it was easier for account managers to—

• Isolate reporting problems—such as a single subsidiary

of a company in which most other units had reported.

• Identify delinquent companies significant in a particular

geographic area or industry.

Electronic company notepad. In 1992, the capacity of

account managers to act effectively was limited by a predominantly paper-based record-keeping system. Sharing of

information was difficult or impossible. A business might

contact any of several dozen persons located in three

separate buildings at Census Bureau headquarters in Suitland, MD, or any of hundreds of analysts and telephone

operators in Jeffersonville, IN. Thus, one individual might

have worked out an arrangement with a company—and

recorded it on a paper document that no one else may

have seen—only to have someone else grant the company

an extension or reach a different agreement. By developing the electronic company notepad linked to the SSEL, the

Census Bureau enabled staffers to leave a record of what

had been done, and why, so that all arrangements would

be visible and up-to-date. The electronic company notepad

was used, predominantly, by NPC staff.

4

Account managers were assigned only to ‘‘L’’ companies, not

to ‘‘M’’ companies. However, ‘‘M’’ companies were included in

other aspects of the Large Company Program. Fifty mining companies were selected as ‘‘Ls.’’ but were converted to ‘‘Ms’’ when it

appeared that the mining census might be canceled.

42 Chapter 5 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Account Manager Calling System

The GOV Division developed and maintained the

account manager calling system for the documentation of

account manager contacts with companies. Using the system, it was possible to record to whom the account manager talked, when, why, and with what results. The contact name and address was used to update the mailing

address for census forms, particularly if the company did

not return a Contact Exchange Card.

Account manager’s calling cycle. Figure 5-1 shows the

account manager’s calling cycle i.e., the intervals when

account managers were to contact companies and obtain

information or offer assistance.

The Mail Campaign

Original mailout letters. The essence of the mail campaign was to emphasize the existence of the census, the

due date, and the legal requirement to respond, as well as

to incrementally escalate the messages contained in each

successive letter. For example, the original mailout

letters— each of which were signed by the Director of the

Census Bureau—

• Highlighted the due date of February 12, 1998.

• Emphasized the importance of the data.

• Cited applicable sections of Title 13, United States Code.

• Indicated that response was mandatory and would be

kept confidential.

• Provided the toll-free telephone number. Provided the

Web site address.

• Contained frequently asked questions, with answers on

the back of the letter.

• Quoted Alan Greenspan, Chairman of the Federal

Reserve Board, in endorsing the unique function of the

economic census in gathering benchmark economic

data for the Nation.

Successive letters. Successive letters ‘‘upped the ante.’’

There were 17 variations of follow-up letters, depending

upon whether the company was in the ASM or not, was a

single-establishment company or a multiestablishment

company, or had replied with only a partial response to

the census questionnaire. These letters included the following additions to the original message:

• ‘‘OVERDUE NOTICE’’ printed in bold caps at the top of

the page.

• ‘‘Please complete and return your census forms within

10 days’’ or ‘‘immediately.’’

• Stronger assurances of confidentiality.

• ‘‘You may be subject to penalties for not returning this

form’’ or ‘‘You are subject to. . . ’’

• Reminder notice, if there was a pending extension.

SPECIAL ROLE OF THE INTERNET

For the 1997 Economic Census, the Internet played a

greater role in both response and product marketing than

in any previous economic census. The economic census

web page (www.census.gov/econ97) invited businesses to

‘‘Ask Dr. Census.’’ E-mail queries addressed to ‘‘Ask Dr.

Census’’ peaked at about 300 per month during January

through March 1998, then slowed to 200 per month until

phase-out in September 1998. In addition, a directory of

questionnaires in portable document format (pdf) received

thousands of ‘‘hits’’ between December 1997, and June

1998, when data were being collected. In addition, a page

was established to describe and provide an example of

howto use the Computerized Self-Administered Questionnaire (CSAQ).

Figure 5-1.

Account Manager’s Calling Cycle

• Verify receipt of advance information booklet.

• Encourage return of exchange card.

• Introduce yourself as the Account Manager and offer assistance in

 preparing for the census.

Follow-up mailing of advance information to companies not returning

cards or receiving calls.

Calls to companies not satisfied in Round 1, even if they returned cards.

Complete by March 31.

• If we received the card, acknowledge it.

• If we have not received card, alert company that material is coming,

 encourage return of contact exchange card.

• Introduce yourself as the Account Manager and offer assistance in

 preparing for the census.

Re-establish contact to obtain name/address changes prior to census

mailout. Complete by July 15.

• Discuss special requirements such as split mail or electronic reporting.

• Discuss ways to improve quality and timeliness of reporting.

• Remind company that forms will be mail December 1997.

• Offer assistance in preparing for the census.

Final mail file preparation

Forms mailed

• Verify that company received its census forms. Remind that forms are

 due February 12, 1997.

• If necessary offer extension not to exceed May 1, 1997.

• Offer assistance in reporting for the 1997 Economic Census.

Forms due

Companies that respond

• Thank the company for their response

Companies that do not respond

• Remind company that forms were due February 12, 1998.

• Get an estimate of when forms will be returned.

• Offer assistance in reporting for the 1997 Economic Census.

Reminder mailings to delinquents and unexpired extensions

Companies that do not respond

• Remind company that forms were due Feb. 12, extensions have expired,

 forms are due now.

• Obtain an estimate of when forms will be returned.

• If the company contact is uncooperative, appeal to the executive on the

 contact exchange card.

• Offer assistance in developing estimates.

Companies that do not respond

• Remind company that forms were due Feb 12, extensions have expired,

 forms are due now.

• Obtain an estimate of when forms will be returned.

• If the company contact is uncooperative, appeal to the executive on the

 exchange card.

• Offer assistance in developing estimates.

 Account Managers Calling Cycle

 Call No. Purpose of Call Timing of Call

Dec 96 - Jan 97

mid-Feb 97

Feb - Mar 97

June 97

Sep 97

mid - Dec 97

Jan 98

Feb 12, 1997

After check-in

Mar 98

April - June 98

June 98

As required

1

**

2

3

**

**

4

**

5

6

**

7

8

History—1997 Economic Census Chapter 5 43

U.S. Census Bureau, 1997 Economic Census
Writer’s Tool Kit

The economic census Internet page also was used to

help reporters prepare stories about the census. The

‘‘Writer’s Tool Kit’’ was established to provide an electronic

version of public service announcements (PSAs) and other

media kit contacts, also listing quotes from Alan

Greenspan and other prominent economists and business

leaders.

Product Marketing

In promoting products and services from the 1997

census, the Census Bureau was responding to data users’

wishes for flexible products that would keep up with

changing needs. Moreover, the Census Bureau fulfilled an

implied promise—made during the response marketing

phase—by providing census results to the media, business

organizations, and intermediaries who helped promote

census response.

Therefore, the 1997 product mix included fewer paper

products and more electronic products. In addition, there

were fewer ‘‘fixed’’ format data tables and more access to

data bases. This enabled users to extract, download, and

work with the data in their own formats. While Census

products and services resulting from the 1997 Economic

Census will be discussed in detail in Chapter 12, Publication Program, suffice to say here that the Internet was

highly instrumental in product marketing. It provided—

• Database files.

• ‘‘Screen shots’’ enabling customers to ‘‘test drive’’

selected data products, before deciding to buy them.

These included downloadable summary data files and

CD-ROMs, and accompanying software.

TARGET MARKETS FOR PRODUCT MARKETING

Congress and the Administration

This constituency relies upon census information to

build profiles, evaluate the need for legislative changes,

determine the performance of programs, judge the effect

of legislative and program changes on constituency, and

estimate the costs of legislation. Users looked at both the

primary data and the value added products, such as GDP.

Corporations, Small Businesses, and

Communications Sector Trade Associations

These users employ census information to prepare their

marketing plans, growth plans, estimates, trends and forecasts, news reports, articles, feature stories and books,

research projects. They use economic data to establish

newassociations and to build membership of existing

ones, as well as to create strong positions for proposed

legislation, debates, and other issues. Included in this category are the questionnaire respondents.

Federal Agencies, State, County, and Local

Governments

Public agencies use census data to prepare legislation

and to plan development and programs. This group also

uses the data as a reference point for current statistics

such as the GDP, the Producer Price Index, and the like.

SDCs/BIDCs, Depository Libraries, Small Business

Development Centers (SBDCs), Chambers of

Commerce, Manufactures Extension Plants (MEPs),

Agricultural Extension Offices, Universities and

Other Researchers and Educators

This array of users relies upon economic census data to

maintain a snapshot of the economy for various levels of

geography, and for a given time frame. They typically

assist the Census Bureau in distributing data locally, and

in educating the public about myriad data uses.

Data Retailers

Data retailers acquire census data and repackage it for

sale to their own customers. They need high-quality data,

as well as metadata (descriptive and formatting material in

terms of which data are presented), to assure proper use

of the information.

MARKETING TACTICS TO PROMOTE

DATA PRODUCTS

The Census Bureau understood that any good promotional campaign consists of a multifaceted approach to

announcing its products to the user community. The

agency pursued the following strategies:

• Extended the contract with Lisboa Associates to

promote the data products resulting from the 1997

Economic Census.

• Produced the Preview of the 1997Economic Census

summarizing facts about the census, such as its

purpose, classifications, data items, products, and the

data release schedule.

• Selected ‘‘NewData for Today’s Economy’’ as the new

theme.

• Assembled media kits for products and sent them to the

original media kit mailing list.

• Used drop-in advertising in trade and professional

magazines to reach nonusers. After development,

the ads were placed on the Internet for even further

dissemination.

• Disseminated news releases (press releases, state

stories, and feature stories) to business organizations,

trade associations, state and Federal government

agencies, universities, newspapers and magazines—all

announcing the availability of data.

44 Chapter 5 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Mailed information kits directly to key data user organizations (journalists, Members of Congress, marketers,

and the like).

• Targeted key media (through PIO) at the time of release

of key reports.

• Conducted user conferences, coordinating them with

Census 2000 conferences. This included scheduling

conferences to coincide with the availability of local

area data products.

• Highlighted major data results in multimedia

(audio/video) presentations.

• Made presentations and staffed booths at national and

state exhibits and at trade shows, complete with an

array of census publications. These were augmented by

specialty items (pens, ‘‘post-its’’), as well as by various

brochures and data summaries.

• Produced the Economic Census Slide Rule, a data summary device showing 1997 summary results by sector

(manufacturing, services, etc.) on both a SIC and a

NAICS basis.

Figure 5-2. Hungry for Business Data?

Representing the essence of the effort to integrate census and product awareness, this post card was sent to

respondents—both to thank them for their response and to let them knowthat the data were nowavailable for their use.

History—1997 Economic Census Chapter 5 45

U.S. Census Bureau, 1997 Economic Census
Chapter 6. GEOGRAPHIC AREA CODING

Introduction ................................... 49

General Information ............................. 49

The Geographic Interface Team (GIT) .................... 49

Geographic Code Structure ........................... 49

General Information ............................. 49

Regions .................................... 50

Divisions ................................... 50

States ..................................... 50

United States ................................ 50

Nationwide ................................. 50

Foreign ................................... 50

Offshore Areas ............................... 50

Counties.................................... 51

The 50 states ................................ 51

District of Columbia ............................ 51

Montana................................... 51

Maryland, Missouri, Nevada, and Virginia ................. 51

Hawaii.................................... 51

Puerto Rico ................................. 51

Guam .................................... 51

Northern Mariana Islands ......................... 51

Virgin Islands ................................ 51

Undistributed ................................ 51

Places ..................................... 51

Incorporated place ............................. 51

Census designated place (CDP) ...................... 51

Consolidated city .............................. 52

Balance of consolidated city ........................ 52

Special Economic Urban Areas (SEUA) ................... 52

Balance of metropolitan area........................ 52

Balance of county.............................. 52

Metropolitan Areas .............................. 53

Congressional Districts ............................ 53

Census Tract/BNA and Census Blocks .................... 53

Geographic Recode and Reference Files .................... 53

General Information ............................. 53

Census to Economic Recode File ....................... 53

1992 Economic to Current Census Recode File ............... 53

1997 Economic to Current Census Recode File ............... 53

ClusteringProgram Module ......................... 54

County Code Change File........................... 54

County Alpha Recode File .......................... 54

Geographic Stub File ............................. 54

Subject Review City Reference File (CRF) .................. 54

CONTENTS

History−1997 Economic Census Chapter 6 47
Geographic Recode and Reference Files−Con.

Geographic Notes File ............................ 55

Geographic Reference Manual Table Files .................. 55

ZIP Code Legality File ............................. 55

GeocodingProcess ............................... 55

FreestandingGeocodingSystem ....................... 55

City Reference File (CRF) ........................... 56

Address Reference File ............................ 56

Legality Files ................................. 56

Validatingand UpdatingIncomingData .................... 56

48 Chapter 6 History−1997 Economic Census
Geographic Area Coding

INTRODUCTION

General Information

To publish tables of economic activity by geographic

areas, the U.S. Census Bureau geocoded−that is, assigned

geographic codes−to each establishment record for which

data were collected for the 1997 Economic Census. After

geocoding, the data from the establishment records were

tabulated by geographic area. These geographic areas

were legally or administratively established, and statistically defined, geographic entities.

The Geography Division (GEO) developed the geocoding

process used in the 1997 Economic Census processing. To

be geocoded, each establishment in the 1997 Economic

Census needed to have an address, or supplemental

information, that provided the physical location for that

establishment.

Prior to mailout, the selected address for each establishment record in the 1997 Economic Census control file

was processed through the geocoding system and a state,

county, and place code was assigned to each record. This

process set the initial geocodes in the control file for the

1997 Economic Census cycle. Subsequent geocoding of

the physical location response information and address

changes from the responses to the economic census

questionnaires were used to update the geocodes in the

control file as follows—

• For single-unit establishments, the physical location

address was selected for geocoding. If no physical location address was available, the 1992 Economic Census

mailingaddress was selected.

• For multiunit establishments, only one address field was

maintained on the control file. The address was defined

as both the physical location and the mail address, and

was used for geocoding.

• For the economic data collected by the Census Bureau

from administrative records, only one address was available on the record for geocoding and no additional

physical location information was received.

Other geographic products, described separately in this

chapter, were provided by GEO to the economic census

divisions for use in tabulation, analysis, and publication of

the 1997 Economic Census data.

The Geographic Interface Team (GIT)

In the fall of 1994, the Census Bureau established the

1997 Economic Census Geographic Interface Team (GIT).

Their mission was to plan the geocoding operation for

both the 1997 Economic and Agricultural Censuses.1

The team consisted of representatives from the following

Census Bureau divisions or offices—

• Agriculture and Financial Statistics Division (renamed

Company Statistics Division [CSD] in April 1998).

• Services Division (renamed Service Sector Statistics

Division [SSSD] in April 1998).

• Manufacturingand Construction Division (MCD).

• Economic Planningand Coordination Division (EPCD).

• Economic Statistical Methods and Programming Division

(ESMPD).

• Geography Division (GEO).

• Computer Assisted Survey Research Office (CASRO).

The team met periodically until the summer of 1998,

by which time the basic geographic plans for the 1997

Economic Census had been finalized. It was decided that

the geographic code structure for the 1997 Economic

Census would be similar to that used for the 1992

Economic Census.

The major questions addressed by the GIT included

the overall geographic code structure—i.e., how the geographic boundaries were to be set and what sources

should be used—and the designation of respective

responsibilities of the various Census Bureau divisions.

In particular, GEO was responsible for developinga freestandinggeocodingproduction system that would include

the geocoding software and all reference files needed to

meet the geocodingprocessingrequirements of the 1997

Economic Census. GEO supplied the geocoding production

system to ESMPD, who, in turn, installed the system on its

own computer platforms for production work.

GEOGRAPHIC CODE STRUCTURE

General Information

For the 1997 Economic Census, the Census Bureau recognized regions, divisions, states, counties, consolidated

1

While responsibility for the 1997 Census of Agriculture was

transferred to the U.S. Department of Agriculture’s National

Agricultural Statistics Service (NASS) in 1996, the planning stage

was underway well before that. Thus, the GIT played a major role

in preparingfor the census of agriculture, as well as for the

economic census. Note 3 in chapter 2, The Players and the Plans,

describes the transfer of the census of agriculture in more detail.

History−1997 Economic Census Chapter 6 49

U.S. Census Bureau, 1997 Economic Census
cities, places, and metropolitan areas. The 1997 Economic

Census included the United States, Puerto Rico, Guam, the

Northern Mariana Islands, and the Virgin Islands of the

United States.

The boundaries honored for geographic entities for the

1997 Economic Census were those in effect on January 1,

1997, except for MAs, for which June 30, 1997 boundaries, and the 105th Congressional Districts, which took

effect in January 1997, were used. Changes occurring after

these dates were not recognized for the 1997 Economic

Census. Boundaries for states, counties, and selected

incorporated places were reported to the Census Bureau in

response to the annual Boundary and Annexation Survey.

Where the code structure includes a population size criterion, the population was based on the 1990 Decennial

Census, tabulation counts, corrected counts from Count

Question Review, updated counts based on special census

counts, and counts as updated by the Population Division

to reflect major annexations.

Regions

The Census Bureau recognized four regions within the

50 states and the District of Columbia: Northeast, Midwest, South and West. Each region was subdivided into

divisions and was identified by a set of one-digit codes.

Puerto Rico and the outlyingareas were not part of any

region, they were assigned a region code of 9.

Divisions

The Census Bureau recognized nine divisions within

the 50 states and the District of Columbia, and within a

census geographic region: East North Central, East South

Central, Middle Atlantic, Mountain, New England, Pacific,

South Atlantic, West North Central, and West South Central. Divisions were identified by a set of one-digit codes

that were shown as the first digit of the component census state codes. Puerto Rico and the outlyingareas were

not part of any division, they were assigned a division

code of 0.

States

The Census Bureau recognized the following areas as

states or as statistically equivalent entities of states—

• The 50 states of the United States.

• District of Columbia.

• Puerto Rico.

• Guam.

• Northern Mariana Islands.

• Virgin Islands of the United States.

• Nationwide.

• Foreign.

• Offshore Areas.

The state codes used for the economic census were the

two-digit Federal Information Processing Standard (FIPS)2

state codes. The FIPS state codes were assigned in alphabetic sequence for the 50 states and the District of Columbia. The FIPS state codes for Puerto Rico and the outlying

areas were assigned in a separate alphabetic sequence followingthe states.

For the special situations of United States, nationwide,

foreign, and offshore areas, state equivalent codes were

used as follows—

United States. A United States record was in the stub

file, with a state equivalent code of 99 in both the FIPS

Code field and the census code field. This code was provided in the stub file for publication purposes only. It was

never assigned directly by the geographic coding system.

Nationwide. If the establishment could not be assigned

an acceptable state code and was not categorized as foreign, the geocoding system assigned a nationwide state

equivalent code of 97. Code 97 was used in both the FIPS

state and the census state code fields. The county and

place fields on this record were filled with zeros.

Foreign. Foreign establishments were assigned a foreign

state equivalent code of 98 in both the FIPS state code

field and the census state code field. The county and place

fields on this record were filled with zeros. To be assigned

a foreign state code, an establishment record had to meet

one of the followingpairs of conditions—

State abbreviation with ZIP Code

ZZ 00000

YY 00000

AE 09000-09899

AA 34000-34099

AP 96200-96699

Note: Ships at sea, previously recognized as a separate category

assigned with 00 as the FIPS state and census state codes, were now

assigned a foreign state code of 98.

Offshore Areas. The mineral industries geographic code

structure provided for either a two-digit FIPS state code or

a Census Bureau pseudo-state code, and a three-digit

pseudo-county code. The codes provided for offshore

areas were—

2

The FIPS Code is the standard geographic coding scheme

used by all Federal agencies. The FIPS codes are unique identification numbers for geographic entities. They are assigned by the

National Institute of Standards and Technology.

50 Chapter 6 History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Offshore area

State

abbreviation

FIPS

state

code

Census

state

code

FIPS

county

code

Atlantic . . . . . . . . . . AT 81 29 886

Northern Gulf

of Mexico . . . . . . . NG 82 69 886

Pacific . . . . . . . . . . . PC 83 89 886

These codes were not assigned directly by the geographic coding system. Addresses identified as ‘‘offshore’’

were assigned a state code for one of the 50 states, District of Columbia, Puerto Rico, outlyingareas, or nationwide.

MCD assigned the offshore area codes, where applicable. This enabled the tabulation of oil and gas establishment statistics to a state, an offshore area within a state,

and offshore areas not associated with a particular state,

rather than the usual state, county, or place level. It

reflected a classification of oil and gas operations based

on where their ‘‘bottomingout’’ actually occurred. Operations that bottomed out on land or inland waters were

classified as ‘‘onshore,’’ if within a coastal state; if within

a noncoastal state, as ‘‘statewide.’’ Operations that

bottomed out seaward of the coastal line were classified

as ‘‘offshore.’’

Counties

The Census Bureau recognized the following areas as

counties or as statistically equivalent entities of counties

for the economic census—

The 50 states. (except Alaska and Louisiana) Counties

were recognized.

• Alaska: Boroughs and census areas were recognized.

• Louisiana: Parishes were recognized.

District of Columbia. The District of Columbia was

recognized as both a statistical equivalent of a county and

a state. The county and state are coextensive.

Montana. The part of Yellowstone National Park located

in Montana was not included in any county and was recognized as a statistically equivalent entity (in addition to the

counties).

Maryland, Missouri, Nevada, and Virginia. Independent cities (in addition to the counties). Independent

cities were independent of any county and thus constitute

primary divisions of their states. Independent cities are

different from coextensive cities and counties because no

county existed for an independent city. In order to give

complete coverage to the state at the county level, county

equivalent records represented the independent cities.

Data for the independent city were identical to the data for

its county equivalent.

Hawaii. Kalawao County, which had no functioninglocal

government, was included with Maui County for statistical

purposes.

Puerto Rico. Municipios were recognized.

Guam. No county or statistical equivalent entities were

recognized.

Northern Mariana Islands. No county or statistically

equivalent entities were recognized.

Virgin Islands. No county or statistically equivalent

entities were recognized.

Undistributed. Code 000 was used if the county code

was not known or not applicable, as in nationwide, foreign, offshore and undistributed addresses. Code 000

appears in the stub file with the name ‘‘undistributed.’’

Counties were identified by a three-digit FIPS county

code. The FIPS county codes were assigned in alphabetic

sequence with the names of all counties and county

equivalents (excludingindependent cities) within each

state, usually beginning with code 001. County codes for

independent cities were assigned as a separate alphabetic

sequence beginning with code 510.

Places

The economic census recognized the following areas as

places or as statistically equivalent entities of places—

Incorporated place. Incorporated places with a population of 2,500 or more were recognized for economic census data tabulations. New places reported to the Census

Bureau and legally in effect on January 1, 1997 were

recognized if they had a population of 2,500 or more.

Three incorporated places with a population of less

than 2,500 were recognized as places for previous

economic census tabulations because of their economic

importance. The Census Bureau continued to recognize

these places for the 1997 Economic Census. They were:

Industry, California; Vernon, California; and Bedford Park,

Illinois.

Coextensive cities and counties occur where two governmental units, the city and the county or county equivalent, both have the same boundaries. In these cases, both

the city and the county were recognized. Data for the city

were identical to the data for the county.

Census designated place (CDP). CDPs were not recognized as places for the economic census, except in Hawaii.

For Hawaii, which does not have incorporated municipalities recognized for decennial census purposes, places

have been delineated for statistical purposes by the state

government in cooperation with the Census Bureau. In

agreement with the state government, the Census Bureau

does not recognize the City of Honolulu, coextensive with

the county of Honolulu, as a place for decennial census

History−1997 Economic Census Chapter 6 51

U.S. Census Bureau, 1997 Economic Census
purposes. Those CDPs in Hawaii with a population of

2,500 or more (from the 1990 Decennial Census) were

recognized as place equivalents for the economic census.

Maui County, Hawaii consisted of four islands. At the

request of the state of Hawaii, the Census Bureau recognized the ‘‘Island of Lanai’’ and the ‘‘Island of Molokai’’ as

places for previous economic census tabulations, and continued to recognize them as places for the 1997 Economic

Census. Kalawao County, a nonfunctioninggovernmental

unit, was included in the ‘‘Island of Molokai’’ place.

Consolidated city. Some consolidated governments

include separately incorporated municipalities. The

Census Bureau referred to such entities as consolidated

cities. Each consolidated city had a one-character alphabetic census code. See the discussion of ‘‘balance of

consolidated city’’ below for a list and description of the

consolidated cities.

Balance of consolidated city. Some of the consolidated

governments included separately incorporated municipalities. The Census Bureau referred to such entities as ‘‘consolidated cities.’’ For the economic census, the Census

Bureau recognized the portion (balance) of a consolidated

city that excluded the incorporated place(s) that are recognized separately for the economic census. If a municipality

within a consolidated city had a population of 2,500 or

more, the Census Bureau treated it as a separate place for

the economic census and omitted it from the balance of

the consolidated city. If it had fewer than 2,500 inhabitants, it was included as part of the balance of the consolidated city. The balance of a consolidated city may refer to

a whole consolidated city if none of the included places

contain a population of 2,500 or more. The consolidated

cities and their components were—

• Milford, Connecticut consolidated city is coextensive

with Milford town. It included Woodmont, which was

not populous enough for separate tabulation. Therefore,

‘‘Milford’’ referred to the whole consolidated city.

• Jacksonville, Florida consolidated city was coextensive with Duval County. It included Atlantic Beach, Jacksonville Beach, and Neptune Beach, which were tabulated separately. ‘‘Jacksonville (balance),’’ which was a

place equivalent, includes Baldwin, which was not populous enough for separate tabulation.

• Athens-Clarke County, Georgia consolidated city was

coextensive with Clarke County. It included Winterville

and Bogart (part in Clarke County), which were not

populous enough for separate tabulation. Therefore,

‘‘Athens-Clarke County’’ referred to the whole consolidated city.

• Augusta-Richmond County, Georgia (new for 1997

Economic Census) consolidated city was coextensive

with Richmond County. It included Hephzibah, which

was tabulated separately. ‘‘Augusta-Richmond County

(balance),’’ which was a place equivalent, included

Blythe (part in Richmond County), which was not populous enough for separate tabulation.

• Columbus, Georgia consolidated city was coextensive

with Muscogee County. It included Bibb City, which was

not populous enough for separate tabulation. Therefore,

‘‘Columbus’’ referred to the whole consolidated city.

• Indianapolis, Indiana consolidated city included all of

Marion County except Beech Grove, Lawrence, Southport, and Speedway, which were tabulated separately.

The consolidated city included Cumberland (part in

Marion County), which also was tabulated separately.

‘‘Indianapolis (balance),’’ which was a place equivalent,

included Clermont, Crows Nest, Homecroft, Meridian

Hills, North Crows Nest, Rocky Ripple, SpringHill,

Warren Park, Williams Creek, and Wynnedale, which

were not populous enough for separate tabulation.

• Butte-Silver Bow, Montana consolidated city was

coextensive with Silver Bow County. It included Walkerville, which was not populous enough for separate

tabulation. Therefore, ‘‘Butte-Silver Bow’’ referred to the

whole consolidated city.

• Nashville-Davidson, Tennessee consolidated city

was coextensive with Davidson County. It included Belle

Meade, Forest Hills, Goodlettsville (part in Davidson

County), and Oak Hill, which were tabulated separately.

‘‘Nashville-Davidson (balance),’’ which was a place

equivalent, includes Berry Hill, Lakewood, and Ridgetop

(part in Davidson County), which were not populous

enough for separate tabulation.

Special Economic Urban Areas (SEUA). SEUAs were

townships in Michigan, Minnesota, New Jersey, and Pennsylvania; and towns in Connecticut, Maine, Massachusetts,

New Hampshire, New York, Rhode Island, Vermont, and

Wisconsin with a population of 10,000 or more. If a town

or township that qualified as a SEUA contained an incorporated place that was recognized separately for economic

census tabulations, the Census Bureau recognized the balance of the SEUA as a place equivalent, if the balance had

a population of 10,000 or more.

Balance of metropolitan area. In the six New England

states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont) ‘‘Balance of metropolitan area (MA)’’ was used for cities and towns located in an

MA but not qualifyingfor economic census tabulations.

This was needed to maintain the ability to tabulate data

for MA’s in the New England states because MAS are

defined in terms of cities and towns rather than counties

in these states.

Balance of county. ‘‘Balance of county’’ included those

areas not recognized as places and place equivalents

under the above definitions.

52 Chapter 6 History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
The 1997 Economic Census used the four-digit decennial census place codes for internal processing. These

place codes were assigned in alphabetic sequence within

state or state equivalent. Additional place equivalent

codes were assigned in the sequence as needed to accommodate economic census needs. A place code of 9999

designated ‘‘Balance of county.’’ The first digit of the

‘‘Balance of MA’’ census place code is 9, and the last three

digits were the same as the first three digits of the metropolitan statistical area (MSA) or primary metropolitan

statistical area (PMSA) code.

Metropolitan Areas

The Census Bureau recognized the three types of metropolitan areas (MAs) established by the Statistical Policy

Office, Office of Information and Regulatory Affairs, Office

of Management and Budget. The three types of MAs were:

Metropolitan Statistical Areas (MSAs), Consolidated Metropolitan Statistical Areas (CMSAs), and Primary Metropolitan

Statistical Areas (PMSAs). MSAs and CMSAs were equivalent levels of geography; PMSAs were subdivisions of

CMSAs. GEO recognized the June 30, 1997 boundaries for

the MAs. The portion of Sullivan city in Crawford County,

Missouri was legally part of the St. Louis, MO-IL MSA. However, it was not included in the 1997 Economic Census

code structure because it did not adhere to the requirement that whole counties be used to define the MAs

(except in New England).

Each MA had a four-digit FIPS Code that was assigned in

alphabetic sequence. The code was 9999 for nonmetropolitan areas. In addition, each CMSA had a two-digit FIPS

Code also assigned in alphabetic sequence.

Congressional Districts

The Census Bureau originally planned to publish economic census data for the congressional districts of the

105th Congress of the United States. Budget reductions

resulted in the cancellation of this program for the 1997

Economic Census.

Census Tract/BNA and Census Blocks

The geocoding system assigned census tract/BNA and

block numbers to as many economic establishments as

possible duringthe geocodingprocess.3 These census

tract/BNA and block numbers were used as a linkage to

the higher level geographic codes required for economic

census data publications. The census tract/BNA and block

codes, however, were not posted to the economic census

control file, nor were data tabulated for these areas.

GEOGRAPHIC RECODE AND REFERENCE FILES

General Information

In addition to the freestandinggeocodingsystem, GEO

created other products to support economic census processingand data tabulation. A two-thirds reduction in the

GEO budget allocations for the 1997 Economic Census

five-year budget cycle resulted in significant reductions in

the level of services, as well as elimination of selected

products provided by GEO.

Products eliminated were: initial geocoding processing

and monitoringby GEO; the Metropolitan Area Appendixes

for the geographic publications; publication-ready tables

for, and the printingof, the Geographic Reference Manual;

the County Place Code Change File; the Duplicate Names

File; Establishment Cluster Files; and clerical geocoding.

The level of services were greatly reduced for the followingproducts: manual reviews and updates to enhance the

City Reference File (CRF) beyond the capabilities of the

automated file creation process, and the Publication Stub

File. The CRF will be treated in detail below.

Census to Economic Recode File

The purpose of the census to economic recode file was

to provide a source of geographic codes for use in convertingthe current (1997) decennial census based geocodes to the economic census tabulation geocodes. This

file was created uniquely for use in the economic census

geocoding process.

1992 Economic to Current Census Recode File

The purpose of the 1992 economic to current census

recode file was to provide a source of geographic codes

for use in convertingthe historic (1992 Economic Census)

tabulation geocodes on the establishment records to their

equivalent current (1997) decennial census based geocodes. The historic geocodes were used as one of the tie

breakers in the geocoding process. This recode file was

used only duringthe initial geocodingof the control file.

The historic geocodes on the establishment records in the

control file were defined as the 1992 Economic Census

tabulation geocodes. The 1992 economic to current census recode file was one of two historic recede files created

uniquely for use in the economic census geocoding process.

1997 Economic to Current Census Recode File

The purpose of the 1997 economic to current census

recode file was to provide a source of geographic codes

for use in convertingthe historic (1997) economic tabulation geocodes on the establishment records to their

equivalent current (1997) census based geocodes. The historic geocodes were used as one of the tie breakers in the

geocodingprocess. This recode file was used duringthe

geocoding of the physical location responses from the

3

Census tracts and BNAs were subdivisions of a county or

county equivalent. Census blocks were small areas bounded on

all sides by visible (e.g., streets, streams, or railroad tracks) or

invisible features (e.g., place or congressional district boundaries,

property lines, or short, imaginary extensions of streets or roads).

History−1997 Economic Census Chapter 6 53

U.S. Census Bureau, 1997 Economic Census
economic census questionnaires, and all subsequent

economic census geocoding. The historic geocodes on the

establishment records for physical location and subsequent geocoding were defined as the previously assigned

1997 economic tabulation geocodes. The 1997 economic

to current census recede file was one of two historic

recode files created uniquely for use in the economic

census geocoding process.

Clustering Program Module

The purpose of the establishment cluster review process was to identify multiple establishments reportingto

the same address. This situation often occurs when the

address reported for an establishment was the mail

address, not the physical location address. Once identified, the establishment clusters were eligible for review

and address correction where applicable.

An establishment cluster was defined by SSSD as a

group of establishment records with a common address

and industry code. Address types requested by SSSD for

consideration in the clusteringprogram module were:

structure number and street name, buildingname, and

post office boxes. The criteria for industry codes considered in the clusteringprogram module was limited to

those requested by SSSD.

The GEO clusteringprogram module selected a subset

of control file records that later became part of the input

for the traditional clusteringprocess. The GEO clustering

program module was incorporated into the initial control

file geocoding only. Control file records that met the

criteria defined by address type and industry code were

identified and written to a separate file, alongwith their

standardized address, for further establishment cluster

processingby ESMPD. The traditional automated clusteringwas programmed and executed by ESMPD for the

1997 Economic Census.

County Code Change File

The purpose of the county code change file was to

convert the 1992 county codes to the 1997 county code

structure. The GEO provided a one-to-one recode in this

file. Only counties with code changes were included in the

county code change file. For whole county changes, the

file contained one county record with its historic state and

county codes (1992) and its current (1997) state and

county codes. When one 1992 county split into two counties for 1997, the file contained a record for each 1992

qualifyingeconomic census place. Prior to creatingquestionnaire mailinglabels, ESMPD used the county code

change file to recode the 1992 county codes assigned to

establishment records.

County Alpha Recode File

The purpose of the county alpha recode file was to convert the FIPS county code to a six-character abbreviation

of the county name, which was printed on the questionnaire mailinglabel. The ESMPD performed the county

alpha recode operation after the county code changes had

been made. The county alpha recode file contained one

record for each 1997 county or county equivalent.

Geographic Stub File

The purpose of the geographic stub file was to provide

the staffs of the subject-matter divisions with the ability to

insert geographic entity names in the stubs of the publication tables and other data products. The ‘‘stub’’ is the list

of geographic entities in the left column or in the boxhead.

This file contained all the information necessary to convert the geographic codes associated with establishment

records to the publication geographic entity names for

publications and other data products. The stub file had

one record for each of the following—

• Metropolitan area (Metropolitan Statistical

Areas/Consolidated Metropolitan Statistical

Areas/Primary Metropolitan Statistical Areas).

• Region.

• Division.

• State or state equivalent (included the 50 states, the

District of Columbia, Puerto Rico, Guam, the Northern

Mariana Islands, the Virgin Islands of the United States,

ships at sea, three offshore areas for mineral industries,

foreign establishments, and nationwide establishments),

plus one record representingthe United States as a

whole, in the same format as a state record, with a state

code of ‘‘99.’’

• County or county equivalent, plus a record in each

state or state equivalent for ‘‘undistributed,’’ used for

industries with operations not designated to specific

counties, and a county record for each offshore area.

• Consolidated city.

• Place and place part within county (qualifyingeconomic

census places only).

For consolidated cities that contained separately incorporated places, this file had a record for each consolidated

city, each separately incorporated place that qualified for

economic census recognition, and each consolidated city

balance. Each place record included the place description,

which distinguished between various types of places and

the ways they related to metropolitan and urban areas.

Subject Review City Reference File (CRF)

The purpose of the subject review CRF was used by the

economic census subject matter divisions to facilitate their

review of the geographic coding and tabulation results.

The subject review city reference file was an extract of the

city reference file used for general geocoding. It contained

54 Chapter 6 History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
all post office name, state abbreviation, and ZIP Code combinations from the city reference file, collapsed to the economic census tabulation geocode level.

Geographic Notes File

The purpose of the geographic notes file was to identify and document geographic changes that occurred

between January 1, 1992 and January 1, 1997, as well as

any changes that occurred prior to January 1, 1992, but

were reported too late for inclusion in the 1992 Economic

Census. The geographic notes file was used to prepare

appendixes for the relevant census report publication

products.

The types of changes documented in the geographic

notes file were—

• Economic census-recognized places that were in more

than one county and the names of the counties in which

each multicounty place was located.

• Special economic urban area balances and economic

census recognized incorporated places excluded from

them.

• Differences between 1992 and 1997 Economic Census

recognized geography and the reasons for the changes

(i.e., new incorporations, dis-incorporations, annexations, detachments, name changes, consolidations,

mergers, and county changes).

• Anomalous situations that involved economic census

geography.

Geographic Reference Manual Table Files

The purpose of the geographic reference manual table

files was to provide an easily accessible reference source

for the components, names, and geocodes of geographic

areas. The tables encompassed all of the geographic areas

that qualified for economic census tabulations.

The geographic reference manual tables were made

available as a series of 12 files, one for each table, in the

followingsequence—

• States and Statistically Equivalent Areas.

• Metropolitan Statistical Areas, Consolidated Metropolitan Statistical Areas, and Primary Metropolitan Statistical

Areas.

• Metropolitan Statistical Areas, Consolidated Metropolitan Statistical Areas, and Primary Metropolitan Statistical

Areas by State.

• Counties.

• Consolidated Cities.

• Places.

• Places by County.

• Special Economic Urban Areas.

• Places Located in More than One County.

• Census of Mineral Industries: Offshore Areas.

• Places in 1992 Economic Census, Not in 1997 Economic

Census.

• Places in 1997 Economic Census, Not in 1992 Economic

Census.

ZIP Code Legality File

The purpose of the ZIP Code legality file was to provide

a source of all legal ZIP Codes within each state or state

equivalent. GEO provided ESMPD with a file extracted from

the U.S. Postal Service’s City State File. The ZIP Code to

state relationships were extracted from the City State File

and supplemented with additional relationships from the

CRF.

GEOCODING PROCESS

Freestanding Geocoding System

For the economic census the GEO developed a freestandinggeocodingproduction system that encompassed

the geocoding software and all reference files necessary

to meet the geocodingprocessingrequirements of the

economic census. After extensive testing, the economic

census geocoding production system was installed on the

ESMPD computer platform in November 1997. The installation included a comprehensive production test that

ensured all components were performingas required on

the ESMPD platform.

The GEO general purpose geocoding system was used

as a basis for the economic census geocoding system.

Modifications were made to meet the specific requirements of the economic census. The Census to Economic

Recede File, the 1992 Economic to Current Census Recode

File, and the 1997 Economic to Current Census Recode

File were incorporated into the general purpose geocoding

system to provide conversions between decennial census

based geocodes and economic census tabulation geocodes.

For the economic census, place level geocodes were

required for all establishment addresses, includingthose

without a structure number and street name type address.

To meet this requirement, both detail geocoding and

header geocoding were needed. The process referred to as

detail geocoding matches the structure number and street

name part of an address to the Address Reference File to

obtain geographic codes. The process referred to as

header geocoding matches the last line components of an

address (post office name, state abbreviation, and ZIP

Code) to the CRF to obtain geographic codes. For the economic census, both detail and header codingwere linked

to ensure all establishments addresses received the most

accurate codes based on the address information presented to the geocoding system. The Census to Economic

History−1997 Economic Census Chapter 6 55

U.S. Census Bureau, 1997 Economic Census
Recode File converted the decennial census based geocodes from the general purpose geocoding programs to

the economic census tabulation geocodes.

City Reference File (CRF)

The CRF contained records that link the post office

name, state abbreviation, and five-digit ZIP Code (referred

to as the last line of an address) to its associated decennial census state, county, MCD, and place codes. Each CRF

record contained a post office name, state abbreviation,

and five-digit ZIP Code. In addition to the official post

office names and alternate names, the CRF also contained

variant spellings for post office names and postal neighborhood names, together with supplementary county

name information for matchingcounty names when a

county name response is given. The GEO general purpose

geocoding system matched to a CRF with decennial census based geography. Modifications made uniquely for the

economic census geocoding system subsequently converted the decennial census based geocodes to economic

census tabulation geocodes.

Address Reference File

The Address Reference File (ARF) was an extract of the

Topologically Integrated Geographic Encoding and Referencing(TIGER) Files, reformatted and reorganized to a

convenient matchingstructure. The ARF contained street

address information from TIGER linked to its associated

state, county, tract, and block codes. The components of

the street address were house number, street name, and

ZIP Code. The geocodes and linkages associated with each

ARF record could be associated to all of the higher level

geographic codes. The GEO general purpose geocoding

system matched to an ARF with decennial census based

geography. Modifications made uniquely for the economic

census geocoding system subsequently converted the

decennial census based geocodes to economic census

tabulation geocodes.

Legality Files

The legality files were maintained by GEO for general

geocoding applications. The purpose of the legality files

was to provide a source of geographic codes, names, and

other attributes for editing legal geographic codes in other

files, for assigning attributes based on geographic codes,

and as a source of information for the geographic stubs

for publications. The Census to Economic Recode File, the

1992 Economic to Current Census Recode File, and the

1997 Economic to Current Census Recode File were added

to this group of files as part of the modifications made to

the GEO general purpose geocoding system uniquely for

the economic census.

VALIDATING AND UPDATING INCOMING DATA

Responses to the 1997 Economic Census were received

by mail or telephone at the National ProcessingCenter in

Jeffersonville, Indiana, where respondent records underwent data entry processing.

In turn, ESMPD staff, each night, processed address

information received from respondents in order to update

the geocodes on the Standard Statistical Establishment List

(SSEL). The SSEL functioned as the Census Bureau’s register of all business addresses. This updatingcontinued

throughout the 1997 Economic Census processing

operations.

The geocoding system referred for EPCD review any

establishment that it was unable to fully code, or that had

been assigned a low confidence code (e.g., only a state

code assigned with no corresponding county or place

code). EPCD staff, often in collaboration with GEO staff,

checked problem records against maps and other sources

of geographic information and made corrections to the

records.

Subject-matter staff also participated in identifying

problems. During their review of geographic tabulations,

analysts found some individual establishments, or groups

of establishments, that appeared to have questionable

codes. GEO staff researched the geocodes to determine

correct tabulation geography, and returned the referrals to

subject matter staff for retabulation.

In sum, the goals established by the (Geographic Interface Team (GIT) in 1994 had excellent results for the 1997

Economic Census. The freestandinggeocodingproduction

system was successful in meetingthe requirements of this

census, and set the pattern for future economic censuses.

56 Chapter 6 History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Chapter 7. PREPARATIONS FOR CENSUS MAIL OUT

Introduction ................................... 59

Upgrading the Processing Infrastructure .................... 59

Compiling the Census Mail List......................... 60

The Standard Statistical Establishment List (SSEL) .............. 60

Background information .......................... 60

SSEL content ................................ 60

Sourcesfor the SSEL ............................ 60

Using the SSEL ............................... 60

Split Mail and Electronic Reporter Identification ............... 61

Sampling ................................... 61

Background information .......................... 61

Construction industries .......................... 61

Manufacturing industries.......................... 62

Retail trade ................................. 62

Wholesale trade............................... 62

Service industries.............................. 62

Financial, insurance, and real estate industries .............. 62

Utilities ................................... 62

Geographic Coding .............................. 62

Administrative Records ............................. 63

Background Information ........................... 63

Obtaining the Records ............................ 63

Preparation ................................. 63

IRS records ................................. 63

SSA records ................................. 64

BLS records ................................. 64

Using Administrative Records in the Economic Census ........... 64

Assigning Census File Numbers ........................ 64

Printing and Assembling the Mailout Packages ................ 64

Cover Letters, Instruction Sheets, and Other Mailing Materials ....... 64

General information ............................ 64

Cover letters ................................ 65

Instructions ................................. 65

Inventory sheets .............................. 65

Printing the questionnaires and other mailing materials ......... 65

Using DocuPrint for the 1997 Economic Census .............. 65

Background information .......................... 65

DocuPrint production............................ 66

Address Labels ................................ 66

Description ................................. 66

Printing ................................... 67

CONTENTS

History—1997 Economic Census Chapter 7 57
Printing and Assembling the Mailout Packages—Con.

Quality Assurance .............................. 67

Contract printing/package assembly ................... 67

DocuPrint printing and package assembly ................ 67

Label printing................................ 68

Pre-Census Company Contacts ......................... 68

Information Mailings ............................. 68

The Account Manager Program........................ 69

58 Chapter 7 History—1997 Economic Census
Preparations for Census Mailout

INTRODUCTION

Planning, development of questionnaire content, and—

new for the 1997 Economic Census—the development and

implementation of the North American Industry Classification System (NAICS) were long-term activities that merged,

eventually, into the more particular preparationsfor the

actual conduct of the enumeration. Census preparations

included (1) upgrading the Economic Directorate’selectronic processing infrastructure, (2) compiling the census

mail list, (3) acquiring and using administrative records,

(4) assigning Census File Numbers (CFNs) to provide

identification for each company, (5) printing and assembling mailing packages of questionnaires, instructions,

and cover lettersfor over four million companies, and

(6) establishing and maintaining pre-census contacts

between U.S. Census Bureau staff and the largest companies covered by the 1997 Economic Census.

UPGRADING THE PROCESSING INFRASTRUCTURE

During the 2 years prior to the 1997 Economic Census,

the Economic Directorate dramatically improved its

data-processing infrastructure’s capabilities. This was

accomplished by upgrading existing computer systems,

replacing obsolete hardware, and installing new software

applications. The upgrade reduced the Directorate’s

support costs, increased processing efficiency, and created

a user friendly network.

The upgrade—

• Replaced the Local Area Network (LAN) servers with

more powerful machines.

• Installed faster Virtual Memory System (VMS).

• Replaced Virtual Access Extension (VAX) 7600 processor

equipment with Alpha processors.

• Installed Common Use Interface (CUI) applications.

• Expanded use of the operating system and its associated hardware to replace the Unysis computer

The LAN upgrade included both the staff work stations

and computer servers. At Census Bureau headquarters in

Suitland, MD, the Economic Directorate acquired nearly

600 new personal computers with Pentium chips, while

the National Processing Center (NPC)1 office in Jeffersonville, IN received 110. Adding Pentium technology

increased the speed of the individual workstations by 60

percent (from 166 megahertz [MHZ] to 266 MHZ each) and

allowed more rapid communication with the mainframe

computers.

Eight new servers increased the total to 46. All local

networkshad identical applicationsinstalled to maintain

consistency among work stations. New software was

added to eliminate the need for paper copy of documents

and files in favor of electronic transmission to individual

work stationsand to the public. Thispromoted information sharing, reduced mailing demands, and diminished

storage and filing needs. It also resulted in controlled

access to information and it provided a search function of

all electronically stored material.

At the CensusBureau’sheadquarters, the upgrade

eliminated one VMS station, but the new technology

increased input/output speed and total storage capacity to

the remaining systems. The development cluster2 upgrade

increased processing speed over 700 percent, from 77

million linesof information per minute to 551. Memory

increased 600 percent, from 640 megabytes to four

gigabytes, and disc space nearly tripled (50 to 141

gigabytes). The production cluster counted three fewer

systems, yet increased processing speed from 154 to

4,085 million linesof information per minute. In turn,

memory was increased from 2.6 to 12 gigabytes, and disc

space grew from 325 to 865 gigabytes. The NPC used 10

fewer VMS stations, but increased processing speed by

two million lines per second and expanded disc space by

14 gigabytes. Memory was reduced from 672 to 352

megabytes.

The infrastructure upgrade also addressed the real and

predicted difficultiesof the aging Virtual AddressExtension 7600 clusters (support for this equipment was

becoming difficult, since the system was gradually being

retired for more open architecture systems). The Census

Bureau replaced all but one of the 7600 processors with

Alpha 4100 and 8400 processors by the spring of 1998.

The Alpha processors, which incorporated 64-byte processor technology, outperformed the capabilities of a larger

number of the Virtual Address Extension 7600 systems

that they replaced.

The final aspect of the technology upgrade was the

replacement of older and slower UNIX systems with new

1

Until a reorganization effective May 1, 1998, thisunit was

called Data Preparation Division (DPD).

2

A cluster is a group of disc sectors, or units, into which the

operating system divides the disc. This allows the operating

system and disc drive to identify where information is stored.

History—1997 Economic Census Chapter 7 59

U.S. Census Bureau, 1997 Economic Census
equipment. Advancesin UNIX technology required fewer

machinesto handle the required workload. The new

system featured an open architecture that enabled most

computer languagesto be converted into a language that

the new—system and subsequently all systems on the

local network—could use.

Asa result of the UNIX upgrade, the Economic Directorate discontinued using the Unysis computer. Unysis was

incapable of conversion to an open architecture system:

the networks could ‘‘understand’’ Unysis communications,

but Unysis could not understand the networks. The deactivation of Unysis required the transfer of its original

COBOL/FORTRAN processing programs to UNIX. There was

insufficient time for the complete conversion of Unysis

programs to UNIX for use in the 1997 census. Therefore,

the Census Bureau concentrated on the most vital processing programs, and delayed completing the changeover for

all programs until the 2002 Economic Census.

COMPILING THE CENSUS MAIL LIST

The Standard Statistical Establishment List (SSEL)

Background information. The SSEL isa centralized,

multipurpose, computerized data file of U.S. business

establishments and companies. Prior to 1974, Federal

agenciescollecting and tabulating economic data each

compiled and maintained their own business registers.

Since each agency designed programsfor itsown purposes, there were serious comparability problems, significant duplication of effort, and increased costs for those

using economic data across agencies. In 1968, the Office

of Management and Budget (OMB) addressed the problem

by designating the Census Bureau to develop, establish,

and operate a general, multipurpose business directory.

While the new directory would be used as the sampling

frame for the entire Federal statistical establishment, the

Census Bureau was never permitted to share the listing

itself with any other Federal agency. Funding for the

project began with Fiscal Year (FY) 1972 and the new

directory—the SSEL—became operational for data year

1974.

The SSEL includesthe Nation’semployer and nonemployer business establishments (except private householdsand governments) and organizational unitsof

multiestablishment businesses. ‘‘Businesses’’ are legal or

administrative entities assigned an employer identification

number (EIN) by the Internal Revenue Service (IRS), and

‘‘units’’ include divisions, subsidiaries, companies, and

other affiliated organizations. For the 1997 Economic

Census, the SSEL included over 19 million businesses—

180,000 multiestablishment companies (with approximately 1.5 million affiliated establishments), 5 million

single-establishment companies, and nearly 14 million

nonemployer businesses.

SSEL content. The SSEL wasdesigned to (1) identify the

most useful definition of business establishment units for

statistical analysis, (2) build bridges between these statistical unitsand legal entitiesfor which administrative

recordswere available, and (3) facilitate more efficient use

of administrative records for statistical purposes. The SSEL

systems design was based on a variable word-length

record that allowed additional information to be added

whenever necessary. The establishment was the basic

building block of the list, and, for economic census

purposes, was the smallest unit for which key data on

economic activity (e.g., employment and payroll) were

available.

For each organizational unit, the SSEL contained—

• Employer identification number (EIN).

• SSEL identification number.

• Company name, mailing address, and physical location.

• Industry classification.

• Geographic code.

• Legal form of organization.

• Operating data (i.e., receipts, payroll, and other

economic variables).

By matching the EINs assigned to each establishment

with employeesto the SSEL identification numbers, the

CensusBureau could link and identify affiliationsfor parent companies, subsidiary firms, and their establishments

through all phases of economic activity.

Sources for the SSEL. The SSEL database was maintained as two cross-classified lists, one each for singleand multiestablishment companies. The list information

for single-establishment companies was updated continuously, using both payroll tax records and receipts data

from tax recordsprovided by the IRS. Information on multiestablishment companies was updated annually based

on information from the CensusBureau’scurrent economic surveys, such as the Current Industrial Reports-

(CIRs), the Company Organization Survey (COS—see

Chapter3, ‘‘Introduction of the North American Industry

Classification System (NAICS),’’ for more information on

thissurvey), and the like.

The operating data were initially derived from information collected in the COS for multiestablishment

companies, and from the IRS records for first-quarter

employment, quarterly payroll, aswell asfor annual payroll. The size codes covered payroll, sales, and receipts at

the establishment, legal-entity, and enterprise levels, and

used a set of standard size ranges for each characteristic

for all industries. The SSEL system retains administrative

data for establishments for the current and immediately

previousyears.

Using the SSEL. For the economic census, the SSEL functioned as a universe file to control questionnaire mailing

and data processing. The Census Bureau used the SSEL

60 Chapter 7 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
source files for a final pre-census update of the SSEL in the

Summer of 1997. These source files included administrative data from the Social Security Administration (SSA), IRS,

Bureau of Labor Statistics(BLS), aswell asthe resultsof

the 1996 COS. Of particular importance in the update

were the mailing addresses for individual establishments

and the industry classifications.

During mail-list compilation, the Census Bureau used

the SSEL as the principal source for mailing addresses for

individual establishments. For multiestablishment companies, the Census Bureau used the SSEL to—

• Select all active companies(excluding farms) and all

active establishments.

• Identify consolidated companies/establishments.3

• Assign report form (questionnaire type) numbers for the

following:

• Out-of-scope or suspected out-of-scope establishments(Form 9901).

• Finance, insurance, and real estate, and communications establishments (consolidated questionnaires).

• Auxiliary establishments (Form 9202).

• Other establishments based on program division

information/NAICS/SIC.

For single-establishment companies, the Census Bureau

used the SSEL to—

• Select establishments with 1997 payroll.

• Split the single-establishment company universe, using

NAICS and program division information, to assign

appropriate questionnaire.

• Sample by trade area.

During data processing, NPC staff keyed information

from census questionnaires into a computer system that

interfaced with the SSEL and individual recordswere

matched to the SSEL to confirm coverage. During quality

assurance processing, the SSEL file enabled the Census

Bureau to determine whether all the establishments of a

multiestablishment company had been enumerated.

Split Mail and Electronic Reporter Identification

The multiestablishment mailout system also was

designed to make it easy to identify two other contingencies: ‘‘split mail companies’’ and those companies that

wanted to respond electronically. Thiswasdone using a

parameter-driven identification system that enabled an

analyst to identify which parts of a company needed questionnairesmailed separately to another location within the

company (i.e., ‘‘split mail’’) and/or allowed companies that

wished to respond electronically also to receive the proper

electronic reporting medium in the company package. Initially, about 600 companieswere mailed the electronic

reporting media. Seventy one more companiesrequested

the media during data collection. (Chapter 8, ’’Data Collection and Processing,‘‘ discusses electronic reporting.)

Sampling

Background information. The 1997 Economic Census

covered over 14 million establishments. The smallest of

these—based on payroll cutoffs set for each four-digit SIC

or five-digit NAICS industry—were covered using administrative recordsprovided to the CensusBureau by the IRS

and SSA. These establishments were not required to complete census questionnaires. The cutoffs established for

each industry were set so that the establishments

exempted from the requirement to complete census forms

accounted for only about three percent of the total value

of shipments for that industry. Establishments that would

otherwise have been accounted for using administrative

records—but for which the Census Bureau lacked the

necessary information to assign a six-digit NAICS industry

code—were sent classification forms in the census mailout.

These latter totaled approximately 1.6 million. The

preparation of the mail list, and the arrangements made

for collecting detailed information on the long questionnaires, varied by trade area. All multiestablishment

companiesin a given sector or trade area were included in

the census and were enumerated using the long questionnaires. The largest single-establishment companies—

based on payroll cutoffs that varied by trade area—were

included and were sent long questionnaires. These large

single-unit companies, together with the multiestablishment companies, were subjected to intense follow-up.

For smaller single-establishment companies in all trade

areas except transportation and auxiliaries,4 the Census

Bureau used stratified samples to select establishments to

be included in the census or to determine whether to send

them long or short questionnaires. Selection for the

samples was based on formulae designed to enable the

Census Bureau to compile reliable estimates for industries

at specified geographic levels, while keeping overall

respondent burden to a minimum.

Construction industries. The Census Bureau selected a

probability sample of 131,000 of the approximately

625,000 establishments in the NAICS construction sector

3

Consolidated companies/establishments were multiestablishment companies that, because of their relatively small size,

and/or the kind of economic operationsof their variousindividual

establishments, were sent a consolidated questionnaire requesting summary data on all their establishments, rather than individual questionnaires for each establishment.

4

Transportation industries were covered in two surveys—the

1997 Truck Inventory and Use Survey and the Commodity Flow

Survey—while auxiliary establishments were part of multiestablishment companies. For more information on these surveys, see

Chapter 10, ‘‘Transportation Surveys.’’

History—1997 Economic Census Chapter 7 61

U.S. Census Bureau, 1997 Economic Census
to participate in the 1997 census. The sample included all

12,000 identified multiestablishment construction companies, plus a stratified random sample of singleestablishment companies. The single-establishment

sample was stratified by state and industry, then by payroll size. Within each state/industry level, the Census

Bureau established five payroll intervals. The cutoff interval for each industry was set so that the sample drawn

would include approximately 50 percent of the total payroll attributable to single establishments within that industry. Single-establishment companies in the largest payroll

size category were identified as ‘‘certainty’’ cases. The

complete sample consisted of 12,000 multiestablishment

companies, 51,000 single-establishment ‘‘certainty’’ cases,

and 68,000 other single-establishment companies. The

data collected were used to generate national- and statelevel estimates for each of the 27 NAICS construction

sector industries.

Manufacturing industries. The 1997 Economic Census

included approximately 380,000 manufacturing establishments. Nearly 83,000 single-establishment companies for

which the Census Bureau lacked sufficient information to

assign a six-digit NAICS industry code were sent the

NC-9922, ‘‘Classification Form,’’ in the census mailout. All

other single- and multiestablishment manufacturing companies were split into three categories—Annual Survey of

Manufacturers (ASM) establishments, large and medium

(based on payroll; the cut-offs varied by industry) non-ASM

establishments, and small non-ASM establishments. There

were approximately 61,000 ASM cases, about 21,000 of

which were single-establishment companies. The medium

and large non-ASM establishments—about 167,000 in all—

were enumerated using the more than 200 manufacturing

industries census long questionnaires. Approximately

29,000 small non-ASM establishments were sent one of

the short census questionnaires.

Retail trade. The 1997 Economic Census initial mailout

plans called for inclusion of all multiestablishment retail

firms(approximately 530,000). An additional 320,000

single-establishment companies for which the Census

Bureau had insufficient classification information would be

sent the classification form. The remaining small singleestablishment retail trade companies were sampled at a

rate of 13.8 percent, creating a sample mail file of

121,309 firms. These were sent one of 37 retail trade long

questionnaires.

Wholesale trade. The initial census mailout included all

multiestablishment wholesale firms, and all wholesale

single-establishment companies with employees approximately 458,600. (Nonemployer wholesalers were considered statistically insignificant.) Some 266,000 large- and

medium-size wholesalers—those with a specified number

of employeesor level of payroll—were sent one of 42

product-specific long questionnaires. The remaining

61,000 smaller wholesalers were enumerated using one of

six short questionnaires asking for summary data on products, materials, and key variables.

Service industries.5 The Census Bureau identified

approximately 330,000 multiestablishment firms in the

service industries for the initial census mailout. An additional 662,263 companies, for which the Census Bureau

lacked adequate information to classify at the six-digit

level, were selected for inclusion in the classification questionnaire mailout. Large and medium-size singleestablishment service—firms some 651,145 companies,

identified based on payroll and/or volume of sales cutoffs

established for each five-digit industry—were identified

for the mailout and were sent the appropriate long form

questionnaire. The Census Bureau drew an approximate

3.1 percent stratified sample of the remaining 1.55 million

small single-establishment firms within the service sector.

This yielded a sample of 48,654 addresses, which were

mailed one of the 41 services industries long questionnaires.

Financial, insurance, and real estate industries.

Mailout plans for the Financial, Insurance, and Real Estate

sector called for mailing questionnaires or classification

forms to approximately 157,000 multiestablishment firms,

and to just over 246,000 large- and medium-sized singleestablishment companies. A 2.4-percent sample of small

single-establishments added 8,384 companies to the

mailing list to receive the long questionnaires.

Utilities. All utilities industries multiestablishment companies were sent the long questionnaires in the initial census mailout. An additional 32,000 single-establishment

companies were selected to receive classification questionnaires, while 66,500 large- and medium-size singleestablishment firms were sent long form questionnaires.

The remaining small single-establishment utility companieswere sampled at a 5.9 percent rate, yielding 6,615

additional companies that were sent questionnaires.

Geographic Coding

Conducting a mailout/mailback enumeration, and processing the responses, required place-level geographic

codes for all establishment addresses. The Census

Bureau’s Geography Division developed a freestanding

geocoding production system that incorporated the geocoding software and all necessary reference files to meet

the geocoding processing requirements of the 1997 Economic Census. The production system was installed on

5

Part or all of the following NAICS sectors were in the old SIC

service industries—51, Information; 54, Professional, Scientific,

and Technical Services; 56, Administrative Support; Waste Management and Remediation Services; 61, Educational Services; 62,

Health Care and Social Assistance; 71, Arts, Entertainment, and

Recreation; 72, Accommodation and Foodservices; and 81, Other

Services, Except Public Administration

62 Chapter 7 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
the Economic Statistical Methods and Programming Division’s (ESMPD’s) computer platform, and ESMPD used the

coding system to apply geographic area codes to the

addressrecordson the CensusBureau’s1997 mail list.

(For more information on geocoding see Chapter 6,

‘‘Geographic Area Coding.’’)

ADMINISTRATIVE RECORDS

Background Information

The census first used administrative records to collect

data in the 1890 enumeration, when special enumerators

visited real estate recorders’ office records to obtain data

on individual and corporate debt. However, the Census

Bureau did not try large-scale use of administrative

records in the economic censuses until 1954, when

selected data items (employment, payroll, and sales) for

small retail ($2,500 or more in sales) and services ($1,000

or more in sales) nonemployers were tabulated from IRS

tax returns. Thereafter, administrative records obtained

from Federal agencies were a significant data source for

the Census Bureau’s economic statistical programs.

Access to already existing administrative records and

their use in the 1997 Economic Census—

• Reduced the cost of data collection for the Census

Bureau.

• Reduced company response burden, particularly for

smaller companies.

• Provided company and establishment names and

addresses for the mailing and sampling lists used in the

CensusBureau’sdata collection programs.

• Supplied information the Census Bureau used in editing

reported data.

The principal sources of the administrative records

used by the Census Bureau were the IRS, SSA, and BLS.

Information from these recordswascompiled by the CensusBureau under the confidentiality lawsgoverning the

CensusBureau, aswell asunder the confidentiality regulations of the supplying agencies. The statistics collected by

the Census Bureau could not be used for taxation, regulation, or investigation. Moreover, only statistical totals

could be released to the public.6

Obtaining the Records

Preparation. Prior to the 1997 census, the Census

Bureau reviewed the content of the administrative records

available from other agenciesto determine which economic sectors and firms could be covered by using those

files, rather than by enumeration. This task was complicated by the adoption of NAICS, which defined twice as

many major economic sectorsasSIC, and which transferred entire industries into new sectors. Nevertheless,

administrative records use in the 1997 census paralleled

that of previous economic censuses.

Each of the contributing agencieshad confidentiality

requirementsof itsown governing the use of itsrecords,

and special provisionsof variouskindswere made to

enable them to supply the records to the Census Bureau.7

IRS records. In the case of IRS, a clause in the Federal

regulationsgoverning that agency (Title 26, United States

Code) specifically authorized it to provide tax data to the

CensusBureau for the latter’sdata collection programs.

The Census Bureau, however, made a specific request for

the records that were supplied on computer tape. IRS supplied two primary kindsof records—payroll data files(e.g.,

total payroll for companies) and business data (i.e., business receipts and principal type of business activity). The

recordswere received weekly, monthly, or annually from

the following files—

• Annual Business Master File (BMF) containing each legal

entity’s EIN, business name, address, and principal

industrial activity code.

• Monthly BMF entity change file supplementing the

annual BMF with changes in names, addresses, etc.

• Weekly employer quarterly Federal tax return file

consisting of all firms that reported Federal payroll

withholding taxes. This file included the EIN, total number of employeesasof the March 12 pay period, total

quarterly payroll, taxable tips, and payroll subject to the

Federal Insurance Contribution Act.

• Weekly business tax return files, including selected

business-related information, such as company revenues, returns and allowances, months in business, and

principal industrial activity code for all corporations,

partnerships, sole proprietorships, and nonprofit

organizations.

Each May, the IRS gave the CensusBureau itscurrent

BMF asa benchmark for the monthly data. The Census

Bureau converted the IRS’s principal business activities

codes into census industry codes.8 Establishments that

could not be assigned an industrial classification code

based on file information were assigned codes based on

trade name whenever possible, or were assigned to the

Form NC-9923, ‘‘Classification Form,’’ mail file for the

census.

6

Title 13, United StatesCode, prohibitsthe CensusBureau

from releasing any information that, directly or indirectly, might

be used to identify an individual or company. See Appendix A for

the provisions of title 13.

7

The Census Bureau reimbursed the cooperating agencies for

staff and other costs associated with the records transfer. 8

Time and resource constraints prevented the complete conversion of the IRS Codes into the new NAICS Codes. Therefore,

SIC Codes were used in some instances.

History—1997 Economic Census Chapter 7 63

U.S. Census Bureau, 1997 Economic Census
SSA records. The recordsprovided by the SSA were

drawn from IRS birth9 classification files: these contained

information reported to the SSE on EIN applications, such

as SIC classification and type of activity in which the company wasengaged. When the CensusBureau made its

annual request to the IRS for administrative records, the

latter agency authorized the SSA to provide the IRSderived filesto the CensusBureau, aswell.

BLS records. The Census Bureau and the BLS signed a

memorandum of understanding in 1992 regarding the use

of the BLS recordsby the CensusBureau. Under the 1992

agreement, the Census Bureau compiled a list of singleestablishment EINs for which it needed the BLS industrial

classification codes. The BLS matched the Census Bureau’s

list against its own Business Establishment List, and

returned a listing of matched records with the appropriate

industrial classification codes. Unmatched records were

‘‘returned’’ to the SSEL without industrial classification

codes. If no other source for an industrial classification

wasavailable, unmatched recordswere coded based on

trade name.

Using Administrative Records in the

Economic Census

The Census Bureau received the administrative records

files on a flow basis and used them first to update the

SSEL. The multiestablishment portion of the SSEL was

updated annually by the Company Organization Survey

(COS). During each update, the staff merged and unduplicated new administrative records, and then matched them

to the SSEL. These records were used to update payroll,

employment, industrial classification code (SIC or NAICS),

and address information.10 Establishments not matched to

the list were added as births.

After converting the activity codes into usable industry

codes, the Bureau used information from the administrative recordsto divide the censusmail file into four major

groups for data collection purposes—

• Multiestablishment firms, ASM sample, and out-of-scope

establishments.

• Large single-establishment and classification-form cases

to be canvassed by mail.

• Small single-establishment firms.

• Nonemployers(i.e. firmswith no paid employeesduring

1997).

Additional administrative record information (e.g.,

births; SIC Codes; name and address changes; 1997

second-, third-, and fourth-quarter payroll; receipts)

arrived at Bureau headquartersthroughout the first half of

1998. For the births, the Census Bureau added the data to

the census mail file and sent the new businesses the

appropriate questionnaires. Throughout census processing, the Census Bureau also used the administrative data

in the SSEL to edit incoming questionnaire data. Administrative recordsdata for nonmail and delinquent caseswere

sent to the appropriate subject divisions for processing.

(Name and address information obtained from administrative recordsbetween closeout and the end of December

1997 was used to mail questionnaires in the third-quarter

‘‘birth’’ mailout conducted in April 1998.)

The Census Bureau also extracted selected data from

administrative records for tabulation in the census data

files, covered in more detail in Chapter 8, ’’Data Collection

and Processing,‘‘ for more information.

ASSIGNING CENSUS FILE NUMBERS

The Census Bureau assigned a unique

identification—the Census File Number (CFN)—to each

establishment covered by the census. For singleestablishment employer companies, the Census Bureau

assigned numbers from the administrative records used in

preparing the census mailing list. Each of these records

contained a nine-digit EIN (assigned by the IRS for tax purposes) identifying each company. The Census Bureau

modified thisnumber by inserting a zero asa prefix digit

indicating the company was a single-establishment firm.

For multiestablishment firms, the Census Bureau used its

own files, adding four digits to the parent company’s

census-assigned six-digit identification number (ID) to

create a unique identifier for each establishment.

During mail list preparation, the computer added a

check-digit to the ten-digit CFNsto verify accuracy during

processing. These CFN/check-digits were printed both in

numericsand asa bar code on the addresslabel of each

questionnaire.

PRINTING AND ASSEMBLING THE

MAILOUT PACKAGES

Cover Letters, Instruction Sheets, and Other

Mailing Materials

General information. Questionnaires and other package

materials for multiestablishment companies, as well as

those for single-establishment manufacturing and mining

firms, were printed using four DocuPrint programmable

graphicsprintersat the NPC. In addition to questionnaires,

the censusmailing packagesincluded several other

items—return envelope(s), cover letters, instruction

sheets, and, for multiestablishment addressees, inventory

listings (i.e., a complete listing of the location of each

9

‘‘Births’’ were businesses that came into being during the

specified reference period. For example, a ‘‘third-quarter birth’’

was a business that began during the third quarter of the reference year. 10The Census Bureau staff imputed missing payroll and

employment data by computer for the administrative records portion of the data file during the final closeout in late Summer,

1998.

64 Chapter 7 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
establishment in the company). The Census Bureau developed specifications for these materials during 1996 and

early 1997 to ensure that the individual items could be

prepared and assembled into the census mailing packages

when the questionnaires were ready.

Cover letters. The Census Bureau prepared two basic

cover letters, one each for single-establishment and multiestablishment companies. The letters informed recipients

that Federal law required them to complete and return the

census questionnaires, and that the information would be

kept confidential. They also provided the response date.

Some special situations required special letters: for

example, mailing packages to manufacturing establishmentsthat were part of the 1997 ASM panel included a

letter explaining that the survey was being integrated into

the 1997 Economic Census.

Instructions. The Census Bureau tried to include the

necessary instructions on the various questionnaires, but

had to supplement these with separate instruction sheets

in the mailout packages sent to firms with establishments

classified in construction; finance, insurance, and real

estate; retail trade; services industries; wholesale trade;

transportation, communications, and utilities; as well as

for three specific industries within the manufacturing sector (apparel manufacturers, loggers, and publishers). In

addition, the Census Bureau prepared and distributed an

eight-page instruction manual (Form MA-1000-R1) for

companieson the 1997 ASM panel.

Inventory sheets. Multiestablishment companies’ census packages included an inventory list of all their establishments, including those not in scope of the census. This

gave respondents the opportunity to confirm that all the

firm’s establishments were covered by the census, and to

coordinate and control responses by subsidiaries. If one or

more of a company’s establishments were missing from

the CensusBureau’sinventory, the respondent wasasked

to call the NPC’stoll-free telephone number to ask for

additional questionnaires.

Printing the questionnaires and other mailing materials. For both the census and the follow-up mailings, private contractors printed and assembled the bulk of the

census mailout packages for single-establishment companiesthat were not in manufacturing or mining. Singleestablishment packages for the sectors listed in Table 7-1

each consisted of a cover letter, the appropriate questionnaire, instruction sheets, and the return envelope. The

contentsof the packagesfor the censusmailout and for

the questionnaire follow-up mailings were identical except

for the cover letters.

The Census Bureau issued three primary contracts

through the Department of Commerce for commercial

printing and assembly of 1997 Economic Census questionnaire packages for the retail trades; wholesale trades; services industries; construction industries; transportation

and utilities; and financial, insurance, and real estate

industries.11

The Department of Commerce awarded the major contractsfor questionnairesfor the 50 statesin November

1996, while those for the Outlying Areas questionnaires

were finalized in July 1997. The contractorsbegan delivering these materials to NPC in March 1997, completing

final deliveriesin December 1997.

Table 7-1.

1997 Economic Census Single-Establishment Mailout

Packages and Questionnaires Prepared by Contract

Packages ‘‘Loose’’

questionnaires

Total

Short questionnaires 4,209,700 32,000

Long questionnaires 6,549,100 140,000

Retail trade

Short questionnaires 1,058,300 7,000

Long questionnaires 1,668,100 33,000

Service Industries

Short questionnaires 2,239,600 14,000

Long questionnaires 2,621,600 38,000

Wholesale trades

Short questionnaires 556,400 6,000

Long questionnaires 1,050,400 42,000

Financial, insurance, and real

estate

Short questionnaires 355,400 5,000

Long questionnaires 767,000 16,000

Construction industries*

Long questionnaires 442,000 11,000

*The 1997 Economic Census did not use a short questionnaire for

construction industries.

Using DocuPrint for the 1997 Economic Census

Background information. Prior to the 1997 Economic

Census, the Census Bureau relied heavily on private printing contractorsto augment the CensusBureau’sinternal

printing operations. However, for the 1997 census, the

Census Bureau used the DocuPrint 4890 Highlight Laser

Printing System to print questionnaires, other forms, and

literature. This included all material for the multiestablishment mailing packages, aswell asthe singleestablishment questionnaires for the manufacturing and

11Two of the primary contractorswere predominantly involved

in printing, and used subcontractors to fill and seal the packages.

The third contractor wasa packaging and mailing company that

subcontracted the printing of the materials, and then, itself

handled the assembling and sealing of the packages. In all cases,

the printing and package assembly were subjected to Census

Bureau quality control proceduresto ensure that the materials

met the CensusBureau’sprinting standardsand that the packages

were correctly assembled for mailing.

History—1997 Economic Census Chapter 7 65

U.S. Census Bureau, 1997 Economic Census
minerals industries. Using the DocuPrint system enabled

Census Bureau staff to monitor the production process

much more closely.

DocuPrint’sefficiency wasespecially evident during the

assembly of questionnaire packages. NPC staff programmed the four DocuPrint systems at the Jeffersonville

facility to produce a variety of questionnaire packages and

associated instructional materials. The 1997 Economic

Census used 474 separate report forms: only inquiries

about a specific industry, or a closely related group of

industries, appeared on the questionnaire for that industry. The DocuPrint equipment stored all the questionnaires

and other forms used in the census mailing packages, as

‘‘images’’ that could be accessed at will. The system drew

from itsdata base all filesneeded to customize, print, and

assemble the census questionnaires and packages. This

eliminated the need to manually assemble and inspect

packagesprior to mailing.

DocuPrint production. The Administrative and

Customer Services Division’s (ACSD’s) Forms and Mail

Management Branch (FMMB) staff electronically designed,

edited, and reviewed all census questionnaires from their

workstations at Census Bureau headquarters. Once initial

draftshad been completed, filescontaining the specified

questionnairesand other materialswere transferred to the

DocuPrint data base. Following quality control reviews, the

print fileswere sent electronically to the four DocuPrint

4890 systems at the NPC facility. (ACSD maintained one

DocuPrint 4890 at CensusBureau headquartersfor test

printing and for review of FMMB’smaterials.) DocuPrint

production began on September 1, 1997 and continued (at

a combined rate, for all four machines, of up to 2 million

pagesper day) until mid-December 1997.

Table 7-2 showsthe quantitiesof 1997 questionnaires

printed by the DocuPrint systems in Jeffersonville.

In addition, a total of 73,646 Form NC-9923 ‘‘General

Schedules’’ were mailed to single-establishment firms

(both those on the initial mail list and to second- and

third-quarter ‘‘births’’).

Address Labels

Description. The adhesive address labels for the census

mailout contained information for check-in and processing

of the completed questionnaire. The label was arranged in

a maximum of 16 ‘‘lines’’ (including several blank lines)

showing identification information, including the establishment’s CFN, the form number of the questionnaire,

mailout or follow-up letter number or correspondence

category code, EIN, industry classification code, state

geographic code, employment size code, county name or

Table 7-2.

1997 Economic Questionnaires Printed By DocuPrint

Industry classification

Multiestablishment

companies

Single-establishment

companies*

Single-establishment

company Births*

Questionnaire type Long Long Short Long Short

Total 1,411,113 1,764,107 107,751 189,825 6,314

Auxiliaries 50,504 n/a n/a n/a n/a

Construction 11,903 106,438 0 13,096 0

Financial, insurance, and real estate 156,675 141,783 0 12,572 0

Manufactures/ASM 69,431 95,876 47,650 2,257 2,012

Mining 6,330 5,160 2,823 250 157

Retail and accommodations and foodservices 530,905 448,570 0 55,778 0

Service 330,171 633,213 0 70,109 0

Utilities 44,753 64,027 0 8,288 0

Wholesale 131,034 241,677 57,278 21,838 4,145

Guam 292 2024 0 266 0

Northern Mariana Islands 178 781 0 132 0

Puerto Rico 4,959 23,111 0 3,150 0

Virgin Islands of the United States 332 1,447 0 215 0

Totals 1,411,113 1,764,107 107,751 189,825 6,314

*Single-establishment company totals include second- and third-quarter (1997) ‘‘births,’’ that is, newly identified businesses added to the SSEL during the quarters covered. Single-establishment ‘‘Births’’ are fourth-quarter 1997 births. abbreviation, permanent plant number (PPN), establishment or,

for multiestablishments, company name and address, and the like.

66 Chapter 7 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Printing. The address labels for single-establishment

companies—except manufacturing and mining—firms

were printed on high-speed ink-jet printers at the NPC,

using computerized address files transmitted to Jeffersonville via datalink telephone linesfrom the CensusBureau’s

headquarters. Approximately 5.4 million address labels,

including 1.6 million used in the November classification

mailing, were printed and then affixed to the individual

mailing packagesusing automated labeling equipment.

The NPC check-in updated the response list daily, and the

Census Bureau created an address file of nonrespondents

following each response cutoff date. The Jeffersonville

staff used the updated address files to generate new

addresslabelsfor follow-up mailingsto nonrespondents.

The NPC used the DocuPrint equipment to produce

address labels for the classification forms, all multiestablishment mailing packages, and for the manufacturing and

mining single-establishment packages.

Quality Assurance

Contract printing/package assembly. NPC’sQuality

Assurance Section (QAS) monitored questionnaire printing

at printing contractors’ sites, and also inspected the contractors’ materials received at Jeffersonville. On-site monitoring required that the QAS staff observe the equipment

operators’ method of sample selection, check that the

machine counterswere working properly, and select a random sample of printed material for inspection from each

machine. The inspectors checked the contractors’ own

quality assurance plan to ensure proper record keeping

and correct sample selection.

Cartons of ‘‘flat forms’’ (i.e., materials not assembled

into packages) were randomly sampled by type and

checked to ensure that the printed materials met specifications. For cartons of assembled mailing packages, the QAS

staff matched the information on the label against the

package specifications. The clerks selected three packages

from each carton and verified (1) the color and registration

of the forms and questionnaires, (2) that all inserts were

present and in the proper sequence, and (3) that all documentsin each package matched the envelope. Individual

printed itemswithin each package were checked to verify

that each item wasprinted to specifications(i.e., color of

shading and ink, quality of image, and dimensions), and

that the envelope met requirements.12 One package from

the first contractor quality assurance sample for each

package type was selected, and inspectors proofread all

items to check for misspelling and incorrect language. The

quality control clerks notified their supervisors of any

errors detected in the contractor-selected samples, and the

supervisors or lead clerks determined what corrective

action wasrequired.

At Jeffersonville, the mailing packages from the private

printing contractors underwent a second quality assurance

review.13 For shipments of one package/form type, two

cartons were selected from each pallet for inspection,

while inspectors sampled shipments containing more than

one type of package or form by selecting one carton of

each type of package. The staff checked each carton

selected to verify that it contained the correct type and

number of packages, and then selected three packages

from each carton for content inspection.

Any errors detected were entered on the Quality Assurance Control/Inspection Record for the shipment, and the

five preceding and succeeding items in the carton

sampled were inspected. If additional errors were found,

the next five preceding and succeeding items were

inspected and any additional errors resulted in 100-

percent verification of the contentsof the carton. If no

errorswere identified, or if the defective itemswere found

in the original sample but not in the expanded search, the

defective packageswere referred for correction and the

remainder of the shipment was released.

If additional defective packagesor itemswere identified

in the expanded review, the shipment was rejected and

either (1) sent back to the contractor for reprinting, (2) set

aside for use (of acceptable items) only if supplies of the

item ran low, or (3) used for follow-up correspondence

operations.

The quality of the contractor-printed and assembled

materialsfor the 1997 Economic Censuswasgood. Problemsthat did occur were corrected by reprinting or by

replacing cartonsor individual packagesasnecessary

from the overstock supplied by the contractors.

DocuPrint printing and package assembly. The QAS

conducted quality assurance inspections of the materials

printed on the DocuPrint equipment. These included multiestablishment packages, single-establishment questionnaires, classification and general questionnaires, consolidated forms, follow-up letters, and instructions and flyers.

The inspectionscovered all DocuPrint work units(a work

unit wasa complete print file— about 1,500 pagesof

printed material). Inspections focused on two major types

of defects—printing and programming errors.14

The DocuPrint quality assurance procedures involved

three kinds of inspections—

12The questionnaires varied in size from 8 1/2 x 11 inches to

10 1/2 x 17 inchesand were printed in black ink on 50-lb. offset

white book stock, with shading in a variety of ink colors. All the

cover letters, instruction sheets, and envelopes were printed in

black ink on white stock.

13Shipments of ‘‘flat forms’’ did not require additional inspections. 14Printing errors(e.g., illegible printing on the label or in the

establishment data, printing not centered on the page [general

misalignment was a printing problem, misalignment of only part

of a printed page indicated a programming error], unreadable barcode, etc.) were ‘‘noncritical errors’’ that could be corrected by

reprinting the file. Programming errorswere ‘‘critical’’ errors

History—1997 Economic Census Chapter 7 67

U.S. Census Bureau, 1997 Economic Census
• A sample inspection of the first production file printed

for each print group.

• Daily monitoring of the printing operation.

• Inspection of all materials reprinted due to machine

reject.15

The QAS chose a ‘‘start with’’ number from a random

number table, and every tenth company package or

item thereafter, for inspection until reaching the end of

the file. The inspectors used laser wands to check each

package/item for readable barcodes, then checked for

correct format and assured that the package contained

the correct questionnaires or other forms. Once the first

production file for a file type16 wasaccepted, daily monitoring was used for that file type. Inspectors selected one

file from each shift (not one file of each type), and three

companies’ packages (any company package with machine

rejects, plus at least one randomly selected package) from

the filesfor verification. If only printing errorswere

detected, the file washeld and an expanded inspection17

wasconducted to determine the extent of the problem

before reprinting. When inspectors identified programming errors, the file was rejected and the inspecting

statistician contacted the EPCD staff for instructions to

take further action on the file.

The DocuPrint mailing packages were assembled clerically, in the order printed, and underwent clerical verification. The clerksinformed their supervisorsof errorsand

checked the preceding and succeeding packages. Upon

completion of thisinspection, the clerkschecked that the

packagesfor all companiesin the file were present. Files

with missing packages were held until the requisite materialswere added, then were subject to 100-percent verification. Once the QAS confirmed that all the packagesfor a

file were present, and errors corrected, the file was

released.

Procedures for machine-assembled mailing packages

differed slightly. For packages prepared using equipment

programmed to assemble the materials by barcode, the

machine selected a random sample of each work unit for

clerical inspection, while packages assembled using a programmed number of pagesof materialsfor a specific company were inspected on a 100-percent basis. The first 25

packages, and 1 in 100 of the remainder in the file, were

inspected for content; the clerk checked that all programmed materialswere included, and that the survey

code and sequence number of the packages within the file

(i.e., 1-25, then 125, 225, 325, etc.) were correct. For

packages assembled by page number, clerks checked that

all packages were present, that address information

showed through the envelope window, and that all

sequence numbers were present and correct. Necessary

correctionswere made before fileswere released.

Single-establishment mailout packages printed on the

DocuPrint equipment were assembled clerically and subject to 100-percent verification.

Label printing. The quality assurance program for both

the high-speed printer and DocuPrint label printing

involved (1) sample inspection of the first production file

produced for each print group, (2) daily monitoring of the

printing operation, and (3) inspection of all materials

reprinted because of printing errors.

For the first production file inspection, staff randomly

picked a ‘‘start with’’ number for each file and checked

that sheet of labels, then inspected every tenth sheet

thereafter. For daily monitoring, staff selected one ‘‘file’’

for each printing shift, and inspecting that file (using the

same sample selection method employed for the first production file inspected). Quality assurance staff checked

each chosen sheet of labels for printing legibility. For

each label, the clerks looked for missing alpha or numeric

characters, and for mandatory entries (e.g., barcode,

CFN, survey code, form number, mailout/followup/correspondence category code, reporting media, EIN,

classification code, etc.).

When the review identified printing errors, the label

sheet was placed on hold and an expanded inspection was

carried out, checking succeeding and preceding sheets

until the extent of the problem wasfound. Then, the file

wasreferred for reprinting. When programming errors

were found (for example, mandatory items missing from

the labels), the sheet and file were rejected, EPCD staff

wasinformed, and corrective action wastaken.

PRE-CENSUS COMPANY CONTACTS

Information Mailings

In November 1996, the Census Bureau sent an information mailout to 10,000 of the largest—based on total

employment and number of establishments reported in

the previous census—SSEL-listed multiestablishment companies. These companies represented about half the total

economic activity covered by the census. This mailing had

present within the file itself and had to be referred for correction

to the appropriate subject programming staff at Census Bureau

headquarters. 15‘‘Machine rejects’’ were any packages with an unreadable barcode. These would include not just badly printed codes (e.g.,

unclear, partially obscured, offline, etc.,), but such things as questionnaires inserted backwards, or materials in the wrong order so

that the barcode could not be read. 16The file typeswere asfollows: Annual Survey of Manufactures single establishments; manufacturing; mineral industries;

multiestablishment companies requiring split, electronic, or certified mailing; companiesin a foreign location; small (other companieswith lessthan 28 printed sheetsin the package); medium

(companieswith 29 to 130 printed sheetsin the package); and

large (more than 130 printed sheets). 17The ‘‘expanded’’ inspection selected one company package

on each side of the defective package in the work unit and

inspected their materials. If further defects were found, the

inspectors moved on to the next company on the side(s) of the

newly identified defective package, and continued until no errors

were identified, or until the next/previousselected company was

reached.

68 Chapter 7 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
three major objectives: (1) to establish initial contact with

the largest companies covered by the economic census,

(2) to provide those firms contacted with information on

the forthcoming censusand the kindsof information that

would be requested, and (3) to facilitate response by giving companies a chance to assemble their data. Responses

were used to update the SSEL prior to the census mailout.

Each mailing package consisting of the following:

• A cover letter signed by the Director explaining that the

1997 Economic Census would be carried out in about a

year and listing the kinds of questionnaires the recipient

company would receive in the census.

• Form EC97-PR-1, Preparing for the 1997 Economic Census, a 24-page booklet presenting basic information on

the plansfor the 1997 census(including basic data to

be collected, timing of the enumeration, and samples of

census questionnaires), how respondents could use the

World Wide Web to view census questionnaires and

obtain more information on the 1997 Economic Census;

telephone and fax numbers, and e-mail addresses for

subject division contacts at the Census Bureau.

• A Contact Exchange Card showing the mailing address

shown in the SSEL for the recipient, and asking respondentsto (1) make addresscorrections, (2) provide the

name of the person within the company who would be

responsible for the firm’s response to the census, and

(3) provide the name of the supervisor of the company’s

responding official.

The Account Manager Program

Of the 10,000 companiesthat received the information

mailing, the Census Bureau selected 1,000 for inclusion in

itsAccount Manager Program. The criterion for selection

wasthe company’slikelihood of either delaying its

response, or not responding at all, to earlier censuses. To

improve the response of these companies, the Census

Bureau assigned census staff to serve as their ’’account

managers.’’ Each staffer was responsible for several companies, and followed up the information mailout by telephone.

Chapter 5, ‘‘Promoting Census and Product Awareness,’’

providesdetailsof the Account Manager Program: it

shows how the Census Bureau created a system to identify

the correct contact within targeted companies, and to provide account managerswith the capacity to reinforce the

objectivesof the larger censusmailout.

History—1997 Economic Census Chapter 7 69

U.S. Census Bureau, 1997 Economic Census
Chapter 8. DATA COLLECTION AND PROCESSING

The Classification Mailout ........................... 73

Background Information ........................... 73

The Three Classification Mailouts ...................... 73

Processing the Classification Mailout .................... 73

The Census Mailout ............................... 73

Electronic Reporting .............................. 74

Following Up the Census Mailout........................ 74

Background Information ........................... 74

Mail Follow-up ................................ 75

Single-establishment follow-up ...................... 75

Multiestablishment follow-up ....................... 75

Telephone Follow-up ............................. 76

Processing Data From Administrative Records................. 77

Processing the Questionnaires ......................... 77

The Transmittal Tracking System....................... 77

Receipt and Check-In ............................. 77

General information ............................ 77

Preliminary sorting ............................. 77

Barcode check-in and sorting ....................... 78

Disposition of mail receipts ........................ 78

Correspondence Processing ......................... 78

Correspondence reading .......................... 78

CFN research ................................ 78

Correspondence with single-establishment questionnaire processing . . 79

Census Bureau-originated correspondence ................ 79

Package assembly and mailout operations ................ 79

Multiestablishment Completeness and Coverage Processing ........ 79

Microfilming the Questionnaires ....................... 80

Data Entry ................................... 80

Data keying ................................. 80

Quality assurance for data keying ..................... 81

Output files ................................. 81

Control File Match .............................. 81

Matching .................................. 81

Control file match referrals......................... 82

Decentralized Post-Collection Processing ................... 82

General Information ............................. 82

Micro Edit Referral Processing ........................ 82

Background information .......................... 82

Complex editing .............................. 82

Subject area databases ........................... 83

Reject and referral processing ....................... 83

CONTENTS

History—1997 Economic Census Chapter 8 71
Decentralized Post-Collection Processing—Con.

Macro Analytical Processing ......................... 83

Background information .......................... 83

Data tabulation ............................... 83

Subject tabulation files for main publication series ............ 83

Corporate repository ............................ 84

Analytical Tools ................................ 85

72 Chapter 8 History—1997 Economic Census
Data Collection and Processing

THE CLASSIFICATION MAILOUT

Background Information

The American economy is never static; new businesses

appear and old ones disappear or change to adapt to new

conditions. The tabulation and publication of statistical

data requires that data be summarized under specified

classifications, so every economic census must identify

and correctly classify new business activities, as well as

revise those not accurately classified in the U.S. Census

Bureau’s records. For the 1997 Economic Census, the

adoption of the North American Industry Classification

System (NAICS) entailed doubling the number of major

trade areas for classifying economic activity from 10 ‘‘divisions’’ under the old Standard Industrial Classification (SIC)

Code to 20 ‘‘sectors’’ under NAICS. Since NAICS defined

over 300 new industries within the U.S. economy, it was

imperative to correctly classify businesses before attempting to measure their economic activity in the census.

The Census Bureau carried out a special classification

questionnaire mailing to establishments for which the

agency had insufficient information to determine the correct NAICS classification. These generally were small,

single-establishment companies that would not have

received a census long form if their classification information had been complete.

The Three Classification Mailouts

In early November 1997, the Census Bureau mailed

classification questionnaires to 1,362,914 establishments

selected from the census mail list. In the general census

mailout, in December 1997, the Census Bureau sent classification report forms to an additional 83,000 singleestablishment manufacturing businesses that could not be

classified in detail.

Although the census mail list was compiled prior to the

initial mailout, the Census Bureau continued to compile

listings for new businesses—‘‘births’’—identified from

Internal Revenue Service (IRS) and Social Security Administration (SSA) records throughout 1997. Thousands of new

businesses identified in the third and fourth quarters of

1997 also needed to be included in the census. In March

1998, the Census Bureau carried out a supplementary

classification mailing, sending classification forms to

194,893businesses added to the census mail file for the

third quarter of 1997. Fourth quarter ‘‘births’’ for 1997

were not mailed questionnaires; the Census Bureau used

administrative records to cover these new businesses.

Processing the Classification Mailout

Responses to the classification mailouts, together with

census questionnaires, were received and processed at the

National Processing Center (NPC) office in Jeffersonville,

IN.1 After check-in, clerks screened the classification forms

to determine the industrial classification of the establishments and then referred the questionnaires for additional

processing. The information on primary economic activity

from the classification report forms was used to update

the Census Bureau’s Standard Statistical Establishment List

(SSEL). The basic business data (receipts, payroll, employment, and SIC/NAICS classification) from the long-form

questionnaires were keyed and added to the respective

industry files.

THE CENSUS MAILOUT

In the second half of December 1997, the NPC mailed

out approximately 4.32 million census questionnaires and

classification questionnaires, with response requested by

February 12, 1998. In mid-March 1998, NPC mailed an

additional 526,328 questionnaires (and 194,893 classification forms) to single-establishment companies that had

begun operations during the second and third quarters of

1997. Together, these initial mailings totaled approximately 5.04 million questionnaires. The numbers of questionnaires and classification forms mailed, including initial

mailings of single-establishment second- and third-quarter

births, by type, are shown in Table 8-1.

1

Until a reorganization effective May 1, 1998, this unit was

called Data Preparation Division (DPD).

History—1997 Economic Census Chapter 8 73

U.S. Census Bureau, 1997 Economic Census
Table 8-1.

Initial Mailout: 1997 Economic Census

Trade or geographic area

Multiestablishment companies Single-establishment companies*

Total

Long

questionnaires

Consolidated

questionnaires Total

Classification

questionnaires

Long

questionnaires

Short

questionnaires

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,411,113 1,400,850 10,263 3,630,777 1,557,807 1,958,704 114,266

Auxiliaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,504 50,504 0000 0

Construction industries . . . . . . . . . . . . . . . . . . . 11,903 11,903 0 0 0 119,461 0

Finance, insurance, and real estate ....... 156,675 148,474 8,201 255,136 96,395 158,741 0

General (forms 9901 & 9923) . . . . . . . . . . . . . 73,646 73,646 0 362,721 362,721 0 0

Manufacturing and annual survey of

manufactures (ASM) . . . . . . . . . . . . . . . . . . . 69,431 69,431 0 230,414 82,575 97,997 49,842

Mineral industries . . . . . . . . . . . . . . . . . . . . . . . 6,330 6,330 0 10,865 2,409 5,437 3,019

Retail trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,905 530,905 0 823,931 319,076 504,855 0

Service industries ....................... 330,171 328,109 2,062 1,362,062 662,263 699,799 0

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,753 44,753 0 105,162 32,368 72,794 0

Wholesale trade ........................ 131,034 131,034 0 327,594 0 266,189 61,405

Guam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 292 0 2,446 0 2,446 0

Northern Mariana Islands . . . . . . . . . . . . . . . . 178 178 0 1,010 0 1,010 0

Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,959 4,959 0 28,182 0 28,182 0

U. S. Virgin Islands . . . . . . . . . . . . . . . . . . . . . . 332 322 0 1,793 0 1,793 0

*Single-establishment counts include 721,221 second- and third-quarter 1997 ‘‘births’’, mailed in January and March 1998.

ELECTRONIC REPORTING

The Census Bureau first used electronic reporting to

collect economic census data for the 1987 census. The

agency employed the technique primarily for large retail,

food services, and hotel chain enterprises—mailing magnetic computer tape reels to selected companies and

requesting them to enter the data for their establishments

on the reels and return them to the agency.

For the 1997 Economic Census, the Census Bureau

again offered companies the option of response through

magnetic tape, but also contracted with a private company

to develop an electronic questionnaire on diskette for use

with personal computers. The latter project produced the

Windows-based Computerized Self-Administered Questionnaire (CSAQ) for use in the 1997 Economic Census. The

Census Bureau established stringent requirements for the

CSAQ, it had to—

• Be usable by multiestablishment companies engaged in

a variety of industrial activities.

• Enable companies to export and manipulate establishment identification and address information supplied by

the Census Bureau.

• Allow companies to link to internal spreadsheets and

databases.

• Include necessary communications software to transmit

census data.

The Census Bureau selected approximately 600 companies for electronic data collection in the 1997 Economic

Census—400 were sent the CSAQ diskettes and about 200

received computer tape in the December 1997 census

mailing. These companies represented 250,000 separate

business establishments (about 3.8 percent of the total

establishments covered by the census). During data collection, the Census Bureau received another 71 inquiries, and

sent CSAQ diskettes to these companies. By the time data

collection closed out on September 23, 1998, 671

companies—representing 317,593 business establishments had responded to the census using the CSAQ or

magnetic computer tape.

FOLLOWING UPTHE CENSUS MAILOUT

Background Information

The 1997 Economic Census employed separate

follow-up plans for single-establishment and multiestablishment companies. Both plans involved remailing census

questionnaires to nonrespondent companies—several

times in some cases—as well as telephone follow-up to

large multiestablishment companies. The NPC conducted

the mail follow-up in four phases, beginning in March

1998 and extending through the last week of June 1998.

Telephone follow-up began prior to the requested questionnaire response date—February 12, 1998—when Census Bureau staff called selected large multiestablishment

companies to confirm that the census packages had been

received. Telephone follow-up continued through June

1998.

Response close-out dates were set for each major type

of mailout package—classification, multiestablishment,

single-establishment (Annual Survey of Manufacturers

[ASM], non-ASM manufacturing and mineral, and other

single-establishments), and third-quarter births. (See Table

8-2 for mailout totals.) After each close-out date, NPC staff

used computerized check-in files to generate mailing lists

of nonrespondents in each category. The close-out dates

for the four follow-up mailings extended over several days

as follows:

74 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
First follow-up February 23-March 6, 19982

Second follow-up March 27-April 4, 1998

Third follow-up May 4-May 18, 1998

Fourth follow-up June 12-June 26, 1998

Delinquent multiestablishment companies were subject

to mail and telephone follow-up, with telephone follow-up

listings generated during the second, third, and fourth

follow-up closeout. Totally delinquent companies that had

requested a time extension for response were followed up

as well, with one letter mailing and one telephone followup.

The lists of nonrespondents produced after each closeout date were used, together with the NPC’s high-speed

printers, to print the address labels for each mail followup.

Mail Follow-Up

Single-establishment follow-up. The singleestablishment mail follow-up covered third-quarter 1997

‘‘births,’’ classification cases, and census and ASM singleestablishment mail cases. Each category of respondents

was subject to a specific follow-up procedure. One ‘‘letter’’

mailing to ASM single-establishment nonrespondents was

carried out in February 1998, while three questionnaire

follow-ups were conducted in March, April, and May. (A

fourth follow-up mailing, to single-establishments with

estimated annual payrolls of $200,000 or more, was carried out in July.) Classification cases were subject to two

follow-up mailings in April and May 1998.

The first classification form close-out date was March

30, with the mailing conducted during the following week.

Each package included the cover letter form EC-G-L11,

requesting response, the classification form and a return

envelope. This first follow-up mailing sent questionnaires

to approximately 1.32 million nonrespondent addresses.

The final closeout for the classification cases was May 8,

after which the NPC mailed packages containing the form

follow-up letter, another copy of the classification form,

and a return envelope to delinquent classification

addresses.

The follow-up process for nonclassification singleestablishment delinquents varied by type of case. Thirdquarter births received only one mailing; 115,584 cases

nonrespondent as of April 29 were sent packages containing the appropriate questionnaire, a follow-up letter, and a

return envelope. ASM single-establishment delinquent

cases were sent a letter in the first week of March as part

of the follow-up of all delinquent single-establishment

cases. Thereafter, they were subject to two more mailings,

following close-out dates of April 9 and May 18. Each mailing used the appropriate report form, together with form

letters urging response. All other single-establishment

nonrespondents—except classification cases were—

followed up three times after close-out dates of March 4,

April 15, and May 22, 1998. Each mailing involved complete census packages containing the appropriate report

form, cover letter3, and return envelope.

Close-out dates and package counts for the singleestablishment mail follow-up are given in more detail in

Table 8-2.

Table 8-2.

Single-Establishment Follow-Up Mailings

Package

type

End

closeout

date

Packages

mailed

First follow-up

ASM cases . . . . . . . . . . . . . . . . Letter 02/23/98 12,463

Non-ASM, excluding classification and third-quarter

births. . . . . . . . . . . . . . . . . . . . . Questionnaire 03/04/98 861,848

Classification, excluding

third-quarter births. . . . . . . . . Questionnaire 02/28/98 315,356

Third-quarter births. . . . . . . . . . Questionnaire 04/29/98 5,326

Second follow-up

Single-establishment, except

classification and

third-quarter births.......... Questionnaire 548,121

Classification, excluding

third-quarter births. . . . . . . . . Questionnaire 04/15/98 175,261

Third follow-up

Single establishment ........ Questionnaire 05/22/98 415,809

Fourth follow-up*

Single establishment ........ Questionnaire 07/09/98 109,165

*This follow-up was mailed only to single establishments with estimated annual payrolls of $200,000 or more.

Multiestablishment follow-up. Follow-up procedures

for multiestablishment companies varied (1) by the size of

the company (the size designations varied by industry or

trade area, based on volume of sales and annual payroll),

(2) by whether the firm was totally or only partially delinquent, and (3) by whether request for a time extension for

response had been received by the Census Bureau.

The follow-up mailings and listings done were as

follows:

• For large and medium size (‘‘L’’ and ‘‘M’’) companies in

each trade area—

• Totally delinquent firms—those that had made no

response whatever by the cut off date following each

mailout (see Table 8-3) and with no extension

requested were scheduled for up to four letter

follow-up mailings. Telephone follow-up listings for

these delinquents were generated following the

March, May, and June close-out dates.

2

Third-quarter ‘‘births’’ were mailed out on March 18, 1998,

shortly after the first mail follow-up.

3

Cover letters varied by type of establishment; a different version of each follow-up cover letter was used for manufacturing/

mineral industries establishments, and for all other singleestablishments (excluding ASM, classification, and third-quarter

birth cases). The content for all letters was similar.

History—1997 Economic Census Chapter 8 75

U.S. Census Bureau, 1997 Economic Census
• Partially delinquent companies—i.e., companies from

which at least one questionnaire had been received

and with no time extension requested—were followed up by letter up to two times and also were

subject to up to two telephone follow-up calls.

• Totally and partially delinquent companies that had

requested a time extension for response were followed up as well, with one letter mailing and one

telephone follow-up.

• For smaller (‘‘N’’ and ‘‘S’’)4 multiestablishment

companies—

• Totally delinquent ‘‘N’’ and ‘‘S’’ companies with no

time extension requested were subject to up to three

letter follow-ups in the first three follow-up mailings.

If they were still delinquent after the June 26 closeout date, they were sent a complete questionnaire

package follow-up. Those that had requested time

extensions received one letter follow-up after the

May 4 close-out date.

• Partially delinquent ‘‘N’’ and ‘‘S’’ companies without

time extensions requested were sent letter follow-ups

in May and June, while those that had requested time

extensions for response received only one letter

follow-up if they remained partially delinquent after

the June close-out date.

The close-out dates and packages mailed in the multiestablishment company mail follow-ups are shown in Table

8-3.

Telephone Follow-Up

The Census Bureau supplemented its mail follow-up

with a telephone follow-up targeting selected delinquent

large and medium-size multiestablishment companies.

Analysts at the Census Bureau’s headquarters referred to

worksheets and listings generated at the NPC to conduct

the telephone follow-up in three phases, after the April,

May, and June 1998 close-out dates for multiestablishment

mail follow-up.

The Suitland headquarters staff contacted the companies referred for telephone follow-up as the workload of

incoming calls permitted. The purposes of the telephone

contacts were to (1) remind companies to file their census

reports, (2) determine when they would be filing, and (3)

provide assistance that might be required. Some companies were subject to more than one telephone contact

depending on their filing status.

The first telephone follow-up list—compiled after the

April 3mail closeout—comprised 2,565 totally delinquent

companies that had not requested a time extension for

response. After the May 7 closeout, the NPC produced

worksheets for 2,433 more totally delinquent companies,

including 744 companies with unexpired time extensions,

plus work sheets and establishment listings for 940 partially delinquent multiestablishments (with no time extensions requested). The last referral was made following

the June 11 mail closeout, when 1,687 totally, and 545

partially, delinquent firms were referred for telephone

follow-up.

Table 8-3.

Multiestablishment Follow-Up Mailings

Package

type

End

closeout

date

Packages

mailed

First follow-up

Totally delinquent,

no extension . . . . . . . . . . . . . . Letter 02/2/98 73,333

Second follow-up

Totally delinquent,

no extension . . . . . . . . . . . . . . Letter 04/01/98 51,669

Third follow-up

Partially delinquent,

no extension . . . . . . . . . . . . . . Letter Letter 5,326

Totally delinquent,

no extension . . . . . . . . . . . . . . Letter Letter 40,772

Totally delinquent, unexpired

extension . . . . . . . . . . . . . . . . . . . Letter Letter 1,709

Fourth follow-up

Partially delinquent,

no extension . . . . . . . . . . . . . . Letter 06/10/98 3,252

Partially delinquent, unexpired

extension . . . . . . . . . . . . . . . . . Letter 06/10/98 282

Large companies, totally

delinquent, no extension . . . . . . Letter 06/11/98 950

Small companies, totally

delinquent, no extension .... Questionnaire 06/25/98 31,661

Other, totally delinquent,

unexpired extension . . . . . . . . . Letter 06/11/98 846

Census Bureau staff prepared folders for each company

referred for telephone follow-up. Each folder contained a

company worksheet (and establishment listings for partially delinquent companies) and forms for recording telephone calls. Nonrespondent companies were called in

descending payroll order—i.e., larger companies were

called first—and the interviewers tried to speak with the

contact person shown on the company worksheet. The

analysts updated the worksheets with information on each

contact and noted any actions requested, such as requests

for time extensions. If no contact was listed, the analyst

asked for the person responsible for filing government

reports.5

4

It should be mentioned that the designations ‘‘L,’’ ‘‘M,’’ ‘‘N,’’

and ‘‘S’’ companies are not statistical data collection, tabulation,

and publication categories. These designations are ‘‘in-house’’

ways that the Census Bureau used to refer to companies according to the level of intensity of the follow-up that they will receive.

5

The Census Bureau carried out a pre-census mailing to

10,000 multiestablishment companies in November 1996 to

establish initial contact for the census. The Census Bureau asked

companies to give the name of the person who would be responsible for census reporting. Chapter 5, ‘‘Promoting Census and

Product Awareness,’’ discusses this subject in detail in the sections on the ‘‘Account Managers’’ and ‘‘Company Contact’’ programs.

76 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
PROCESSING DATA FROM

ADMINISTRATIVE RECORDS

The Census Bureau sampled—at variable rates—each

economic sector’s census mail universe of nonemployer

and small employer firms to develop estimates of specialized data (e.g., merchandise-line sales for retail trade;

revenue-line sales in transportation; sources of revenue

for finance, insurance, and real estate). The bulk of the

information on nonemployers and small employers, however, was drawn from the Census Bureau’s SSEL and

administrative records files. The Census Bureau obtained

about 140 million records on computer tape from the IRS

between January 1997 and December 1998, and approximately 60,000 SSA birth (new business) records monthly

during the same period. (Chapter 7, ‘‘Preparations for Census Mailout,’’ details the Census Bureau’s acquisition of

administrative records.)

The Census Bureau identified, accumulated, and edited

administrative records of nonemployer firms, and

extracted basic data for these operations and for selected

small employer companies not included in the mail

sample.6 The agency gathered data on sales or receipts,

kind of business, and geographic location for nonemployer and small employer companies in all the major

economic sectors covered in the economic census except

wholesale trade.7 Records for businesses not meeting

minimum criteria for census coverage, as well as for

probable duplicates of employer businesses, were

removed from the files. Once the nonemployer files for

each trade area had been edited and the information

extracted, the resulting data file was transmitted to the

appropriate subject division staff for tabulation and

analysis.

PROCESSING THE QUESTIONNAIRES

The Transmittal Tracking System

The Transmittal Tracking System (TTS) was used by the

Census Bureau to control economic census documents

moving from one processing unit to another. The paper

documents—questionnaires and paper correspondence

with attached materials—were transported from unit to

unit in wheeled bins. Each processing unit created a

computer-generated transmittal document for each bin of

materials just prior to its referral to the next unit. The TTS

retained the computerized record of the progress of each

bin, while the paper copy accompanied the bin as it

moved from unit to unit. The transmittal records and

documents showed the count of questionnaires, correspondence cases, etc., in each bin, and the processing

actions completed on them to that point.

Receipt and Check-In

General information. The economic census check-in

began late in December 1997 at the NPC in Jeffersonville,

IN. The check-in system used laser technology to read the

barcodes on the questionnaire address labels and sort the

receipts. After each mail response close-out date, the

check-in file was used to identify nonrespondent establishments and companies for telephone or mail follow-up.

Preliminary sorting. The U.S. Postal Service presorted

incoming economic census mail packages using different

mail box numbers for eight specified categories of

returns.8 The packages were placed in trays by type of

receipt and then routed to the preliminary sort clerks who

checked to make certain that each tray contained only one

type of receipt. The clerks sorted the receipts contained in

each tray and referred them to NPC processing units as

follows:

• Materials addressed to a specific analyst; forwarded to

specified analyst.

• Multiestablishment undeliverable as addressed (UAA),

receipts, single-establishment ASM receipts, singleestablishment UAA receipts, census follow-up letter UAA

cases, and Census Bureau originated correspondence

UAA cases, were referred to the Directory Analyst Unit.

• Receipts with no visible barcode, and economic census

receipts with visible barcodes, were referred to Register

Batch Unit for check-in.

• All other economic census related receipts; referred to

the Open and Sort Unit. (Receipts obviously not census

related were referred to the appropriate subject area.)

Receipts referred for check-in were grouped into

batches of up to 10,000 pieces and assigned batch and

check-in codes that enabled the NPC staff to track each

batch through processing by using the TTS. 6

The definition of ‘‘small’’ employer firms varied slightly

among the various sectors. ‘‘Small’’ firms were generally singleestablishment companies that met specified minimum annual

sales (usually $1,000) and maximum payroll. The number of

employees varied among sectors; in retail trade small-employer

firms had 1 to 3paid employees; in the sectors derived from the

SIC services area the ‘‘small’’ companies had 1 to 4 employees; in

transportation and utilities, the limit was fewer than 10 employees; and in manufacturing, fewer than 5 employees. 7

Administrative records could not be used to gather economic

data on wholesale trade because the data available for agents and

brokers generally reflected commission receipts rather than gross

dollar volume of business conducted.

8

These categories were (1) wholesale long and short questionnaires; (2) retail, including classification forms; (3) services,

including classification forms; (4) construction; utilities; finance,

insurance, and real estate; manufacturing and minerals short

questionnaires; and forms NC-9923, ‘‘General Schedule,’’ and

NC-9926, ‘‘Classification Report;’’ (5) manufacturing and minerals

long questionnaires; (6) small and medium multiestablishment

packages; (7) Puerto Rico, Guam, Virgin Islands of the United

States, and Northern Mariana Islands; and (8) the 1997 Vehicle

Inventory and Use Survey.

History—1997 Economic Census Chapter 8 77

U.S. Census Bureau, 1997 Economic Census
Barcode check-in and sorting. Census questionnaires

and other materials began their processing with barcode

check-in. Two 56-pocket laser reader/sorters read the barcodes, slit open the return envelopes, and sorted the packages. The sorter operator created a ‘‘header’’ record for

each batch by keying the sort number, batch number, and

batch status code from the cover sheet attached to each

batch. The reader/sorter read the 22-digit barcode, as

well as the census file number (CFN—CFNs are discussed

further in the ‘‘CFN research’’ section below), questionnaire

form number, codes for follow-up letters and correspondence, and then sorted the batch by questionnaire type.

Machine rejects—i.e., receipts with unreadable

barcodes—were sorted to ‘‘pocket 1’’ of the machines,

removed from the working batch, and rebatched with

similar receipts. Clerks used hand laser-wand readers to

read barcodes. If the barcode could not be read by wand,

or if the barcode label was missing, the clerk keyed the

barcode identification number directly to the check-in file.

The check-in actions from the laser sorters and the wand

and keyboard operators were validated on a data-entry

system in the NPC processing office, then were transmitted to the Economic Statistical Methods and Programming

Division (ESMPD) at the Census Bureau’s headquarters in

order to update the SSEL.

Disposition of mail receipts. Following check-in, mail

packages and individual questionnaires went to the

Remove Contents and Sort Unit. Staff opened the envelopes and sorted the questionnaires and other materials

into categories as follows:

• Correspondence sent to the attention of a specific

analyst was referred to that analyst.

• Respondent-originated correspondence was referred to

the Correspondence Suspense or Reading Units for

review.

• Census Bureau-originated correspondence cases were

referred to the subject divisions.

• Classification forms were referred to the Screening Unit

for review and updating of the SSEL.

• Economic-only single-establishment company ‘‘2+’’

cases (i.e., responses in which two or more singleestablishment questionnaires were returned in a single

envelope) were held for review by analysts).

• All other single-establishment company cases were

batched into work units and sent for microfilming. Company questionnaires with attached correspondence, and

multiestablishment company 2+ cases were sent to the

Directory Analyst Unit.

• All other multiestablishment company cases were

grouped into manila folders, batched into work units,

and routed to the Completeness and Coverage Unit.

Single establishment company questionnaires were

batched and referred for microfilming.

Correspondence Processing

Correspondence reading. Clerks checked each piece of

respondent-originated correspondence for a CFN. Next,

they referred to lists of problem descriptions and instructions in order to determine what action should be taken.

Correspondence with CFNs were read, categorized, and

then processed as follows:

• Congressional correspondence (i.e., correspondence

from, copies of correspondence to, or letters with notations to, any Federal government official ranking higher

than the Director of the Census Bureau). These were

referred to supervisors for special handling.

• Freedom of Information Act cases were referred to

Census Bureau headquarters for response.

• Correspondence sent to the attention of a specific person, title, office, or department was annotated appropriately and referred to the Directory Analyst Unit.

• Correspondence from multiestablishment company

respondents who reported a change of name or address

was annotated and referred to the Directory Analyst

Unit.

• Correspondence from a multiestablishment company

respondent who wanted to combine data for all establishments on one questionnaire was annotated and

referred to Central Files after keying.

• Correspondence (1) from single-establishment respondents indicating they had more than one establishment,

(2) from respondents requesting help completing the

questionnaire, and (3) for other problems that did not fit

any of the problem descriptions provided, were annotated and referred to the Directory Analyst Unit.

Clerks annotated correspondence with a five-digit code

to indicate actions taken and the unit to which the case

was to be referred. Then, using an interactive routine

(described below) for each case, they keyed in such information as correspondence category code, CFN, time

extension codes, date the respondent’s business was

closed or sold (if contained in the correspondence), as well

as changes of company ame and/or address.

CFNresearch. Each correspondence case needed a valid

CFN; clerks had either to identify a CFN for each case or, if

none was available, assign one. When a valid CFN was

found, the processing clerk wrote the CFN and check digit

on the correspondence and continued processing—using

the interactive systems. When a CFN was not located, but

the correspondence included a nine-digit EIN, the clerk

added a zero (‘‘0’’) to the front of the EIN and assigned this

ten-digit number as the CFN to the file. When no EIN was

present, the clerk entered the name and all other identification information, then annotated and referred the correspondence as necessary.

78 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Correspondence with single-establishment questionnaire processing. Correspondence Unit clerks read

and categorized correspondence that was attached to a

single-establishment questionnaire and transcribed the

CFN from the questionnaire to the letter or other materials

attached. The clerks used problem listings, selected the

one that most closely described the subject of the correspondence, and carried out the actions indicated. They

annotated the correspondence with the appropriate action

codes, circled the CFN and correspondence category

codes, and transcribed any information given by the correspondent to the appropriate item.

Census Bureau-originated correspondence. Census

Bureau-originated correspondence was generated from

three—sources (1) interactive applications run against the

SSEL file, (2) records referred by the control file match, and

(3) records flagged during complex edit (see below) that

required contact with the respondent to resolve a problem. Census Bureau-originated correspondence processing

was handled by the various processing units generating

the requirements. Interactive computer routines were

used to identify particular problems with individual

records and the kind of correspondence required to contact respondents for corrective or additional information.

Clerks keyed the CFN for the specific record, used correspondence reference listings to select a correspondence

category that described the problem, and keyed the

specified category code to the record. The interactive routine indicated whether (1) the record belonged to a singleestablishment or a multiestablishment company, (2) if the

latter, whether the master company or a component establishment was involved; and (3) which form letter(s) and/or

other materials should be used.

The ESMPD generated correspondence files twice daily

during questionnaire processing, and the NPC used the

DocuPrint equipment to print the materials for the mailout

packages. Through computerized printing, printed materials were sorted into three groups:

• Cases for immediate mailing were routed to the Correspondence Mailing Unit for assembly and mailout.

• Packages requiring annotation went to the subject-area

problem solving units.

• Special cases were referred to the subject analysts for

the industry.

Package assembly and mailout operations. Correspondence Mailout Unit clerks used correspondence category code lists to determine actions needed for each

mailout package, then assembled and addressed the packages to those who had originated the correspondence. For

example, for a package with a correspondence category

code of 102 (time extension granted—accountants), the

clerk typed the correspondent’s address on the form letter

and added the extension date granted to the first line of

the letter. Typically, the correspondence mailing packages

contained one or more of the following items: (1) letter;

(2) questionnaire(s) as needed; (3) miscellaneous brochures, listings, instructions, flyers, address sheets, or

other enclosures ; (4) return envelope; and (5) inventory

list (showing the contents of multiestablishment mailing

packages, if any).

Standard items for correspondence mailout were

printed using NPC’s DocuPrint equipment. Two computergenerated lists, a Correspondence Reference Listing and a

Production Control Listing, were used for controlling each

running of the correspondence printing program. The reference listing identified cases for referral to the appropriate problem-solving units for resolution or research. The

control listing was used to manage the work and identify

printer failures for manual correction.

Multiestablishment Completeness and

Coverage Processing

Following check-in, all multiestablishment company

questionnaires were batched into work units by company

employment size (based on prior year employment size

from administrative records), and underwent completeness and coverage keying. Multiestablishment completeness and coverage processing verified coverage of all

establishments within a firm, and that additions, mergers,

sales of plants or companies and other critical company

and establishment data were reported.

Accessing the SSEL file, which was password-protected,

terminal operators took the following actions:

• Correcting company affiliation information, such as—

• Revising address information.

• Adding new or acquired establishments.

• Moving establishment sold to the acquiring company.

• Inserting codes to indicate closed or idle establishments.

• Adding new multiestablishment companies and their

establishments to the file. When a new company

address was identified, the clerks updated the SSEL

and the appropriate questionnaire package was

remailed. If the clerks failed to find a new address,

they referred the case to the coverage analysts for

resolution.

• Researching undeliverable as addressed (UAA) cases for

the latest address for remailing questionnaires.

• Correcting unusual employment or payroll data relationships (as compared to administrative record tax data).

• Correcting establishment reports of the company in

which the company combined all the data in one report.

(This meant splitting the combined data across the

establishment reports based on prior year employment

and payroll relationships.)

History—1997 Economic Census Chapter 8 79

U.S. Census Bureau, 1997 Economic Census
Problems identified during keying were typically

resolved by contacting the company for additional information, or by using the SSEL interactive routines to process affiliation changes or to break out establishment data

from combined reports.

Once processed through the completeness and coverage unit, the multiestablishment folders were routed to

the Microfilming Unit.

Microfilming the Questionnaires

The Microfilming Unit filmed all economic single- and

multiestablishment questionnaires—except classification

forms—just prior to data-entry keying. The equipment

imprinted an eight-digit serial number on each

questionnaire—the first four digits identified the microfilm

reel and the last four the microfilm frame, for each form.

The questionnaires were held in the Microfilming Unit

until the film had been processed and checked to assure it

was of acceptable quality. Once the film was reviewed and

approved, staff made copies of the reels and provided

them for referral and research purposes, to analysts in

Jeffersonville and to the subject divisions’ staffs at headquarters. The Microfile Unit staff then forwarded the paper

questionnaires to be rebatched for data keying.9

Data Entry

Data keying. Data keying involved transcribing data

from the economic census questionnaires to a machinereadable data file for edit and tabulation. The NPC data

keying staff used a key-to-disk interactive system that

combined basic clerical review of the questionnaires with

the keying operation. Each work station had a keyboard

and video monitor that enabled the keyer to display and

edit keyed data, as well as displaying messages alerting

the keyer to unacceptable entries, and corresponding corrective procedures. The systems used 19 programs (one

for each of the principal NAICS sectors covered by the

economic census). The programs assigned ‘‘screens’’ to

specific sections of each type of questionnaire for use in

entering data from individual forms. The first several

screens were used for keying identification information,

while the bulk were used for entering data from the questionnaires. The number of screens varied by trade area;

for example, finance, insurance, and real estate questionnaires data keying required 63, while 29 were needed for

keying data from the manufacturing questionnaires.

Questionnaires, grouped in batches of 35-50 (for long

form manufacturing questionnaires), and 100 (for all other

trade areas) were received from the Microfilming Unit.

Classification forms were batched in quantities of 200.

Each batch had a control sheet with the batch number

(which included a prefix identifying the questionnaire

type) and the number of questionnaires in the batch. The

data entry programs were designed for straightforward

data entry from the top down for each page and from

front to back of the questionnaire. Each keyer began keying by entering the identification information—i.e., the

CFN, form number, and the microfilm reel and frame

number for the questionnaire—and address information

from the address label area and leading sections of the

questionnaire. Thereafter, the keyer entered the two-digit

section identifier for each section, followed by the first

three-digit item keycode10 , and proceeded through the

questionnaire, entering successive codes and data

responses.

Keyers had instructions for handling common respondent errors, such as—

• Illegible entries. Illegible entries were referred to the

keying supervisor, who, if able to interpret the

response, entered it for the keyer. If an entry could not

be resolved, it was marked ‘‘NIL’’ and the keyer continued keying remaining items on the questionnaire.

• Bracketed entries. Keyers entered the data for the

first keycode, followed by an ‘‘&,’’ then keyed an ‘‘&’’ for

each additional keycode included in the bracket. When

an entire item, with or without the total line, was bracketed, the response was entered on the ‘‘total’’ line for

the item.

• Altered stub description. When respondents

changed, added to, or crossed out a preprinted description of a data item, the keyer entered the keycode or

line code and the corresponding data followed by a

‘‘dash’’ in the first data field containing an entry.

• Range entries. Keyers calculated the midpoint of the

range reported and entered that number (rounding up

to the next whole number in case of a fractional result).

As the keyers entered the data, the computer performed a series of edit checks to ensure that (1) the various codes keyed were valid, (2) entries were numeric, (3)

all mandatory fields contained responses, and (4) the data

9

Economic census microfilm typically is retained at the Census

Bureau’s headquarters for a period of about 5 years (or until the

next census is completed). Thereafter, each economic subject

division’s staff decides either to keep the microfilm in its own

archive, or send it to the Federal Records Center in Suitland, MD,

for permanent storage.

10Keycodes were three-digit numbers preprinted in the data

cells of the questionnaires to identify that cell. The data system

edits ensured that no keycode was keyed and accepted without

corresponding data. Line codes—three-to-nine digit numbers preprinted to identify a row of data cells extending across two or

more columns—were keyed, preceding the data for that line. Most

items requiring multiple responses, such as merchandise and

commodity lines, required this format. The only information from

the questionnaires that did not usually require keycodes or line

codes was questionnaire identification and coverage information;

address changes and new locations; person-to-contact, and telephone number; and basic data for sales, receipts, revenues,

employment, payroll; and kind-of-business codes.

80 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
were within acceptable ranges. The display screens notified keyers of specific problems detected by the computer

edit and displayed suggested corrective action. After successful data entry, the completed batches of questionnaires were sent to the Holding Unit, where they were

retained while the data records were processed through

control file matching and computer editing.

Individual questionnaires could be rejected from processing for various reasons (i.e., invalid form number,

invalid kind-of-business code, invalid or duplicate line

codes or keycodes, etc.). Keyers pulled these questionnaires from their batches, placing them on top of each,

and entered the number of rejects on the batch cover

sheet.

Quality assurance for data keying. The Census

Bureau carried out quality assurance checks of data keying

to ensure that information from questionnaires was accurately recorded in the data file. This was done by selecting

a systematic random sample of CFNs from each batch of

questionnaires for verification.

The quality assurance staff rekeyed data from questionnaires for selected records from each batch and matched

the original keyers’ data sets with the verifiers’ sets. Differences were displayed for evaluation. The procedures

defined errors as either ‘‘keyer’’11 or ‘‘nonkeyer’’ errors.

Keyer errors typically involved (1) miskeying that caused

errors in the data fields, (2) field or document omission or

(3) duplication, unnecessarily keyed fields, etc. Nonkeyer

errors usually involved mechanical problems, or supervisor or verifier errors. All mistakes identified during the

verification process were corrected and reverified before

the data were released for computer processing.

Output files. Data entry transformed respondent information from a paper questionnaire into an electronic input

file. Before these input files could be processed, they

needed accurate translation into an output file of variable

length records. The input record structure reserved space

for every possible input field; the output record structure

permitted only fields or repeating groups that contained

data.

Using variable length records required moving the input

data exactly into sections or fields specified while eliminating the filler required to make all records the same

length. A single output record consisted of 11 sections; a

‘‘section 1’’ was always present and contained indicators

that described the other 10 sections. Sections 2-4 contained address change, contact and telephone, and

‘‘splitter’’ information12, while sections 5-11 contained the

keycodes and data for specific responses. The ‘‘repeating

group length’’ in each section contained the applicable

keycodes with a specified number of characters for the

data. The repeating group could occur a variable number

of times, depending on the section and the type of

response. The section indicators were used to determine

each section’s length within the record, while the sum of

the sections’ lengths determined the length of the full

record.

Once reformatted for output, the data files were ready

for control file matching.

Control File Match

Matching. After data entry, the data records for the census questionnaires were matched to the SSEL control file.

For each company, the control file contained (1) administrative record data, (2) historical census data, and (3) the

geocoded census address reference file containing the

state, county, place, and census tract numerical codes for

each establishment. The Census Bureau carried out the

control file match on a flow basis, as the data from

batches of questionnaires were entered into the census

data file. In this way, the subject division staff could carry

out edits as the data for their respective trade areas were

keyed.

The control file match compared the CFNs of freshly

keyed records to the SSEL file, then compared the identification and address information in each file to the SSEL file,

as follows:

• Identified company structure and affiliation referrals for

review.

• Identified duplicate establishment records and potential

new establishments for review.

• Identified address changes for use in geocoding for data

processing and tabulation.

• Compiled data from the questionnaires and the SSEL

into a single file for analysis.

After the SSEL update was completed, the records were

transmitted to the subject divisions for complex data editing. Staff also identified problems in addition to those

listed above—e.g., blank records, records that included

11Each keyer in the Data Entry staff underwent a three-stage

progression from ‘‘training’’ status keyer, to ‘‘prequalification,’’

and finally to ‘‘qualified’’ (Q) status. Keyers had to limit their error

rate to 1.5 percent to become qualified and thereafter had to

maintain a ‘‘reject’’ rate—the number of errors that would cause a

record to require rekeying—of less than three per week to remain

in qualified status.

12A ‘‘splitter’’ was a firm that formerly operated at a single

location, under one employer EIN, but opened operations at more

locations under the same EIN. Splitter information was the detail

the respondent gave the Census Bureau about the new locations,

such as name and address, kind-of-business description, receipts,

annual payroll, and number of employees. As the splitter was processed, the firm was redesignated a multiestablishment company

with multiple locations. A single-establishment company did not

become a splitter if it simply acquired another business operating

under its own EIN; it did so only if it had activities at more than

one location.

History—1997 Economic Census Chapter 8 81

U.S. Census Bureau, 1997 Economic Census
out-of-scope activities— that required correction before a

record could be released for further processing, and

routed these records for control file match referral.

Control file match referrals. Data records that failed

the control file match were withdrawn from the data file

for their batch. The computer generated a referral listing

that identified the record and the problem. Clerks handled

referrals for missing data or a blank record either by

remailing questionnaires, by telephoning the company, or

by inserting data derived from other information on the

questionnaire. Records with other kinds of industryrelated problems were referred for review by analysts in

the trade area problem-solving units.

Poorly keyed records, or those with too many corrections or changes required, were recycled. The original

microfilm reel and frame numbers were taped over and

the questionnaire was sent back, re-microfilmed in a

separate recycle batch, and rebatched for data keying.

Questionnaires that belonged in a different trade area

batch were referred after the ‘‘sending’’ area analyst

entered a ‘‘bridge’’ code to identify the record. In the

‘‘receiving’’ area, the analyst working on the record

assigned a correct new code, and the questionnaire was

checked in again using a laser wand. These wand actions

were processed against the corresponding held records,

and the records were released to the appropriate subject

division. Cases requiring that the respondent be contacted

were sent to the Correspondence Unit for resolution.

DECENTRALIZED POST-COLLECTION PROCESSING

General Information

Post-collection processing consisted of editing, tabulating, and analyzing of the 1997 Economic Census data.

This followed the control file match and encompassed all

the activities required to prepare the data for publication.

Unlike collection activities, which were centralized, postcollection activities were decentralized—each subject area

was processed independently.13 Analysts from the subject

divisions (Manufacturing and Construction [MCD], Service

Sector Statistics Division [SSSD], and Company Statistics

Division [CSD]), with assistance from analytical and

clerical staff at the NPC, carried out the work in two

phases—micro edit referral and macro analysis. Micro edit

referral involved editing and cleaning data at the establishment level—that is, the micro level through complex

editing, as well as reject and referral processing. Macro

analysis took place during review of tabulated data before

publication.

Micro Edit Referral Processing

Background information. Subject analysts within the

respective areas of the Economic Directorate conducted

micro edit referral processing—the major steps of which

are described below and illustrated in Figure 8-1.

Before editing began, ‘‘good’’ records from the control file

match were acquired. These were establishment records

that had passed computer checks for organizational structure, coverage, and completeness.

Complex editing. As subject areas received records,

they ran processes that edited the data. In the complex

editing phase of processing, the Census Bureau used a

series of computer programs to subject establishment

records to a series of edit modules that had two major

purposes—assigning valid kind-of-business or industry

codes and evaluating respondent data for consistency and

reasonableness.

Assigning a valid kind-of-business or industry classification code depended on computer evaluation of the

responses to specific items on the census questionnaires.

Examples of such items would be merchandise lines sold

by a retail establishment, products manufactured by a

plant, entries written in by the respondent explaining the

establishment’s activities, and self-designated check-box

classifications. If all critical information was available, the

edit module assigned the correct classification code. If any

13For the 1992 Economic Census, each of the subject areas

had developed specifications for classification. There were 12

altogether (3for Manufacturing, 2 for Mineral Industries, 1 for

Construction, 5 for Services, and 1 for the Outlying Areas), each

area of which had required about 100 pages of specifications. The

Generalized KB/Industrial Code edit for the 1997 census reduced

the required specialized material to an average of just 3pages

per area.

Figure 8-1

Post-collection Processing:

Micro Analytic Processing

Control File Match

Database

Get Release Records

Complex Edit

Load Data Bases

Subject Area

Databases

82 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
of this information was missing, the edit module ‘‘flagged’’

the record as a ‘‘reject,’’ and referred it for correction

before allowing further processing.

For the 1997 Economic Census, the computer also

assigned a ‘‘bridge’’ code that enabled the Census Bureau

to tabulate the record on both the old SIC basis and the

new NAICS.14 After classification codes were assigned, the

computer edit program verified each record to validate the

kind-of-business, industry, geographic, and ZIP Codes.

The complex edit also evaluated response data for reasonableness and consistency. Computer routines checked

that employment data reported on the questionnaires

were consistent with payroll or sales/receipts data,

as well as response data from prior censuses. For the

1997 census, the Census Bureau introduced the use of

‘‘generalized’’ edit modules for these checks. The modules

balanced items and conducted ratio checks:15

• A balancing module allowed for comparing detail items

to totals and nested tests of subtotals to broader levels,

and for two-dimensional tests to compare additive rows

to corresponding column information.

• The ratio module compared data for individual

establishments—using items from the questionnaires,

administrative sources, or historically reported

information—to industry parameters derived from data

correlations in past censuses or through administrative

sources. Imputation options were used to estimate noncritical missing data or to replace extreme outlier data.

Subject division staff particularized these complex edit

modules to account for industry differences.

Subject area databases. After the establishment

records underwent complex editing, computer programs

loaded them into the appropriate subject-area micro databases, shown in Figure 8-1. Each of these databases contained responses from establishment questionnaires. The

databases also contained the edited data and flags (see

below), administrative data from the SSEL, questionnaire

write-ins, and historic 1992 census data (if available) for

each establishment.

Reject and referral processing. The complex edit

identified, and flagged for referral, establishment records

that had responses or other characteristics outside specified tolerances. The edit also rejected records with (1)

critical data missing, (2) obvious errors in classification, or

(3) other significant problems that could not be corrected

within the parameters of the edit or imputation routines.

Such establishments were handled with either of two

procedures—post-edit correspondence or manual problem

resolution:

• For post-edit correspondence, the Census Bureau mailed

tailored requests to respondents to ask for additional

information about the data. For example, respondents

reporting broad product lines were mailed letters

requesting the detailed product lines.

• Cases referred for manual resolution went to subject

analysts or to clerks. These cases typically involved

respondent write-in entries for kind-of-business descriptions, merchandise lines, or products. Clerks coded

write-ins to the appropriate bridge code, type of

operation/construction, or product code.

Both analysts and clerks used video-display terminals to

review the rejects and referrals and followed guidelines

and procedures for evaluating and correcting problems.

The interactive editing systems permitted them to correct

errors and reedit the data as required.

Macro Analytical Processing

Background information. The objective of macro analytical processing was both to tabulate data and to review

those tabulations to prepare them for data publication.

These activities began at the end of the data collection

cycle.

Macro analysis (Figure 8-2.) began with the tabulation

of establishment records housed in the subject area databases. Micro records were first tabulated as part of the

main publication series for the census. Then, they were

tabulated a second time for the cross-sector publications

that showcase the introduction of NAICS.

Data tabulation. ‘‘Tabable’’ establishment records were

those that passed the complex edits and were not rejected

or flagged for referral. The object of the reject and referral

processing was to resolve problems so that the establishment record would be tabable. It was not unusual, given

the scope of this activity, for many establishment records

to remain unfinished at the time macro analysis began.

Therefore, at the macro analysis stage, corrections were

made only for the establishment records that were the

most problematic. After the collection cycle was completed the data frequently were retabulated to incorporate

corrections to micro records made during the macro

review stage.

Subject tabulation files for main publication series.

After tabulation, the totals were loaded into computer

files, which analysts accessed via macro analytical tools.

The Census Bureau tabulated the micro establishment

records many different ways—based on data product and

14The Census Bureau assigned two extra digits to the classification code for each part of the 1987 SIC that had been reclassified to a different NAICS sector or industry. This allowed previous

census data, collected and tabulated using the SIC, to be compared with the 1997 census tabulations using NAICS. 15See Richard S. Sigman, ‘‘Development of a ‘Plain Vanilla’ System for Editing Economic Census Data,’’ a working paper presented at the October 1997 United Nations Work Session on Statistical Data Editing.

History—1997 Economic Census Chapter 8 83

U.S. Census Bureau, 1997 Economic Census
analytical needs. Each subject area had its own set of

tabulation files for its industries. For example, subject

tabulation files included summed data by industry, geographic area, firm size, products produced, materials

used, and merchandise lines sold.

Corporate repository. Since each subject area had its

own tabulation files, the Census Bureau introduced the

use of a corporate repository to allow sharing of summary

data across the areas. Each week, the establishment micro

Publication

Figure 8-2

Post-collection Processing:

Macro Analytic Processing

Subject Area

Databases

Tabulation

Microdata file

extraction

Microdata set merge

Corporate

Repository

Subject Tabulation Files for

Main Tabulation Files

1997 NAICS

Microdata set

1992 NAICS

Microdata set

Tabulation

Tabulation Files for

Cross-Sector Publication

Macro Analysis Analytical Tools

-Subject Table Review Systems

-Problem Identification

-Multidimensional Reports

-Online tools

84 Chapter 8 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
records were fed from the subject databases into a corporate repository. This allowed analysts in manufacturing,

for example, to have access to view data for establishments in retail industries.

In feeding records from subject areas to the repository,

only a subset of data items were compiled for each

establishment—e.g., sales/receipts/value of shipments,

payroll, employment, operating expenses, and wholesale

inventories. The resulting file was called the ‘‘1997 NAICS

microdata set.’’ Once this dataset was created, it was combined with the 1992 micro dataset that contained all

tabable records from the 1992 Economic Census. The

resulting current and historic dataset enabled the Census

Bureau to create special cross-sector tabulations and

reports that allowed analysts to compare 1997 and 1992

data on a NAICS, as well as on the old SIC basis. The corporate repository was a SAS dataset.

Analytical Tools

The subject divisions prepared detailed analytical

review guidelines to instruct analysts on what to look for

and on how to use the available tools. Typical review

points covered analyzing large differences; assessing

changes to the tabulation cell composition due to organizational changes (establishments bought, sold, or new);

nonresponse; and errors in historic 1992 data. Analysts

documented their findings for tabulated cells confirmed to

be correct. The basic analytical systems used were as

follows—

• Subject table review systems. As with micro edit

referral processing, macro analysis had specially

designed interactive systems that permitted analysts to

view the subject tabulations in table formats. Analysts

for each of the subject matter areas used interactive

table review systems to analyze tabulated cells on a

NAICS basis. As analysts corrected micro data through

the establishment review and correction system, they

used the table review systems to determine the overall

effect of these corrections on the data.

These review systems also were critical to the disclosure analysis process. Disclosure analysis preserves the

confidentiality of reported information so that no individual firm’s operations or identity could be inferred

from the published data. To identify possible disclosures, the Census Bureau established consistent rules

for application across subject areas. Often when the

tabulations resulted in disclosure, it was necessary to

suppress not only the primary (originally) disclosed cell,

but additional cells so that the original disclosure could

not be obtained through subtraction. Suppressing these

secondary tabulated cells is called complementary disclosure analysis, and analysts used the table review systems to review and interactively set the complementary

suppression symbols.

• Problem identification tools. To review thousands of

tabulated data cells, analysts needed mechanisms to

help pinpoint specific problem cells. There were two

main methods of identifying cells whose data appeared

questionable—reconciliation and outlier detection. For

reconciliation, analysts compared cell totals to noncensus data drawn from the Census Bureau’s current

programs as well as from other government statistical

agencies. For outlier detection, for the 1997 census,

analysts used a new automated graphical data review

technique. A SAS product called ‘‘SAS Insight’’ enabled

analysts to identify suspicious cells by providing visual

displays showing cells outside the normal distributions.

The graphical analysis was used to identify extreme cell

changes for historic (e.g., historic census employment

compared to current census employment) as well as current (e.g., current census annual payroll compared to

current census employment) ratios. Subject matter area

analysts also used manual techniques to identify cell

outliers. Generally, analysts used predetermined values

for their historic and current ratios. For example, since

the manufacturing sector had prior year comparison

points with the Annual Survey of Manufactures, analysts

searched ‘‘census to prior year’’ totals exceeding five

percent for basic statistics items and 10 percent for

products.

• Online tools. The principal online technique used by

analysts in their work with the tabulated cells and micro

establishment records was the capability to search the

computerized data files. Analysts developed ‘‘canned

searches’’—i.e., programmed searches that could be

executed interactively for typical inquiries about the

data. The canned searches selected records based on

specified size codes, but also could be modified for

unexpected situations that surfaced during data review.

Specially designed computer interfaces enabled analysts to do special ad hoc tabulations. For example,

using the corporate repository, analysts could select

and tabulate establishment records associated with specific companies—even if those establishments crossed

subject areas. The analysts also could use the subject

micro databases to select and tabulate records by classification code (SIC, NAICS, or bridge), geography, and

type of operation in formats that varied from those

specified for the publication tables.

• Multidimensional reports. Analysts used ‘‘multidimensional reports’’ with the corporate repository to

evaluate the new NAICS classification system. The

reports showed SIC industries based on their NAICS

components and, vice versa, as well as providing analysts with comparative SIC data showing the basic data

from 1997 to 1992 at the broader levels.

History—1997 Economic Census Chapter 8 85

U.S. Census Bureau, 1997 Economic Census
Chapter 9. THE 1997 ECONOMIC CENSUS IN THE OUTLYING AREAS

Introduction ................................... 88

Company Organization Survey ......................... 88

Puerto Rico ................................... 88

General Information ............................. 88

Preparatory Work ............................... 88

Printing questionnaires........................... 88

Scope and coverage ............................ 89

Data Collection ................................ 89

The mail enumeration ........................... 89

Mail follow-up ............................... 90

Telephone follow-up ............................ 90

The Virgin Islands of the United States..................... 90

General Information ............................. 90

Preparatory Work ............................... 90

Printing questionnaires........................... 90

Scope and coverage ............................ 90

Data Collection ................................ 90

Mail enumeration .............................. 90

Mail and telephone follow-up ....................... 91

Guam and the Commonwealth of the Northern Mariana Islands (CMNI) ... 91

General Information ............................. 91

Preparatory Work ............................... 91

Printing questionnaires........................... 91

Scope and coverage ............................ 91

Data Collection ................................ 92

Mail enumeration .............................. 92

Mail and telephone follow-up ....................... 92

Data Processing for Outlying Areas Questionnaires .............. 92

Receipt and Check-in ............................. 92

Data Entry ................................... 92

Editing and Tabulation ............................ 92

Publications ................................... 93

CONTENTS

History—1997 Economic Census Chapter 9 87
The 1997 Economic Census in the Outlying Areas

INTRODUCTION

The Census Bureau carried out the 1997 Economic Census in the Outlying Areas under the provisions of Title 13,

United States Code, Section 191. This required that the

quinquennial economic census cover the Virgin Islands of

the United States, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), and the Commonwealth of

Puerto Rico. Although there were similarities in the census

in these areas, there were sufficient differences in the

planning, preparations, and data collection activities for

each area to warrant a separate discussion. The Census

Bureau’s Company Statistics Division (CSD)1 was responsible for the planning, management, and coordination of

the census in the Outlying Areas. Data-processing activities took place at the three locations: the Census Bureau’s

National Processing Center (NPC) office in Jeffersonville,

IN2, at Census Bureau headquarters in Suitland, MD, and in

each outlying area.

While the 1997 Economic Census for the 50 states was

conducted by applying the new North American Industry

Classification System (NAICS), the governments of Puerto

Rico, Guam, the Virgin Islands, and the CMNI requested

and received a postponement of the implementation of

the new system until the 2002 Economic Census. The

Census Bureau and the respective governments agreed to

this measure to ease the impact on local surveys and

national accounts of the change to the new classification

system. Adopting NAICS in the 2002 census would allow

time for the local agencies in the Outlying Areas to consider new approaches to their own surveys and to convert

them to NAICS. Therefore, the 1997 Economic Census

questionnaires for all the Outlying Areas continued to use

the Standard Industrial Classification (SIC) code for data

collection.

COMPANY ORGANIZATION SURVEY

The Company Organization Survey (COS) was conducted in the Outlying Areas to update the Standard Statistical Establishment List (SSEL). The SSEL served as the

principal source of business establishment addresses for

the economic census mailing list. The last COS prior to the

1997 census was carried out in December 1996.

The Census Bureau mailed form NC-9901, ‘‘Report of

Organization,’’ questionnaires to multiestablishment companies in the Outlying Areas. In Puerto Rico the COS

included all multiestablishment companies with 50 or

more employees, as well as a sample of those with 50 or

fewer employees. The survey covered all multiestablishment companies in Guam, the Virgin Islands, and the

Commonwealth of the Northern Mariana Islands.

PUERTO RICO

General Information

The Census Bureau and the Puerto Rico Planning

Board signed the Memorandum of Agreement to conduct

the 1997 Economic Census by mail in Puerto Rico on

October 30, 1997. The agreement stipulated that the

Census Bureau design and translate the questionnaires

into Spanish, plan and conduct the mail and follow-up

activities, process and tabulate the data, and prepare the

census publications. The Puerto Rico Planning Board was

responsible for making questionnaire content recommendations. In addition, the Board accepted responsibility for

publicizing the census through newspapers, television,

and radio, and for designating February 1998as

‘‘Economic Census Month.’’

Preparatory Work

Printing questionnaires. The Forms and Mail Management Branch of the Census Bureau’s Administrative and

Customer Services Division (ACSD) designed questionnaires and letters for the census. The Census Bureau

printed draft versions of the multiestablishment questionnaires using the DocuPrint 4890 Highlight Laser Printing

System3 at Census Bureau headquarters. Once reviewed

and approved for production, drafts of the multiestablishment questionnaires were electronically transferred to the

DocuPrint database at NPC for production printing. At this

point, NPC printed the English version of the multiestablishment company questionnaire, OA-9820, and the

instruction sheet, OA-9820(I).

For single-establishment companies, the Census Bureau

contracted with a private printer on September 27, 1997.

The private printer produced the Spanish and English

questionnaires and instruction sheet (OA-9819(I)), cover

1

CSD acquired its name in June 1998, see Chapter 2, ‘‘The

Players and the Plans’’ for the history of how CSD was formed. 2

Until May 1, 1998, the Jeffersonville office was called Data

Preparation Division (DPD).

3

The Docuprint 4890 system is described in Chapter 7, ‘‘Preparations for Census Mailout.’’

88 Chapter 9 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
letters (EC-PR-L1 and EC-PRL1(MU4)), follow-up letters for

single-establishment companies (EC-PR-L11, EC-PR-L21,

ECPR-T135, and EC-PR-L31), and envelopes for the Outlying Areas.

Scope and coverage. The 1997 Economic Census in

Puerto Rico covered construction industries; manufacturing; wholesale trade; retail trade; selected service

industries; and hotel, motel, and lodging industries. The

questionnaire for Puerto Rico business establishments

asked for basic information, as follows:

• Employer identification number corrections.

• Operational status (months of active operation during

1997, in operation, temporarily or seasonally inactive,

ceased operation, sold or leased to another operator,

name and address of other operator).

• Legal form of organization (i.e., individual proprietorship, partnership, cooperative association, public or

private corporation, government, other).

• Dollar volume of business.

• Payroll.

• Principal type of business activity (i.e., wholesale; retail;

services; hotels, motels, and other lodging places;

manufactures; and construction).

Wholesale establishments were asked to provide the

following additional information—

• Type of operation (merchant, sales branch, broker).

• Employment by principal activity (selling, support,

administrative, manufacturing).

• Class of customer (builders, exporters, households,

etc.).

• Operating expenses.

• Inventories.

• Storage space.

• Commodity sales.

Retail establishments were asked to provide the following additional information unique to retailing—

• Under-roof floor space.

• Franchise holders.

• Shopping Center.

• Class of customers.

• Merchandise sales.

Service establishments, in turn, also were asked for —

• Merchandise sales.

• Shopping Center.

Hotels, Motels, and Other Lodging Places were asked to

provide—

• Source of receipts (rooms, meals, packaged liquor,

merchandise, etc.).

• Number and type of accommodations.

Manufacturing establishments were asked to provide—

• Shipments and other receipts.

• Employment and hours worked by quarter.

• Selected costs (electricity, fuels, materials, contract

work, etc.).

• Inventories.

• Capital expenditures.

• Value of products made and contract work performed

by customer location.

Construction establishments were asked to provide—

• Type of construction/activity.

• Dollar value of business (new, maintenance, development, etc.).

• Employment and hours worked, quarterly.

• Construction work subcontracted out.

• Selected costs (electricity, fuels, communication, repairs,

materials, etc.).

• Work for other contractors or builders.

• Ownership of construction projects.

• Assets, capital expenditures, and depreciation.

Data Collection

The mail enumeration. The 1997 Economic Census in

Puerto Rico was primarily a mailout operation conducted

in concert with the census mailing for the 50 states. The

Census Bureau did not open an economic census field

office, or train a temporary staff to enumerate and conduct follow-up visits to nonrespondent establishments.

Instead, the NPC and the Census Bureau’s Tucson, AZ,

Telephone Operations Center conducted a telephone

follow-up operation of nonrespondents. At the request of

the Economic Directorate, two establishments that were

deemed essential to the accuracy of the census received a

follow-up visit from a staff member assigned to the Census Bureau’s Census 2000 office in San Juan.

4

Multiestablishment companies.

5

EC-PR-T13 (Title 13, U.S. Code) stated the legal authorization

for the Census Bureau to conduct the economic census in Puerto

Rico.

History—1997 Economic Census Chapter 9 89

U.S. Census Bureau, 1997 Economic Census
Mailout packages consisted of the appropriate questionnaire or questionnaires, cover letter, instruction sheet, and

a return envelope. These packages were printed and

assembled by the aforementioned private contractor, and

were delivered to the NPC in Jeffersonville during the

last 2 weeks of November 1997. The aforementioned

DocuPrint system was used for the multiestablishment

company mailout.6

The initial mailout consisted of 26,112 singleestablishment and 4,959 multiestablishment packages.

Mailout to both single- and multiestablishment companies

was completed by the second week of December 1997.

Recipients were asked to return their completed questionnaires to the NPC by February 12, 1998.

Mail follow-up. Following the initial mailout, nonrespondent single-establishment companies were mailed

follow-up letters on a flow basis:

• 19,663 form EC-PR-L11, mailed February 24, 1998to

March 6, 1998.

• 16,186 form EC-PR-L21 (with EC-PR-T13 attached),

mailed March 31, 1998to April 9, 1998.

• 12,617 form EC-PR-L31 (with EC-PR-T13 attached),

mailed May 7, 1998 to May 18, 1998.

Multiestablishment companies in the 50 states and

Puerto Rico were mailed the same follow-up letters. These

mailouts began in February 1998, and were completed in

June 1998.

Telephone follow-up. The telephone follow-up targeted

nonrespondent establishments with the intention of completing a census questionnaire by phone. Staffs at the NPC

and in Tucson, AZ, called approximately 10,000 delinquent establishments.

If the information necessary to complete the questionnaire by phone was unavailable, the interviewer scheduled

a call-back to complete enumerating the establishment. If

this was not workable, extensions for response in 2-week

increments were granted.

If neither follow-up mailings nor phone inquiries

elicited a response, the Census Bureau determined

whether a personal enumeration would be required. This

decision was based on the size of the company (payroll

and employees) and the effect that the loss of the company’s data would have on accuracy of the economic census.

THE VIRGIN ISLANDS OF THE UNITED STATES

General Information

After consultation with the Census Bureau, the Virgin

Islands’ Department of Labor signed a Memorandum of

Agreement to conduct the 1997 Economic Census on

November 21, 1997. This agreement would remain in

effect until the completion of the 1997 Economic Census

or until termination by mutual agreement.

The Census Bureau was responsible for designing and

preparing the census questionnaires and for processing,

tabulating, and publishing the data.

Preparatory Work

Printing questionnaires. As with the conduct of the

census in Puerto Rico, the Census Bureau used the DocuPrint systems at the NPC to print the questionnaires, cover

letters, and follow-up letters for multiestablishment companies in the Virgin Islands. A private contractor, whose

contract was awarded on September 23, 1997, printed

and assembled the questionnaires and other mailout materials for single-establishment companies, and delivered

the packages to the NPC in November 1997.

Scope and coverage. The 1997 census covered establishments in construction and manufacturing industries,

as well as in retail trade, wholesale trade, and selected

service industries. Addresses for employer businesses in

the Virgin Islands were obtained from the SSEL.

Business establishments located on these islands were

asked to provide—

• Physical location.

• Employer identification number.

• Operational status (in operation, temporarily or seasonally inactive).

• Legal form of organization (individual proprietorship,

partnership, corporation, government, other).

• Dollar volume of business.

• 1997 payroll before deductions.

• Employment in 1997.

• Kind of business or activity.

• Class of customer.

• Sources of sales or receipts.

• Purchases from other businesses.

• Sources of receipts for hotels, motels, and other lodging

places.

• Number and type of accommodations.

• Ownership, control, and locations of operation.

Data Collection

Mail enumeration. As was the case for Puerto Rico, the

census mailout for the Virgin Islands was carried out

simultaneously with the initial economic census mailing

for the 50 states. During the second half of December

6

See Chapter 7, ‘‘Preparations for Census Mailout,’’ for a more

detailed discussion.

90 Chapter 9 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
1997, 332 multiestablishment company and 1,652 singleestablishment company economic census packages were

mailed by the NPC. These packages included a cover letter,

questionnaire OA-9873, and instruction sheet OA-9853(I).

Response was requested by February 12, 1998.

Mail and telephone follow-up. After the initial mailout,

nonrespondent single- and multiestablishment companies

were mailed follow-up letters on a flow basis. Table 9.1

shows the dates and counts of the follow-up mailing.

Table 9-1.

Follow-Up Mailings for the Virgin Islands of the

United States

Letter Date of mailout Total

EC-VI-L11 . . . . . . . 02/24/98 to 03/06/98 940

EC-VI-L21 . . . . . . . 03/31/98 to 04/09/98 866

EC-VI-L31 . . . . . . . 05/07/98 to 05/18/98 353

After February 12, 1998, telephone operators in Jeffersonville, IN, called approximately 500 delinquent establishments to complete the questionnaires by phone. Personal visits to nonrespondent establishments were not

required in the Virgin Islands.

GUAM AND THE COMMONWEALTH OF THE

NORTHERN MARIANA ISLANDS (CMNI)

General Information

The Census Bureau and the Guam Department of Commerce signed a Memorandum of Agreement for the 1997

Economic Census on October 10, 1997. The Census

Bureau and the Central Statistics Division, CNMI, signed a

Memorandum of Agreement on October 19, 1997.

The Census Bureau provided $16,000 to the government of Guam and $15,000 to the government of the

CNMI to conduct the census in their respective areas.7 A

portion of this funding was earmarked for the training

and salaries of locally hired individuals who performed

telephone follow-up interviews, and in some instances,

personal visits to nonrespondent establishments. If expenditures exceeded the amount agreed upon in the Memoranda of Agreement, the expenditure was renegotiated. In

addition to funding, the Census Bureau also was responsible for (1) designing and preparing the questionnaires,

(2) conducting the initial mailout, and (3) follow-up of

nonrespondents, processing, tabulating, and publishing

the data. The governments of Guam and the CNMI were

responsible for recruiting, hiring, and training staff members, conducting telephone follow-ups, and publicizing

the census.

Preparatory Work

Printing questionnaires. The Census Bureau used the

DocuPrint systems in Jeffersonville, IN, to print the form

OA-9863 questionnaires (Guam), the form OA-9883 questionnaires (CNMI), cover letters, instructions (OA-9853(I)),

and follow-up letters for multiestablishment businesses.

The following questionnaires and accompanying materials

for single-establishment companies were printed by contract printers:

• For Guam, EC-GU-L1, EC-GU-L11, EC-GU-L21, EC-GU-L31.

• For the CNMI, EC-NM-L1, EC-NM-L11, EC-NM-L21, and

EC-NM-L31.

The contractor delivered the assembled singleestablishment company packages to the NPC at the end of

November 1997.

Scope and coverage. The 1997 Economic Census in

Guam and the CNMI covered construction and manufacturing industries, retail trade, wholesale trade, and service

industries. Addresses of employer businesses and industries in Guam and in the CNMI were obtained from the

SSEL.

Questionnaires OA-9863 (Guam) and OA-9883 (CNMI)

collected information on the following:

• Location of establishment.

• Employer identification number.

• Operational status (in operation, temporarily or seasonally inactive, ceased operation, sold or leased to another

operator).

• Legal form of organization (individual proprietorship,

partnership, corporation, government).

• Dollar volume of business.

• Payroll before deductions in 1997.

• Employment in 1997.

• Kind of business or activity.

• Class of customer.

• Sources of sales or receipts.

• Ownership, control, and locations of operation.

Businesses in the CNMI were asked the following questions that did not appear on the questionnaires mailed to

establishments in Guam:

• Citizenship status (U.S.-Commonwealth of the Northern

Mariana Islands born, U.S. Other, Japan, Philippines,

Korea, Other).

• Class of business.

7

Prior to the 1997 census, data were collected from establishments in Guam and the Northern Mariana Islands by personal

interviews. The 1997 census was primarily conducted by mail.

History—1997 Economic Census Chapter 9 91

U.S. Census Bureau, 1997 Economic Census
Businesses in Guam were asked the following questions

that did not appear on the questionnaire mailed to establishments in the CNMI:

• Purchases from other businesses.

• Sources of receipts for hotels, motels, and accommodations.

Data Collection

Mail enumeration. Census participants received a cover

letter, the appropriate questionnaire or questionnaires,

instruction sheet, and a postage-paid return envelope.

Mailout of the questionnaires to single- and multiestablishment companies was completed by the second half of

December 1997 (see Table 9-2).

Table 9-2.

Initial Mailout in Guam and the Commonwealth of the

Northern Mariana Islands

Geographic area

Multiestablishment

companies

Singleestablishment

companies

Guam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 2,276

Commonwealth of the Northern

Mariana Islands . . . . . . . . . . . . . . . . . . . 178 908

Mail and telephone follow-up. After the initial mailout,

single- and multiestablishment companies in Guam and

the CNMI were mailed follow-up letters on a flow basis

between February and May 1998(see Table 9-3).

Table 9-3.

Mailout Follow-Up Guam and the Commonwealth of

the Northern Mariana Islands

Geographic area Letter Date of mailout Total

Guam . . . . . . . . . . . EC-GU-L11 02/24/98 to 03/06/98 1,412

EC-GU-L21 03/31/98 to 04/09/98 1,255

EC-GU-L31 05/07/98 to 05/18/98 692

Commonwealth

of the Northern

Mariana Islands . . EC-NM-L11 02/24/98 to 03/06/98 561

EC-NM-L21 03/031/98 to 04/09/98 505

EC-NM-L31 05/07/98 to 05/18/98 322

The Census Bureau contracted with the local governments of Guam and the CNMI to conduct telephone followups. Local government employees attempted to complete

a questionnaire through a phone interview for approximately 500 nonrespondent establishments in Guam and

300 nonrespondent establishments in the CNMI. Although

telephone follow-ups were successful in completing questionnaires for the majority of nonrespondent establishments, a very limited number of personal follow-up visits

were conducted by employees of the respective local governments.

DATA PROCESSING FOR OUTLYING AREAS

QUESTIONNAIRES

Receipt and Check-in

Mail receipts from single-establishment companies were

checked in using optical laser scanning equipment that

identified each case by the bar code on the mailing label.

Multiestablishment company mail receipts were opened

and the individual questionnaires placed in company folders, then checked in using hand-held laser wand readers.

Questionnaires from the Outlying Areas were checked

in at the NPC. The CNMI questionnaires were separated

out at the NPC and returned to the local government office

in Saipan, CNMI for data keying.

Questionnaires completed by phone interviews were

checked in using assigned identification numbers that

were keyed directly into the database. Clerks then opened

all questionnaire packages (except ‘‘Undeliverable as

Addressed’’ [UAA] cases) and sorted them into the following categories:

• Single-establishment company receipts.

• ‘‘2 + packages’’ (envelopes containing two or more

single-establishment company questionnaires).

• Multiestablishment company receipts.

• Correspondence (unattached and attached).

Two bilingual NPC staff interpreted questionnaires from

Puerto Rico. After all review work was completed, questionnaires were released for batching, microfilming, and

data keying.

Data Entry

Questionnaires returned by respondents from Puerto

Rico were batched for data entry at the NPC. The CNMI

questionnaires were keyed at the census field office in

Saipan, CNMI. The resulting electronic data file and original questionnaires from CNMI establishments were sent to

Census Bureau headquarters for editing and tabulation.

Questionnaires from Guam and the Virgin Islands were

keyed at Census Bureau headquarters.

Editing and Tabulation

Economic census data for Puerto Rico were processed

using a generalized edit system developed for processing

data from stateside establishments within the services

sector. (This is described in Chapter 8, ‘‘Data Collection

and Processing.’’) The system consisted of a series of generalized edit modules that could be used individually or in

combination for editing data, and also could be customized for more efficient editing of data for specific subject

areas. Subject division staffs wrote specifications for the

complex generalized edits and tabulations. The Economic

92 Chapter 9 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Statistical Methods and Programming Division (ESMPD) ran

production activities on their computer platforms, and

staff in the Economic Census Branch of CSD resolved edit

problems.

The editing process assigned valid kind-of-business

codes to the individual data records, and evaluated the

responses contained in the data records for consistency

and reasonableness. The Census Bureau’s staff applied a

version of the generalized kind-of-business/industry code

edit. This edit, customized for the Outlying Areas, checked

and/or corrected the kind-of-business codes in the individual establishment records. If a relationship was discovered to be outside specified limits, the item was ‘‘flagged’’

by the computer for adjustment or review by subject

analysts.

Data from Guam, the Virgin Islands, and the CNMI were

edited and tabulated using the Integrated Microcomputer

Processing System (IMPS) at Census Bureau headquarters.

Although the IMPS tabulated and edited data following the

same principles as those used for Puerto Rico, the processing system was more flexible, adjusting for the relatively small number of Outlying Areas questionnaires.

Once editing was complete, the data were ready for

tabulation. After subject specialists reviewed the files to

ensure respondent confidentiality had been maintained

(making it impossible for an establishment to be identified

by the data), the statistical tabulations were ready for

publication.

PUBLICATIONS

Publications for the 1997 Economic Census in the

Outlying Areas contained data on construction, manufacturing, retail trade, wholesale trade, and service establishments. Data for the Outlying Areas were published in both

printed and electronic formats.

Economic data for Puerto Rico were published in four

reports:

• Geographic Area Statistics (OA97E-1).

• Subject Statistics (OA97E-2).

• Construction (OA97E-3).

• Manufacturing (OA97E-4).

Economic data for the Virgin Islands, Guam, and the

CNMI were published in individual printed reports

(OA97E-5, OA97E-6, OA97E-7, respectively). The reports

presented data by kind-of-business for construction industries, manufacturing, retail trade, wholesale trade, and

service industries.

History—1997 Economic Census Chapter 9 93

U.S. Census Bureau, 1997 Economic Census
Chapter 10. TRANSPORTATION SURVEYS

Introduction ................................... 96

1997 Vehicle Inventory and Use Survey .................... 96

Precursor to the Vehicle Inventory and Use Survey (VIUS).......... 96

Scope and Content of the 1997 VIUS..................... 96

Scope .................................... 96

Content ................................... 96

Uses of the Data ............................... 97

Differences: VIUS vs. Other Economic Data Collection ........... 97

Definition of Terms .............................. 97

Sample Design ................................ 98

Mailout and Follow-up ............................ 98

Data Processing................................ 100

Receipt and check-in ............................ 100

Data screening and entry.......................... 100

Data edits .................................. 101

Data Tabulation and Release ......................... 101

1997 Commodity Flow Survey ......................... 101

Precursors to the 1997 Commodity Flow Survey (CFS) ........... 101

Scope of the 1997 CFS ............................ 101

Changes Made from Previous Commodity Flow Surveys .......... 101

Uses of the Data ............................... 102

Sample Design ................................ 102

Data Collection ................................ 102

Standard Classification of Transported Goods (SCTG) ............ 102

Mileage calculations ............................ 102

Mailout ................................... 102

Data Processing................................ 103

Editing ................................... 103

Imputation of missing data ........................ 103

Disclosure review.............................. 103

Publication Program ............................. 103

CONTENTS

History—1997 Economic Census Chapter 10 95
Transportation Surveys

INTRODUCTION

This chapter presents information on two survey

programs conducted during the 1997 Economic Census:

(1) the 1997 Vehicle Inventory and Use Survey (VIUS) and

(2) the 1997 Commodity Flow Survey (CFS). Title 13,

United States Code, Sections 193 and 195, authorizes the

Secretary of Commerce to direct the U.S. Census Bureau to

collect economic data such as those gathered by the VIUS

and CFS. These surveys produced essentialtransportation

data that were not available from other sources.

1997 VEHICLE INVENTORY AND USE SURVEY

Precursor to the Vehicle Inventoryand Use Survey

(VIUS)

Prior to the 1963 Census of Transportation, little was

known about the Nation’s trucking fleet. To fill this void,

the Census Bureau established the Truck Inventory and

Use Survey (TIUS) as part of the quinquennialeconomic

census. The TIUS collected detailed information from a

sample of trucks and truck-tractors selected from state

motor vehicle registration records for private and commercialvehicles.

Following the 1992 TIUS, the Census Bureau offered

public and private data users a chance to recommend new

items and changes to the survey. As a result, the Census

Bureau made the following changes to the questionnaire:

• Respondents were asked to report air bags.

• The ‘‘Other’’ category was deleted from the list of

responses for the vehicle acquisition and disposal

items.

• A supplementary sample of approximately 3,000 trucks

was selected for the entire U.S., a sample that constituted approximately 1.5 percent of all registered trucks.

Scope and Content of the 1997 VIUS

Scope. In 1997, the Truck Inventory and Use Survey

(TIUS) was renamed the Vehicle Inventory and Use Survey

(VIUS) to reflect an expanded survey scope. The 1997 VIUS

collected data on the physical and operational characteristics of the Nation’s trucking fleet, based on a stratified

random sample of private and commercial trucks registered (or licensed) in each state and in the District of

Columbia in 1997.

While the survey sampled private and commercial

trucks, it excluded vehicles owned by Federal, state, and

local government agencies, as well as ambulances, buses,

and motor homes. It also excluded some privately or commercially owned vehicles that did not have to be licensed

(such as farm equipment). Other vehicles were classified

as out of scope for the VIUS after the Census Bureau

received the questionnaire responses from the vehicles’

owners. Such out-of-scope vehicles included—

• Trucks sold prior to July 1, 1996.

• Farm tractors.

• Unpowered trailer units or converter dollies.

• Trucks reported to have been wrecked prior to the 1997

registration year.

Many states allowed pick-ups, minivans, and sportutility vehicles to be registered as either cars or trucks.

For this reason, a search was conducted of the passenger

car files: then, pick-ups, small vans, and sport-utility

vehicle records found in these files were moved into the

VIUS sample universe.

The annualvehicle registration date varied among

states. Although a few states used the calendar year for

vehicle registration, most staggered the registration

workload across the 12 months. In addition, most states

permitted ‘‘grace periods’’ to better distribute the annual

processing of vehicle registrations. Regardless of the individual states’ respective registration deadlines, vehicle

registration data in the survey were to be reported as of

July 1, 1997.

Content. Characteristics of the Nation’s trucking fleet

were collected using two questionnaires—Forms TC-9501

and TC-9502. Form TC-9501 was sent to owners of trucks

in the pick-up and van strata (about 25 percent of the

sample). Form TC-9502 was sent to owners of all other

trucks selected in the sample (about 75 percent). The data

requested on the questionnaires were of two types:

• Physicalcharacteristics—

• Vehicle type.

• Average weight.

• Type of engine.

• Type of braking system.

• Type of equipment.

• Fuelconservation.

• Type and size of body.

• Number of power axles.

• Axle arrangement of trailer units.

• Cab type.

96 Chapter 10 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Operationalcharacteristics—

• Base of operation.

• Number of trucks.

• Truck-tractors and trailers operated from the base of

operation.

• Area of operation.

• Vehicle miles.

• Weeks operated.

• Miles per gallon.

• Use of vehicle.

• Types of commodities carried, including hazardous

cargo.

Uses of the Data

Federaland state transportation agencies used the data

for the following purposes:

• Planning highway cost allocations.

• Planning road improvements.

• Determining truck size and weight regulations.

• Determining energy consumption.

• Determining types of fuels used by commercial and

private vehicles.

• Improving transportation services for shippers and

carriers.

The private sector also had important uses for the data:

• Planning future vehicle designs and improvements.

• Conducting market studies.

• Assessing the utility and cost of certain types of

equipment.

• Determining fueldemands.

Differences: VIUS vs. Other Economic Data

Collection

The VIUS differed from other 1997 Economic Census

data collection efforts in four major respects. First was

the reporting unit: in the economic census, the reporting

unit was the business establishment. In the VIUS, analogous organizationalunits were the truck owners, either

individualor corporate. Coverage was the second major

difference: the VIUS survey cut across industrialclassifications. The third major difference was in the use of sampling procedures. Most of the other economic census data

collection was conducted on a total enumeration basis,

and supplementary data often were obtained by sampling.

In contrast, the VIUS exclusively used stratified probability

sampling. Finally, VIUS data collection did not begin on a

single date. For 1997, the data collection interval

extended from January 1998 to May 1998, as 1997 vehicle

registration files became available from the states.

Definition of Terms

The Census Bureau employed the following terminology:

• Major use: This was based on answers to the question,

‘‘Which of the following best describes your business or

the part of your business in which the vehicle was

used?’’ (Question 19, questionnaire TC-9501 and question 27, questionnaire TC-9502.) Each of the 15 specific

major-use categories conformed to the generally

accepted meaning of the term. If possible, the analysts

recoded responses to the ‘‘Other’’ category into one of

the other 14 categories. The following list contains

frequent responses reported in the ‘‘Other’’ category:

Entry Recoded to (category)

House moving For-hire transportation

Trucks used in conjunction with railroadsFor-hire transportation

Armored car services For-hire transportation

Commercial fishing Agricultural activities

Oil field services Mining and quarrying

Specialized activities

commonly thought to be

service (e.g., plumbing,

painting, plastering,

carpentry, electrical

work, etc.)

Contractor activities special

trades

The Census Bureau also recoded the following: U.S.

mailservice on a for-hire, contract basis, antique trucks

(when used as exhibits), and yard tractors. These entries

were placed in the major-use that was consistent with the

company’s name and other responses to the survey.

• Hazardous materials. This term identified those trucks

transporting hazardous materials in quantities large

enough to require a placard under the Code of Federal

Regulations, Title 49, Transportation.

• Products carried. The survey included broad classifications of agricultural, manufacturing, and mineral

products, as wellas specialcategories of materials

carried by trucks. If possible, the agency recoded

responses to the ‘‘Other’’ category to one of the 29

specified categories.

• Range of operation.

• Local (less than 50 miles from the vehicle’s home

base—the farm, terminal, factory, mine, etc.).

• Short range (between 50 and 100 miles).

• Short range-medium (between 100 and 200 miles).

• Long range-medium (between 200 and 500 miles).

• Long range (trips beyond 500 miles from the

vehicle’s home base).

• No home base (mostly over-the-road truck tractor or

consumer one-way rentalvehicles that did not operate from one, particular home base location).

History—1997 Economic Census Chapter 10 97

U.S. Census Bureau, 1997 Economic Census
• Off-road (minimal use of public roads; usually associated with construction and farming activities).

• Truck fleet size. The Census Bureau based the size of

the truck fleet on the number of trucks and trailers

operated by a truck owner’s entire company. If respondents did not provide an answer in the ‘‘Truck Fleet

Size’’ section, the vehicle was estimated in the ‘‘not

reported’’ category.

• Operator classification. This term consisted of the

following categories:

• ‘‘Business use.’’ A private owner or a company that

transported its own materials or merchandise.

• ‘‘Personaltransportation.’’ A vehicle operated for

pleasure driving, travel to work, school, shopping,

entertainment, etc.

• ‘‘For hire.’’ Motor carrier (a vehicle operated by a

company whose primary business was to provide

transportation services carrying freight belonging to

others) and owner/operator (a vehicle operated by an

independent trucker who drove the vehicle for

himself/herself or on lease to a company).

• ‘‘Daily rental.’’ Vehicles rented or leased under daily

or short-term rental or lease agreements (excluded

motor carriers).

• ‘‘Mixed.’’ A vehicle used for at least two of the above

operator classifications (business, personal, for-hire).

If the percentage of mileage the vehicle traveled for

each activity was not equal, the response was

recoded to the classification with the highest percentage of use.

• Type of carrier. This category was limited to ‘‘for hire’’

interstate operators as follows:

• Contract. Offered transportation services to certain

shippers under contracts.

• Common. Offered transportation services to the

general public over regular and irregular routes.

• Exempt. Transported commodities or provided types

of services that were exempt from Federalregulation,

and possibly also operated within exempt commercialzones.

• Body type. This term included the type of body that

was either permanently attached to the truck or most

frequently used with a truck tractor. Where possible,

entries in the ‘‘Other’’ category were recoded to a

specific category. Responses in the ‘‘Other’’ category

included mobile-home carriers and boat transports.

• Minivans. The minivan universe included minivans

manufactured on a truck or passenger car chassis.

• Estimates were requested for the following data

regarding vehicle size:

• Empty weight of the vehicle or vehicle trailer

combination.

• Average vehicle weight plus cargo weight of the

vehicle or vehicle/trailer combination when carrying

a typicalpayload.

• Gross weight (maximum) at which this vehicle or

vehicle/trailer combination operated.

The response to the average weight item enabled the

Census Bureau to classify trucks and truck/trailer combinations into the following four vehicle size classes:

• Light 10,000 pounds or less.

• Medium 10,001 to 19,500 pounds.

• Light-heavy 19,501-26,000 pounds.

• Heavy-heavy 26,001 pounds or more.

Sample Design

Using an estimated 75 million motor vehicle registrations supplied by the states, the R.L. Polk & Co., under a

Census Bureau contract, selected a stratified probability

sample1 of 130,500 trucks and truck tractors in accordance with the Census Bureau’s sample-size criteria. R.L.

Polk & Co. stratified the trucks and truck tractors into the

following five body-type categories within each state:

• Pickup (consisting only of pickup trucks).

• Van (consisting of paneltrucks, vans, minivans, sportutility vehicles including jeeps, and station wagons on

truck chassis).

• Single-unit light (consisting of all other single-unit

trucks, excluding those in the pickup and van strata,

with a gross vehicle weight of 26,000 pounds or less).

• Single-unit heavy (consisting of the remaining singleunit trucks).

• Truck tractor (consisting of only truck tractors).

Upon receipt of the sample from the contractor, the

Census Bureau entered the sample into a master control

file that was used to mail the two questionnaires and to

determine which vehicles should be included in the

follow-up.

Mailout and Follow-Up

Staff at the NationalProcessing Center (NPC) in Jeffersonville, IN,2 mailed enumeration packages, by state, to

potentialrespondents from January through May 1998.

1

The term ‘‘probability sample’’ means; (1) there are distinct

samples that can be selected. (2) each sample has a known probability of selection, (3) one of the distinct samples is chosen, and

(4) the estimation procedure must lead to a unique estimate of

each sample. 2

Untila reorganization effective May 1, 1998, this unit was

called Data Preparation Division (DPD).

98 Chapter 10 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Table 10-1.

Number of Trucks Sampled

Panel state Number of questionnaires

Panel 1 ............................................................................................. January 16, 1998

Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,336

Delaware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,338

District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,777

Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,706

Hawaii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,304

Maine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,483

Massachusetts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,640

New Hampshire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,489

New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,752

New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,657

North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,731

Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,668

Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,555

Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,625

Panel 2 ............................................................................................. February 13, 1998

Arizona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,624

Arkansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,795

Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,587

Idaho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,456

Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,618

Iowa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,701

Louisiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,563

Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,653

Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,685

Mississippi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,459

Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,611

Montana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,549

Nebraska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,593

Nevada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,481

North Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,594

Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,628

Oklahoma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,091

Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,622

Rhode Island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,266

South Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,572

South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,539

Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,671

Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,787

Vermont . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,345

Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,685

West Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,547

Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,656

Panel 3 ............................................................................................. April 10, 1998

Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,596

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,617

Connecticut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,557

Georgia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,669

Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,625

Kansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,599

Kentucky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,613

Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,588

Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,492

Panel 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 27, 1998

New Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,903

History—1997 Economic Census Chapter 10 99

U.S. Census Bureau, 1997 Economic Census
The Census Bureau provided customized mailing and

reporting arrangements for owners of large fleets of

trucks selected in the sample.3 Based on the owners’ preference, questionnaires were boxed by ‘‘panel’’—each panel

composed of truck registrations in selected states—and

mailed to the corporate headquarters or other designated

location for completion.

Each mailout package consisted of the appropriate

questionnaire, cover letter, and a return envelope. The

Census Bureau sent questionnaire TC-9501 to owners of

trucks in the pickup and van strata, and questionnaire

TC-9502 to owners of all other truck types (see Table

10-1). Census Bureau staff identified vehicles on the questionnaire prior to mailing: they included—in the registration information section—the vehicle make, model year,

license number, and vehicle identification number. Owners

were asked to reply only for the identified truck, regardless of other vehicles they might own or operate. They

were to return their questionnaires to the NPC within 30

days of receipt.

Four days prior to each panel’s mail follow-up, the file

of nonrespondents was sent to the NPC. Then, a second

form TC-9501 or TC-9502 questionnaire was printed, with

the registration information, and mailed with the proper

follow-up letter. Recipients of questionnaires TC-9501 or

TC-9502 were mailed letter TC-9500-F during the first

follow-up. During the second follow-up, letter TC-9500-CF

was mailed with the questionnaire.

The Census Bureau used certified mailfor the second

follow-up mailing of the questionnaires. Then, staff

conducted a telephone follow-up, by strata, within states

whose response rate was less than 75 percent. In some

cases, the phone call served as a reminder, and resulted in

a mailresponse. If questionnaires were not returned to the

NPC, analysts phoned the company’s contact person to

request a response. This continued untilthe strata were

closed out for each panel. The data collection process was

completed in September 1998.

The response rate for certified mailwas 38.6 percent.

The Census Bureau received responses from 105,054 (or

about 80.4 percent) of companies in the sample. The final

response rate for customized reports was 88.7 percent.4

Data Processing

Receipt and check-in. Clerks at the NPC checked

responses in as the questionnaires arrived. The clerks

used laser scanners to read the barcoded Census File

Numbers (CFNs—Chapters 7, ‘‘Preparations for Census

Mailout,’’ and 8, ‘‘Data Collection and Processing,’’ provide

more detailon CFNs) on each mailaddress label. This procedure checked each report form into the Transportation

Automated ControlSystem (TRACS), a system that

tracked questionnaires through all stages of data processing. The NPC received two types of survey-related

mail—questionnaires and correspondence. Clerks assigned

a check-in (source) code for the type of receipt: mail, telephone, fax, undeliverable as addressed, received in Washington DC, delinquent, telephone follow-up, congressional

correspondence, and other correspondence. After checkin, clerks entered the appropriate status code for each

questionnaire in the TRACS, and referred the questionnaires to the appropriate processing unit. When more than

one questionnaire was received in one package, the clerks

kept the questionnaires together through all stages of processing so that one contact could be made, if required, for

all questions.

Data screening and entry. Clerks screened all questionnaires for completeness and to ensure that the information provided by respondents could be keyed. They also

(1) looked for ‘‘must items’’ that needed to be completed,

(2) converted responses (e.g. pounds to tons), (3)

transcribed respondent remarks, (4) clarified illegible

responses, and (5) rounded figures. If information for any

of the ‘‘must items’’ was missing, the questionnaire was

routed to the telephone unit, where Census Bureau staff

called the truck owner to obtain complete information. All

questionnaire items that could not be completed satisfactorily through screening or by phone were forwarded to a

statisticalassistant at the NPC for resolution.

Once the questionnaires were screened, and all problems had been resolved, they were forwarded to the

microfilming unit. Microfilming equipment scanned the

bar-code on each address label as each questionnaire was

filmed, and included it in a file sent to Census Bureau

headquarters with the accompanying reeland frame number. The originalmicrofilm was stored at the NPC and a

copy of each reelwas sent to headquarters to be used in

data editing and data analysis. After microfilming, the

questionnaires were routed for data keying.

The data entry unit keyed (1) corrections made to the

registration information, (2) all data responses provided

on the questionnaires, and (3) comments written by

respondents. The NPC transmitted the information to the

Census Bureau’s computer center in Bowie, MD, via dedicated telephone lines. Data tapes were retained for possible retransmission until the Census Bureau’s computer

center notified the NPC that the data had been received.

3

While the Census Bureau forms typically were mailed to the

registered owner of the vehicle, the Census Bureau contacted

owners of large fleets and asked if they would prefer another

arrangement. Some owners wanted all forms mailed to their corporate headquarters to a particular individual who became the

Census Bureau contact for follow-ups. Other owners preferred

that the Census Bureau sort the forms by a given characteristic

(such as state of registration or subsidiary) and maileach to a particular address or individual. 4

The response rate for customized reports was higher because

the Census Bureau was dealing at the company level for the

completion of many forms—in some cases, hundreds. The Census

Bureau offered companies options on completing one form to represent others with ‘‘like’’ characteristics.

100 Chapter 10 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Data edits. At Census Bureau headquarters, each data

record underwent a detailed computer edit for inconsistencies and reasonableness. During this stage, the Census

Bureau sometimes inserted data—based on administrative

information supplied by R.L. Polk & Co. or from other

data-item responses—into the data file to complete blank,

or obviously incorrect, responses. The computer flagged

items that failed edits, and displayed each failed record for

review by an analyst. Once the analyst made corrections,

the record was re-edited and displayed again if it still

failed the edit. In addition to making corrections, analysts

also deleted records—determined by pre-set criteria—to

be out of scope of the survey.

Census Bureau staff developed procedures to impute

annual miles and lifetime miles. Averages were calculated

based on responses to the five characteristics most closely

correlated with annual and lifetime miles—model year,

vehicle type, acquisition, disposal, and weeks operated.

Cubic-inch displacement and number of cylinders were

derived from administrative records from each state.

Length and average weight (if data were missing) were

imputed for each truck. These imputations were based

upon responses from records with similar characteristics.

Once data records from the 1997 VIUS had been edited

and tabulated, the NPC stored the paper questionnaires

untilJanuary 1, 2000, after which they were destroyed.

After data tabulation and publication for the 1997 VIUS,

the microfilm of the questionnaires was sent to the

Washington FederalRecords Center in Suitland, MD, for

archiving.

Data Tabulation and Release

For each state, data were tabulated using unweighted

and weighted estimates of the number of trucks and their

characteristics. Headquarters analysts computed corresponding sampling variability, checked tabulations for

consistency and logic, and made comparisons between

1992 and 1997 data. Prior to the preparation of Portable

Document Format (pdf) files for release on the Internet,

certain data were automatically suppressed. Such data

were not published if the estimates did not meet publication standards on either of two bases: the response rate,

or the associated or relative standard error.

In addition to the respective printed and Internet

releases of the United States Summary—as well as Internet

releases of state level data—the 1997 VIUS produced

microdata information for each truck in the sample. These

records were modified to avoid identification of individual

trucks or operating establishments, and subsequently

were made available on a CDROM. The CD-ROM included

state level and United States’ data tables, tabulating software, and documentation.

1997 COMMODITY FLOW SURVEY

Precursors to the 1997 CommodityFlow Survey

(CFS)

From 1963 through 1977, the Census Bureau produced

measures on the flows of goods and materials according

to mode of transportation. These data were gathered in

the Commodity Transportation Survey (CTS). An evaluation

of the 1977 CTS showed that major problems were caused

by the methodology used to collect the shipment samples,

as well as the small sample size used. In 1983, the Census

Bureau conducted an abbreviated CTS that required summary data from those surveyed. Because an evaluation of

the 1983 survey found that the summary data were of

poor quality, the Census Bureau did not publish 1983 survey results.

In 1990, the Department of Transportation and the

Census Bureau began exploring the possibility of restoring

a commodity-based survey. The need for this information

was recognized in the ‘‘Statement of NationalTransportation Policy’’ issued by the Secretary of Transportation in

1990. This was reinforced by the IntermodalSurface

Transportation Efficiency Act that Congress enacted in

1991. Thus, the Census Bureau designed the Commodity

Flow Survey (CFS) to collect and publish statistics that had

previously been produced by the CTS. The new survey

was first conducted for 1993; the data were collected by

the Census Bureau with additionalfunding and support

from the Bureau of Transportation Statistics.

Scope of the 1997 CFS

The 1997 CFS collected data on commodities shipped,

their value, weight, and mode of transportation, as well as

the destination of shipments. The 1997 survey involved a

sample of approximately 100,000 domestic manufacturing, mining, wholesale, and selected retail establishments.

Changes Made From Previous CommodityFlow

Surveys

Using the results of the 1993 CFS, the Census Bureau

developed a more efficient sample design. Whereas the

sample size in 1993 was 200,000 establishments, the

1997 survey sampled only 100,000 establishments. In

addition, the sampling period for each questionnaire was

reduced from 2 weeks for the 1993 survey to 1 week for

1997.

Other changes for 1997 included—

• Data collection using the four-digit United

Nations/North American (UN/NA) code—instead of the

‘‘yes/no’’ indication used previously—to improve the

identification of hazardous materials being transported.

• Change in the coding system—for major commodity

shipped—from the 1993 survey’s Standard Transportation Commodity Classification (STCC)5 system to the

Standard Classification of Transported Goods (SCTG)

system in 1997 (see discussion below).

5

The Standard Transportation Commodity Classification (STCC)

is a seven-digit classification developed by railroads and maintained by the Association of American Railroads.

History—1997 Economic Census Chapter 10 101

U.S. Census Bureau, 1997 Economic Census
Uses of the Data

Data from the CFS were used by various Federal

agencies for policy and program purposes, as well as by

private companies for research:

• The U.S. Department of Transportation used these data

for policy development, assessing infrastructure needs,

and in evaluating transportation safety issues.

• State Departments of Transportation used the CFS

results in combination with other data sources to evaluate existing uses/needs of their transportation

infrastructure.

Sample Design

The 1997 CFS used an approximate 1-in-8 sample

drawn from a universe of 800,000 establishments in the

mining, manufacturing, wholesale trade, and selected

retail trade industries, including auxiliary establishments

of multiestablishment companies. The sample was

selected using a stratified three-stage design in which the

first-stage sampling units were establishments, the

second-stage sampling units were groups of four 1-week

periods (reporting weeks) within the survey year, and the

third-stage sampling units were shipments.

Data Collection

Establishments were mailed four questionnaires—one

for each of the reporting weeks. Establishments were to

provide data on approximately 25 of their outbound shipments for a 1week period in each of the four calendar

quarters of 1997. Establishments with 40 shipments or

fewer for the 1-week period were to report all shipments.

Standard Classification of Transported Goods

(SCTG).

For the 1997 CFS, commodities shipped were classified

using the SCTG. The SCTG is a four-levelhierarchicalsystem, created jointly by agencies of the United States and

Canada to produce better measures of transportation

activity from the Commodity Flow Survey. The SCTG is

based on building blocks provided by the Harmonized

Commodity Description and Code System and Canada’s

Standard Classification of Goods coding system. (The

Harmonized Commodity Description and Code System is a

six-digit coding system used in the United States to valuate exports, imports, and customs.)

Mileage calculations. The mileage estimate component

of the 1997 CFS was produced by the Oak Ridge National

Laboratory’s (ORNL) Center for Transportation in Oak

Ridge, TN. The Center used a series of transportation networks developed and maintained at the ORNL to

create estimates of miles traveled by mode(s) of transportation on a shipment by shipment basis.

Mailout. Mailout and data collection were conducted by

the NPC and took place on a flow basis during each of the

four calendar quarters of 1997. Initial mailout began in

December 1996, and follow-up concluded in February

1998. During mailout, establishments were sent a questionnaire, an instruction guide, and a Commodity Coding

Manual.

The Census Bureau used two versions of the

questionnaire—form CFS-1000 and form CFS-2000. Each

establishment received form CFS-1000 in each of its first 3

reporting weeks. For the fourth reporting week of each

quarter, a subsample (approximately 25,000) received

form CFS-2000, while the remaining establishments

received form CFS-1000.

The Census Bureau requested that each establishment

report the following information:

• Physical location (if different from that on the mailing

label).

• Operationalstatus (i.e., in operation, temporarily or seasonally inactive, ceased operation) of the establishment

during the 1-week sampling record.

• Totalnumber of shipments made during the 1-week

period.

The establishments also were requested to provide the

following data for each shipment sampled:

• Shipment document number and date of shipment.

• Shipment weight in pounds.

• Value of shipment.

• Commodity description and the five-digit SCTG.

• The UN/NA code for hazardous materialshipments.

• All domestic modes of transportation used.

• Whether the shipment was containerized.

• Domestic-destination city, state, and ZIP Code.

• Whether the shipment was an export and, if so, the

mode of export and the city and country of destination.

In addition to the above items, recipients of the form

CFS-2000 were asked to furnish additionaldata on the

availability and use of transportation facilities and equipment as follows:

• Were the following on-site facilities available, and were

they used: railsiding, waterway docks, airport/landing

strips, or pipeline terminals?

• Did you use the following off-site facilities and, if so,

what was the distance of the facility from your establishment and mode of transport used to reach it: rail

siding, waterway dock, airport/landing strip, and

pipeline terminal?

102 Chapter 10 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Did you use railcars that (1) your company owned or

leased, (2) a common carrier owned or leased, or (3)

another party owned or leased? Also, what percentage

of your totalrailshipments were each of these three

methods?

• Did you use trucks (with six or more tires) or truck

tractors that your company (1) owned, (2) leased with a

driver, or (3) leased without a driver?

• Did you use the following equipment that your company owned or leased: truck trailers, aircraft, barges,

and other equipment (specify)?

• Who generally decided on the mode of transportation

used for your shipments—your company, receiver of the

shipment, or other?

Data Processing

Mailout, check-in, screening, and data capture for the

1997 CFS were conducted by the NPC. Additionalautomated edits were conducted at Census Bureau headquarters. Edit problems were resolved at both the NPC and

Census Bureau headquarters. The NPC also was responsible for the follow-up, which consisted of a reminder

mailed to nonrespondents. A telephone follow-up was

conducted, during which the largest establishments were

asked to return their completed questionnaires. Census

staff did not attempt to collect data by phone because of

the large amount of data requested by the questionnaires.

The overall response rate for the 1997 CFS was approximately 75 percent.

Editing. The Census Bureau headquarters staff created a

flow-processing edit program to identify inconsistencies,

range errors, and criticalomissions. The edit program was

run on a computer system, following the transmission of

the data entry files from the NPC to Census Bureau headquarters. The edit program assigned a series of flags for

missing or incorrect data.

Imputation of missing data. Item nonresponse

occurred when a data variable (either value or weight)

either was not reported or was determined to be invalid

by the edit process. Establishment nonresponse, in turn,

took place when an establishment failed to report

shipment data for at least one quarter. Under certain

conditions, item nonresponse was handled by imputation

procedures. Establishment nonresponse was handled

primarily by an adjustment of statistical weights.

Disclosure review. To make certain that information

about individual companies would not be disclosed, the

Census Bureau subjected the data to disclosure analysis.

In conformance with the Census Bureau’s confidentiality

rules, a computerized disclosure analysis system

identified—and withheld from publication— data that

might have revealed the identities of, and information

about, individualcompanies. In those instances, the Census Bureau substituted a reference symbol‘‘D’’ for the data

in the published tabulations.

Publication Program

Data from the 1997 CFS were made available in both

printed and electronic formats. Tables provided information on commodities shipped, their value, weight, and

mode of transportation, as well as the origin and destination of shipments. The survey also provided selected data

on hazardous materialshipments and exports. Commodity

detail for national tables was at the four-digit SCTG level.

Data were at the two-, and where possible, three-digit

SCTG level for state reports. Data from the 1997 CFS were

released for the following geographic levels: United States,

census regions and divisions, states and selected metropolitan areas and remainder of states.

History—1997 Economic Census Chapter 10 103

U.S. Census Bureau, 1997 Economic Census
Chapter 11. ECONOMY-WIDE PROGRAMS

Introduction ................................... 107

1997 Surveys of Minority- and Women-Owned Business Enterprises ..... 107

Background Information ........................... 107

Comparability With the 1997 Economic Census ............... 107

Introduction................................. 107

Use of the Standard Industrial Classification (SIC) Code ......... 107

Scope .................................... 107

Business unit ................................ 108

Treatment of corporations and employer identification

numbers (EINs) .............................. 108

Explanation of Terms .............................. 108

Survey Methodology ............................. 108

Survey of Minority-Owned Business Enterprises (SMOBE) ......... 108

Survey of Women-Owned Business Enterprises (SWOBE) ......... 109

Sampling frames .............................. 109

Data Collection ................................ 109

General information ............................ 109

Questionnaires ............................... 109

Mailout and mail follow-up......................... 109

Telephone follow-up ............................ 110

Data Processing and Tabulation ....................... 110

Receipt and check-in ............................ 110

Data entry.................................. 110

Edit and tabulation ............................. 110

Use of administrative records ....................... 110

1997 Business Expenditure Survey....................... 111

Introduction.................................. 111

Comparability With the 1997 Economic Census ............... 111

Introduction................................. 111

Use of the SIC Code ............................ 111

Reporting units ............................... 111

Collection methodology .......................... 111

Schedule .................................. 111

Changes From Predecessor Survey...................... 111

Scope and Content .............................. 111

Explanation of Terms ............................. 112

Operating expenses ............................ 112

Measures of value produced ........................ 112

Sample Design ................................ 113

Data Collection ................................ 113

Report forms ................................ 113

Mailout and follow-up ........................... 113

CONTENTS

History—1997 Economic Census Chapter 11 105
1997 Business Expenditure Survey—Con.

Data Processing and Tabulation ....................... 113

Receipt and check-in ............................ 113

Data entry.................................. 114

Edit and tabulation ............................. 114

Tabulation and Sources of Related Data ................... 114

Publication Program—Economy-Wide Programs ................ 114

106 Chapter 11 History—1997 Economic Census
Economy-Wide Programs

INTRODUCTION

The 1997 Economic Census included an economy-wide

survey—the Survey of Business Owners. The U.S. Census

Bureau published results of this survey in several volumes,

as the Survey of Minority-Owned Business Enterprises

(SMOBE) and the Survey of Women-Owned Business Enterprises (SWOBE).

The 1997 SMOBE was the seventh in a series initiated in

1969; the first was a special project, while the 1977,

1982, 1987, 1992 and 1997 surveys were part of the

economic census. As in the past, this latest effort provided

basic economic data on businesses owned by Blacks,

persons of Hispanic origin, Asian and Pacific Islanders,

and American Indians and Alaska Natives.1

The 1997 SWOBE was the sixth in a series begun in

1972. The first was conducted as a separate program,

while the subsequent surveys were part of the economic

census and provided economic data on businesses owned

by women.

The SMOBE and SWOBE provided data on not only the

numbers of minority- and women-owned firms, but also

on sales and receipts, annual payroll, and employment.

Data aggregates were presented for the United States by

two-digit Standard Industrial Classification (SIC) code,

employment and receipts size, and legal form of organization; data were provided at the state level by two-digit SIC

Code.

The 1997 census also included the 1997 Business

Expenditures Survey (BES), which covered establishments

in most of the wholesale, retail, and services sectors of

the economy. The BES, previously called the Assets and

Expenditures Survey (AES), was renamed for 1997 when

the assets and capital investments inquiries were dropped

from the survey. Data collected in the BES included operating expenses of retailers, merchant wholesalers, and service firms (as classified under SIC). Statistical results were

issued with operating expenses compiled in other trade

surveys covering communications, transportation, travel,

manufacturing, mining, and construction firms.

The SMOBE and SWOBE results were published on a flow

basis in a series of seven publications. The BES results

were published in a single report, Business Expenses. (See

the ‘‘Publication Program’’ section below for more details.)

1997 SURVEYS OF MINORITY- AND WOMEN-OWNED

BUSINESS ENTERPRISES

Background Information

The 1997 SMOBE and SWOBE surveys represented the

Nation’s principal source of data needed to evaluate the

extent and growth of business ownership by minorities

and women. The data provide a framework for assessing

and directing Federal, state, and local government programs designed to promote the activities of disadvantaged groups.

Persons, private firms, and institutions, in both the public and private sectors, use these survey data to evaluate

businesses and markets. They are used by the media for

news stories, as well as by researchers and academia. The

Small Business Administration and the Minority Business

Development Agency use the data when allocating

resources for their business assistance programs.

Comparability With the 1997 Economic Census

Introduction. The information collected by the SMOBE

and SWOBE was not always comparable to the statistics

collected in the other economic census programs because

of differences in; (1) the industry classification systems

used, (2) industrial scope and business reporting units

used, and (3) the treatment of corporations and employer

identification numbers (EINs). These are explained in more

detail below.

Use of the Standard Industrial Classification (SIC)

Code. SMOBE and SWOBE continued to use the SIC Code

for industrial classification while the Census Bureau had

adopted the North American Industry Classification System (NAICS) for the bulk of the 1997 Economic Census

(Chapter 3, ‘‘The Introduction of the North American

Industry Classification System (NAICS),’’ details the history

and differences of the two).

Scope. The 1997 SMOBE and SWOBE covered most SIC

Code industries. Agriculture production (SIC 01, 02), the

U.S. Postal Service (43), Membership Organizations (86),

Private households (88), and Public Administration (91-97)

were excluded.

Several SIC industries were in scope of the SMOBE and

SWOBE, but out of scope of the basic economic census.

These included Agricultural Services (07), Forestry (08),

1

In addition, the 1997 SMOBE and SWOBE incorporated portions of the Enterprise Statistics Program, last conducted during

the 1992 Economic Census, but dropped from the 1997 Economic

Census (due to budget restrictions).

History—1997 Economic Census Chapter 11 107

U.S. Census Bureau, 1997 Economic Census
and Fishing, Hunting, and Trapping (09). Membership

Organizations (86) were within the scope of the census,

but out of scope of the SMOBE and SWOBE.

Business unit. Most of the economic census was conducted on an establishment or physical location basis,

individually enumerating and tabulating each establishment owned by a firm. In the SMOBE and SWOBE, however,

the whole firm was the primary unit for enumeration and

U.S. level tabulations.

Treatment of corporations and employer identification numbers (EINs). For the first time, the 1997 SMOBE

and SWOBE included all corporations. Prior to 1997, only

limited data were available for corporations.

Treatment of EINs also was new for 1997. The Census

Bureau had historically defined a business as an entity that

filed a business income tax return. Businesses that had

received one or more EINs may have filed tax returns

under more than one as well. In past surveys, each EIN

was treated as a separate business. For 1997, all operations under the same ownership were defined as one company or business, irrespective of the number of the company’s EINs. This definition eliminated the likelihood of

surveying the same business owner more than once. This

change had no effect on the employment and payroll data

for the survey, but slightly reduced the count for the number of businesses and the total receipts.

EXPLANATION OF TERMS

Definitions of the survey terms for SMOBE and SWOBE,

which differed somewhat from those used for the 1997

Economic Census, were as follows—

• Company. A company was a business consisting of one

or more domestic establishments owned or controlled

by the reporting firm at the end of 1997. If a company

owned or controlled other companies, all establishments of the subsidiaries were included as part of the

owning or controlling company. The five types of entities (legal forms of organization) covered were—

• Subchapter S corporation—Special Internal Revenue Service (IRS) designation for a business that was

legally incorporated under state laws, and had 75 or

fewer shareholders who, because of tax advantages,

elected to be taxed as individual shareholders rather

than as corporations.

• C corporation—A legally incorporated business

under state laws. Unlike a subchapter S corporation,

a C corporation has no restriction.

• Individual proprietorship—Unincorporated business owned by one person or by self-employed individuals with no employees. The economic activity

may have been the self-employed activity of a person

who held a full-time job working for someone else.

Moreover, the firm might operate one or more places

of business, such as a chain of restaurants, or have

no fixed business location, such as the firm represented by a self-employed carpenter or salesperson.

• Partnerships—Unincorporated business owned by

two or more persons.

• Other—Included in this group are cooperatives,

estates, receiverships, and businesses classified as

unknown legal forms of organization.

• Gross receipts—These included the gross value of

all products sold, services rendered, or other receipts

from customers during 1997, less returns and allowances. The published reports presented value of sales

and services whether or not payment was actually

received during the year and, therefore, the data did

not indicate a cash flow. There were no adjustments

made for the costs of doing business.

• Employees. These were individuals who worked either

full or part time. Proprietors, partners, or owners who

worked in the business, but were not paid a regular salary subject to withholding for Social Security Administration (SSA) deductions, were excluded. Also excluded

were family members or others who worked in the business, but were not subject to withholding taxes.

Survey Methodology

Survey of Minority-Owned Business Enterprises

(SMOBE). The SMOBE required determining the minority

status of the ownership of each firm in the survey, and

then matching to each firm the data collected in the economic census or gathered from administrative records.

The Census Bureau classified a firm as minority-owned

based on the race and ethnicity of the person(s) owning

majority interest. Businesses were identified as

minority-owned through a mail canvass to a sample of

corporations, partnerships, sole proprietorships, and selfemployed individuals. Any business was eligible to be

selected in the sample, but firms whose owners were

potentially of Hispanic, Asian, Pacific Islander, or Native

American origin had a higher probability of selection.

These firms were identified using one of the sources listed

below—

• Lists of minority-owned businesses published in

syndicated magazines, located on the Internet, or

disseminated by trade or special interest groups.

• Previous SMOBE respondents.

• A list of common surnames for these minority groups,

based on research using prior SMOBE data.

• The owner(s)’ self-designated race classification on an

application for a Social Security Number.

108 Chapter 11 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Racial distributions for various ZIP Codes.

• Racial distributions for various state-industry classes

(derived from 1992 SMOBE responses).

• Word strings in the company name indicating possible

minority-ownership (derived from 1992 SMOBE

responses).

The sample was stratified by size (using volume of

sales or payroll) and geographically by state. The Census

Bureau selected large companies ‘‘with certainty’’—i.e.,

they were sure to be selected and represented only

themselves (i.e. have a selection probability of one and a

sampling weight of one). The certainty cutoffs varied by

sampling stratum, and the Census Bureau sampled each

stratum at varying rates, depending on the number of

firms in a particular industry in a particular state. The

sampling rate was lowest in states and industries with the

greatest number of firms. A similar methodology was used

to select a sample from the remaining universe: the purpose of this was to estimate the number of firms owned

by persons of minority ancestry when no indication of

minority-ownership was found from any of the sources

listed above. The mail sample did not include those sole

proprietorships that had reported in the 1992 survey and

were still active in 1997; rather, the 1992 responses were

used in lieu of responses to a mail sample.

Survey of Women-Owned Business Enterprises

(SWOBE). With the 1992 SWOBE, the Census Bureau discontinued using administrative record data from the IRS

and SSA to identify owners of partnerships and subchapter

S corporations. Rather, women-owned corporations and

partnerships were identified from sample data.

For 1997, the Census Bureau used administrative data

to determine the gender of the owner(s) of businesses

filing an IRS form 1040C (sole proprietorship or selfemployed person—not a joint return). Businesses filing

a joint return, where it could not be determined with

certainty whether the husband/wife or both owned the

business, were eligible for sampling and were mailed a

questionnaire to determine the owner’s gender.

In past surveys, a firm fell within scope of this program

if the sole owner was a woman or if one-half or more of

the partners or shareholders were women. For 1997, a

separate tabulation was made for those businesses whose

stock was equally owned by males and females and these

were not counted as female-owned. Only businesses in

which women owned a 51 percent or greater interest were

counted as women-owned firms. Nonprofit and foreignowned companies, as well as those with publicly held

stock whose ownership is indeterminate were tabulated

separately.

Sampling frames. There were six sampling frames in

the SMOBE and SWOBE and every case was assigned to one

of the following frames—

• American Indian.

• Asian/Pacific Islander.

• Black.

• Hispanic.

• National (non-Hispanic White male).

• Women.

Data Collection

General information. Phase I of the data collection

began in August 1998. The universe included all corporations or partnerships reporting any business activity in

1996. A sample of over 1 million businesses from the

American Indian, Asian/Pacific Islander, and Hispanic

frames were mailed report forms.

Phase II began the following year, with the mailing of an

additional 1.5 million report forms in July 1999 to cases

assigned to each of the six sampling frames. This universe

included corporation or partnership births and sole

proprietorships and self-employed persons reporting any

business activity in 1997.

Questionnaires. Four questionnaires were used for the

1997 SMOBE and SWOBE—the MB-1 and MB-2, in English,

and the MB-1(SP) and MB-2(SP), in Spanish. The Spanish

language questionnaires were mailed to respondents upon

request. The Census Bureau sent the MB-1 questionnaires

to partnerships and corporations, or to sole proprietorships that submitted joint tax returns where, based on the

administrative records, it was probable that the husband

and wife were of different races. The MB-2 was used for

sole proprietors and self-employed individuals who were

‘‘single filers’’ or who filed joint returns where, based on

the administrative records, there was a low probability

that the husband and wife were of different races.

Businesses were asked questions about the gender, race

and ethnicity of the person(s) owning majority interest in

the business, the number of owners, and whether any of

the businesses’ receipts in 1997 resulted from business

conducted with the Federal government.

Mailout and mail follow-up. The preparations for the

1997 SMOBE and SWOBE mailout were similar to those for

the economic census. The Census Bureau engaged a private contractor to print the 2.6 million MB-1 forms, the 2.9

million MB-2 forms, and approximately 5.5 million each of

the cover letters (which included frequently asked questions about the survey and answers). The contractor

assembled the survey packages and delivered them to the

National Processing Center (NPC). The MB-1 packages were

delivered in July, and the MB-2 packages in December,

1998. The Spanish versions of each questionnaire,

MB-1(SP) and MB-2(SP), were printed using an in-house

DocuPrint high speed color printer. At the NPC, addresses

were imprinted directly on the questionnaires using an ink

jet printer.

History—1997 Economic Census Chapter 11 109

U.S. Census Bureau, 1997 Economic Census
On August 17, 1998, 1,001,426 MB-1 questionnaires

were mailed to employer corporations and partnerships

active in 1996 (Phase I). The Census Bureau conducted a

final mailout (Phase II) of 1,529,396 questionnaires on July

7, 1999, consisting of 208,019 nonemployer and

employer corporations or partnerships that were active in

1997, but had not been active in 1996 (Phase 1), and

1,321,377 sole proprietorships and self-employed persons

reporting any business activity in 1997. Surnames and SSA

race codes were available for limited use in sampling

these firms. Otherwise, the Census Bureau used

methodology similar to that specified above for sole

proprietorships.

The Census Bureau asked companies to return their

completed questionnaires within 30 days of receipt; nonrespondents were included in one or more of the three

mail follow-ups. Below are the dates of the follow-ups, and

the types and number of questionnaires mailed in each.

Completed questionnaires were received from 813,870

businesses in Phase I, yielding an overall response rate of

81.3 percent. The U.S. Postal Service returned 58,935

cases in Phase I as ‘‘Undeliverable As Addressed’’ (UAAs)

and these cases were assumed to be out of business.

Figure 11-1.

Mailouts and Mail Follow-Ups

Mailout Date Questionnaire Number mailed

PHASE I

Initial mailout . . 08/17/98 MB-1 1,001,426

1st follow-up . . 10/05/98 MB-1 373,364

UAA remail . . . 10/05/98 MB-1 11,282

2nd follow-up . . 10/26/98 MB-1 257,188

3rd follow-up . . 11/25/98 MB-1 160,025

PHASE II

Initial mailout . . 07/07/99 MB-1 293,582

MB-2 1,235,814

1st follow-up . . 08/12/99 MB-1 143,923

08/20/99 MB-2 544,877

UAA remail . . . 09/02/99 MB-1 5,326

MB-2 18,095

2nd follow-up . . 09/13/99 MB-1 79,059

09/20/99 MB-2 300,916

3rd follow-up . . 10/14/99 MB-1 46,337

10/20/99 MB-2 221,287

Telephone follow-up. The Census Bureau conducted a

telephone follow-up of 50,639Phase I nonrespondent

SMOBE and SWOBE cases, beginning January 11, 1999, and

continuing through March 5, 1999. ‘‘Certainty’’ cases comprised approximately half of the of the cases selected

from a pool of large-receipts size companies—the other

half was randomly selected from the remaining pool of

nonrespondents. By the closeout of data collection,

responses had been obtained by telephone for 26,095 of

these cases; 14,118 firms had refused to respond, or had

not answered after 4 attempts to contact. The Census

Bureau was unable to obtain telephone numbers for the

remaining 10,426 cases.

A telephone follow-up to 36,000 Phase II nonrespondent SMOBE and SWOBE cases was conducted from

September 10 through September 30, 1999 in conjunction

with the second follow-up mailing. A total of 26,426 cases

with valid phone numbers were selected with certainty

and 9,574 cases were randomly selected from the pool of

remaining cases for which no phone number existed on

the SSEL. By the closeout, 5,999 late mail returns had been

received, leaving a net workload of 30,001. Data were

obtained from 19,144 (63.8 percent) cases, 507 (1.7 percent) cases refused to respond, and 10,350 (35 percent)

were unreachable (i.e. no phone number, voice mail, no

knowledgeable contact, etc.).

Data Processing and Tabulation

Receipt and check-in. The 1997 SMOBE and SWOBE

questionnaires were returned to the NPC office where they

were checked in using automated barcode scanning equipment. The check-in file was used to update the survey

mail list and to generate address files for mail follow-up of

nonrespondents.

Data entry. Company identification information and data

from each questionnaire were captured by an electronic

imaging system developed by Lockheed Martin for the

decennial census using optical character recognition and

optical mark recognition software. The SMOBE/SWOBE programs were the first production test of the system and

had to work within the time constraints imposed by the

2000 Decennial Census. Forms that were returned too late

for processing were keyed by NPC data-entry staff.

Edit and tabulation. The data for the 1997 SMOBE and

SWOBE were edited and tabulated on a flow basis as

responses were received. Between February and April

2000, staff at Census Bureau headquarters used the company record files and interactive computer systems to

develop the publication tables for each survey. The Company Statistics Division and Administrative and Customer

Services Division staff prepared the accompanying text

and worked out the details of the format and design of the

printed reports.

Use of administrative records. Once the minority- and

women-owned businesses had been identified, the Census

Bureau retrieved the following information from its database, which contained 1997 Economic Census questionnaire responses and information from administrative

records),2 and matched the information to the proper

firm—

2

The Census Bureau’s principal sources of noncensus administrative records were the IRS, the SSA, and the Bureau of Labor Statistics. For more information on the kinds of records and data

used, see Chapter 7, ‘‘Preparations for the Census Mailout.’’

110 Chapter 11 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• Annual payroll (for a company with paid employees).

• Geographic codes.

• Organizational status (sole proprietorship, partnership,

or corporation).

• Number of employees reported during the week including March 12, 1997.

• Receipts.

• SIC Code.

1997 BUSINESS EXPENDITURE SURVEY

Introduction

The 1997 Business Expenditures Survey (BES) represents the only reliable source of the Nation’s business

expenses data covering merchant wholesale trade, retail

trade, and service industries. The 1997 BES supplements

basic economic statistics produced by the 1997 Economic

Census for the wholesale trade, retail trade, and services

sector industries with estimates of operating expenses.

Further, it provides measures of value produced for merchant wholesale and retail trades. Essential measurement

of the Nation’s economy requires compilation of comprehensive and reliable data on both economic outputs (e.g.,

sales) and inputs (e.g., utility and advertising expenses),

and the BES is the sole source of national business inputs

data for covered industries.

The Federal Government is the primary user of the BES

data. In particular, the Bureau of Economic Analysis—the

Federal agency that produces gross domestic product

estimates and maintains the national economic

accounts—uses information from the survey for developing the national income and product accounts, inputoutput tables, and economic indexes, and to fill previously

identified critical gaps in underlying data in these

accounts.

Comparability With the 1997 Economic Census

Introduction. The 1997 BES differed from other 1997

Economic Census operations in four major respects—

(1) use of the SIC Code for industrial classification,

(2) reporting units used, (3) data collection methodology,

and (4) the data collection schedule.

Use of the SIC Code. As was the case with the SMOBE

and SWOBE, the BES continued to use the SIC Code for

industrial classification instead of the NAICS used for the

bulk of the 1997 Economic Census.

Reporting units. The economic census collected data on

a total enumeration basis, obtaining supplementary data

by sampling. In contrast, the BES used stratified probability sampling exclusively (discussed below under ‘‘Sample

Design’’). While the reporting unit for multiestablishment

firms in the census was the individual component establishment, the reporting unit for the BES was a combination

of company-within-trade area, subsidiary/division-withintrade area, or Employee Identification Number (EIN)-

operations-within-trade area (EINs are described above).

This reporting arrangement was designed primarily to

minimize respondent burden.

Collection methodology. A third major difference was

how the data were collected. Because the BES sample was

shared by the annual business surveys, the initial questionnaire mailings were combined with those surveys’

1997 mailings, and shared the respondent cover letter.

Mail and telephone follow-ups, however, were conducted

independently.

Schedule. A fourth difference was the data collection and

publication schedule. The response due date for the 1997

Economic Census was February 12, 1998, but mid-March

for the BES. Reports from most of the 1997 Economic Census were released on a flow basis from early 1999 through

late 2000. The BES results were scheduled for release by

late 2000.

Changes From Predecessor Survey

The 1997 BES was the successor to the 1992 Assets

and Expenditures Survey (AES). The new survey questionnaire deleted questions on depreciable assets, capitalized

interest, and capital expenditures. Items were added asking for expenditures for contract labor and computer software and services. Coverage of selected service industries

was extended to include nonemployer companies (those

with no paid employees). The 1992 survey had obtained

data for nonemployer companies using a business area

sample; for the 1997 BES, the Census Bureau used administrative records for basic data for nonemployers.

Scope and Content

This Census Bureau conducted the 1997 BES under the

authority of the 1997 Economic Census, covering business

operations classified in the 1987 SIC manual. As in prior

years, the industrial scope included merchant wholesale

trade, retail trade, and most service industries. The items

covered included various types of operating expenses.

Data were tabulated and released for the United States

only. Content of the BES report forms included inquires

on—

• Annual payroll.

• Supplemental labor costs.

• Cost of contract labor.

• Depreciation and amortization charges.

• Taxes and license fees, excluding sales and income

taxes.

• Lease and rental payments.

• Cost of office supplies.

History—1997 Economic Census Chapter 11 111

U.S. Census Bureau, 1997 Economic Census
• Cost of materials (wholesale, retail only).

• Cost of contract work (wholesale only).

• Commission expenses (wholesale only).

• Cost of purchased services: communications services;

electricity, fuel, and other utilities; cost of computer

software and other computer related services; repair

and maintenance services; accounting and bookkeeping

services; and legal services.

Companies also were asked to include data for auxiliary

locations whose primary functions were to manage,

administer, service, or support the activities of the main

establishments covered.

Explanation ofTerms

Operating expenses. A few types of operating

expenses requested on the BES report form are selfexplanatory; others included—

• Annual payroll—All salaries, wages, commissions,

bonuses, and allowances for vacation, holiday, and sick

leave paid to employees in 1997 before payroll deductions. For corporations, it included amounts paid to

officers and executives; for unincorporated businesses,

it excluded payments to or withdrawals from profits by

owners or partners. (Annual payroll did not include

employer contributions to plans required by law and

other plans besides vacation, holiday, and sick leave.)

• Employer costs for programs required by law—All

programs required under Federal and state legislation

such as FICA, unemployment tax, workers’ compensation, and state disability payments.

• Employer costs for other fringe benefits—This

included programs not specifically required by Federal

or state legislation, such as life and health insurance

premiums for employees.

• Cost of contract labor—Cost of labor, as supplied by

other firms, under the supervision of the reporting firm.

• Depreciation charges—All amortization and depreciation charges against depreciable assets owned during

1997. Amounts representing tax-exempt organizations,

if not reported, were estimated even though depreciation accounts may not have been maintained.

• Taxes—All taxes and license fees paid during 1997,

excluding income and payroll taxes. These included

tobacco and liquor tax stamps, fines, and property

taxes, and excluded direct payments to government tax

agencies for sales and other taxes collected directly

from customers.

• Lease and rental payments—Payments for lease or

rental of buildings, office and store space, machinery

and equipment. Payments for machinery and equipment

included use of production machinery, office equipment,

computer systems, passenger cars, trucks, materials

handling equipment, and all other types of machinery

and equipment.

• Cost of purchased communication services—Cost

of telephone, data transmission, telegraph, telex, teletype and all other communications services purchased

in 1997.

• Cost of purchased electricity—Some businesses

included this expense as part of building/office lease

payments.

• Cost of purchased fuels—Cost for fuels used for

heating, power, or generation of electricity, also sometimes included in lease payments.

• Cost of other utilities—All utilities costs to respondents, except purchased fuels and electricity, such as

water treatment, sewage, and refuse removal. These

costs were sometimes included in lease payments.

• Cost of materials—Purchases of containers, wrapping,

packing and selling supplies used in packaging, processing, shipping, and selling of goods. Not collected

for service industries.

• Cost of contract work done for wholesalers by

other firms—This included readying merchandise for

sale, such as blending, printing, repacking, and other

processing.

• Commissions paid to other firms—These were for

sales of merchandise made on the account of merchant

wholesalers.

• Computer related services—All costs for data processing and other computer services purchased from

other firms. It included the cost of custom and prepackaged software.

• Cost of purchased repair and maintenance

services—The total amount paid for noncapitalized

repairs and maintenance to buildings, structures,

machinery, and equipment, such as motor vehicles and

office space. It excluded cost of repairs to leased buildings and equipment covered by regular lease payments.

• All other operating expenses—This covered all

inventory storage and shipping costs, insurance

expense (nonemployee), uninsured casualty losses, and

bad debt losses. It excluded interest on loans and sales

and excise taxes.

Measures of value produced. These items were computed for merchant wholesale and retail trades using data

compiled in the BES and business annual surveys.

• Cost of goods sold was calculated by adding all

purchases of merchandise (net of returns, allowances,

and discounts, but including charges from freight, insurance, etc.) during the year to the beginning-of-year

112 Chapter 11 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
inventory, then deducting the end-of-year inventory

from the total. Firms were instructed to exclude the cost

of packaging, processing, shipping, and selling of

goods from the cost of purchases, but to report these

items under ‘‘operating expenses.’’ Purchase of tax

stamps and payments of excise taxes, often included by

tobacco and liquor wholesalers in their purchases, were,

for this survey, excluded from cost of goods sold and

included under ‘‘operating expenses.’’

• Gross margin represented sales less cost of goods

sold. Gross margin is equivalent to the cost of all materials (as distinguished from goods to be resold) and

services provided, whether provided by the reporting

firm itself or purchased by it from others. To the extent

that it included cost of contract work done by others on

materials of merchant wholesale firms, gross margin

included an element of value added by manufacturing.

• Value added was the gross margin (as defined above)

less the cost of supplies, materials, fuel and other

energy, and the cost of contract work on materials of

merchant wholesalers.

• Net income produced at market prices was the

value added less lease and rental payments; cost of

communication, advertising, repair, legal, accounting,

and computer related services; commissions to other

firms; and amounts set aside for bad debt losses and

other losses not compensated by insurance.

• Net income produced at factor cost was income

produced at market prices less depreciation, license

fees, and taxes other than income taxes. It included

payroll, employer contributions to the Federal Insurance

Contributions Act (FICA), and unemployment insurance.

Sample Design

The 1997 BES sample combined probability samples

drawn for the 1997 Annual Trade Survey, the 1997 Annual

Retail Trade Survey, and the 1997 Service Annual Survey.

The sampling frames for the surveys were constructed

from the Census Bureau’s SSEL as of December 31, 1994.

The sampling frame contained two types of sampling

units that represent firms—

• Alpha numbers that represent multiestablishment firms

owning or operating two or more establishments.

• EINs assigned by the IRS for Federal Insurance Contributions Act purposes that represent a cluster of one or

more establishments.

Firms were stratified by kind-of-business and then by a

measure of size based on annual receipts, revenue or

sales.

To reduce the estimate variability, sampling units with

the largest measures of size were selected ‘‘with certainty.’’ The Census Bureau determined, within each kind

of business, a substratum boundary (or cutoff) that

divided the certainty units from the noncertainty units. All

multiestablishment firms not selected with certainty and

all single-establishment firms were subjected to sampling

on an EIN basis.

Census Bureau staff analyzed the data from the 1992

Economic Census to determine the certainty cutoffs and

noncertainty stratum boundaries, and to allocate the

sample among the size strata and kind-of-business

groups. The sampling rates used to select a random

sample of EINs from each noncertainty stratum varied

from 1-in-3 to 1-in-1,000.

After the initial sample selection was completed, newly

identified businesses were represented in the sample

through a two-phase sample procedure. Each quarter, new

EINs on the IRS mailing lists for FICA taxpayers were identified and stratified by kind of business and size (expected

employment or payroll). A relatively large sample was

drawn and canvassed for a more reliable measure of size

and a more detailed kind-of-business code, if needed.

Using this more reliable information, the ‘‘births’’ selected

in the first phase were subjected to probabilityproportional-to-size sampling with overall probabilities

equivalent to those used in drawing the initial sample. EIN

births were added to the sample approximately 9months

after beginning operations.

Data Collection

Report forms. Data covering the year 1997 were collected during 1998 using report forms that supplemented

the Census Bureau’s Annual Business Surveys. In particular, forms B-151(S), B-151A(S), B-151D(S), B-153(S), and

B-153D(S) supplemented the Annual Retail Trade Survey;

forms B-450(S) and B-451(S) supplemented the Annual

Trade Survey (of merchant wholesealers); and forms

B-500(SA) and B-500(SE) supplemented the Service Annual

Survey.

Mailout and follow-up. In January 1998, the Census

Bureau sent 1997 BES questionnaires to approximately

60,000 businesses as a supplement to the Annual Retail

Trade Survey, the Annual Trade Survey (of merchant wholesalers), and the Service Annual Survey. The due date for

returning the responses—directly to the NPC—was March

12, 1998. On March 24, the Census Bureau mailed the first

of three follow-up letters (with another copy of the questionnaire) to nonrespondents. This was succeeded by a

second follow-up letter and questionnaire on April 28.

The third and last follow-up was sent on May 27, 1998.

Telephone follow-up began the last week of June and

concluded in early September 1998. At close-out, after all

follow-ups, the total response rate was almost 86 percent.

Data Processing and Tabulation

Receipt and check-in. BES questionnaires received by

mail were checked in by the NPC. This was done by reading mailing labels using automated barcode scanning

History—1997 Economic Census Chapter 11 113

U.S. Census Bureau, 1997 Economic Census
equipment. The resulting files were transferred to the BES

main control file. Questionnaires received by FAX or telephone were checked in by clerks with direct access to the

BES control file using the Census Bureau’s Automated Control System (ACS) software. In addition to handling reports

received by mail, fax, and phone, NPC staff handled UAA

cases, as well as telephone and mail inquiries and

requests. Congressional correspondence was referred to

headquarters. Staff entered interactively into the ACS both

check-in and associated actions. Problems too difficult or

complex to resolve by NPC staff were referred to Census

Bureau headquarters.

Data entry. After check-in, BES reports were routed to

clerks in the screening section of the control unit. NPC

clerks screened all questionnaires for completeness and to

ensure that the information provided by respondents

could be keyed. Questionnaires that were incomplete or

inadequate for keying were referred to the on-site analyst

for further review and/or for a telephone call to the company. After screening and problem resolution, the clerks

batched the questionnaires into work units and forwarded

them to the microfilming unit. The microfilming equipment stamped a reel number and frame number onto each

questionnaire before filming. The NPC stored the original

microfilm and sent a copy of each reel to Census Bureau

headquarters to be used in the data-editing and dataanalysis operations. After microfilming, the questionnaires

were sent for data keying.

The data-entry unit keyed all data responses on the

questionnaires, and after verification, transmitted the data

files electronically to the Census Bureau’s computer center

in Bowie, MD, via dedicated telephone lines. The NPC

retained backup copies of the data tapes for possible

retransmission until notified that the data had been

received.

Edit and tabulation. As soon as data from the Census

Bureau’s 1997 annual surveys of merchant wholesale,

retail trade, and service industries were pronounced final,

business records for selected data fields from the surveys’

databases were copied to the new BES database. Once this

was completed, records in the BES data entry output files

were matched and the keyed data formatted into the

BES database. The records in the BES database were

subsequently batch edited for balance, consistency, and

tolerance. The edit program ‘‘flagged’’ suspicious data for

review by subject analysts using customized, interactive,

computer systems.

After editing, BES records underwent imputation for

missing data. Computer programs calculated imputation

factors for all combinations of kind-of-business, legal form

of organization, and tax status for selected types of organization. Then, imputation rates were computed during

tabulation in order to measure the extent of imputation

for analysis and potential use in the suppression system.

Tabulation of the BES database produced simple

weighted estimates and adjusted estimates. The simple

weighted estimates were obtained by summing the

weighted data (reported or imputed), where the weight for

a given sampling unit was the inverse of its probability of

selection. Adjusted estimates were derived by benchmarking the simple weighted estimates to the SIC-based Business Annual Survey estimates. For merchant wholesale

and retail trades, these estimates included sales; inventories; purchases of merchandise for resale; value added;

gross margins; cost of goods sold; net income produced at

market prices; and net income produced at factor cost.

The 1997 BES estimates for retail trade and service industries included coverage for nonemployer firms. Estimates

for these nonemployers were derived from information

provided by other Federal agencies.

Finally, tabulated data were analyzed for reasonableness and consistency. Data that did not meet publication

standards on the basis of this review, sampling error, or

nonsampling error, were suppressed in the tables.

Tabulation and Sources ofRelated Data

The BES tables were combined with previously published data covering other trade areas and released on the

Internet and CD-ROM as the Business Expenses report, part

of the 1997 Company Statistics Series. The sources of

these related data were the Annual Survey of Communication Services, Annual Survey of Transportation and Warehousing, Arrangement of Passenger Transportation Annual

Survey, and the 1997 Economic Census coverage of manufacturing, mineral industries, and construction sectors.

In addition, unpublished data on establishments auxiliary to manufacturing, mining, and construction were

compiled: these operating expenses included supplemental labor costs, energy costs, taxes and a variety of purchased services including advertising, legal and accounting services, and repairs.

PUBLICATION PROGRAM—ECONOMY-WIDE

PROGRAMS

Data compiled from the 1997 industry-wide programs

are released as part of the Company Statistics Series. The

Census Bureau publishes the following seven reports in

the EC97-CS series, in printed volumes—

• EC97CS-1, Company Summary.

• EC97CS-2, Women-Owned Business Enterprises.

• EC97CS-3, Black.

• EC97CS-4, Hispanic.

• EC97CS-5, Asians and Pacific Islanders.

• EC97CS-6, American Indians and Alaska Natives.

• EC97CS-7, Summary.

Each of these reports includes data by industrial classification and/or geographic areas (states, metropolitan

areas, counties, and places), size of firm (employment and

114 Chapter 11 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
receipts), and legal form of organization (individual proprietorships, partnerships, and corporations). All seven of

these reports were made available at the Census Bureau’s

Internet site ‘‘www.census.gov/csd/mwb,’’ and also were

published on CD-ROM.

The eighth report in the series—EC97CS-8, Business

Expenses, was issued on CDROM and was available on the

Census Bureau’s Internet site. This report shows operating

expenses data at the national level for SIC-based merchant

wholesale trade, retail trade, service industries, communications industries, transportation and warehousing, and

travel industries. In addition, NAICS-based data are presented for manufactures, mineral industries, and construction industries.

History—1997 Economic Census Chapter 11 115

U.S. Census Bureau, 1997 Economic Census
Chapter 12 PUBLICATION PROGRAM

Introduction ................................... 118

Publication Planning ............................. 118

The Economic Product Strategy Team ................... 118

1995 Survey of Economic and Agriculture Data Users .......... 118

Electronic Dissemination ........................... 119

Background information .......................... 119

CD-ROMs .................................. 119

Internet ................................... 120

Print-on-demand service .......................... 120

1997 Economic Census Publications ...................... 120

Core Business Statistics Series ........................ 120

Advance Report............................... 120

Comparative Statistics ........................... 120

Bridge Between NAICS and SIC....................... 120

Nonemployer Statistics ........................... 120

Sector Report Series ............................. 121

Industry series ............................... 121

Geographic area series ........................... 121

ZIP Code statistics ............................. 121

Summary series............................... 121

Company Statistics Series .......................... 124

1997 Economic Census of OutlyingAreas .................. 124

Puerto Rico—Geographic Area Series (OA97E-1) ............. 124

Puerto Rico—Subject Series (OA97E-2)................... 125

Puerto Rico—Construction (OA97E-3) ................... 125

Puerto Rico—Manufacturing(OA97E-4) .................. 125

Virgin Islands of the United States (OA97E-5) ............... 125

Guam (OA97E-6) .............................. 125

Northern Mariana Islands (OA97E-7).................... 125

Reference Series ............................... 125

Preview to the 1997 Economic Census .................. 125

Guide to the 1997 Economic Census ................... 125

1997 North American Industry Classification System—United States . . 125

Accountant’s Guide to the 1997 Economic Census (EC97-PR2) ...... 125

Preparingfor the 1997 Economic Census, Advance Information You

Can Use (EC97-PR1) ............................ 126

Numerical List of Manufactured and Mineral Products, Reference Series

(EC97M31R-NL) .............................. 126

The Economic Census—Two Moments of Truth: 1954 and 1997

(EC97X-TMT)................................ 126

CONTENTS

History—1997 Economic Census Chapter 12 117
Publication Program

INTRODUCTION

The U.S. Census Bureau published data for all sectors

covered by the 1997 Economic Census, as well as data

from the 1997 Commodity Flow Survey (CFS), 1997

Vehicle Inventory and Use Survey (VIUS), 1997 Surveys of

Women- and Minority-Owned Businesses (SWOBE and

SMOBE), 1997 Business Expenditures Survey (BES), and the

1997 Economic Census of OutlyingAreas—Puerto Rico,

Guam, the Commonwealth of the Northern Mariana

Islands, and the Virgin Islands of the United States. These

data were published on the Internet and were made available on CD-ROM. Some, but not all, were published in

printed reports.

Given the focus on electronic products for 1997 census

data, the standardization of data presentation was critical.

This was especially true for data disseminated by Internet

or CD-ROM, where there is the potential for instant data

comparison. Thus, sector-by-sector conformity was a key

feature of the 1997 publication program, in terms of (1)

methods of displaying geographic data, (2) units of measure, and (3) allowingthe detail of publication to be driven

by the data rather than predetermined. By contrast, certain

artifacts of printed reports (such as brackets, underlines,

or data-driven footnotes) that previously varied by sector

were eliminated for 1997. As a result data presentation

was greatly enhanced.

Publication Planning

The Economic Product Strategy Team. To prepare for

the release of 1997 data, the Census Bureau established

several planningteams to study the various aspects of dissemination and product planning. The Economic Products

Strategy Team (EPST) was organized to develop plans,

strategies, and time frames for publishing the1997 data in

electronic reports.

The EPST recommended that the Census Bureau

develop a new Core Business Statistics Series and eliminate printed reports for all but national summaries.

Followingreports by the subteams cited below, the EPST

also recommended that, for the 1997 Economic Census,

the Census Bureau—

• Publish 1997 data more quickly than data for 1992.

• Simplify data access, media, and software to appeal to a

larger audience.

• Use the Internet as a primary tool for data dissemination.

• Publish CD-ROMs quarterly with new data, as these data

become available.

• Provide a print-on-demand (or fax-on-demand) service

for those users not prepared to use electronic-only data.

The team also recommended the Census Bureau establish additional workinggroups to address specific EPST

objectives. Accordingly, the agency organized two EPST

subgroups—

• Economic Product Strategy Team-Subgroup 1

developed plans for a well coordinated data dissemination system, processingflow, and data content standards for the 1997 Economic Census.

• Economic Product Strategy Team-Subgroup 2

developed design concepts for software to access product data on CD-ROMs and on the Internet. In response

to findings from the user survey discussed below, the

subgroup also developed the concept of ‘‘quick reports’’

to easily address the most basic user inquiries about

geographic areas or industries, and specified the creation of an Economy-Wide Key Statistics file to make

geography quick reports feasible.

Later, additional teams were organized to develop census

products:

• Economic Product Team (EPT) prepared tables, text,

Portable Document Format (pdf), and electronic file

guidelines for the 1997 Economic Census report series;

finalized the production flowchart; initiated and monitored the subject divisions’ specification preparations;

supervised the incremental development of metadata

files; developed a production system; and oversaw the

production of 1997 data products.

• Economic Products Internet and CD-ROM Team

determined the functional requirements for the CD-ROM

and Internet access software. It also developed user

interfaces and search/query/output routines for

CD-ROM products.

1995 Survey of Economic and Agriculture Data

Users. The EPST recommendations were supported by

customer feedback obtained from the 1995 Survey of

Economic and Agriculture Data Users, sent to 5,147 data

users. (Response statistics are shown in Table 12-1.) The

Census Bureau drew the sample for the survey from its

own mailinglist, as well as from sales records of the

Government PrintingOffice (GPO). The agency’s mailing

118 Chapter 12 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
list included subscribers to 1992 Economic Census

CD-ROMs, other users known to Census Bureau specialists, and various intermediaries includingcensus regional

offices, State Data Center lead agencies, and Census

Information Centers.

Table 12-1.

1995 Survey of Economic and Agriculture Data

Users Response

Total distribution 5,147

Postmaster returns 757

Out-of-scope 7

Mail response 1,031

Response rate 23.5 percent

The National ProcessingCenter (NPC) in Jeffersonville,

IN,1 assembled and mailed the survey packages. Each

package included a cover letter, questionnaire, and

postage-paid return envelope. A promotional message,

‘‘Your Opinion Counts,’’ was overprinted on the outbound

envelope to encourage recipients to respond. Mailout took

place on August 4, 1995, with a request for response by

August 15.

There was one follow-up mailing. A private contractor

reprinted the survey forms and other materials, assembled

the packages, and mailed them to nonrespondents on

October 10, 1995. Questionnaires received at the NPC by

December 1, 1995, were included in the final results.

Written responses supplied by survey participants suggested that the majority of data users wanted the Census

Bureau to make more data available, in a more timely

manner, regardless of the medium of publication. Respondents indicated that, in 1995, they primarily accessed data

usingthe agency’s printed publications. They also

believed that, within 5 years, they expected to access data

in an electronic format, and they asserted that electronic

dissemination would be most accessible by CD-ROM and

the Internet.

Electronic Dissemination

Background information. The Census Bureau traditionally published its major data findings in printed reports.

The introduction of computers, and their use by both public and private data users, led the agency to begin publishingdata in electronically readable formats. These data

were published first on reels of computer tape, and later,

as technology developed, on diskettes and CD-ROMs. The

Census Bureau also used commercial online vendors, and,

finally, the Internet. Although most 1992 Economic Census

reports were published in both printed and electronic formats, 1997 data publication was primarily electronic. Electronic media appeal to data users for three basic reasons:

• Electronic dissemination permits easier manipulation of

data. From 1972 to 1992, while data on tape or CD-ROM

mostly duplicated those available in print, users chose

computerized data for its ability to be manipulated.

These users employed tapes and CD-ROMs to rank,

compare, analyze, reformat, and extract data. As

CD-ROM software became easier to use, novice users

began using these platforms for data analysis.

CD-ROM’s provided data for all sectors on a single

device, whereas a number of separate reports were

required to disseminate the same data in print. The

1997 CD-ROM included search engines to further help

users find data.

• More data series were available to users in electronic

format. While most data from 1972 to 1992 appeared in

both print and computerized media, the latter were

unique sources for several databases too large to be

printed cost-effectively. These included ZIP-Code Statistics and sub-national Merchandise Line Sales. The

increasingcost of printed media, coupled with increasingacceptance of CD-ROMs and the Internet, led to the

majority of data beingreleased only in a standardized

electronic format. In the 1997 Economic Census, more

than 90 percent of the data released were available only

in electronic format.

• Electronic dissemination allows faster distribution. The

Internet provides immediate access to data as soon as

they are released to the public, thus bypassingdelays

associated with the preparation of printed media, and

surpassingeven the speed of CD-ROM delivery.

Economic census products were sold either by the GPO

or by the Census Bureau’s Customer Service Center. The

majority of printed products were sold through the GPO.

CD-ROMs, reports printed from PDFs, maps, and those

printed reports the GPO elected not to sell were sold

through the Census Bureau.

CD-ROMs. A single CD-ROM holds up to 680 million

bytes of data. Software on each database CD-ROM enabled

the user to select, reformat, merge, and rank numbers,

and then export data to a spreadsheet or other application

for further manipulation. The CD-ROMs were ‘‘plugand

play’’ and self-documenting. Use of the access software on

the CD-ROM required an IBM compatible,2 Pentium computer usinga Windows 95, Windows 98, or Windows NT

operatingsystem, and having32 megabytes of RAM, as

well as 10 megabytes of available hard-drive space.

Software programs in 1987 and 1992 were menudriven, but lacked a graphic user interface. CD-ROMs for

1992 included four separate programs for simple data

1

Prior to a reorganization effective May 1, 1998, this unit was

called the Data Preparation Division (DPD). 2

Applications for Macintosh platforms were not produced.

History—1997 Economic Census Chapter 12 119

U.S. Census Bureau, 1997 Economic Census
viewing, data extraction, printing of multisector profiles,

and documentation. By contrast, the 1997 CD-ROM software integrated all these functions. The addition of a

search function assisted users not yet familiar with the

new North American Industry Classification System

(NAICS) structure. Data files on 1997 CD-ROMs were redesigned to facilitate analysis of the entire economy versus

analysis of a single sector. Standard hierarchic industry

codes were used, rather than internal codes. Units of measure also were standardized across sectors. Publication

criteria were made more flexible to allow presentation

of data for more industries, particularly those most important in each locality. ‘‘Quick Reports’’ were added to

simplify data retrieval for the novice user.

Data from the 1997 Economic Census were published

from the first quarter of 1999 to the second quarter of

2001. The first CD-ROM, issued in September 1999,

included only those relatively few industries and states

published to that date. This product was reissued once

every quarter, with successive CD-ROMs progressively

more inclusive. Most CD-ROMS were sold exclusively by

subscriptions. These subscriptions were to include

roughly 8 quarterly issuances of the NAICS-based CD-ROM

package (6 of which included two discs), and 3 SIC-based

CD-ROMs. ZIP Code data were sold separately on a single

CD-ROM.

Internet. Data users were able to access 1997 Economic

Census data via the Census Bureau’s Internet website at

http://www.census.gov. Economic Census data were featured at http://www.census.gov/econ97. To access data

via the Internet, data users needed only possess a computer, and to subscribe to an Internet service provider.

Internet data could be viewed, manipulated, and printed

usingbrowsers on Windows, Macintosh, UNIX, and other

operatingsystems.

Data users could access, free of charge, the two data

formats—

• Database. The database access system, known as

American Factfinder, had similar functions to those

found in the CD-ROM software, includinga search

system and ‘‘quick reports.’’

• Viewable. Viewable formats allowed users to view or

print tables similar to the detailed printed reports that

were issued after previous economic censuses.

Print-on-demand service. To address the needs of

users who may not have been prepared to use data in

electronic form, the economic census planners worked

with the Market Services Office (MSO) to develop a printon-demand service. The MSO’s Customer Services Branch

developed the capability to print publications from the

PDFs on the Internet, with covers of heavy stock and a

rudimentary binding. Demand was relatively low because

publications produced this way were relatively expensive

(roughly 10 cents per page plus $20 for handling and courier delivery), and because most users eventually discovered that electronic access met their needs.

1997 ECONOMIC CENSUS PUBLICATIONS

Core Business Statistics Series

Data collected in the 1997 Economic Census were published in several nationwide, economy-wide reports

between 1999 and 20013 (see Tables 12-2 and 12-3).

Advance Report. The Advance Report, issued in March

1999, initiated the publication program with a preliminary

look at 1997 census data. Information contained in this

report provided data at the national level only, by sector

and subsector. This report contained the first data ever

published on a NAICS basis. While the NAICS table was

limited to 1997 data, a separate SIC-based table showed

figures for both 1992 and 1997, thus making possible the

calculation of percent change in sales or employment over

the 5-year period. The NAICS-based data contained within

the Advance Report were superseded as more detailed

geographic area and industry reports were published. The

SIC-based data were superseded with the publication of

Comparative Statistics.

Comparative Statistics. Once basic data were published on a NAICS basis, national and state totals were

recast accordingto the 1987 SIC system. The Comparative

Statistics report superseded the preliminary two-digit SIC

statistics in the Advance Report. Comparative Statistics

contained two-, three-, and four-digit SIC summaries.4

Bridge Between NAICS and SIC. The Bridge Between

NAICS and SIC presents 1997 data cross-tabulated by both

old and new classification systems identifyingthe lowest

common denominators between the two systems.

Conceptually, the bridge tables reflected the same combinations shown in the correspondence tables of the 1997

NAICS Manual. However, each line was extended to show

the number of establishments, sales or receipts, payroll,

and employment associated with a particular NAICS and

SIC combination. From the Bridge Between NAICS and SIC,

data users were able to calculate percentages for allocation strategies to assemble time series before and after

1997. Because the Bridge Between NAICS and SIC provided

a key to translation between NAICS and SIC, it is published

in both printed and electronic formats.

Nonemployer Statistics. Nonemployer statistics

summarized the number of establishments, and sales or

receipts, of companies with no paid employees. These

3

At this writing, July 2000, what follows was the Census

Bureau’s projected publication schedule. 4

No SIC-based data were published for metro areas, counties,

or cities, due to the complexity of evaluatingthe potential for disclosure of confidential company information stemmingfrom the

interplay of NAICS and SIC classifications.

120 Chapter 12 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
nonemployers are typically self-employed individuals or

partnerships operatingbusinesses that they have chosen

not to incorporate. Although nonemployers account for

approximately 3 percent of the Nation’s business activity,

they represent nearly 75 percent of all businesses. As a

result, data from these businesses was crucial for the

analysis of the Nation’s economy.

Payroll tax records are at the heart of the Census

Bureau’s system for keepingtrack of businesses between

censuses. However, because nonemployers (firms not covered by payroll tax) do not file such tax records, they are

not sent census questionnaires. Therefore, nonemployers

are not reflected in other core business statistics or

detailed sector-specific reports.

Sector Report Series

The Census Bureau also published report series for individual sectors (see Table 12-3). Industry-specific data were

published in the followingreports:

Industry Series. Industry statistics, product statistics,

and materials consumed reports were issued for six-digit

NAICS industries in mining, construction, and manufacturing. While most data were reported in terms of NAICS,

these reports show limited data for the SIC Codes, or parts

thereof, that corresponded to the subject six-digit NAICS.

More complete and definitive data about the relationship

between NAICS and SIC Codes were published in the

Bridge Between NAICS and SIC.

Geographic Area Series. The geographic area series

were issued for each sector, most containing52 reports a

U.S. summary report and one report for each state and the

District of Columbia. There was no U.S. summary report

issued as part of the geographic area series for mining,

construction and manufacturing, and for mining Delaware

and the District of Columbia were combined in a single

report to avoid disclosinginformation about a small number of companies in the District.

Subject Series. Subject series reports were published for

each sector to add further dimension to the analysis of

industries. Subject series reports, listed in Table 12-3,

included topics such as merchandise line sales, establishment and firm size, and miscellaneous subjects.

ZIP Code Statistics. ZIP Code statistics were published

for selected sectors. These reports presented counts of

establishments, by size, by detailed NAICS classifications,

for five-digit ZIP Codes. These statistics included the count

of establishments in several employment-size categories

(fewer than 5 employees, 5 to 9, 10 to 19, 20 to 49, 50 to

99, and 100 or more employees). For sectors other than

manufacturing, establishment counts were also provided

by sales- or receipts-size class by NAICS classification, and

summary total sales, employment, and payroll without

regard to the NAICS. Establishment counts by size class

were not considered to be a disclosure of confidential

information, and thus could be shown for areas as small

as ZIP Codes.

Summary Series. After the publication of all industry,

area, and subject reports for each sector, a single volume

was published in print that summarized the most widely

used statistics about that sector from all the previously

issued reports.

Table 12-2.

1997 Economic Census Publication Schedule, by Quarter

1999 2000 2001

Quarter of Publication . . . . . . . . . . 123412341 2

Advance Report ................ X

Industry Series ................. X X X

Geographic Area Series ......... XXXXX

Comparative Statistics .......... X

Bridge Between NAICS and SIC . X

Subject Reports ................ XXXX

Summary Reports .............. X

ZIP Code Statistics .............

Nonemployer Statistics .......... X

Outlying Areas . . . . . . . . . . . . . . . . . XXXXX

Business Expenses ............. X

Minority- and Women-Owned

Business Enterprises .......... X X

History—1997 Economic Census Chapter 12 121

U.S. Census Bureau, 1997 Economic Census
Table 12-3

Publications by Sector

Sector and Title Geography Media

Projected release date

(as of Mar. 2000)

Economy-Wide

Core Business Statistics:

Advance Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D,V,P Mar. 1999

Comparative Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, U D, V Jun. 2000

Bridge Between NAICS and SIC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V, P Jun. 2000

Nonemployer Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D 3rd qtr. 2000

Auxiliary Establishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Feb. 2000

Company Statistics:

Minority- and Women-Owned Business Enterprises . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V, P 3rd - 4th qtr. 2000

Business Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Mining

Industry Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Jul. 1999 - Dec. 1999

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Mar. 1999 - Apr. 2000

Subject Series: General Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V, P 2nd qtr. 2000

Subject Series: Product Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 3rd qtr. 2000

Subject Series: Materials and Fuels Consumed . . . . . . . . . . . . . . . . . . . . . . U D, V, P 3rd qtr. 2000

Location of Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D 1st qtr. 2000

Utilities

Geographic Area Series ......................................... U, S, M D, V Jan. 2000

Subject Series: Revenue Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4thqtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2000

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 2nd qtr. 2000

Construction

Industry Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Jul. 1999 - Jun. 2000

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Mar. 1999 - Apr. 2000

Subject Series: Industry Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V, P Jan. 2000

Subject Series: Geographic Area Summary . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V, P 2nd qtr. 2000

Manufacturing

Numerical List of Mfg/Mineral Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (NA) D, V, P Apr. 1999

Industry Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V May 1999 - Jan. 2000

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Apr. 2000

Subject Series: General Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V, P 1st qtr. 2001

Subject Series: Product Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V, P 1st qtr. 2001

Subject Series: Materials Consumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

Subject Series: Concentration Ratios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 1stqtr. 2001

Subject Series: Class of Customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 1st qtr. 2001

Location of Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D 2nd qtr. 2001

ZIP Code Statistics................................................ Z D 2nd qtr. 2001

Wholesale Trade

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V May 1999 - Jan. 2000

Subject Series: Commodity Line Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 2nd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 4th qtr. 2000

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

Retail Trade

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V May 1999 - Jan. 2000

Subject Series: Merchandise Line Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 2nd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 4th qtr. 2000

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP-Code Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Transportation and Warehousing

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V Feb. 2000

Subject Series: Revenue Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 2nd qtr. 2001

Vehicle Inventory and Use Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Oct. 1998 - Oct. 1999

122 Chapter 12 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Table 12-3

Publications by Sector

Sector and Title Geography Media

Projected release date

(as of Mar. 2000)

Information

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Oct. 1999

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Finance and Insurance

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V Feb. 2000

Subject Series: Revenue Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 2nd qtr. 2001

Real Estate and Rental and Leasing

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Jun. 1999 - Jan. 2000

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1stqtr. 2001

Professional, Scientific, and Technical Services

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Jul. 1999 - Dec. 1999

Subject Series: Source of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

Zip Code Statistics ................................................ Z D 2nd qtr. 2001

Management of Companies and Enterprises

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V Feb. 2000

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

Administrative and Support, Waste Management and Remediation

Services

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, s, M, C, P D, V Aug. 1999 - Jan. 2000

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Educational Services

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Sep. 1999

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4 qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Health Care and Social Assistance

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Oct. 1999

Subject Series: Sources of Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, D D 2nd qtr. 2001

History—1997 Economic Census Chapter 12 123

U.S. Census Bureau, 1997 Economic Census
Table 12-3

Publications by Sector

Sector and Title Geography Media

Projected release date

(as of Mar. 2000)

Arts, Entertainment, and Recreation

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V Sep. 1999 - Nov. 1999

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Accommodation and Foodservices

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V May 1999 - Jan. 2000

Subject Series: Merchandise Line Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Other Services (Except Public Administration)

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M, C, P D, V Dec. 1999

Subject Series: Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S D, V 3rd qtr. 2000

Subject Series: Establishment and Firm Size. . . . . . . . . . . . . . . . . . . . . . . . . U D, V 4th qtr. 2000

Subject Series: Miscellaneous Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, M D, V 1st qtr. 2001

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U D, V, P 1st qtr. 2001

ZIP Code Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U, S, Z D 2nd qtr. 2001

Outlying Areas

Puerto Rico:

Geographic Area Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PR, C D, V, P 2nd qtr. 2000

Subject Series. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PR D, V, P 2nd qtr. 2000

Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PR, M, C D, V, P 2nd qtr. 2000

Manufactures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PR, M, C D, V, P 2nd qtr. 2000

Virgin Islands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI, C, P D, V, P Nov. 1999

Guam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GU, C D, V, P Sep. 1999

Northern Mariana Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NM, C D, V, P Mar. 1999

Key to Geography: U = United States, S = States, M = Metropolitan Areas, C = Counties, P = Places Z = ZIP Code area. Key to Media: D =

Database, V = Viewable, P = Printed

Company Statistics Series

The Census Bureau publishes eight reports in its

Company Statistics Series followingthe 1997 Economic

Census. Six reports publish data on minority-owned and

women-owned business enterprises, and the Company

Summary provides correspondinginformation on all

businesses:

• EC97CS-1, Company Summary.

• EC97CS-2, Women-Owned Businesses.

• EC97CS-3, Black.

• EC97CS-4, Hispanic.

• EC97CS-5, Asians and Pacific Islanders.

• EC97CS-6, American Indians and Alaska Natives.

• EC97CS-7, Summary.

Each of these reports contain national data by SICbased industry groups, size of firm (employment and

receipts), and legal form of organization. Totals were also

shown for states, metropolitan areas, counties and places.

Because of their broad popularity, these seven reports

were issued in print, as well as in electronic form.

The eighth report in the Company Statistics series

EC97CS-8, Business Expenses—provided data on operating

expenses of retailers, merchant wholesalers, and service

firms (as classified under the SIC) and auxiliary establishments of manufacturing, mining, and construction firms

(as classified by the NAICS). Operatingexpenses include

supplemental labor costs, energy costs, taxes and a variety of purchased services including advertising, legal and

accountingservices, and repairs. (Auxiliary establishments

provide services to other parts of the same company.)

1997 Economic Census of Outlying Areas

Puerto Rico—Geographic Area Series (OA97E-1).

This report presented data for the wholesale and retail

trade and service industries. It included kind-of-business

detail on number of establishments, sales or receipts, payroll, employment, proprietors and partners working, and

legal form of organization. Data were presented for Puerto

124 Chapter 12 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Rico as a whole, for commercial regions, and for municipios. Retail trade data included total and sellingfloor space,

franchise holders, and class of customer for selected kinds

of business. Wholesale trade data on inventories, operatingexpenses, class of customer, and employment by

principal activity were presented by kind-of-business. Data

for hotels and motels by type of receipts and number of

rooms were published for service industries.

Puerto Rico—Subject Series (OA97E-2). The subject

report presented commodity and merchandise line sales

data for retail and wholesale trade by kind-of-business for

Puerto Rico.

Puerto Rico—Construction (OA97E-3). This report presented summary, industry, and geographic area statistics.

The industry chapter presented 1997 data for industries

on the number of construction establishments; value of

construction work; employment; proprietors and partners

working; payroll; hours worked; payments to subcontractors; payments for materials, components, and supplies;

payments for power, fuels, and lubricants; payments for

rental of machinery, equipment, and structures; value

added; and capital expenditures duringthe year. Selected

data were shown for selected industries by geographic

location of establishments and by legal form of organization. Data also were provided for establishments by

employment size.

Puerto Rico— Manufacturing (OA97E-4). This report

included data on the number of establishments, employment, proprietors and partners working, payroll, value

of shipments, value added by manufacturers, class of

customer, inventories, costs of materials, capital expenditures, and country of destination. Statistics were shown by

industry and geographic area.

Virgin Islands of the United States (OA97E-5). This

report presented data by kind of business for construction

industries, manufactures, retail trade, wholesale trade,

and service industries. In addition to data for the Virgin

Islands as a whole, data were presented for St. Thomas

and St. John (combined to prevent disclosure problems),

St. Croix and the towns of Charlotte Amalie, Chistiansted,

and Frederiksted.

Guam (OA97E-6). This report presented data by kind of

business for construction industries, manufacturing, retail

trade, wholesale trade, and service industries. Tables presented data for Guam and its election districts.

Northern Mariana Islands5 (OA97E-7). This report

presented data by kind of business for construction industries, manufacturing, retail trade, wholesale trade, and service industries. Tables presented data for the Northern

Mariana Islands and the four municipalities.

Reference Series

In addition to the above reports, the Census Bureau

published a number of reference works to help locate data

for specific industrial, product, or geographic categories,

or for additional information about the economic census

programs.

Preview to the 1997 Economic Census. This booklet

was an overview of the content and dissemination of

products containingdata collected in the 1997 Economic

Census. The booklet contained a number of key reference

charts, all organized by NAICS sector: coverage of the

economic census, data items (e.g., employment

sales/receipts), geographic coverage, and data products.

Several special programs (i.e., minority- and womenowned businesses and transportation surveys) were also

described.

Guide to the 1997 Economic Census. This Internetonly reference described the content and products of

the Economic Census in much greater detail than was

possible in the Preview to the 1997 Economic Census.

Its contents were kept up-to-date as new information

became available. The Guide to the 1997 Economic

Census included descriptions of related monthly,

quarterly, and annual data. The Guide was accessible at

www.census.gov/epcd/www/guide.html

1997 North American Industry Classification

System—United States. Both printed and CD-ROM

versions of the 1997 NAICS Manual were published under

the auspices of the U.S. Office of Management and Budget.

In addition, most of the manual’s features were included

at the NAICS Internet site: http://www.census.gov/naics.

The manual included—

• Detailed industry definitions.

• Tables showingcorrespondence between the 1997

NAICS and 1987 SIC Codes.

• An alphabetical list of more than 18,000 types of business activities and their correspondingNAICS code. A

section on ‘‘Why businesses need NAICS’’ was included

in the printed and PDF versions of the manual.

Accountant’s Guide to the 1997 Economic Census

(EC97-PR2). This guide was created to assist accountants

in completingeconomic census forms for their clients, and

to stress the importance of respondingto the census. Like

other guides, it described products, programs, and uses of

data. It answered questions frequently asked by accountants, explained what their clients would receive, and

provided sample census questionnaires.

5

Commonwealth of the Northern Mariana Islands (CMNI). See

Chapter 9, ‘‘The Economic Census of OutlyingAreas.’’

History—1997 Economic Census Chapter 12 125

U.S. Census Bureau, 1997 Economic Census
Preparing for the 1997 Economic Census, Advance

Information You Can Use (EC97-PR1). This booklet

presented information designed to help businesses prepare for the 1997 Economic Census. It contained samples

of census questionnaires; Census Bureau telephone numbers and e-mail addresses by industry and trade; and

information on how questionnaires could be obtained and

answered electronically. The booklet also noted data uses,

and identified main topics in the census.

Numerical List of Manufactured and Mineral Products, Reference Series (EC97M31R-NL). This publication lists the detailed product classes and products

published for the manufacturingand miningsectors in

the Industry Series reports.

The Economic Census—Two Moments of Truth: 1954

and 1997 (EC97X-TMT). This booklet described the role

of the 1953 Watkins Commission Report in reinstatingthe

1954 Economic Census. Used as a promotional item for

the 1997 Economic Census, it drew parallels between

events surroundingthe 1954 and 1997 censuses.

126 Chapter 12 History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Chapter 13. COMPLETING THE CENSUS BUREAU’S MISSION THROUGH

DATA INTEGRATION

A Review ofOur Journey ............................ 128

The Two-Fold Path: Collection and Dissemination ............... 129

Data Integration as Completion ofthe Mission ................ 129

CONTENTS

History−1997 Economic Census Chapter 13 127
Completing the Census Bureau’s Mission

Through Data Integration

A REVIEW OF OUR JOURNEY

The U.S. Census Bureau’s mission statement is quite

clear: ‘‘Be the pre-eminent collector, and provider, of

timely, relevant, and quality data about the people and the

economy ofthe United States.’’ The foregoing chapters of

The History of the 1997 Economic Census have shown how

far the Census Bureau has come in achieving its mission,

particularly in collecting and providing economic census

data.

Chapter 2, ‘‘The Players and The Plans,’’ showed that to

plan and carry out the 1997 census with improvements in

efficiency over the previous economic censuses there were

a series ofreorganizations among the divisions under the

Economic Directorate.

To better identify, classify, and measure the business

activity ofour economy, the United States—with the publication ofthe 1997 Economic Census—was the first of

three nations to apply the new North American Industry

Classification System (NAICS) (Chapter 3. ‘‘The Introduction ofthe North American Industry Classification System’’). The data quality stemming from this census was

expected to surpass that ofearlier enumerations as a

result of the more comprehensive and refined identification ofeconomic sectors and sub-sectors.

Always mindful of both data user needs, as well as

potential respondent burden in supplying information on

the census questionnaires, Census Bureau staff went

through a lengthy process ofdetermining which questions

to ask for the 1997 census (Chapter 4, ‘‘Questionnaire

Design and Development’’). This process went to the heart

ofthe agency’s mission to collect ‘‘ relevant and quality

data.’’

Chapter 5, ‘‘Promoting Census and Product Awareness,’’

showed how earlier promotional efforts were built

upon—and combined with use ofthe Internet— to produce a state-of-the-art promotional campaign. This was

the first economic census promotional effort that explicitly

connected census awareness and product promotion.

‘‘Geographic Area Coding,’’ Chapter 6, detailed the

excellent system that has evolved across many censuses

for linking business activity to legally or administratively

established, and statistically defined, geographic entities.

‘‘Preparations for Census Mailout,’’ in Chapter 7, showcased the Census Bureau’s advances in data collection

techniques. The new DocuPrint 4890 Highlight Laser Printing System was used to print questionnaires, follow-up

letters, envelopes, and many other materials essential to

collecting information from millions of businesses. The

system eliminated many ofthe massive clerical assembly

line activities at the Census Bureau’s National Processing

Center and many, though not all, private printing contracts were no longer necessary because ofthe in-house

capacity ofthe DocuPrint system.

‘‘Data Collection and Processing,’’ Chapter 8, showed

that centralized collection activities were followed by

decentralized post-collection processing. The chapter

discussed the Census Bureau’s latest techniques for data

check-in, entry, and control file matching, as well as a host

of post-collection activities that made the data fit for tabulation and dissemination. New for the 1997 census was

the development ofa module, aptly named ‘‘Plain Vanilla’’

for its generalized edit function, for post-collection data

processing.

Chapter 9, ‘‘Collecting the Census in the Outlying

Areas,’’ reflected the advances in census-taking discussed

in Chapters 7 and 8. The Outlying Areas included Puerto

Rico, the Virgin Islands ofthe United States, Guam, and

the Commonwealth ofthe Northern Marianas Islands.

Chapter 10, ‘‘Transportation Surveys,’’ covered the 1997

Vehicle Inventory and Use Survey and the 1997 Commodity Flow Survey, as well as the precursors to those surveys. Improvements were made to both surveys based

upon earlier attempts to accurately measure, respectively,

the Nation’s trucking fleet, and the flow of goods and

materials according to mode oftransportation.

Chapter 11, ‘‘Economy-Wide Programs,’’ discussed the

Surveys ofMinority- and Women-Owned Businesses, which

were economy-wide, as well as the Business Expenditures

Survey (BES). The History ofthe 1997 Economic Census

has the distinction ofhaving the most detailed explanation ofthe BES ofany census document ever targeted to a

wide audience. The many associated surveys that lead

into the BES are referenced in this chapter.

Chapter 12, ‘‘Publication Program,’’ described the

Census Bureau’s expanded electronic data dissemination

endeavors, with particular emphasize on the Internet and

improved CD-ROM capabilities. The titles ofan array of

pre-census promotional and informational items, as well

as a vast offering of products formed the basis of this

chapter.

Without question, it can be said that the Census

Bureau’s continuing improvements in data collection

techniques guaranteed that the 1997 Economic Census

surpassed all previous economic censuses in sophistication.

128 Chapter 13 History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
THE TWO-FOLD PATH: COLLECTION AND

DISSEMINATION

The entire purpose ofdata collection is data dissemination. The Census Bureau’s mission, as mentioned, is twofold: collection and dissemination. Plans for disseminating

1997 data were equally ambitious, as were the new,

improved logistics ofdata collection. The 1997 dissemination strategies were to serve as the precursor to future

Census Bureau data dissemination endeavors.

The Census Bureau has taken pride in its award-winning

website at www.census.gov. PC Magazine sited the U.S.

Census Bureau as among the ‘‘Top 100 Web Sites’’ in 1998,

and Government Executive Magazine sited the U.S. Census

Bureau as one of‘‘GovExec’s Best Feds on the Web’’ in

1999. But while awards for accomplishments capture a

single point in time, a premier data collection and dissemination statistical agency must move with the times in

order to retain its celebrity and prestige.

Data users have been challenging statistical agencies

for years to make their data easier to obtain, easier to

understand, and more relevant to real world issues.

Survey results show that data use is on the increase, as

are needs for using multiple data sets. Moreover, the

burgeoning popularity ofthe Internet has increased both

proficiency and expectations among data users. Among

these expectations are the need for both tailored information delivery and dynamic data integration.

DATA INTEGRATION AS COMPLETION OF THE

MISSION

It is in the data integration field that the Census Bureau

has the greatest opportunity to add value to the data it

collects, to consolidate its mission ofbeing a pre-eminent

data provider, and to retain its reputation as a highly

respected statistical agency.

‘‘Data integration’’ simply means the construction ofan

electronic architecture that permits data users to access

data from multiple data sets with minimum ‘‘mouse

clicks.’’ Currently, it is necessary for users first to familiarize themselves with how the Federal Government, the

Census Bureau, its programs, or its data files are organized. The user then searches, parses, and compiles information into digestible formats across various data sets to

arrive at an answer to a research question. The technology

exists, however, to free data users from these steps.

At this writing, the Census Bureau is on the threshhold

ofproviding a modernized, customer-driven, crossprogram, and cross-agency integrated data access and

dissemination system. Although many technical issues will

need to be addressed and resolved before this system

becomes fully operational, the important point, from the

standpoint ofthe history ofthe 1997 Economic Census, is

that the Census Bureau has recognized the need for the

creation ofsuch a system. To that end, the Census Bureau

will be incorporating data from the 1997 census, as well

as from Census 2000, into its new ‘‘Integrated Statistical

Solutions’’ system.

This system will provide users with answers to their

questions—without the user first having to master the

structure ofthe Census Bureau’s, or any other source’s,

data file organization. It should be mentioned that, as

developed, the system will incorporate more and more

data sets from within the Census Bureau, as well as data

sets from other Federal, state and local sources. Thus,

data integration is an important component ofthe revolution in electronic data dissemination. It will enable data

users to realize the full value of data collected and

provided by the U.S. Census Bureau.

Ifthe economic data the Census Bureau collects every 5

years shows one fact, it is this: Success of an industry

rests upon keeping up with the times—and with the

competition. Whoever takes advantage ofthe technology

ofthe times and taps into public demands becomes the

pre-eminent provider ofthe service. Entering the new

millennium, the Census Bureau is well-positioned for such

success.

History−1997 Economic Census Chapter 13 129

U.S. Census Bureau, 1997 Economic Census
Appendix A.

Provisions of Title 13, United States Code,

Relating to the 1997 Economic Census

CHAPTER 1. ADMINISTRATIVE

Subchapter I—General Provisions

5. Questionnaires; number, form, and scope of

inquiries

The Secretary shall prepare questionnaires, and shall

determine the inquiries, and the number, form, and

subdivisions thereof, for the statistics, surveys, and

censuses provided for in this title.

6. Information from other Federal departments

and agencies; acquisition of reports from

other governmental and private sources

(a) The Secretary, whenever he considers it advisable, may call upon any other department,

agency, or establishment of the Federal Government, or of the government of the District of

Columbia, for information pertinent to the work

provided for in this title.

(b) The Secretary may acquire, by purchase or otherwise, from States, counties, cities, or other units

of government, or their instrumentalities, or

from private persons and agencies, such copies

of records, reports, and other material as may be

required for the efficient and economical conduct of the censuses and surveys provided for in

this title.

(c) To the maximum extent possible and consistent

with the kind, timeliness, quality and scope of

the statistics required, the Secretary shall acquire

and use information available from any source

referred to in subsection (a) or (b) of this section

instead of conducting direct inquiries.

7. Printing; requisitions upon Public Printer;

publication of bulletins and reports

The Secretary may make requisitions upon the Public Printer for miscellaneous printing necessary to

carry out the provisions of this title. He may further

have printed by the Public Printer, in such editions

as he deems necessary, preliminary and other census bulletins, and final reports of the results of the

several investigations authorized by this title, and

may publish and distribute such bulletins and

reports.

8. Authenticated transcripts or copies of certain

returns; other data; restriction on use; disposition of fees received

(a) The Secretary may, upon written request, furnish

to any respondent, or to the heir, successor, or

authorized agent of such respondent, authenticated transcripts or copies of reports (or portions thereof) containing information furnished

by, or on behalf of, such respondent in connection with the surveys and census provided for in

this title, upon payment of the actual or estimated cost of searching the records and furnishing such transcripts or copies.

(b) Subject to the limitations contained in sections

6(c) and 9 of this title, the Secretary may furnish

copies of tabulations and other statistical materials which do not disclose the information

reported by, or on behalf of, any particular

respondent, and may make special statistical

compilations and surveys, for departments,

agencies, and establishments of the Federal Government, the government of the District of

Columbia, the government of any possession or

area (including political subdivisions thereof)

referred to in section 191(a) of this title, State or

local agencies, or other public and private persons and agencies, upon payment of the actual

or estimated cost of such work. In the case of

nonprofit agencies or organizations, the Secretary may engage in joint statistical projects, the

purpose of which [is] otherwise authorized by

law, but only if the cost of such projects [is]

shared equitably, as determined by the Secretary.

(c) In no case shall information furnished under this

section be used to the detriment of any respondent or other person to whom such information

relates, except in the prosecution of alleged violations of this title.

(d) All moneys received in payment for work or services enumerated under this section shall be

deposited in a separate account which may be

used to pay directly the costs of such work or

services, to repay appropriations which initially

bore all or part of such costs, or to refund

excess sums when necessary.

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U.S. Census Bureau
9. Information as confidential; exception

(a) Neither the Secretary, nor any other officer or

employee of the Department of Commerce or

bureau or agency thereof, may, except as provided in section 8 of this title—

(1) use the information furnished under the provisions of this title for any purpose other

than the statistical purposes for which it is

supplied; or

(2) make any publication whereby the data furnished by any particular establishment or

individual under this title can be identified;

or

(3) permit anyone other than the sworn officers

and employees of the Department or bureau

or agency thereof to examine the individual

reports.

No department, bureau, agency, officer, or

employee of the Government, except the Secretary in carrying out the purposes of this title,

shall require, for any reason, copies of census

reports which have been retained by any such

establishment or individual. Copies of census

reports which have been so retained shall be

immune from legal process, and shall not, without the consent of the individual or establishment concerned, be admitted as evidence or

used for any purpose in any action, suit, or

other judicial or administrative proceeding.

12. Mechanical and electronic development

The Secretary is authorized to have conducted

mechanical and electronic development work as he

determines is needed to further the functions and

duties of carrying out the purposes of this title and

may enter into such developmental contracts as he

may determine to be in the best interest of the

Government.

Subchapter II—Officersand Employees

23. Additional officers and employees

(c) The Secretary may utilize temporary staff,

including employees of Federal, State, or local

agencies or instrumentalities, and employees of

private organizations to assist the Bureau in

performing the work authorized by this title,

but only if such temporary staff is sworn to

observe the limitations imposed by section 9 of

this title.

24. Special employment provisions

(a) The Secretary may utilize the services of nontemporary employees of the Bureau (by assignment, promotion, appointment, detail, or otherwise) in temporary positions established for

any census, for not to exceed the period during

which appropriations are available for that census. Whenever the Secretary determines that

the services of an employee which have been

utilized under this section are no longer

required in such a temporary position, he may,

without regard to the provisions of any other

law, return the employee to a continuing position, with rank and compensation not less than

that which he held in his last permanent position in the Bureau: Provided, That no employee

shall, by reason of his service in a temporary

position under this subsection, lose the protection of any law or regulation with respect to his

separation, suspension, furlough, or reduction

in rank or compensation below the level held in

his last permanent position in the Bureau. Service by a nontemporary employee in a temporary position under this subsection shall be

creditable for step increases (both periodic and

longevity) under title VII of the Classification

Act of 1949, as amended, as though it were a

continuation of service in his last permanent

position.

(b) As used in this title with respect to appointments or positions, ‘‘temporary’’ shall be construed to mean not in excess of one year, or

not in excess of the specific period during

which appropriations are available for the conduct of a particular census, whichever is longer.

No employee of the Bureau who holds only a

temporary appointment within the meaning of

this section shall be considered as other than

strictly temporary for purposes of any other

provision of law relating to separations, suspensions, or reductions in rank or compensation.

(d) The Secretary may fix compensation on a pieceprice basis without limitation as to the amount

earned per diem, and payments may be made

to enumerators for the use of private automobiles on official business without regard to section 4 of the Travel Expense Act of 1949, as

amended (5 U.S.C. 837), but at rates not in

excess of the rates provided by that Act.

(e) The Secretary may authorize the expenditure of

necessary sums for travel expenses of persons

selected for appointment for attendance at

training courses held by the Department of

Commerce with respect to any of the work provided for by law.

25. Duties of supervisors, enumerators, and

other employees

(a) Each supervisor shall perform the duties

imposed upon him by the Secretary in the

enforcement of chapter 5 of this title in accordance with the Secretary’s orders and instructions.

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(b) Each enumerator or other employee detailed to

serve as enumerator shall be charged with the

collection in his subdivision of the facts and

statistics called for on such schedules as the

Secretary determines shall be used by him in

connection with any census or survey provided

for by chapter 5 of this title.

CHAPTER 5. CENSUSES

Subchapter I—Manufactures, Mineral Industries,

and Other Businesses

131. Collection and publication; five-year periods

The Secretary shall take, compile, and publish

censuses of manufactures, of mineral industries,

and of other businesses, including the distributive trades, service establishments, and transportation (exclusive of means of transportation for

which statistics are required by law to be filed

with, and are compiled and published by, a designated regulatory body), in the year 1964, then in

the year 1968, and every fifth year thereafter, and

each such census shall relate to the year immediately preceding the taking thereof.

132. Controlling law; effect on other agencies

To the extent that the provisions of this subchapter or subchapter IV of this chapter conflict with

any other provision of this title or other law, pertaining to the Secretary or the Department of

Commerce, the provisions of this title shall control; but nothing in this title shall be deemed to

revoke or impair the authority of any other Federal agency with respect to the collection or

release of information.

Subchapter IV—Interim Current Data

182. Surveys

The Secretary may make surveys deemed necessary to furnish annual and other interim current

data on the subjects covered by the censuses provided for in this title.

Subchapter V—Geographic Scope, Preliminary and

Supplemental Statistics, and Use of Sampling

191. Geographic scope of censuses

(a) Each of the censuses authorized by this chapter shall include each State, the District of

Columbia, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands,

and the Commonwealth of Puerto Rico, and as

may be determined by the Secretary, such

other possessions and areas over which the

United States exercises jurisdiction, control, or

sovereignty. Inclusion of other areas over

which the United States exercises jurisdiction

or control shall be subject to the concurrence

of the Secretary of State.

(b) For censuses taken in the Virgin Islands,

Guam, the Commonwealth of the Northern

Mariana Islands, or any possession or area not

specifically designated in subsection (a) of this

section, the Secretary may use census information collected by the Governor or highest ranking Federal official, if such information was

obtained in accordance with plans prescribed

or approved by the Secretary.

(c) If, pursuant to a determination by the Secretary under subsection (a) of this section, any

census is not taken in a possession or area

over which the United States exercises jurisdiction, control, or sovereignty, the Secretary may

include data obtained from other Federal agencies or government sources in the census

report. Any data obtained from foreign governments shall be obtained through the Secretary

of State.

193. Preliminary and supplemental statistics

In advance of, in conjunction with, or after the

taking of each census provided for by this chapter, the Secretary may make surveys and collect

such preliminary and supplementary statistics

related to the main topic of the census as are

necessary to the initiation, taking, or completion

thereof.

195. Use of sampling

Except for the determination of population for

purposes of apportionment of Representatives of

Congress among the several States, the Secretary

shall, if he considers it feasible, authorize the use

of the statistical method known as ‘‘sampling’’ in

carrying out the provisions of this title.

CHAPTER 7. OFFENSES AND PENALTIES

Subchapter I—Officersand Employees

211. Receiving or securing compensation for

appointment of employees

Whoever—

(1) receives or secures to himself any fee,

reward, or compensation as a consideration

for the appointment of any person as supervisor, enumerator, clerk, or other officer or

employee of the Department of Commerce

or bureau or agency thereof, referred to in

subchapter II of chapter I of this title; or

History—1997 Economic Census Appendix A A-3

U.S. Census Bureau
(2) in any way receives or secures to himself

any part of the compensation paid to any

person so appointed— shall be fined not

more than $3,000 or imprisoned not more

than five years, or both.

212. Refusal or neglect of employees to perform

duties

Whoever, being an employee referred to in subchapter II of chapter I of this title, and having

taken and subscribed the oath of office, neglects

or refuses, without justifiable cause, to perform

the duties enjoined on such employee by this

title, shall be fined not more than $500.

213. False statements, certificates, and information

(a) Whoever, being an officer or employee referred

to in subchapter II of chapter I of this title,

willfully and knowingly swears or affirms

falsely as to the truth of any statement

required to be made or subscribed by him

under oath by or under authority of this title,

shall be guilty of perjury, and shall be fined

not more than $2,000 or imprisoned not more

than five years, or both.

(b) Whoever, being an officer or employee referred

to in subchapter II of chapter I of this title—

(1) willfully and knowingly makes a false certificate or fictitious return; or

(2) knowingly or willfully furnishes or causes

to be furnished, or, having been such an

officer or employee, knowingly or willfully furnished or caused to be furnished, directly or

indirectly, to the Secretary or to any other

officer or employee of the Department of

Commerce or bureau or agency thereof, any

false statement or false information with reference to any inquiry for which he was authorized and required to collect information provided for in this title—shall be fined not more

than $2,000 or imprisoned not more than five

years, or both.

214. Wrongful disclosure of information

Whoever, being or having been an employee or

staff member referred to in subchapter II of chapter I of this title, having taken and subscribed the

oath of office, or having sworn to observe the

limitations imposed by section 9 of this title, publishes or communicates any information, the disclosure of which is prohibited under the provisions of section 9 of this title, and which comes

into his possession by reason of his being

employed (or otherwise providing services) under

the provisions of this title, shall be fined not more

than $5,000 or imprisoned not more than 5 years,

or both.

Subchapter II—Other Persons

221. Refusal or neglect to answer questions;

false answers

(a) Whoever, being over eighteen years of age,

refuses or willfully neglects, when requested

by the Secretary, or by any other authorized

officer or employee of the Department of

Commerce or bureau or agency thereof acting

under the instructions of the Secretary or

authorized officer, to answer, to the best of his

knowledge, any of the questions on any

schedule submitted to him in connection with

any census or survey provided for by subchapters I, II, IV, and V of chapter 5 of this title,

applying to himself or to the family to which

he belongs or is related, or to the farm or

farms of which he or his family is the occupant, shall be fined not more than $100.

(b) Whoever, when answering questions described

in subsection (a) of this section, and under the

conditions or circumstances described in such

subsection, willfully gives any answer that is

false, shall be fined not more than $500.

223. Refusal, by owners, proprietors, etc., to

assist census employees

Whoever, being the owner, proprietor, manager,

superintendent, or agent of any hotel, apartment

house, boarding or lodging house, tenement, or

other building, refuses or willfully neglects, when

requested by the Secretary or by any other officer

or employee of the Department of Commerce or

bureau or agency thereof, acting under the

instructions of the Secretary, to furnish the names

of the occupants of such premises, or to give free

ingress thereto and egress therefrom to any duly

accredited representative of such Department or

bureau or agency thereof, so as to permit the collection of statistics with respect to any census

provided for in subchapters I and II of chapter 5

of this title, or any survey authorized by subchapter IV or V of such chapter insofar as such survey

relates to any of the subjects for which censuses

are provided by such subchapters I and II, including, when relevant to the census or survey being

taken or made, the proper and correct enumeration of all persons having their usual place of

abode in such premises, shall be fined not more

than $500.

224. Failure to answer questions affecting companies, businesses, religious bodies, and

other organizations; false answers

Whoever, being the owner, official, agent, person

in charge, or assistant to the person in charge, of

any company, business, institution, establishment, religious body, or organization of any

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U.S. Census Bureau
nature whatsoever, neglects or refuses, when

requested by the Secretary or other authorized

officer or employee of the Department of Commerce or bureau or agency thereof, to answer

completely and correctly to the best of his knowledge all questions relating to his company, business, institution, establishment, religious body, or

other organization, or to records or statistics in

his official custody, contained on any census or

other schedule or questionnaire prepared and

submitted to him under the authority of this title,

shall be fined not more than $500; and if he willfully gives a false answer to any such question, he

shall be fined not more than $10,000.

225. Applicability of penal provisions in certain

cases

(a) In connection with any survey conducted by

the Secretary or other authorized officer or

employee of the Department of Commerce or

bureau or agency thereof pursuant to subchapter IV of chapter 5 of this title, the provisions

of sections 221, 222, 223 and 224 of this title

shall apply—

(1) with respect to the answering of questions

and furnishing of information, only to

such inquiries as are within the scope of

the schedules and questionnaires and of

the type and character heretofore used in

connection with the taking of complete

censuses under subchapters I and II of

chapter 5 of this title, or in connection

with any censuses hereafter taken pursuant to such subchapters;

(2) only after publication of a determination

with reasons therefor certified by the Secretary, or by some other authorized officer

or employee of the Department of Commerce or bureau or agency thereof with

the approval of the Secretary, that the

information called for is needed to aid or

permit the efficient performance of essential governmental functions or services, or

has significant application to the needs of

the public, business, or industry and is not

publicly available from nongovernmental

or other governmental sources;

(3) in the case of any new survey, only after

public notice, given by the Secretary or

other authorized officer or employee of

the Department of Commerce or bureau or

agency thereof at least thirty days in

advance of requesting a return, that such

survey is under consideration.

(b) The provisions for imprisonment provided by

section 222 of this title shall not apply in connection with any survey conducted pursuant

to subchapter II of chapter 3 of this title, or to

subchapter IV of chapter 5 of this title.

Subchapter III—Procedure

241. Evidence

When any request for information, made by the

Secretary or other authorized officer or employee

of the Department of Commerce or bureau or

agency thereof, is made by registered or certified

mail or telegram, the return receipt therefor or

other written receipt thereof shall be prima facie

evidence of an official request in any prosecution

under such section.

History—1997 Economic Census Appendix A A-5

U.S. Census Bureau
Appendix B. HISTORICAL DEVELOPMENT OF THE ECONOMIC CENSUS

OF THE UNITED STATES

History of the 1997 Economic Census ..................... 2

The Economic Censuses in the Nineteenth Century .............. 2

The Beginnings of the Economic Census................... 2

1810 .................................... 2

1820 .................................... 2

1830 .................................... 3

1840 .................................... 3

The Expansion of the Censuses ....................... 3

Measuring the Success of the First Censuses ............... 3

1850 .................................... 4

1860-1879 ................................. 4

1880 .................................... 5

1890 .................................... 6

1900 .................................... 6

The Twentieth Century ............................. 6

The Census Bureau and the Growth of the Economic Census ........ 6

The Permanent Census Act......................... 6

1905 .................................... 7

The 1909 Economic Census of Puerto Rico ................ 7

The 1910 Census Act and Confidentiality ................. 7

1910 .................................... 7

1915 .................................... 8

Special Censuses in 1917 and 1918 .................... 8

1920-1929 ................................. 8

1930 .................................... 9

1931-1933 ................................. 10

1935 .................................... 11

1937 .................................... 11

1940 .................................... 11

Post-War Economic Censuses......................... 12

1947 .................................... 12

1948 .................................... 13

The Advent of the Electronic Computer in 1951 ............. 14

The Watkins Commission: 1953-1954 ................... 14

1954-1955 ................................. 14

1958 .................................... 15

1963 .................................... 15

1967 .................................... 16

1972 .................................... 17

1977 .................................... 17

The Creation of the Standard Statistical Establishment List (SSEL) .... 18

1982 .................................... 18

1987 .................................... 19

1992 .................................... 21

CONTENTS

History—1997 Economic Census Appendix B B-1
Appendix B.

Historical Development of the

Economic Census of the United States

HISTORY OF THE 1997 ECONOMIC CENSUS

Several obstacle were encountered as the Census

Bureau began preparations for the 1997 Economic Census.

As a result of budget reductions, the overall scope of the

1997 Economic Census was reduced—the principal casualty being the Enterprise Statistics Program. At other times

during the census design and planning, other areas for

which the Census Bureau had collected data in the past

were considered for deletion, including the mineral and

construction industries, the Vehicle Inventory and Use Survey, and the Surveys of Minority- and Women-Owned Business Enterprises, and the Outlying Areas (i.e., Puerto Rico,

Guam, the Virgin Islands of the United States, and the

Commonwealth of the Northern Mariana Islands). Fortunately, the Congress provided the majority of funds

needed to continue collecting these vital data.

The increasing obsolescence of the Standard Industrial

Classification (SIC) Codes used by the Federal Government, and the passage of the North American Free Trade

Agreement (NAFTA) produced tremendous pressure for a

complete overhaul of the SIC Code. The decision to

replace the SIC Code was evident by the mid-1990s, when

the fastest growing industrial sector was ‘‘not elsewhere

classified.’’ This situation resulted in the development of

the North American Industrial Classification System

(NAICS), a cooperative effort between the Census Bureau,

the Bureau of Economic Analysis, and the statistical agencies of Canada and Mexico (see Chapter 3). The NAICS,

which was a single industrial classification system,

replaced the three separate national systems used by

the NAFTA signatories. In February 1997, the Office of

Management and Budget (OMB) directed the Census

Bureau to adopt the NAICS for the 1997 Economic Census.

Contact withcensus data users indicated that publication of census data in less expensive electronic formats

would be more useful than printed-format data and the

accompanying expenses required for their publication.

The Census Bureau’s decision to use electronic dissemination as the primary form of data required greater degree

of product standardization than in previous censuses, as

well as user-access software improvements. (Standardization across product lines was critical for cross referencing

permitted through the manipulation of electronic data

files.)

The increasing popularity of the Internet suggested that

reports should be made available to data users visiting the

Census Bureau’s Web site. The 1997 Economic Census data

were released on CD-ROM and via the Internet. Reports

from the 1992 census were released in portable document

format (pdf) and were available either via a CD-ROM or the

Internet to ease the transition from printed to electronic

reports.

THE ECONOMIC CENSUSES IN THE NINETEENTH

CENTURY

The Beginnings of the Economic Censuses

1810. The third census of the United States was the first

that included inquiries into the economy of the Nation. In

an act passed on May 1, 1810, the Congress directed,

‘‘That it shall be the duty of the several marshals, secretaries, and their assistants aforesaid, to take, under the direction of the Secretary of the Treasury, and according to

such instructions as he shall give, an account of the

several manufacturing establishments and manufactures

within their several districts, territories, and divisions.’’

The act did not outline any specific questions or prescribe

a schedule, leaving those matters to the Secretary of the

Treasury’s discretion. To facilitate the collection of data,

the U. S. Department of the Treasury divided manufactured products into 25 broad categories, encompassing

more than 220 kinds of goods. As the U.S. marshals and

their assistants conducted the decennial census, they also

visited the manufacturing establishments in their assigned

areas to obtain economic data generally on the quantity

and value of products manufactured. This enumeration

was conducted from August 1810 to July 1811, at a total

cost of $40,000. However, it was not until March1812

that Congress authorized $2,000 for the U. S. Department

of the Treasury to prepare a statistical report on the kind,

quantity, and value of goods manufactured and the number of manufacturing establishments in each state, territory, district, and county. The report, published in May

1813, noted that there had been serious undercounting

and omissions in the enumeration. Although the census

valued total manufactures at about $173 million, the

actual figure probably exceeded $200 million.

1820. The manufactures census of 1820 was similar to

that of 1810. However, in addition to a question on the

location of establishments, 14 additional inquiries collected information on raw materials employed (kind, quantity, and cost), number of employees (men, women, and

children), machinery (whole quantity, kind of machinery,

and quantity of machinery in operation), expenditures

(capital, wages, contingent expenses), and production

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U.S. Census Bureau, 1997 Economic Census
(nature and names of articles manufactured, value,

demand, and sales). Federal marshals and their assistants

collected the data and published a digest of the returns

under the auspices of the U.S. Department of State. Statistics appeared for eachstate, territory, and district, but

there was no attempt to compute U.S. totals because the

data were again incomplete. The deficiencies were attributed to insufficient funds to pay the marshals and the fact

that many establishments apparently neglected (or

refused) to provide the required information. Data from

1810 and 1820 were not comparable because household

manufactures (goods produced at home) were counted in

1810, but not in 1820.

1830. The 1830 decennial census made no attempt to

obtain economic data, partly as a result of incompleteness

in the 1810 and 1820 censuses and perhaps because of

the comparatively slow rate of economic growth in the

1820s.

1840. Because of extensive growthin commercial fishing, commerce, and mining, and considerable pressure to

resume the collection of economic statistics, the 1840

census included a census of manufactures, as well as

series of questions about mining and fisheries. Marshals

and their assistants used a single questionnaire, ‘‘Schedule

of Mines, Agriculture, Commerce, Manufactures, Etc.,’’ to

collect data on these subjects. The census divided manufacturing into 30 categories on the basis of the manufactured product (machinery, paper, furniture, etc.), and

included an ‘‘all other manufactures’’ classification.

Census takers collected statistics on the quantity and

value of goods produced, amount of capital invested,

number of employees, and number of establishments.

Mine operators were questioned following the classification of their mining activities (iron, lead, gold, salt, stone,

etc.). These inquiries generally covered quantity and value

of materials produced, employment, and capital invested

in mining operations. Commercial fishermen responded to

questions regarding quantity (and sometimes value) of

fishproducts, employment, and capital invested.

Commerce and trade activities accelerated during the

early and middle decades of the 19th century. Volume of

trade (total imports plus total exports) increased almost

twofold, from about $126 million in 1821 to approximately $248 million in 1841. A series of questions on the

number of business enterprises in various categories

(commercial houses in foreign trade, commission houses,

lumber yards, grocery stores, etc.), capital invested, and

number of employees were added to the decennial census

in 1840 to measure the extent of commercial activities.

Federal marshals tabulated the returns for manufacturing, fishing, commerce, and mining and statistical tables

were published on the ‘‘commerce and industry of the

country.’’ However, the 1840 census results, even though

‘‘corrected’’ in Washington, reflected a considerable undercoverage of the national economy.

The Expansion of the Censuses

Measuring the Success of the First Censuses. The

attempts to collect economic data in the censuses of

1810, 1820, and 1840 are considered to be of little value

except as indicators of the gross outlines of manufacturing development. The inauspicious beginnings of the

economic census were the result of several interrelated

factors. In addition to customary handicaps, such as

geographic dispersion, poorly defined boundaries, and

inadequate transportation, collection of the economic data

was hindered by the following:

• The Federal marshals who supervised the field operations had other duties and often could not devote

adequate time and attention to the census of economic

activity.

• The marshals’ assistants, the actual enumerators, often

received sketchy instructions or none at all. Although

they might not normally have required detailed training

or instructions to obtain answers to straightforward

population questions (e.g., age and sex of members of a

household), they may have had problems eliciting

answers to more complex economic questions (suchas

the cost of raw materials consumed in manufacturing

during the year).

• The marshals supervising the enumeration had to

compile and classify the data for their jurisdiction and

prepare tables for publication. This decentralization

inevitably introduced some irregularities in the reported

information, because the marshals, who were not

trained statisticians, frequently used divergent

procedures in performing these duties.

• Many entrepreneurs, believing the government should

have a minimal role in economic affairs, were suspicious

and uncooperative when asked to provide information

about their business to Federal agents.

To deal with nonresponse, the instructions given the

marshals stated that:

• ‘‘...you (the marshals) will perceive the strong necessity for acquainting the people in advance with the

nature of the inquiries to be made of them, and to

give them time for preparation to answer the questions promptly. . . . If (th e inquiries) be made known

and generally understood before the enumeration

commences, the answers to the interrogatories will

be prepared in time for the domiciliary visit of the

assistant, and the responses promptly made.’’

The instructions went on to say that:

• ‘‘Objections, it has been suggested, may possibly

arise on the part of some persons to give the statistical information required by the act, upon the ground

History—1997 Economic Census Appendix B B-3

U.S. Census Bureau, 1997 Economic Census
of disinclination to expose their private affairs. Such,

however, is not the intent, nor can be the effect, of

answering ingenuously the interrogatories. On the

statistical tables no name is inserted -the figures

stand opposite no man’s name; and therefore the

objection cannot apply. It is, moreover, inculcated

upon the assistant that he consider all communications made to him in the performance of his duty,

relative to the business of the people, as strictly

confidential.’’1

In other cases, the census takers found that the respondents’ records were inadequate or nonexistent, and the

owners or operators simply could not provide more than

sketchy estimates.

1850. As a result of the inaccuracies in the previous

censuses and to improve the 1850 census results, Congress passed an act on March 3, 1849, establishing the

Census Board. This Board consisted of the Secretary of

State, the Attorney General, and the Postmaster General.

The act also provided for a full-time secretary who functioned as the director of the census, with responsibility for

designing and printing the census schedules, and collecting and publishing data on manufacturing, mining, fishing, and commerce. The Census Board appointed Joseph

C. G. Kennedy, a statistician and newspaper editor-owner

from Pennsylvania, to serve as secretary of the Board in

1849. The Secretary of the Interior formally appointed

Kennedy ‘‘superintendent’’ of the Census Office in 1850.

Kennedy was largely responsible for the improved accuracy of the census results.

Resigning in 1853, Kennedy became U.S. representative

to the International Statistical Congresses in Brussels, in

1853 and 1854. The Secretary of the Interior rehired

Kennedy in June 1858 to supervise the preparation of the

report on economic statistics. (Upon completing that

assignment, he was appointed superintendent of the 1860

Decennial Census.)

The Census Board consulted with prominent statisticians in Federal Government and the academic and business communities to develop six questionnaires,2 one of

which (schedule 5) was for the collection of economic

data. This questionnaire was to be completed for each corporation, company, or individual having annual production

valued at $500 or more for the year ending July 1, 1850.

Enumerators received written instructions and

examples of properly completed questionnaires, including

Schedule 5. Schedule 5 asked for the following data:

• ‘‘Name of business, manufacture, or product.’’

• Amount of capital invested in real and personal estate in

the business.

• Quantities, kinds, and values of raw materials used.

• Kind of motive power (water or steam), machinery,

structure, or resource used in the manufacturing

process.

• Average number of male and female workers employed.

• Average monthly cost of male and female labor.

• Quantities, kinds, and values of annual production.

Although Federal marshals still supervised field operations, they no longer compiled and assembled statistics

for publication. This work was performed by clerks in an

office in Washington, DC. General census results were

published in June 1853, and partial data was available for

manufactures in September 1854.

Complete economic statistics for the 1850 census were

not released until December 1859. The total value of

manufactures (including fisheries and the products of

mines), as reflected in the 1850 census, exceeded $1 billion. This represented a 500-percent increase since 1810,

compared to a growthin population of only 75 percent.

Although there was an undercount, the economic and

decennial censuses were considerably more accurate than

the previous censuses.

1860-1879. Withthe exception of some minor modifications in the questionnaires, the censuses of 1860 were

similar to those of 1850. The Census Office published four

volumes of census data, including one devoted exclusively

to economic statistics. A major innovation was Superintendent Kennedy’s analysis of the census statistics. He

used the data as a basis for describing ‘‘all the great elements of a nation’s prosperity as they existed in the year

1860.’’ In his section on ‘‘products of industry,’’ included in

the Preliminary Report on the Eighth Census, published in

1862, Kennedy described the increasing impact of manufacturing and commerce in the United States, estimating

that one-third of the entire population in 1860 was

supported, directly or indirectly, by manufacturing. He

compared various industries, and interpreted the data to

show how and why sections of the economy expanded,

stabilized, or decreased, and illustrated interrelationships

among the production and socioeconomic factors.

As industrial specialization increased, it became more

difficult to develop general questions applicable to all

establishments. Unique questionnaires, tailored to the

characteristics of each industry, had to be designed to

obtain meaningful statistics. At the same time, the

concentration of economic power brought a growing public demand for Federal Government regulation of business.

1

The 1840 census marked the first evidence of official concern

withthe need to regard economic census data as confidential.

Subsequent censuses had similar instructions. 2

For a time the government used the words ‘‘schedule’’ and

‘‘questionnaire’’ interchangeably to refer to the report form completed either by a respondent or a census enumerator. In more

recent years, the Census Bureau has generally used the term

‘‘questionnaire.’’

B-4 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
As the Government exercised increasing power over

economic affairs, it required more and better data upon

which to base its far-reaching decisions.

During 1869 and 1870, Congress attempted to draft

new census legislation to supersede the 1850 law under

which the 1850 and 1860 censuses had been taken. No

new law was approved, however, and the 1870 Decennial

Census was conducted following the 1850 law. Congress

agreed to direct that the 1870 schedule for ‘‘products of

industry’’ be modified to collect additional information on

machinery and machine power sources, cost of labor, and

number of months the establishment was in operation.

The inquiry concerning motive power and machinery was

subdivided so as to show specifically the kind of motive

power, horsepower (if steam or water), and the number

of machines used. The inquiry concerning the average

number of hands employed was revised to cover males

(older than 16 years), females (older than 15 years), and

children. Despite these changes, statistics on industry and

wealthcontained basic tabulations closely resembling

those of 1850 and 1860. Other innovations for the 1870

censuses included the use of tally machines (for the population schedules) and the introduction of maps and charts

to portray census results in a statistical atlas.

1880. In March1879, the Congress passed a new census

law that implemented major changes in economic data

collection for the censuses of 1880. This law provided

for—

• Tailoring schedules to specialized businesses.

• Expanding the scope of the censuses.

• Using census supervisors and ‘‘experts,’’ appointed by

the President and confirmed by the Senate, to conduct

the censuses (instead of Federal marshals, who had

been responsible for the enumeration since 1790). For

the economic census, ‘‘experts’’ and ‘‘special agents’’

(college professors, engineers, economic statisticians,

and others with training and experience in the appropriate subject-matter areas) were authorized to collect,

classify, and analyze statistics on manufacturing,

mineral industries, or commercial fisheries in 279 large

cities and towns.

• Implementing of a schedule of fines and/or imprisonment for census workers who breached respondent

confidentiality, falsified census records, or participated

in other forms of misconduct.

For the 1880 census, the Census Office expanded the

number of general economic questions to 29, and

designed 49 special schedules, containing more than

2,000 inquiries, for particular industries in the manufacturing area. Although there was considerable overlap of

questions (i.e., the same item appearing on several special

schedules, or on the general schedules and also on one or

more special schedules), more than 700 of the inquiries

were unique to an individual economic sector.

Whereas questions on mining and mineral industries

had been included on the ‘‘products of industry’’ schedules

in the 1850, 1860, and 1870 censuses, the Census Office

used 42 special schedules to collect data on this subject in

1880. These special schedules contained almost 3,000

inquiries, including over 1,600 unique items. Those for

copper mines contained more than 120 questions, but

the median number of items on the special schedule for

minerals was 53.

There were five special schedules for commercial

fisheries. The 87 questions asked for information on the

amount and kind of fishtaken, type of equipment used,

employment, and finances. There was a basic schedule for

all commercial fishermen and more detailed schedules for

dealers in fresh and salt fish, as well as two schedules for

river fishing activities.

Althoughsome data on telegraphfacilities was collected in 1850, the 1880 censuses marked the first major

effort to compile detailed statistics on transportation and

communications. Congress directed the Superintendent of

the Census to collect and publish data on steam railroads,

steamboat companies, incorporated express companies,

and telegraphcompanies. Several special questionnaires

were used for this purpose. Most of the 375 questions

were designed to compile statistics on the railroads’ financial and physical characteristics.3

The rise of organized labor and trade associations

prompted the Government, for the first and only time in

the economic censuses, to include a series of inquiries on

labor unions and trade societies (number, objectives and

methods, membership, receipts, and expenditures) and on

the number, location, causes, and results of strikes and

lockouts. The census used 4 special schedules containing

a total of 101 questions to collect this information.

The 1880 census also contained a special survey on

wages and prices. Three schedules, with a total of 167

questions, collected statistics on wages in the manufacturing industries and building trades, and on average retail

prices of the ‘‘necessaries of life.’’

A few questions on the insurance industry (primarily on

life insurance) were included in the 1860 census. In 1880,

the economic census covered life, fire, and marine insurance companies, using 15 special schedules to compile

3

Financial characteristics included income, expenses, and

analysis of earnings, while physical characteristics encompassed

track mileage, amount and kind of rolling stock (locomotive cars),

and fuel used to power locomotives, etc. The Census Bureau

requested a detailed report from eachrailroad on virtually every

facet of its operations, including timber conservation practices

and data on employees and others killed or injured in accidents.

In addition to questions about railroads’ current characteristics,

there was a special inquiry on the history of their construction,

from which the Census Office tabulated statistics on mileage

built and existent, by groups of states, for individual companies,

annually from 1830 to 1880. The special schedules asked

fewer and less detailed questions of steamboat companies

(21), express companies (30), telegraphcompanies (24), and

telephone/telegraph companies (16).

History—1997 Economic Census Appendix B B-5

U.S. Census Bureau, 1997 Economic Census
statistics on their organization, finances, and insurance in

force. Census staff encountered considerable difficulty in

collecting and tabulating the data and, except for a preliminary statement in the statistical compendium, no

report was issued on this subject.

The economic statistics compiled in the 1880 census

were more comprehensive than in any previous census.

The use of experts and special agents generally resulted in

more complete and consistent returns, which led to more

accurate data on the Nation’s economy. The Census Office

published the compendium summarizing census data in

early 1883, the basic census volumes reporting manufacturing statistics and transportation-communications data

in October 1883, and the mineral industries volume in July

1886. Several special monographs (e.g., on water power

used in manufacturing; precious metals; and petroleum,

coke, and building stone) appeared in the mid-1880’s. The

statistical atlas was printed by a commercial publisher,

once the Census Office resumed producing atlases following the 1890 census.

1890. The 1890 Censuses of Manufactures and Mineral

Industries followed the basic procedures established for

the 1880 censuses; e.g., specialists and agents visited

establishments in 1,042 manufacturing and commercial

centers, bulletins announced preliminary census results,

and in many instances, the same schedule formats were

used. The 1890 censuses saw the first use of administrative records (those kept by governmental or private

organizations) to compile economic census data. Congress

directed that statistics be collected on the recorded

indebtedness (i.e., real estate mortgages) of private corporations and individuals. Special census agents went to real

estate recorders’ offices to collect information about mortgages made during the period 1880 to 1890, which

included a description of the property, provisions of the

mortgage, and the addresses of the mortgagor and mortgagee. Then, the Census Office mailed schedules (and

postage-paid return envelopes) to the mortgagors (or the

mortgagees if the mortgagors did not respond), that asked

them to supply additional information about their mortgages (whether or not they had been fully paid and, if not,

how much was owed) and return the completed schedules

to the Census Office.

The census of manufactures covered Alaska for the first

time in 1890.4 The census considerably expanded the

number of inquiries on transportation (first asked in

1880), withcoverage extended to sailing vessels and

rapid-transit facilities in cities (which later included cable

railways, railways operated by animal power, and electric

street railroads).

1900. The census of 1900,5 which was limited by law

to duplicate that of the 1890 census, included coverage of

manufactures, mines and quarries, street and electric railroads, and, for the first time, central electric light and

power stations. The census compiled manufacturing information on the number of establishments, capital invested,

number of wage earners and total wages paid, cost of

materials, and value of products. Most manufacturing

establishments (about 530,000 of the 644,000 total

returns were from manufacturers) reported information on

the general questionnaire, but there was still some criticism from respondents that the 32 special questionnaires

required too muchdetailed information.

Manufacturing data in 1,340 cities and towns were

compiled by 1,891 specialists (supervised by 20 ‘‘expert

special agents’’). To disseminate the results, the Census

Office prepared 59 unique bulletins on various special

subjects in manufacturing, including shipbuilding, slaughtering and packing, and lumbering. The Census Office also

released bulletins on manufacturing for eachof the states

and territories except Alaska and Hawaii.6 Manufacturing

data were published in four volumes and summarized in

the statistical abstract and atlas.

Statistics on mines and quarries, street and electric railroads, and central electric light and power stations were

initially published in bulletins and later in final reports that

were somewhat less detailed than the bound volumes on

manufactures. Data on mining covered the same general

topics as before (number of mines and mine operators,

wage earners and total wages, cost of supplies, other

operating expenses, and quantity and value of minerals

extracted), by geographic area and by type of mineral.

For street and electric railroads, Census Office employees assembled statistics on suchtopics as number of companies, lengthof rail lines, cost of construction and equipment, employees, and passengers. Data compiled for

central electric light and power companies included number of stations, cost of construction and equipment, earnings, expenses, and power generated.

THE TWENTIETH CENTURY

The Census Bureau and the Growth of

the Economic Census

The Permanent Census Act. In March1902, the Congress enacted the Permanent Census Act that established

4

In the early 1880’s, Ivan Petroff, a special Census Office

agent, traveled to Alaska (in accordance withinstructions from

the Superintendent of the Census Bureau) to report on the number of inhabitants. As a result of his work, he (1) produced a brief

statistical review of Alaska in geographic divisions, with tables of

population, (2) provided a review of the fur trade, fisheries, mineral, and agricultural resources, (3) described the geography and

topography of Alaska, (4) furnished a historical sketch of Alaska

from its discovery to the year 1880, and (5) wrote notes on Alaskan ethnology. However, this effort did not constitute an economic census of that territory.

5

Statistics for manufacturing were for the year 1900. Data for

mining, street and electric railroads, and electric light and power

stations were for 1902, but the Census Office released these

results as part of the 12th decennial census publication series. 6

Data for Alaska and Hawaii appeared in the regular Census

Bureau reports.

B-6 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
the Census Office as a permanent agency.7 The act

included a provision directing ‘‘That in the year 1905, and

every 10 years thereafter, there shall be a collection of statistics of manufacturing establishments....’’ This was in

addition to the coverage of manufactures in the decennial

census, which meant that the new Census Bureau would

conduct censuses of manufactures every 5 years (quinquennially). The legislation also mandated several specialized interdecennial censuses subsequently taken between

1902 and 1937 that included street railways and telephone and telegraph companies. In 1922, the Census

Bureau expanded the ‘‘street railways’’ category to include

motor buses and, in 1932, trolley buses. The ‘‘telegraph’’

classification included only land telegraphand ocean cable

systems in 1902, but the Census Bureau enlarged the definition for 1907 to include wireless systems. Censuses of

water transportation were conducted in 1906, 1916, and

1926. Other special enumerations included a census of

express businesses in 1907 and a census of commercial

fisheries was taken in 1908 and again in 1963 and 1967.8

1905. To conduct the 1905 census, the Census Bureau

constructed a card index containing names and addresses

of manufacturing establishments on the basis of 1900

census results, city directories, trade publications, state

and local government lists, and similar sources. In October

1904, the agency sent preliminary circulars to these establishments, asking them to provide their establishments

data (name and address, period of operation, and kind of

business). Based on the results of this precanvass, the

Census Bureau updated the card index and mailed questionnaires to establishments in early December 1904.

Beginning in January 1905, 835 canvassers (Census

Bureau employees and temporary employees hired for the

duration of the operations) visited nonrespondent companies.

The schedules used in the 1905 census were the same

as those used in 1900. The agency redefined the scope of

the census to cover only manufacturing establishments

under the ‘‘factory system,’’ excluding the neighborhood

and household industries and trades9 that had been previously included. To provide comparability between censuses, the Census Bureau retabulated the 1900 manufactures census results using the new definition. With

neighborhood and household industries and hand trades

excluded from the 1900 results (for 1899), the number of

manufacturing establishments shrank from about 509,000

to approximately 205,000, and value added by manufacture was reduced from $5.5 billion to $4.6 billion.

The 1909 Economic Census of Puerto Rico. The

Census Bureau conducted the first economic census of

Puerto Rico (for manufactures) for the year 1909. With the

exception of 1929, a census was conducted in Puerto Rico

at 10-year intervals through 1949. Censuses of manufactures then were taken concurrently with censuses of retail

and wholesale trade and selected service industries, for

the years 1954 and 1958. . In 1952 and 1956, the CommonwealthGovernment of Puerto Rico conducted censuses of manufactures withmore limited coverage than

the stateside census. Since 1963, the census in Puerto

Rico has been part of the stateside economic census

program

The 1910 Census Act and Confidentiality. The 1910

census act strengthened confidentiality protections, particularly as they related to economic data. As a matter of

administrative policy, responses on schedules for earlier

economic censuses had been considered confidential, but

the 1910 law specified that information furnished by business, manufacturing, and mining establishments:

• ‘‘...shall be used only for the statistical purposes for

which it is supplied. No publication shall be made by

the Census Office whereby the data furnished by any

particular establishment can be identified, nor shall the

Director of the Census permit anyone other than the

sworn employees of the Census Office to examine the

individual reports.’’

The Census Bureau acknowledged the importance of

confidentiality by noting in the volume containing 1910

manufactures census results that:

• ‘‘It is essential to the success of the manufactures

census that every concern should be assured explicitly

by law that its business will not be disclosed to competitors, to the general public, to state and local officials, or even to officials of the Federal Government outside of the Census Bureau. Only withsuchpledge of

confidential treatment can the Census Bureau expect

manufacturers to furnishdata promptly and accurately.’’

1910. For the 1910 census of manufacturing establishments, the Census Bureau used 1 general and 60 special

questionnaires. The general schedule was materially simpler than that employed for the censuses of 1900 and

1905, and the same was even more true of most of the

special questionnaires. Establishments completed and

returned their questionnaires to the Census Bureau. Special agents conducted a nonresponse follow-up. For mines

and quarries, one schedule collected data for use by the

Census Bureau and the U.S. Geological Survey. (This was

done to decrease respondent burden, since bothagencies

collected similar data). The Census Bureau assigned 1,227

7

The name changed to the ‘‘Bureau of the Census’’ in 1903,

when it became part of the new Department of Commerce and

Labor. Legislation continued to refer to ‘‘the Census Office,’’ however. 8

The census of commercial fisheries was discontinued after

1967, due to a lack of interest by data users. 9

Examples of these industries include custom tailoring, carpentering, taxidermy, and, in gerenal, contract work done for

individual customers. The census also excluded establishments

that produced products with an annual value of less than $500.

History—1997 Economic Census Appendix B B-7

U.S. Census Bureau, 1997 Economic Census
special agents and 76 Census Bureau employees to enumerate factories, mines, and quarries. In sparsely settled

areas, decennial census enumerators visited the manufacturing and mining establishments.

For the first time, the 1910 Economic Census collected

data from custom sawmills and gristmills and steam laundries. Under the definitions used for the time of the two

previous censuses of manufactures, mills that did not

produce for sale, but only sawed lumber or ground grain

for toll, did not fall under the factory system. The census

covered steam laundries because they had become an

important industry. As a result of consolidating some

categories, the number of separate industry tabulations

published was reduced.

An amendment to the 1902 census act, passed February 25, 1910, required the Census Bureau to enumerate

the number of animals slaughtered for food purposes and

the number of hides produced during the year. This necessitated a canvass of all butchering establishments, many

of which would not have been included under the general

rules defining the factory system.

1915. The 1915 Census of Manufactures sought the

assistance of prominent manufacturers and of representative commercial and trade groups to conduct the census.

Additionally, the Census Bureau enlisted the Congress, the

Department of Agriculture, the Bureau of Corporations,

and state statistical organizations. The director of the

Census Bureau and the Chief Statistician for Manufactures

visited cities (Philadelphia, New York, Boston, St. Louis,

etc.) to obtain suggestions on the form and content of the

schedules from economic census participants. Census

Bureau employees tabulated 1914 data for 344 industries

and 271 industry subgroups. Plans called for the prompt

publication of bulletins containing preliminary results, but

the United States’ entrance into World War I in April 1917,

delayed the preparation of the printed statistics until late

1918.

Special Censuses in 1917 and 1918. Because of the

urgent need for industrial data during World War I, there

were a number of special economic censuses something

not done previously. For example, the agency compiled

statistics of New York’s daily landings of freshcatches

from U.S. fishing boats and receipts by rail and steamer

during the last 4 months of 1917. In late 1917 and early

1918, the Census Bureau took a number of mail censuses

for the War Trade, War Industries, Shipping, Federal

Reserve, and Commercial Economy Boards, the Food

Administration, and the Council of National Defense.

These emergency censuses covered such commodities as

iron and steel; wool machinery and woolen manufactures;

kapok fiber, jute and silk; leather stocks and manufactured

leather goods; antimony and graphite crucibles; commercial greenhouses; materials used in the manufacture of

explosives; and dental gold production.

1920-1929. The growing need for detailed economic

statistics prompted the Congress to direct the Census

Bureau (in the act providing for the decennial census of

1920) to conduct censuses of manufactures on a biennial

basis, to collect and publisheconomic statistics for the

years 1921, 1923, 1925, 1927 and for every tenthyear

thereafter. Data were collected that would be of economic

and sociological importance, suchas (1) the size of establishments and hours of labor, (2) the absolute and relative

magnitude of the various branches of industry and their

growthand decline, and (3) the industrial importance

(withincrease or decrease) of individual states and large

cities.

In planning the 1921 census of manufactures, Census

Bureau officials consulted the National Association of

Manufacturers, the Census Bureau Advisory Committee

(which included representatives of the American Economic

Association), civic associations (suchas chambers of commerce), trade associations, and government and privatesector statisticians. The recommendations made by these

organizations and individuals helped the Census Bureau

design questionnaires, publicize the census, and generally

encouraged industry’s acceptance of the project.

To reduce the expense of the census and expedite the

processing and publication of results, the Census Bureau

omitted certain items that had been included in previous

censuses of manufactures (capital invested, age and sex

distribution of employees, rent and taxes, primary horsepower used, and kind and quantity of fuel used in manufacturing). Additionally, only limited statistics were collected on number of wage earners and value of production

from manufacturing establishments reporting products

valued at less than $5,000 for 1921.10 In 1921, about 22

percent of manufacturers had products valued at less than

$5,000; however, these plants accounted for less than 1

percent of all wage earners and total production.

The Census Bureau conducted a mailout/mailback census in 1921 to collect economic data on 358 separate

industries (98 of which were subdivided to show greater

detail) on such things as the number of proprietors or firm

members, number of salaried employees, number of wage

earners, amounts paid in salaries and wages, amount paid

for contract work, and cost of materials. To tabulate the

data from manufacturers, mines, and quarries, the Census

Bureau, for the first time in an economic census, used a

punchcard tabulating system similar to the one introduced

during the 1890 decennial census for tabulating population data.

The Census Bureau issued preliminary summary reports

of census results as press releases, eachrelating to a particular industry or group of industries. A summary bulletin

presented statistics for the United States by industries,

and for all industries combined by state. Mining data were

10Previously, data had been obtained from establishments with

annual production valued at $500 or more.

B-8 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
published to reflect geographic distribution of operations,

land controlled by mining operators, characteristics of

organization, scale of operations, and amount and kind of

power used. The general report of economic data included

analytical tables and tabulations, selected by mineral

industry and state, so as to facilitate comparisons withthe

mining statistics published annually by the U.S. Geological

Survey.

The procedures and coverage of the 1923 census were

virtually the same as those of 1921, but the mail operation was more successful than in 1921, due in part to the

expanded cooperation of chambers of commerce. In many

large cities, chamber representatives were sworn in as

census agents and supervised the census in their area.

Approximately 65 percent of the returns were received by

mail and, by June 1924, almost 95 percent of establishments had been canvassed by mail or by personal enumeration. The Census Bureau collected and tabulated data

for 333 industries, of which 87 were subdivided to provide greater detail. Preliminary statistics first appeared in

press releases and final data were published in industry

bulletins. A one-volume compendium report was published in January 1926.

The 1925 census covered 324 industries. The Census

Bureau again sought the cooperation of local chambers of

commerce and professional groups to encourage response

to the census. Respondents returned about 75 percent of

the schedules by mail. Census staff prepared press

releases of preliminary results, plus the usual industry

bulletins, and released the one-volume final report in

December 1927.

For the 1927 census, manufacturers of confectioneries,

ice cream, and sheet iron completed questionnaires only if

their annual production was valued at $20,000 or more.

(This was in recognition of the fact that many of the

smaller firms were primarily engaged in retail trade, not

manufacturing.) Over all, the census encompassed 335

industries, and approximately 65 percent of the respondents returned their schedules by mail. The previous

press-release, industry-bulletin, and final-volume publication sequence was followed, withthe one-volume final

report published in April 1930.

1930. The economic component of the 1930 Decennial

Census was broader in scope than any previous census,

encompassing censuses of manufactures and mineral

industries, construction industries, distribution (which

included retail and wholesale trades and special topics),

and hotels. These censuses covered activities for the year

1929.

The construction census was a response to the postWorld War I boom in this sector of the economy. In 1920,

less than 850,000 workers were employed in contract

construction, and total private construction for that year

was valued at $5.4 billion. By 1928 (the last full year

before the start of the Depression), more than 1.6 million

workers were employed in this field, and total private construction was valued at $9.2 billion.

When planning the first census of construction industries, the Census Bureau consulted an advisory committee

composed of representatives of national contractors’ associations and individual construction companies. This cooperative effort produced one basic questionnaire designed

to collect information on the following:

• Organization of the establishment.

• Number of salaried employees and total salaries paid.

• Number of skilled and unskilled workmen employed.

• Total annual wages.

• Lengthof working day and week.

• Expense for equipment, operation, and overhead.

• Total value of materials and building equipment

installed.

The construction census was a mailout/mailback operation. The Census Bureau prepared a directory of construction establishments from lists of names and addresses

provided by contractors’ associations, private statistical

agencies, builders’ exchanges, chambers of commerce,

city officials and postmasters (who were asked to submit

the names and addresses of known construction establishments in their jurisdictions). Census Bureau clerks

obtained additional names and addresses from telephone

directories, city directories, and other sources. Ultimately,

the census list included about 144,000 names and

addresses. The questionnaire was to be completed by

establishments engaged in construction business of any

kind (except industrial concerns, public utilities, municipalities, or common carriers that maintained construction

crews to repair or maintain their own property). The Census Bureau followed up nonrespondents withtwo mailings

of reminder letters. In cities withpopulations of at least

100,000, enumerators employed by the decennial census

contacted nonrespondent establishments.

Detailed statistics were compiled only for establishments that reported gross receipts of at least $25,000 during the 1929 calendar year. A punchcard system mechanically tabulated construction census results (and, in fact,

virtually all 1930 census data), but a series of clerical

cross-checks and reviews by experienced statisticians

ensured maximum accuracy and consistency. The results

were published in a single bound volume in December

1932.

The 1930 census of distribution consisted only of a

field canvass. The retail trade census covered operations

of establishments involved in some manner of retail trade,

including restaurants and some service businesses (such

as garages that sold merchandise in addition to their services). The agency classified retail establishments on the

basis of the following types of operation:

History—1997 Economic Census Appendix B B-9

U.S. Census Bureau, 1997 Economic Census
• Single-store establishments.

• Two- and three-store independents.

• Local branchsystems.

• Local, sectional, and national chains.

• Miscellaneous types of operations.

Enumerators personally visited eachof approximately

1.5 million stores included in the census to complete one

of the six questionnaires designed for this operation. In

cities withpopulations of at least 10,000, special enumerators took the census of distribution. In smaller cities

and rural areas, the decennial census enumerators visited

retail outlets. The census of retail trade compiled data on

the number of stores, personnel, payroll, stocks, sales,

operating expenses, seasonal employment characteristics,

credit business, receipts from sales of meals and automotive services, value of returned goods and allowances, and

type of organization. The Census Bureau published preliminary results as press releases. A one-volume final

report that included a summary of data by states, counties, and incorporated places, and separate tables for each

state was released in February 1933.

The census of wholesale establishments used the same

field enumeration procedures to complete one of four

questionnaires for eachof approximately 168,000 establishments. The wholesale trade classification included all

establishments engaged in the purchase, sale, or distribution of goods on a conventional wholesale basis, plus

other special categories, such as cash-and-carry wholesalers, drop shippers (middlemen who secured orders from

buyers and had merchandise shipped directly from the

manufacturer to the buyer), manufacturers’ sales

branches, and cooperative marketing associations. Virtually all merchandising establishments not in the retail

group were covered by the census of wholesale trade.

The census of wholesale trade compiled data on the

following:

• Number of establishments.

• Number of employees.

• Salaries and wages.

• Stocks.

• Net sales, credit sales, sales to ultimate consumers, and

sales to industrial consumers.

Clerks tabulated the census data statistics by kind of

business (chemical products wholesaler, drug wholesaler,

etc.), by geographic area (division and state), and by type

of organization (proprietorship, partnership, etc.). Special

tabulations yielded wholesale statistics for cities with

populations of at least 100,000 (where almost half of the

establishments were located). The Census Bureau published preliminary results as press bulletins and released

the final bound volume in December 1933.

The census of hotels, which included only establishments withat least 25 guestrooms, was originally planned

as a mailout/mailback operation. The Census Bureau compiled a directory of names and addresses of about 27,000

hotels, and mailed questionnaires in February 1930.

Because of changes in ownership, duplications, and classification problems, a field canvass was necessary, using

decennial census enumerators. Ultimately, clerks compiled

data for approximately 15,500 hotels (70 percent of which

returned questionnaires by mail, while enumerators contacted the remainder). The agency published tabulations

on the number of hotels, number of rooms, seating capacity of dining rooms, receipts, employment, salaries and

wages, and number of proprietors and firm members.

These data were classified by plan of operation (American,

European, and mixed), type of occupancy (transient, permanent, or mixed), and geographic division and state.

The procedures, coverage, and publication program for

the 1930 manufactures census closely resembled those of

the biennial censuses for 1921 through 1927. There were

165 questionnaires used to collect data for 238 industry

categories. One major difference in coverage was that

whereas the first four biennial censuses of manufactures

included only firms reporting annual production valued of

at least $5,000, the Census Bureau returned this cutoff to

$500 for the 1930 census.

The scope of the 1930 census of mines and quarries,

differed considerably from the 1920 census of mineral

industries. The 1930 census excluded the petroleum and

natural gas industries, and did not collect data for capital,

land holdings, rents, royalties, taxes, or detailed breakdowns by kind of employees. The census covered the

sand and gravel, glass-sand, and molding-sand industries,

and the quarrying of limestone carried on in connection

with the manufacture of lime and cement. The 1930 questionnaires included new inquiries as to distribution of

sales, equipment purchased, and mobile power equipment; and consolidated and reclassified a number of

industries. The data-collection methods and the publication program remained unchanged from previous censuses.

The 1930 census publication program included several

special reports on economic topics, including distribution

of sales of manufacturing plants; products of manufacturing industries; materials used in manufacturing; and location of industrial plants. With the addition of the censuses

of distribution, construction industries, and hotels, the

continuation of the manufactures and mineral industries

censuses, and the coverage of special topics, the 1930

census was broader in scope than any of the previous economic censuses.

1931-1933. The Congress reduced the Census Bureau’s

funding and personnel authorizations for the 1931 and

1933 censuses of manufactures in an effort to reduce

Federal expenditures and balance the budget. The 1931

B-10 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
census covered 310 industries, but discontinued some

inquiries (e.g., on salaried employees, power equipment,

and coal consumption). The Census Bureau mailed questionnaires in January 1932, and approximately 60 percent

were returned by mail. Officials of local chambers of commerce and, in large industrial centers, census employees,

conducted a telephone follow-up of nonrespondents.

Because of decreased funding there were few field followups. Budget restrictions also delayed the publication of

census results. The individual industry bulletins were

released over a 2-year period (1933-1934), while the final

one-volume report was published in 1935.

The agency reduced the number of special questionnaires for 1933, making greater use of the general questionnaire and of a short-form questionnaire for smaller

establishments. The census used the mailout/mailback

enumeration, withtelephone follow-ups. About 75 percent

of the questionnaires were returned by mail. The published volume containing final census results warned data

users that fewer personal follow-ups had resulted in

incomplete coverage in some areas.

President Franklin D. Roosevelt’s ‘‘New Deal’’ policies,

and their economic data requirements, triggered several

special economic census projects, suchas the 1933 business census. The census included retail distribution,

wholesale distribution, and a new category, ‘‘Services,

Amusements, and Hotels.’’ The services classification consisted of personal services (including barber shops and

beauty parlors), mechanical repair services (such as radio

shops), and miscellaneous services (such as parking lots).

The agency collected data exclusively in a field enumeration funded by the Civil Works Administration so as to provide temporary employment for 4 million people during

the winter of 1933-1934.

1935. The 1935 Census of Manufactures provided about

the same level of detail as in the 1930 census. Although

the Census Bureau developed a mailing list and mailed

questionnaires in January 1936, companies in all cities and

towns were instructed to hold their questionnaires until

enumerators visited their establishments. Enumerators

collected data from every establishment, including those

that had not received questionnaires by mail.

The 1935 Census of Business covered retail trade,

wholesale trade, the construction industries, and service

establishments (personal, business, repair, custom, and

miscellaneous services) in an extensive field operation

funded by the Works Progress Administration. Additionally, the census included a miscellaneous business category encompassing many types of establishments not

canvassed in any previous census. This miscellaneous category included—

• Advertising agencies (mailed questionnaires and

received a follow-up visit).

• Radio broadcasting stations (mailed questionnaires, one

follow-up letter, and received a follow-up visit).

• Banks (data collected by mail by the Federal Reserve

Board, Comptroller of the Currency, and Federal Deposit

Insurance Corporation. Follow-up visits were supervised

by the Census Bureau).

• Insurance companies (mailed questionnaires and

received a follow-up visit).

Data from real estate agencies, financial institutions

other than banks (e.g., stock brokerages and finance companies), hotels, places of amusement, transportation (e.g.,

buses, trucks for hire, and warehousing), nonprofit organizations, property management firms, and miscellaneous

business were collected in a field enumeration.

The goal of the 1935 census was to canvass every recognizable place of business and provide an appraisal of

the effects of the economic depression. Some of the data

were tabulated at a special Census Bureau branchthat was

opened to provide work in Philadelphia, where the unemployment rate was higher than in Washington, DC.

The Census Bureau published the final business census

results in 14 volumes (3 eachfor retail trade, wholesale

trade, selected service industries, and construction; 1 for

transportation and warehousing; and 1 for the miscellaneous topics), plus a series of special reports. The agency

also published a one-volume census of manufactures

report. The sheer scope and complexity of the operation,

the limited time available for planning, and the difficulty

in supervising the large contingent of field workers and

clerks resulted in misclassifications, undercounting, tabulation difficulties, and other problems.

1937. In 1937, The Census Bureau conducted only the

census of manufactures. The Congress funded the operation through regular census appropriations rather than as

an emergency public works project. Although the number

of special questionnaires was reduced, the amount of

detail concerning products was greater than in any previous census. For example, there were questions added concerning finished-product and work-in-progress inventories.

Enumerators canvassed 351 industries, using 1 general, 1

administrative, and 143 special questionnaires.

The Census Bureau derived a mailing list from 1935

census files, trade directories, license lists, and other

sources. It mailed questionnaires in January 1938, and

dispatched two follow-up letters to nonrespondents in

February and March. Enumerators visited establishments

between April and June 1938, after which the agency

made a final attempt to obtain outstanding questionnaires

by mail.

The results of the 1937 Census of Manufactures

appeared first as press releases withpreliminary data,

then as pamphlets with final results, and finally, as a volume, which was released in December 1939.

1940. The 1940 Decennial Census included the censuses of business (retail and wholesale trades; selected

service establishments, places of amusement, hotels, and

History—1997 Economic Census Appendix B B-11

U.S. Census Bureau, 1997 Economic Census
tourist camps; and construction), manufactures, and mineral industries and collected data for the year 1939. The

business census was exclusively a field enumeration. In

1940, the Census Bureau did not canvass the majority of

the establishments classified in the 1935 miscellaneous

business category (e.g., banks, advertising agencies, and

radio stations). The agency shifted coverage of places of

amusement and hotels to the selected service industry

group. The 1935 retail classifications were modified for

1940, and a special table on ‘‘reconciliation of classifications’’ was published to facilitate comparisons of 1935

and 1940 tabulations. The Census Bureau changed the

scope of the census of selected service establishments by

adding the miscellaneous business classifications (as

noted above) and by internal adjustments.11 For the construction industries, the Census Bureau eliminated the size

cutoff for tabulating detailed statistics used in previous

censuses (annual business of at least $25,000), and the

scope of the wholesale trade category remained essentially the same as in previous censuses. The agency also

extended the censuses of retail and wholesale trades and

selected service industries to Puerto Rico in 1940 (and for

the subsequent economic census years, except for 1948).

Coverage of the census of manufactures was similar to

that of 1937, but the enumeration shifted from a

mailout/mailback operation withfollow-up visits to a field

enumeration. There was a new inquiry on capital expenditures for plants and equipment, and the question on personnel requested data on the gender and detailed breakdowns for various categories of nonmanufacturing

employees.

The census of mineral industries used a mail enumeration. The Census Bureau enumerated the bituminous coal

industry by mail with the close cooperation of the Bituminous Coal Division of the Bureau of Mines, U.S. Department of the Interior. The Bureau of Mines field offices

distributed and collected the questionnaires from coal

industry establishments.

In addition to the usual press releases and pamphlets,

Census Bureau employees compiled data in 10 volumes (5

for the census of business, 3 for the census of manufactures, and 2 for the census of mineral industries). The

country’s entry into World War II interrupted the final tabulation and preparation of planned special reports. Some of

these (e.g., subject reports in the retail area) were abandoned. The Census Bureau did not publish the last volume

until June 1943.

During World War II, the Government discontinued the

periodic economic censuses in favor of war-related surveys that provided statistics for the Office of Price Administration, the War Manpower Commission, the Office of

Defense Transportation, and other agencies in charge of

defense efforts. Title 14 of the Second War Powers Act,

passed March27, 1942, allowed the Secretary of Commerce to dispense withor curtail any regular census of the

U.S. Department of Commerce in order to undertake more

urgent statistical work deemed vital to the war effort.

Executive Order 9152 of April 29, 1942, specifically canceled the 1941 Census of Manufactures. The 1943 Census

of Manufactures was similarly dispensed with. The census

in 1945 was suspended because the Congress did not to

appropriate the necessary funds.

Post-War Economic Censuses

1947. The first economic census taken after World War II

was the 1947 Census of Manufactures. This was a

mailout/mailback operation12 taken in accordance with

the prewar law authorizing biennial economic censuses.

Title 14 of the Second War Powers Act (but not the entire

act) expired on March31, 1947, so the 1947 Census of

Manufactures was carried out in 1948, and censuses in

1950 covered 1949.

There were a number of new features in the 1947

Census of Manufactures:

• The agency based the classification of industries on the

1945 Standard Industrial Classification (SIC) Manual.

(Prior to World War II, the Census Bureau had developed

its own classifications).

• The Census Bureau used the Old Age and Survivors

Insurance (OASI) records of the Social Security Administration (SSA) to ensure more complete coverage in the

census. Staff reconciled the OASI establishment and

industry classifications and those of the census. This

improved coverage was an important initial step in further integrating Census Bureau and other Federal agencies’ statistics.

• The Census Bureau sent precanvass cards to about

525,000 possible manufacturing firms before mailing

the questionnaires. The address listing operation contained inquiries on company name and address, corporation affiliation, manufacturing process used, types of

products, and number of employees. The response to

these questions enabled the Census Bureau to eliminate

addresses that should not have been listed as manufacturing establishments, and to determine in advance

which of the 212 types of industry questionnaires

should be sent to each establishment. The Post Office

assisted withthe Census Bureau’s address listing operation by verifying the presence or absence of an establishment at specified addresses.

• A simplified questionnaire for small establishments was

used to reduce reporting burden and processing cost.

(Simplified questionnaires were previously used in

1933).

11The agency recommended that data users should not compare the 1935 and 1940 aggregates, because of the numerous

additions and deletions.

12Field enumerators canvassed approximately 15,000 sawmills

that had highly mobile and sporadic operations.

B-12 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
• The Census Bureau collected statistics on work hours

from all industries, and gave more prominence to the

total number of employees rather than to production

workers. Size distributions in presenting data were in

terms of the total number of employees rather than the

number of production workers.

• The census collected questionnaires from firms manufacturing products valued at $5,000 or more during the

census year. This provided coverage more comparable

to other Federal programs.

• In addition to statistics for individual products ordinarily

published in the census of manufactures, the Census

Bureau grouped value figures into approximately 1,000

product classes. These classes were used when the

number of reporting establishments was too small to

permit showing data for individual products.

• The Census Bureau discontinued the publication of data

on cost of materials and value of products for the

United States, major industry groups, and all geographic

areas, because of the unknown amount of duplication

contained in these data. The Census Bureau did publish

these data for most individual industries, and released

data on value added by manufacture and number of

employees for industry groups and individual industries.

• The agency carried out a field canvass of selected areas

below the state level to establish the completeness of

the census, the nature of problems involved in coverage, and types of establishments missed or misclassified.

• The agency tabulated and published data for 147 standard metropolitan areas.13

From January to March1948, the Census Bureau used

about 325,000 census questionnaires to collect data from

435 manufacturing industry categories. Census Bureau

employees telephoned nonrespondents and companies

who returned incomplete questionnaires. After the staff

removed duplicate questionnaires and out-of-scope firms

from the file, approximately 141,000 manufacturing

establishments were tabulated.

As in the past, the 1947 census results appeared first

as preliminary reports, then as final reports, and finally

were assembled in three volumes including a general summary, statistics by industry, and statistics by state.

1948. On June 19, 1948, Congress passed Public Law

80-671 (incorporated into Title 13, United States Code,

when the Census Bureau’s censuses and surveys were

codified in 1954). This law authorized the Census Bureau

to conduct economic censuses for 1948 and every fifth

year thereafter.

The first application of the new law came with the 1948

business census, which included retail trade, wholesale

trade, and selected service industries.14 Significant

changes in the scope of the 1948 business census

included—

• The exclusion of the contract construction industry; the

limitation of the census to those areas where coverage

was mandatory under the new law (the 48 States, the

District of Columbia, Alaska, and Hawaii, but not Puerto

Rico).

• A reduced emphasis on employment and payroll

information.

• The compilation of data on the number of trucks

operated by business establishments.

The census collected only a limited amount of information from most small single-establishment firms, but

obtained more detailed data from a sample consisting of

every 10thsmall independent retailer, large retailers

(those independent retailers with 1948 sales volume in

excess of $100,000), and multiestablishments.

The Census Bureau established 308 temporary field

offices for the 1948 census and carried out an address

listing operation (which excluded medical, dental, and law

offices; government offices; and farms). Between May and

November 1949, enumerators left 1 of the 12 available

questionnaires (5 for selected service establishments, 5

for wholesalers, and 2 for retail stores) at most singleestablishment firms with instructions that it be completed

and returned to the Census Bureau by mail. For multiestablishments, enumerators completed the questionnaires

for all establishments by interview, unless the establishments’ management specifically requested other arrangements.

The second phase of the 1948 business census consisted of data collection, coding, and editing. Clerks

recorded the receipt of questionnaires from each establishment in listing books for each enumeration district.

Nonrespondents received a reminder card and then a

follow-up visit. If questionnaires contained incomplete or

incorrect data, enumerators visited the establishments to

complete or correct the questionnaire. For the first time,

preliminary editing of questionnaires took place in the

Census Bureau’s field offices and enumerators were paid

on a per diem rather than a piece-rate basis.

After the field canvass, the Census Bureau reenumerated 2,500 representative small (substate) areas. This survey revealed an undercoverage of 8.2 percent of service 13These were the forerunners of the present Office of Management and Budget-designated statistical areas. These are one or

more counties around a central city or urbanized area with

50,000 or more inhabitants. Contiguous counties were included,

if they had close social and economic ties with the area’s population nucleus.

14The law authorized censuses of mineral industries and transportation in 1949, but congress did not appropriate funds for

them and they were not taken until 1954 (minerals) and 1963

(transportation; see discussion under 1963.)

History—1997 Economic Census Appendix B B-13

U.S. Census Bureau, 1997 Economic Census
establishments and 3.6 percent of retail establishments. In

general, the undercoverage reflected a failure to list and

canvass small businesses, particularly those with no

employees.

Before the temporary offices closed, there were several

coverage checks, including matching operations with

Social Security Administration (SSA) lists and comparisons

of county totals with those of neighboring counties or

counties withsimilar economic characteristics.

As usual, the Census Bureau published preliminary

results and final reports, the latter in bound volumes

(three for retail trade, two for wholesale trade, and two for

service industries). In addition to the usual tabulations

(receipts, sales, payroll, number of establishments, etc.),

special tabulations were published on retail store sales by

merchandise line and wholesale sales by commodity line.

The publications presented statistics for 147 standard

metropolitan areas (MSAs), in addition to states, counties,

and cities.

The Advent of the Electronic Computer in 1951. In

1951, the Census Bureau acquired the first large nonmilitary computer, UNIVAC I, in time to tabulate part of the

1950 Decennial Census. Data from punchcards were

loaded onto magnetic tape. Once the data had been digitally stored, UNIVAC I was used extensively for calculating,

editing, imputation, and for operating high-speed printers

that prepared offset copy.

The availability of computers and the centralization of

census operations for multiestablishments at Census

Bureau headquarters enabled the agency to launch the

enterprise statistics program. This program grouped data

from establishments under common ownership or control

into tabulations showing various economic characteristics

based on the classification of the owning or controlling

company.

The Watkins Commission: 1953-1954. Although the

Congress appropriated funds for planning and preparatory

operations in fiscal years 1952 and 1953, it disallowed the

fiscal year 1954 budget request for the actual censustaking. Money was allocated only for special surveys of

manufactures and business. As a result, the Census

Bureau terminated work on the economic censuses in May

1953. This action provoked considerable alarm in many

Government departments and agencies, as well as in the

business and academic communities. In response to complaints about the cancellation of the census, the Secretary

of Commerce appointed a number of professors, business

executives, economists, and other specialists not affiliated

with the Census Bureau to a committee known as the Watkins Commission in October 1953. This Committee,

chaired by Dr. RalphJ. Watkins, Director of Researchfor

Dun and Bradstreet, Inc., was charged with conducting an

intensive review of the economic census. In March 1954,

the Watkins Commission recommended that the economic

censuses be resumed. Congress enacted Public Law

83-467 in June 1954, providing for censuses of manufacturing, mineral industries, and other business (including

the distributive trades and service establishments) in the

year 1955 relating to the year 1954 instead of a censuses

in 1954 relating to the year 1953. The economic censuses

became an integrated economic statistical program in

which data for retail trade, wholesale trade, manufacturing

establishments, and construction, mineral, and service

industries were collected for the same benchmark years.

1954-1955. The 1954 Census of Business (retail and

wholesale trades and selected service industries) marked

the Census Bureau’s first attempt since 1890 to compile

census statistics from administrative records. While

employers were enumerated via the mailout/mailback procedure, the Census Bureau used 1954 income tax records

suppled by the U.S. Internal Revenue Service (IRS) to

derive selected data items (suchas employment, payroll,

and sales) for retail nonemployers with1954 sales of a

least $2,500 and for service nonemployers.

Since the income tax records did not contain the kindof-business classifications necessary to determine which

questionnaire should be mailed to a particular establishment, the Census Bureau had to match the IRS list with

other lists containing kind-of-business classifications (e.g.,

the SSA’s employer master file). The names on these lists

could usually be linked through the use of the employer

identification number (EIN) assigned to eachcase by the

SSA, and matched mechanically on punchcard collating

equipment.

For mining companies, the Census Bureau supplemented the mailing list with information provided by such

agencies as the Bureau of Mines and the Federal Power

Commission. Approximately 280,000 manufacturing, 1.8

million business (retail and wholesale trade and selected

services), and 32,000 mining establishments completed

questionnaires. The Census Bureau derived data for more

than 1 million retail and selected service companies from

tax returns, saving and estimated savings of $3 million in

data-collection costs.

To secure accurate and up-to-date information for multiestablishment companies and to correct and consolidate

the IRS list, the Census Bureau conducted a

mailout/mailback precanvass in the fall of 1954. It asked

multiestablishment companies for data about names and

addresses, employment, types of activities, etc.

The Census Bureau excluded wholesale firms without

employees and retail and service nonemployers withsales

and receipts below the cutoff points from the census. Nonemployers, although large in number, accounted for only a

small percentage of retail sales volume and service

receipts for 1954. Past experience demonstrated that

these small firms were most likely to be missed in an enumeration, since many were operated from the owner’s

home and/or on an intermittent basis.

Prior to the mailout of the economic census questionnaires, the Census Bureau prepared a mailing list using

B-14 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
administrative records and, for large companies, the mailing list compiled for the 1953 Annual Survey of Manufactures (ASM).15 Mailout of the economic census questions

occurred in early 1955. The mailout and follow-up operations involving large companies (generally those with at

least six employees) were supervised by Census Bureau

headquarters’ staff. Field offices controlled mailout and

follow-up operations for smaller companies. Respondents

returned the questionnaires by mail, and nonrespondents

received follow-up letters. Census Bureau employees telephoned or conducted follow-up visits to those establishments that had not responded to the follow-up letters.

Coverage-control procedures ensured that all establishments on the mailing list were accounted for.

As in past censuses, the Census Bureau published 1954

census results in preliminary bulletins, final reports, and

bound volumes. In addition to the usual summary, industry, subject, and area reports, there were special tabulations for central business districts.16 Using the 1954 definition of a central business district, the agency also

published retroactive retail trade and selected service data

for 1948.

1958. The scope, coverage, questionnaires, procedures,

and tabulations for the 1958 censuses closely resembled

those of 1954. The Census Bureau mailed questionnaires

from January to May 1959. Innovations for the 1958 censuses included—

• The use of more sophisticated computers. Processing

operations performed by computer expanded to include

mailing list controls, more extensive editing, certain

kinds of coding, and other functions that had been previously performed manually or withpunchcard equipment.

• Establishment of a census operations office in Jeffersonville, IN, responsible for preparatory operations, preparation of mailing packages, mailout, receipt, check-in,

clerical editing and coding, and card punching.

• A new statistical geographic area for the business census was introduced—the ‘‘major retail center’’ (MRC)—

whichwas an outlying business area, suchas a shopping center. The Census Bureau published data for the

MRCs in a series of 97 reports, eachcovering a standard

metropolitan statistical area (SMSA) and including information for central cities and their central business districts.

• The economic censuses included Guam and the Virgin

Islands of the United States for the first time.

1963. Because of inadequate transportation data, Public

Law 80-671 authorized a census of transportation in

1949. However, because the Congress did not appropriate

funds for the census and plans for a similar census in

1953 were canceled, the 1963 Economic Census was the

first to feature a census of transportation.17 Following

Congressional hearings in July 1961, funds were appropriated to collect detailed transportation data on a nationwide basis.

The Census Bureau’s primary objective in conducting

the census of transportation was to collect data on the

Nation’s transportation without duplicating data already

available from other government or private sources. To

achieve this objective, four surveys, each aimed at a specific gap in knowledge, were designed—

• The Passenger Transportation Survey. This survey

produced statistics showing national and regional passenger patterns for 1963 and their relationship to socioeconomic and geographic factors. The Census Bureau

collected data in four quarterly personal interviews from

a probability sample of about 6,000 households.

• The Truck Inventory and Use Survey (TIUS). This

survey collected data on the Nation’s truck resources,

such as the number of trucks classified by physical characteristics, occupational use, intensity of vehicle utilization, and geographic distribution of vehicles. The Census Bureau mailed questionnaires to a sample of about

100,000 truck and truck-tractor owners selected from

state motor vehicle registration records.

• The Commodity Transportation Survey (CTS). This

survey collected data concerning the geographic distribution of tons and ton-miles of commodities, by type,

shipped by the manufacturing sector. The survey

obtained basic information from a probability sample of

bills of lading or other shipping records maintained in

company files.

• The Motor Carrier Survey. This survey produced statistics concerning ‘‘for-hire’’ carriers not subject to economic regulation by the Interstate Commerce Commission. The Census Bureau conducted a complete

mailout/mailback enumeration of bus companies and

public warehouses that also provided trucking services,

plus a mailout/mailback enumeration of a probability

sample of trucking firms.

15The ASM was first conducted in 1949 to provide data for

intercensal years. The survey covered all large establishments

(those having 100 employees or more from 1954 through 1967

and, from 1972, those with 250 employees or more) and a representative sample of smaller establishments. Large establishments

remained in the ASM; however, the Census Bureau replaced

smaller establishments every 5 years. During census years, the

ASM questionnaire became the first two pages of the questionnaire used for the economic census. 16Central business districts were newly defined geographic

entities encompassing the downtown business areas of large

cities.

17Earlier economic censuses had collected data on transportation, but these had covered only specific areas of transportation,

suchas water transportation (periodic censuses between 1880

and 1926) and street and electric railways, together with affiliated

motorbus lines (included in the censuses of electrical industries

taken at 5-year intervals between 1902 and 1926).

History—1997 Economic Census Appendix B B-15

U.S. Census Bureau, 1997 Economic Census
At the request of the U. S. Department of the Interior’s

Bureau of Commercial Fisheries, the 1963 Economic Census resumed the collection of data from commercial

fisheries following a 55-year hiatus. The census included a

mailout/mailback enumeration of commercial fisheries

that had supplied employment data to the Social Security

Administration (SSA). The questionnaires contained inquiries on employment, payroll, receipts, characteristics of

vessels, and landed catch. The Census Bureau used a

sample of administrative records to compile limited statistics for part- and fulltime fishermen, without paid employees.18

The 1963 censuses of retail and wholesale trades,

selected service industries, manufactures, and mineral

industries closely resembled those conducted in 1958.

The Census Bureau used newer computer systems and

expanded the use of electronic equipment to—

• Computerize geographic coding of establishment

addresses.

• Substitute magnetic tape for punchcards in developing

the census mailing lists from IRS lists.

• Automate procedures to control mailout and follow-up

operations.

• Expedite mass transfer of data from Jeffersonville, IN, to

the computer facility at Census Bureau headquarters

using a high-speed telephone-transmission system.

• Computerize a system for work and progress reporting

of census operations.

• Produce computer-programmed news stories for releasing census results and to automatically mail these to

news media outlets.

The Census Bureau obtained selected information, such

as value of receipts and sales, from nonemployers’ tax

returns. The agency also used administrative records to

assemble mailing lists and obtain preliminary industry

classifications for employer firms to be included in the

mailout/mailback enumeration. In total, the Census Bureau

asked about 3 million establishments to complete questionnaires (which were mailed between November 1963

and March1964). The agency derived statistics for

approximately 1.5 million nonemployer establishments

selected from administrative records. (For a detailed

account of the 1963 Economic Censuses, see 1963 Economic Censuses: Procedural History.)

1967. In 1967, Congress modified Title 13 of the U.S.

Code Census, changing the reference years for the economic censuses to those ending in ‘‘2’’ and ‘‘7.’’ This was

done to distribute more evenly the staff and computer

workload generated by the economic and demographic

censuses.

The 1967 Economic Censuses thus included censuses

of retail and wholesale trades, selected services, construction and mineral industries, manufactures, commercial

fisheries, transportation, and the enterprise statistics

program.

The Census Bureau expanded the scope of the 1967

Economic Census, to include—

• A census of construction industries (the first since

1939), which, for the first time, included Puerto Rico.

• Adding architects and engineers, law firms, and

arrangement of passenger transportation (travel agents

and tour operators) to the census of selected service

industries.

• Adding the National Travel Survey (NTS),19 TIUS, and the

CTS to the census of transportation.

• Doubling the CTS sample size in the major population

centers to improve the quality of the point-of-origin to

point-of-destination commodity flow data, and extending the survey’s scope to include printing and publishing establishments (except newspaper and periodical

publishers).

Data for all nonemployers (establishments without paid

employees) in retail trade and selected service and construction industries were obtained from IRS income tax

records. In addition, the Census Bureau expanded the use

of these records to compile statistics for selected singleestablishment small employers (firms with few employees

during 1967), as follows:

• For retail trade and selected service industries, different

payroll cutoffs for various kinds of businesses determined which firms would be excused from completing

questionnaires.

• The number-of-employees equivalent to the payroll cutoff was 10 employees for manufacturing firms and 5 for

mineral industries establishments.

• For construction industries withemployees, the Census

Bureau used administrative records only to select the

mail sample. Data for more than 1 million smallemployer establishments, canvassed by mail in previous

censuses, were compiled from tax returns.

In total, the Census Bureau used administrative records

for 2.9 million establishments and asked 1.9 million establishments to complete questionnaires.

The census of commercial fisheries was expanded to

collect statistics on the number of vessel operators, catch,

fishing gear, and various vessel characteristics. The Census Bureau obtained some basic information (gross

receipts and industry classification) from the IRS and SSA

18Because the mailing list used to collect data from commercial fisheries was later found to be incomplete, a supplemental

vessel survey was conducted in 1964. 19Called the Passenger Transportation Survey, in 1963.

B-16 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
for part- and full-time fishermen without paid employees.

The Census Bureau did not publish the 1967 data from

administrative records because of classification problems.

New techniques, computers, and auxiliary electronic

equipment were used to handle data from the 1967 Economic Census. Other significant changes in processing

methods included—

• Expansion of the geographic coding file to facilitate

computer coding of establishments located in small

cities.

• Development of specifications and computer programs

to perform complementary disclosure analysis (to

ensure that data for individual establishments remained

confidential).

• Increased use of computer editing.

(For a detailed account of the 1967 Economic Censuses,

see 1967 Economic Censuses: Procedural History.)

1972. For the 1972 Economic Census, the Census

Bureau mailed 2.9 million questionnaires between December 1972, and February 1973. Additional information was

collected from administrative records for approximately

2.6 million establishments. The 1972 Economic Census

incorporated several changes. These included—

• Collecting construction industries data in Guam and the

Virgin Islands of the United States.

• Precanvassing all out-of-scope activities of companies

that reported on an establishment basis in previous

economic censuses.

• Increasing the sample size for the National Transportation Survey (from 18,000 in 1967 to 24,000 households

in 1972).

• Classifying the 1972 data according to the new 1972

Standard Industrial Classification (SIC) Manual. (For

selected data items, bridge tables showed the 1972

data classified under both the 1967 and the 1972 SIC

systems).20

• Inaugurating a survey of minority-owned business

enterprises (SMOBE). The SMOBE presented tabulations

by major SIC industry or industry group by race (Black,

Asian American, American Indian, and ‘‘Other’’) and

Hispanic origin for MSAs. After 1972, these data were

collected along withdata for counties and places with

specified numbers of minority-owned firms. The published data from the SMOBE were usually limited to legal

form of organization and receipt- and employment-size

of firm.

The first reports in key publication series from each of

the censuses appeared within 1 year of the period covered

by the 1972 censuses (6 months earlier compared to the

release of the 1967 census data). Publication of the major

series was completed 9 to 12 months earlier than for

1967. Recognizing the increasing need for digital data, the

Census Bureau introduced a program to issue public-use

computer tape files of economic census statistics.

(For a further description, see 1972 Economic

Censuses: Procedural History.)

1977. The 1977 Economic Censuses covered retail trade;

wholesale trade; service, construction, and mineral industries; manufactures; and transportation; the SMOBE; the

enterprise statistics program; and a survey of womenowned business enterprises (SWOBE). The Census Bureau

mailed more than 3 million questionnaires between

December 1977 and April 1978, and obtained data for

about 4 million small firms from administrative records.

The SWOBE collected more specific information about the

demographic and economic characteristics of womenowned businesses and their owners.

For the 1977 censuses, the 1976 Recordkeeping

Practices Survey obtained information on the ability of

respondents to provide data not previously requested in

the Census Bureau’s economic censuses and surveys. As a

result, the Census Bureau decided to—

• Collect additional data needed to improve the gross

national product accounts.

• Expand the coverage of the service industries census.

• Develop a common set of commodity lines for all types

of operations in the wholesale trade census.

• Develop a better geographic coding system to improve

the classification of data by areas.

• Improve the quality of the national travel survey.

• Carry out evaluation programs.

The Census Bureau gave priority to expanding product

line detail for the 1977 censuses of manufactures and

used mineral industries to meet the growing need for

more data to compare domestic output to imports and

exports. Section 608, ‘‘Uniform Statistical Data on Imports,

Exports, and Production,’’ of the 1974 Trade Act mandated

that a comparability study be made of the commodity

classification systems used for imports, exports, and

domestic production. This 1975-1976 study was a joint

effort of the Census Bureau and the International Trade

Commission, and resulted in proposed modifications that

would make data collected for individual products or

20The revisions to the SIC system added several industries,

eliminated statistically insignificant industries, and contained

modified definitions of other industries within the scope of the

economic censuses by shifting products and services from one

industry to another within each SIC division.

History—1997 Economic Census Appendix B B-17

U.S. Census Bureau, 1997 Economic Census
groups of products more compatible witheachother.

Some of the product-line classifications for the 1977 censuses were developed or revised as a result of the study.

The censuses incorporated new product-line classifications, identified during the trade act review, for which

questionnaires had not already cleared the Office of Management and Budget (OMB). Those changes identified after

clearance were not used for the 1977 Economic Census,

but were included in the 1982 censuses.

Unlike the 1967 and 1972 Censuses of Transportation,

the 1977 coverage included nonregulated motor carriers

and public warehousing, as well as the NTS, TIUS, and

CTS. While the Census Bureau based the last three surveys

on probability samples, data for nonregulated motor carriers and public warehousing firms with employees were

obtained in an enumeration of establishments in the same

manner as the other economic censuses. The Census

Bureau made a number of changes and improvements in

the probability surveys (described in Chapter 10 of the

History of the 1977 Economic Censuses).

The Creation of the Standard Statistical Establishment List (SSEL). In 1977, changes were made in the

practice (begun in 1954) of having a precanvass of all

known multiestablishment companies. This precanvass

was done once every 5 years, so the company and establishment address records soon became obsolete. Following the 1972 Economic Census, the Census Bureau created

the Standard Statistical Establishment List (SSEL), and

began an annual Company Organization Survey (COS)

designed to update the address files in the SSEL. The SSEL

is a central, multipurpose computerized name and address

file of all known single- and multiestablishment employers

(and nonemployer agricultural establishments) in the

Nation. Through the combined use of the SSEL file number

and the employer identification number, the Census

Bureau could link and identify the affiliation of parent

companies, subsidiary firms, and their establishments

throughout all phases of economic activity.

1982. The 1982 program consisted of censuses of retail

trade; wholesale trade; service, construction, and mineral

industries; manufactures; and transportation; the survey

of minority-owned businesses; the survey of womenowned businesses; the survey of characteristics of business owners (an expanded version of the 1977 special survey of women-owned businesses); and the enterprise

statistics program.

Prior to the census mailout, the Census Bureau carried

out several inventory test surveys for use in revising the

inventory question in the 1982 censuses of wholesale

trade, construction and mineral industries, manufactures,

and the 1982 Enterprise Statistics Program. The surveys’

objectives were to measure response rates and accuracy

for several plausible and controlled data-collection methodologies. Based on the response evaluations, the agency

adopted a revised inventory inquiry for the 1982 Economic Censuses (and its annual surveys). This meant that

only the term ‘‘last in/first out reserve’’ was used and that

it was related to a standard definition. The question also

asked for the value of inventories not subject to last

in/first out costing.

Between June 1 and July 31, 1981, the Census Bureau

tested proposed revisions to the 1982 TIUS. The test demonstrated that although the use of two different questionnaires increased the Census Bureau’s processing burden, it

provided the respondent with a questionnaire more

closely related to the characteristics of the sampled

vehicle. Other results led to the revision of the sequence

and wording of many of the questions in the 1982 survey

questionnaire to improve clarity and reduce reporting

errors.

The 1981 Recordkeeping Practices Survey sought to

determine if establishments maintained alternative document systems that were better suited to gather

commodity-flow data requested by the CTS. The results of

the survey prompted the following changes in the CTS:

• Instructions to respondents emphasized using the salesinvoice document system versus the traditional bills of

lading. (Bills of lading would be accepted if respondents

decided not to use sales invoices.)

• Respondents received stronger worded instructions for

using the serial number sequence.

• The Census Bureau planned to make special provisions

for establishments that wanted to use automated dataprocessing systems in responding; however, this were

not implemented.

Other changes to the 1982 Economic Census included—

• The 1982 census did not include a NTS or collect data

on nonregulated motor carriers as was the case in the

1977 census. Data on public warehousing and arrangement of passenger transportation appeared in the census of service industries reports.

• The 1982 census excluded some of the service industries that had been covered for the first time in the

1977 census (e.g., hospitals; elementary and secondary

schools; colleges, universities, and professional schools;

junior colleges and technical institutes; labor unions;

and political organizations) because the information for

these service industries was available from other

sources, suchas the U. S. Department of Education and

the Bureau of Labor Statistics. The need to reduce census cost also was a factor.

• For the first time, the Census Bureau obtained data

on retail trade, wholesale trade, manufacturing, and

construction and service industries for the Commonwealth of the Northern Mariana Islands.

B-18 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
The Census Bureau mailed more than 3 million economic census questionnaires and classification forms

between mid-December 1982 and March1983. The

agency began the mailout of questionnaires for the 1982

TIUS in October 1982 and completed the operation in June

1983. The CTS was conducted in 1984, which collected

1983 data. In addition, data for about 3 million small firms

(which were not sent questionnaires) were derived from

administrative records.

The 1982 CTS did not take place in 1983 (for 1982),

but in 1984. This allowed the Census Bureau to test and

consider alternative data-collection methods. The agency

divided establishments into three groups to test one of

three techniques: (1) The systematic method, (2) the ‘‘first15’’ method, and (3) the summary method. (For a description of these three methods, see Chapter 2 of the 1982

history.) The 1983 test did not identify a workable methodology for shipment sampling. As a result, the Census

Bureau decided on a less detailed survey for 1983; however, because the quality of the resulting information was

unacceptable, the agency did not publish any statistics.

Despite known inadequacies that would prevent complete publication processing, the Census Bureau adopted

an experimental computer program Table Image Processor

System (TIPS) for the 1977 Economic Censuses publication

program. The Census Bureau designed this system to

photo-compose (in conjunction with its own computeroutput-to-microfilm device and the Government Printing

Office’s video computer-output-to-microfilm system) large

volumes of tables for the census reports. Prior to the 1982

censuses, the agency examined the experimental TIPS and

identified 34 improvements. Three of the most important

refinements were: The ability to (1) place any kind of table

anywhere on a page, (2) produce multiple tables on a

page, and (3) produce multibanked tables (those with the

boxhead repeated horizontally or the stub repeated vertically within the same table and on the same page). Since

only about one-third of the required refinements could be

realized by modifying the TIPS, the system was not

capable of meeting the 1982 Economic Censuses’ publication requirements. The Census Bureau undertook a major

redesign of the photo-composition system in 1981, developing the Table Image Processor Systems II (TIPS II), which

remedied most of the original system’s deficiencies.

(For a detailed account of the 1982 censuses, see

History of the 1982 Economic Censuses.)

1987. The general plan for the 1987 Economic Census

program was identical to that of 1982. The censuses

encompassed approximately 12.4 million establishments,

and collected data from 3.7 million establishments using

mail questionnaires and approximately 8.7 million small

firms using administrative records from Government agencies.

The 1987 Economic Census featured several changes to

data collections, including—

• The addition of several record-keeping inquiries to

questionnaires for industries where partial fabrication

was common, e.g., the apparel; motor vehicle; footwear; electronics (computers and semiconductors);

motor and generator; toy; and sporting goods industries.

• Special inquiries on metalworking operations from the

census questionnaires were dropped.

• The Census Bureau published concentration data at the

four-digit industry level but not at the five-digit product

class level because of budgetary constraints.

There were a number of significant changes in specific

censuses. For retail trade, there was a 20-percent increase

in the number of merchandise-line questions. This provided data users withmore detailed information on the

kinds of merchandise sold by different kinds of retail

establishments. The 1982 major retail center (MRC) series

of reports marked the sixth and last in a series that, since

1958, had traced the movement of retail businesses from

the central business districts (CBD’s) to outlying shopping

centers. Since the migration of retail business to the suburbs appeared to be complete, it was decided that CBD

data would no longer be published separately. Conversely,

the substantial increase in the number of suburban shopping centers changed both the nature and the cost of the

program. Costs rose significantly because of the increase

in the number of centers and because the boundaries of

eachcenter had to be delineated on site, witheachstore

listed by name and type of business. Eachstore had to be

clerically matched to census listings for the geographic

area in which the center was located. Even the changes

made for the 1977 censuses (which revised the size criteria and delegated the delineation and enumeration process

to local Census Statistical Areas Committees or other local

organizations) failed to keep enumeration costs at a manageable level. Consequently, the agency decided to discontinue the MRC program after the 1982 censuses.

There were several changes and additions made to

the 1987 census of retail trade’s publication program, as

follows:

• Retail trade data for employer establishments was provided for eachfive-digit ZIP Code. These data were classified by employment-size groups and sales-size ranges,

and published in ZIP-Code Statistics Series reports via

electronic media only (i.e., CD-ROM, diskettes, and computer tape).

• Nonemployer establishment data were published in a

new Nonemployer Statistics Series rather than in the

Geographic Area Series reports. The Nonemployer Statistics Series included a separate report for eachof four

geographic regions on the number of establishments

History—1997 Economic Census Appendix B B-19

U.S. Census Bureau, 1997 Economic Census
withand without payroll and sales for eachtype of

retail classification, for eachstate, MSAs, counties, and

places with2,500 or more inhabitants.

• A new Special Reports Series presented the Selected Statistics report. This new series contained selected aggregate data by kind of business, including ranks and

ratios, not provided in the other final reports. Data were

reported for the United States, states, and MSAs.

The census of service industries collected data on

health services, as well as educational services; social services; museums, art galleries, and botanical and zoological gardens; membership organizations (except religious

organizations); rooming and boarding houses; etc. The

Census Bureau obtained data on privately owned and

operated hospitals and,21 for the first time, on

government-owned and -operated hospitals.

The census collected additional information on international service transactions. In 1982, there were tabulations

of exported service receipts for architects, engineers, and

surveying services; management, consulting, and public

relations services; equipment rental and leasing services;

and computer and data processing services. Four additional industries reported data on exported services advertising agencies; accounting, auditing, and bookkeeping

services; research, development and testing services; and

legal services.

The service industries data were published for individual ZIP Codes (for employer establishments only) and

included data for nonemployer businesses.

The census of transportation was similar to that conducted in 1982 except that the CTS was not conducted.

The CTS was canceled in January 1988 as a result of the

deficit-reduction guidelines mandated by the 1986

Gramm-Rudman-Hollings Deficit Reduction Act.

Several changes were made to the census of construction industries for 1987. These included—

• Collecting data on the value of construction work

done.22 Prior to 1987, the Census Bureau collected data

on receipts as the primary measure of construction

activity.

• Increasing the number of construction questions from 8

to 24. Questions were tailored to particular industries to

reduce respondent burden and collect more detailed

data, especially for the type of construction work performed.

• Expanding efforts to capture construction activities of

establishments not classified as construction establishments by the SIC system.

• Adding force-account construction23 questions to the

census of manufactures questionnaires for the chemical,

petroleum, and steel industries.

• Adding questions to the census of manufactures questionnaires covering steel industries and installation of

metal and wood buildings, and to the census of retail

trade questionnaires covering hardware and building

supply stores, to obtain information on secondary construction activity.

The census of manufactures collected aggregate data

on the foreign content of domestically-produced products

for the first time. Industry and government agencies consulted about the manufacturing questionnaires asked that

the Census Bureau measure the cost of foreign-made

materials consumed by domestic manufacturing plants.

Many data users asked for information on the foreign content of eachmaterial input consumed in an establishment,

but the agency found that this information was not easily

reportable and, in many cases, not available. The 1987

ASM asked approximately 55,000 establishments for information on the aggregate amount of materials, parts, and

supplies purchased from foreign countries.

The Census Bureau also published more comprehensive

data in 1987 on exporting manufacturers and improved

production statistics to be more comparable withforeign

trade statistics. This was done not only because of the

revision of the SIC system for 1987, but also because in

January 1989 the United States adopted the Harmonized

Coding system as the official classification for import and

export statistics.

The 1987 censuses witnessed the following significant

data-processing changes—

• Use of minicomputers gave analysts interactive access

to micro-records and summary data, reduced the

amount of paper listings, and improved data quality.

• The Census Bureau upgraded its automated photocomposition system the TIPS II. Laser printers in each of

the subject-matter divisions (Business, Construction,

and Industry) significantly reduced the time required to

produce photo-composed proof copies of data tables

which contributed to the release of the final publications several months earlier they had been in 1982.

• The Economic Programming Division was established in

January 1987 to better utilize computer programming

personnel. The staff and programming activities for the 21These data were collected for 1997, but not for 1982. 22Receipts could be different from the value of work done,

since work can occur in one year and receipts in the prior or succeeding year. In practice, receipts for most contracytors approximated ‘‘value.’’ For key industries, suchas operative builders and

developers, receipts, and work done might be different. In addition, receipts did not include work a contractor performed for its

own account and use, which could be substantial.

23Force-account construction is construction work performed

by an establishment primarily engaged in some business other

than construction, by its own employees for its own account and

use.

B-20 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
census or census-related surveys were consolidated into

one division to allow computer staff to move among

projects as required.

Effective June 1983, the OMB established a new set of

MSAs, consolidated metropolitan statistical areas (CMSAs),

and primary metropolitan statistical areas (PMSAs). These

replaced the two former types of metropolitan areas (standard metropolitan statistical areas and standard consolidated statistical areas). The Census Bureau used the

2-level system to report data for 21 metropolitan areas in

1987.

For the census of manufactures, the Census Bureau

discontinued the preliminary geographic series. It consolidated the 443 industry preliminary reports (published in

1982) into 83 bulletins covering related manufacturing

industries. The preliminary U.S. Summary Report included

data at the four-digit SIC level, while the state reports contained information only at the two-digit SIC level. The final

industry series was also available in 83 bulletins, followed

by the final geographic area and subject series.

The census of construction industries continued to published preliminary industry, final industry, and final geographic area reports.

No preliminary industry reports were published for the

censuses of retail trade, wholesale trade, and service

industries; instead, two-page press releases appeared for

each state. These press releases highlighted data published in the 584 reports 125 preliminary reports and 459

final publications. The press releases were published

approximately 6 weeks before the final state reports were

released.

(For a detailed account, see History of the 1987

Economic Censuses.)

1992. The 1992 Economic Census covered retail trade;

wholesale trade; service industries; transportation, communications, and utilities; finance, insurance, and real

estate; construction industries, manufactures, and mineral

industries; and the TIUS.24 The program also included the

1992 Survey of Minority-Owned Business Enterprises, the

1992 Survey of Women-Owned Businesses, the 1992 Survey of Characteristics of Business Owners, and the 1992

Enterprise Statistics Program. The census and surveys

were conducted in the 50 states and the District of

Columbia. The 1992 Economic Census of Outlying Areas

collected data on retail and wholesale trades, service

industries, manufactures, and construction industries in

Puerto Rico, the Virgin Islands of the United States, Guam,

and the Commonwealth of the Northern Mariana Islands.

The 1992 census marked the most significant expansion of the census in half a century, including coverage of

financial, insurance, real estate industries, communications, and utilities. In addition, the following transportation industry groups were added—

• Railroad Transportation. Data for railroads collected by

other agencies were included in the Census Bureau’s

publications, but excluded from the 1992 Economic

Census data collection operation.

• Local and Suburban Transit and Interurban Highway

Passenger.

• Transportation.

• Transportation by Air.

• Pipelines, Except Natural Gas.

Altogether, the 1992 Economic Census covered approximately 95 new industries, expanding coverage to approximately 98 percent of the Nation’s economic activity.25

The Census Bureau introduced various industry-specific

output measures for some of the newly covered industries. For most industries, the basic output measures varied from sales (for retail establishments) to operating

receipts (for taxable service establishments), revenue (for

tax-exempt establishments), value of shipments (for

manufacturers), or value of construction (for construction

industries). Several of the newly covered industries had,

as operating revenue, items that were nonoperating for

most industries, suchas rents, interest, investment

income, grants, contributions, and gifts. This required

adjustment in the data to be collected. For the finance,

insurance, and real estate industries, the Census Bureau

asked for total revenue, and used a supplemental question

on the major sources of revenue to separate the components to allow users to tailor output measures for their

own use. The item on ‘‘sources of revenue’’ also provided

important information that could be used by the agency to

identify secondary activity. Similarly, the 1992 Economic

Census questionnaire for transportation, communications,

and utilities asked for operating revenues basis data. The

questionnaire for broadcasting and cable industries

included a supplementary question on nonoperating revenue.

In the past, the IRS supplied the Census Bureau with

gross receipts or sales (less returns and allowances). In

1992, the Census Bureau also asked the IRS to supply

administrative gross rents and interest income for partnerships and corporations from its administrative records.

These data did not comprise total revenue (e.g., dividend

and royalty income and net capital gains were not

included), but did include additional major sources of revenue for the newly covered industries. 24The Census Bureau used the term ‘‘economic censuses’’ to

cover all of its economic data-collection activities between 1954

and 1987. For 1992, on the advice of the Advertising Council, the

agency used the term ‘‘economic census’’ primarily to assist its

promotional activities and because data users frequently did not

understand what ‘‘economic censuses’’ meant.

25Coverage of the 1987 Economic Census was aproximately

75 percent of the Nation’s economic activity.

History—1997 Economic Census Appendix B B-21

U.S. Census Bureau, 1997 Economic Census
In general, census data were published for the Nation,

states, metropolitan areas, counties, and places. Some

retail trade and service industry data were available only

at the ZIP-Code level. For the newly covered industries in

1992, data were made available for the Nation and for

states. Selected metropolitan area data also were provided

for some new industries in the transportation, communications, and utilities and financial, insurance, and real

estate industries group.

Because there had been a lack of data on the contribution of services to the volume of exports in past censuses,

the Census Bureau asked respondents to report information on exported services for additional service industries

as well as for selected financial services, including depository banking, business credit and other nondepository

institutions, securities, brokers and dealers, and electric

utilities.

In the census of manufactures, the number of purchased services was expanded from three to eight, and

the Census Bureau collected additional information on an

auxiliary questionnaire. The receipts inquiry for the census

of construction industries was completely restructured to

improve data quality and response. Inquiries on manufacturing output and materials consumed were streamlined

to reduce reporting burden and improve response rates.

As a result of the 1988 Women-Owned Business Act

(P.L.100-533), the Census Bureau collected information on

women-owned corporations for the first time for 1992.

In an effort to improve and accelerate response, the

Census Bureau—

• Used more effective direct-mail techniques.

• Standardization of the size of most economic questionnaires. The majority were 8 x 14 inches; however, a few

questionnaires remained at 8 x 11 inches.

• Improved instructions and streamlined transmittal

letters.

• Increased the emphasis on mandatory reporting in

1992. Outgoing envelopes were overprinted witha message indicating that a Census Bureau questionnaire was

enclosed and that response was required by law.

• Implemented more effective follow-up strategies, e.g.,

using questionnaire follow-ups for single-establishment

companies and multiestablishment companies.

• A toll-free telephone number was added to all questionnaire mailings should respondents have questions.

For the 1992 Economic Census, a proactive company

contact program was implemented to encourage the

Nation’s largest establishments to respond. In December

1991, the agency mailed an information booklet to the

10,000 largest establishments, informing them of the

1992 Economic Census. ‘‘Special handling’’ was offered to

the 1,000 largest establishments, which included access

to a single Census Bureau employee to whom any questions could be directed. Companies requesting a contact

person were asked to reciprocate by identifying a contact

within their respective organizations.

In November 1992 (about 1 monthbefore census mailout), analysts called eachcompany contact person at the

1,000 largest companies to alert them that the questionnaires would soon be mailed. A second call was placed in

January 1993, to ensure that the firms had received the

census packages. Firms that did not respond by April

1993 were contacted again by telephone. Census Bureau

analysts encouraged reporting and/or collected data by

telephone from those companies that had not reported by

late June 1993.

Finally, the Census Bureau developed and used for the

first time an electronic data interchange standard for use

only in the census of retail trade. The agency met with

some of the largest retailers that had extensive electronic

data interchange experience to encourage them to participate.

B-22 Appendix B History—1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Appendix C.

Principal Advisory Committees on

the 1997 Economic Census

PUBLIC ADVISORY COMMITTEES

A public advisory committee is any group of persons−

not composed wholly of officers or employees of the Federal Government−organized under Federal Governmental

authority for the purpose of obtaining advice, recommendations, or other types of assistance. From April 1, 1994

to March 31, 2001 (the period in which the majority of the

1997 Economic Census operations took place), the U.S.

Census Bureau had five public advisory committees that

were responsible to the Director, the membership of which

was made up entirely of non-Census Bureau persons. One

of these committees, the Advisory Committee of Professional Associations, was concerned with one or more

aspects of the economic census. The Committees’ members were professional experts drawn from the business

and academic associations that had earlier participated in

four separate advisory committees. They made recommendations concerning the scope, content, and methodology,

and proposed tabulations and publications for the censuses. They also made other recommendations to help the

agency ensure that the censuses would provide accurate,

meaningful data. Representation on these bodies changed

during the census period.1

The Advisory Committee of Professional Associations

operated under provisions of the Federal Advisory Committee Act, which went into effect on January 5, 1973.

This act stipulated that the Director of the Office of Management and Budget (OMB) would prescribe administrative

guidelines and management controls. In addition the Committees were governed by Executive Order 11769

(February 21, 1974) and by OMB Circular A-63, revised

(March 27, 1974). All these public advisory committees

proposals or formal recommendations were reported to

the Secretary of Commerce, together with appropriate

responses by the Census Bureau indicating what actions, if

any, would be taken as a result of these proposals.

The advisory committees were established on the presumption that they could make significant contributions to

the Census Bureau’s program and objectives. Only the Secretary of Commerce could establish a public advisory committee within the Department, and no such body could be

formed or used unless the Secretary formally determined

that the establishment of such a committee was in the

public interest and was connected with the performance

of the Department’s duties specified by law. Except where

otherwise fixed by law, a public advisory committee terminated 2 years after its formation unless the Department of

Commerce determined, in writing, not more than 60 days

prior to the termination date that its continued existence

was in the public interest. Until 1972, the Secretary was

empowered to renew committee members’ appointments

as often as the Census Bureau might request; after that

time, members of Census Bureau committees were generally limited to a maximum of 6 years of continuous service. None of the committee members received compensation, other than per diem and travel expenses, for

attending meetings.

The Committee, composed of the three subgroups

described below usually met every 6 months.2 Their membership is shown for the period April 1, 1995 to March 31,

2001.

THE AMERICAN STATISTICAL ASSOCIATION

In November 1918, Secretary of Commerce William C.

Redfield invited the presidents of the American Statistical

Association (ASA) and the American Economic Association

(AEA) to appoint a joint public advisory committee to

assist the Census Bureau in organizing and taking the

1920 Decennial Census. The joint committee met for the

first time in February 1919. This so-called General Advisory Committee functioned until 1937 on a permanent

basis, with its members drawn from the two associations.

At that time, it was reconstituted, with all its members

appointed by the ASA for 3-year terms.

This oldest standing advisory committee of the Census

Bureau was designed to be representative of all statistical

fields in which the Census Bureau operated. The committee’s functions were defined in 1964as ‘‘(a) critically

observing and appraising the Census Bureau program as a

whole, and the progress of its various segments, (b) considering priority issues that arise between and within

fields, (c) examining formulations of guiding principles, (d)

advising on questions of policy and procedure, especially

alternative sources of data, and (e) responding to the Census Bureau’s requests for opinions and judgements in the

whole area of its operations.’’

1

Presidential Executive Order 12838 (signed in February 1993)

was implemented in 1994transforming the American Statistical

Association, American Economic Association, American Marketing

Association, and Population Statistics Advisory Committees into

one group called the Census Advisory Committee of Professional

Associations. This single Advisory Committee is composed of the

memberships from these professional associations and was organized into four individual subgroups.

2

A fourth subgroup of the committee, the Population Statistics

Association, was not as directly concerned with the economic

census as the other three subgroups.

History−1997 Economic Census Appendix C C-1

U.S. Census Bureau, 1997 Economic Census
Members who served during the planning and conduct

of the 1997 Economic Census were as follows:

• Robert Bell, to 2000 (Chairperson 1997)

• David Binder, to 2000

• G. David Faulkenberry, to 1997

• Joseph Garrett, 1996 - 2000

• Malay Ghosh, 1996 - 2000

• F. Thomas Juster, 1997 - 2000

• Richard Kulka, 1990 - 1995

• Nancy A. Mathiowetz, 2000 -

• William O’Hare, 1996 -

• Judith Rowe, to 1995

• Elizabeth Stasny, 1994- 2000

• Lynne Stokes, to 2000

• Roger E. Tourangeau, to 1999

• Joseph Waksberg, 1991 - 1996 (Chairperson, 1995)

THE AMERICAN ECONOMIC ASSOCIATION

Various members of the American Economic Association

(AEA), together with representatives of the ASA, served on

a single Census Bureau advisory committee from 1919 to

1937. In 1960, when the Census Bureau was entering new

areas of interest to economists and it appeared desirable

to have a direct channel of contact with the principal professional organizations representing economists, a separate committee of AEA members was established. (From

1937 to 1960, the AEA was not represented by any particular committee).

The president of the AEA appointed all members who

served for 3-year (4-year prior to 1972) terms. While most

of the committee’s attention was given to the economic

censuses, it also reviewed and commented on plans for

other censuses, evaluation studies, and program planning

with the larger framework of the Census Bureau’s functions.

Committee members who served during the planning

and conduct of the 1997 Economic Census were as follows:

• Ernst Berndt, 1996 - 2001

• Roger R. Betancourt, 1997 -

• Lynn E. Browne, 1998 - 2000

• David Card, to 1996 (Chairperson, 1995)

• Ellen R. Dulberger, 1992 - 1997 (Co-chairperson 1997)

• William C. Dunkelberg, 1992 - 1997 (Co-chairperson

1997)

• Gail Fosler, 1990 - 1995

• Michael Gort, to 2000

• Bronwyn Hall, 1990 - 1995

• Lee Lillard, to 2000

• Rebecca A. Maynard, 1998 - 2000

• Walter Oi, to 1996 (Chairperson 1993)

• Ariel Pakes, 1996 - 2001

• Frederic M. Scherer, 1997 - 1999

• Daniel T. Slesnick, 2000 -

• Philip L. Swann, 2000 -

• Robert Willis, to 2000

THE AMERICAN MARKETING ASSOCIATION

In 1945, the American Marketing Association (AMA)

passed a resolution emphasizing the need for marketing

information to promote the Nation’s economy and outlining a suggested statistical program for the Census Bureau.

The agency felt that a regular advisory committee provided the most efficient way to learn the needs for marketing statistics and to determine whether these needs could

be met. Accordingly, in 1946, the Census Bureau

requested that a committee be established for this purpose, and the president of the AMA appointed its members for 3-year terms.

Committee members who served during the planning

and conduct of the 1997 Economic Census were as follows:

• Tony Adams, 1996 - (Chairperson 1997)

• Laurie Ashcraft, 1992-1998

• Kenneth Bernhardt, 1992-1997

• Dorothy Clark 1989-1995

• Keith Cox 1991-1996

• Michael Etzel, 1997 - 2000

• Beth Fischer 1993-1998

• Catherine Bock-Jocz 1995 - 2001

• James Myers 1993-1995

• Connie Pechmann, 1998 - 2001

• Robert Peterson, 1998 - 2000

• Arthur Redmond, 1997 - 2000

• Mary Lou Roberts 1992-1997

• Debra Semans 1993 - 1999

• Carol Shea, 1998 - 2000

• Rosann Spiro 2000 -

• Sybil Stershic, 1999 -

• David Stewart 1993 - 1998 (Chairperson, 1996)

• Doris Walsh 1995 - 1997

C-2 Appendix C History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
Appendix D.

Consultation on the Census Questionnaires

More than a thousand agencies, trade associations, trade journals, and other organizations, including companies reporting in the censuses, were requested to recommend questionnaire content for the 1997 Economic Census. The list below

shows by major North American Industry Classification System (NAICS) economic sector those organizations that

responded. To protect confidentiality, companies in the censuses are not listed.

UTILITIES (SECTOR 22)

Other Organizations

American Public Power Association

American Water Works Association

Associated Gas Distributors

Association of Oil Pipelines

Edison Electric Institute

National Association of Water Companies

WHOLESALE TRADE (SECTOR 42)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

United States Department of Labor

Bureau of Labor Statistics

Other Organizations

American Home Sewing and Craft Association

American Petroleum Institute

American Supply and Machinery Manufacturers’

Association

Automotive Service Industry Association

Beauty and Barber Supply Institute

Business Technology Association

Cleaning Equipment Trade Association

Dental Dealers of America

Fresh Produce Council

International Association of Plastic Distributors

International Sanitary Supply Association

Material Handling Equipment Dealers Association

National Association of Electrical Distributors, Inc.

National Beer Wholesalers Association

National Decorating Association

National Electronic Distributors Association

National Fisheries Institute

National Food Distributors Association

National Marine Manufacturers Association

National Paint and Coatings Association

National Wholesale Druggists’ Association

North American Equipment Dealers Association

North American Wholesale Lumber Association

Petroleum Marketers Association of America

WHOLESALE TRADE (Sector 42)−Con.

Other Organizations−Con.

Quality Bakers of America Cooperative

Steel Manufacturers Association

Steel Service Center Institute

Tobacco Merchants Association of the United States

United Fresh Fruit and Vegetable Association

RETAIL TRADE (SECTOR 44-45)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

U. S. Department of Agriculture

Economic Research Service

Other Organizations

American Booksellers Association

American Furniture Manufacturers Association

American Home Sewing and Craft Association

American Petroleum Institute

American Pharmaceutical Association

American Professional Needlework Retailers

American Professional Pet Distributors

American Specialty Toy Retail Association

Art Business News

Automotive Parts and Accessories Assocation

Automotive Service Industry Association

BMT Publications

Book Industry Study Group

Cahners Economics

Dairy Management Incorporated

Direct Selling Association

Electronic Industries Association

Flower News

Footwear Industries of America

Gift Association of America

Greater Blouse, Skirt, and Undergarment Association,

Incorporated

Hardware Age

History−1997 Economic Census Appendix D D-1

U.S. Census Bureau, 1997 Economic Census
RETAIL TRADE (Sector 44-45)−Con.

Other Organizations−Con.

Hearth Products Association Hobby Industry

Association of America

Home Improvement Research Institute

International Sewing Machine Association

International Sleep Products Association

Jewelers Circular

Jewelers of America

Manufactured Housing Institute

Market Statistics, Incorporated

Motor Age Magazine

National Association of Music Merchants

National Association of Resale and Thrift Shops

National Automatic Merchandising Association

National Automotive Dealers Association

National Coal Association

National Decorating Products Association

National Glass Association

National Home Center News

National Home Furnishings Association

National Marine Manufacturers Association

National Retail Federation

National Retail Hardware Association

National Sporting Goods Association

NonPrescription Drug Manufacturers Association

Opticians Association of America

Painting and Decorating Contractors of America

Photo Marketing Association International

Progressive Grocer

Recreational Vehicle Dealers Association

Society of Independent Gasoline Marketers

Sporting Goods Manufacturers Association

The American Institute of Food Distributors

United Dairy Industry Association

United Fresh Fruit and Vegetable Association

World Floor Covering Association

TRANSPORTATION AND WAREHOUSING

(SECTOR 48-49)

Other Organizations

American Bus Association

American Public Transit Association

American Trucking Association

American Warehouse Association

Household Goods Forwarders Association

International Association of Refrigerated Warehouses

International Marina Institute

National Customs Brokers and Forwarders Association of

America

National Marine Manufacturers Association

National School Transportation Association

National Waterways Conference, Inc.

Regional Airline Association

TRANSPORTATION AND WAREHOUSING

(Sector 48-49)−Con.

Other Organizations−Con.

Transportation Brokers Conference of America

United Bus Owners of America

United States Tour Operators Association

INFORMATION (SECTOR 51)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

Association of Telemessaging Services International, Inc.

Interactive Multimedia Association

National Association of Broadcasters

National Telephone Cooperative Association

FINANCE AND INSURANCE (SECTOR 52)

Federal Agencies

Securities and Exchange Commission

Other Organizations

Alliance of American Insurers

America’s Community Bankers

American Bankers Association

American Council of Life Insurance

Commercial Finance Association

Financial Institutions of Marketing Associations

Health Insurance Association of America

Independent Bankers Association of America

Investment Company Institute

Life Insurance Marketing and Research Association

Mortgage Bankers Association of America

National Association of Credit Union Service Organizations

National Association of Health Underwriters

National Association of Insurance Brokers

National Association of Life Underwriters

National Association of Securities Dealers, Inc.

National Association of State Credit Union Supervisors

National Council of Real Estate Investment Fiduciary

National Credit Union Administration

National Futures Association

National Society for Real Estate and Finance

New York Stock Exchange

Risk and Insurance Management Society

Securities Industry Association

Securities Transfer Association

Security Traders Association

Society of Chartered Property and Casualty Underwriters

D-2 Appendix D History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
FINANCE AND INSURANCE (Sector 52)−Con.

Other Organizations—Con.

Society of Professional Benefit Administrators

Surety Association of America

Sheshunoff Information Services

REAL ESTATE AND RENTAL AND LEASING

(SECTOR 53)

Other Organizations

Building Owners and Managers Association International

Manufactured Housing Institute

National Council of Real Estate Investment Fiduciary

National Society for Real Estate and Finance

National Truck Leasing System

Truck Renting and Leasing Association

PROFESSIONAL, SCIENTIFIC AND

TECHNICAL SERVICES (SECTOR 54)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

American Congress on Surveying and Mapping

American Consulting Engineers Council

American Institute of Certified Public Accountants

American Society of Interior Designers

Industrial Design Services Association

International Interior Design Association

Marketing Research Association

National Technical Services Association

Photo Marketing Association International

Professional Photographers of America, Inc.

ADMINISTRATIVE AND SUPPORT, WASTE

MANAGEMENT AND REMEDIATION SERVICES

(SECTOR 56)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

American Society of Travel Agents

American Telemarketing Association, Inc.

Associated Credit Bureaus

Travel Industry Association of America

HEALTH CARE AND SOCIAL ASSISTANCE

(SECTOR 62)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

American Academy of Pediatrics

American Association of Homes and Services for the Aging

American Association of Tissue Banks

American Chiropractic Association

The American College of Obstetricians and Gynecologists

American Dental Association

International Society for Clinical Laboratory Technology

National Association of Meal Programs

ARTS, ENTERTAINMENT AND RECREATION

(SECTOR 71)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

American Association of Botanical Gardens and Arboreta

American Association of Museums

American Symphony Orchestra League

International Association of Amusement Parks and

Attractions

National Association of Theatre Owners

National Bowling Council

National Sporting Goods Association

ACCOMMODATION AND FOODSERVICES

(SECTOR 72)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

American Hotel and Motel Association

International Foodservice Manufacturers Association

National Association of RV Parks and Campgrounds

National Restaurant Association

Professional Association of Innkeepers, International

History−1997 Economic Census Appendix D D-3

U.S. Census Bureau, 1997 Economic Census
OTHER SERVICES (EXCEPT PUBLIC

ADMINISTRATION) (SECTOR 81)

Federal Agencies

U. S. Department of Commerce

Bureau of Economic Analysis

U. S. Department of Labor

Bureau of Labor Statistics

Other Organizations

Automotive Oil Change Association

National Funeral Directors Association

Textile Care Allied Trades Association

D-4 Appendix D History−1997 Economic Census

U.S. Census Bureau, 1997 Economic Census
POL/00-HEC History of the 1997 Economic Census