# Engineered Wood Member (Except Truss) Manufacturing: 2002

2002 Economic Census Manufacturing Industry Series Issued January 2005

EC02-31I-321213 (RV)



### U.S. Department of Commerce Economics and Statistics Administration U.S. CENSUS BUREAU

## This report was prepared in the Manufacturing and Construction Division under the direction of Judy M. Dodds , Assistant Division Chief for Census and Related Programs who was responsible for the overall planning, management, and coordination. Nathaniel Shelton , Chief, Primary Goods Industries Branch, assisted by Nancy Higgins , Walter Hunter , and Joanna Nguyen , Section Chiefs, and Raphael Corrado , Tom Flood , Robert Miller , and Robert Rosati , Special Assistants, performed the planning and implementation. Timothy Althouse , Luis Blanco , Brenda Campbell , Theresa Crowley , Daphne Kelly , Mai Ngan Le , John Linehan , Madelyn Nieves , Bridgett Parker-Bell , Dorothy Parsons , Gloria Peebles-Butler , Myss Sykes-Stephens , Athanasios Theodoropoulos , Denneth Wallace , and Ernest Wilson Jr. , provided primary staff assistance. Mendel D. Gayle , Chief, Census and Related Programs Support Branch, assisted by Kimberly DePhillip , Section Chief, performed overall coordination of the publication process. Patrick Duck , Michael Flaherty , Taylor C. Murph , Wanda Sledd , and Veronica White provided primary staff assistance. Mathematical and statistical techniques, as well as the coverage operations, were provided by Paul Hsen , Assistant Division Chief for Research and Methodology Programs, assisted by Stacey Cole , Chief, Manufacturing Methodology Branch, and Robert Struble , Section Chief. Jeffrey Dalzell and Cathy Gregor provided primary staff assistance. Eddie J. Salyers , Assistant Division Chief of Economic Planning and Coordination Division, was responsible for overseeing the editing and tabulation procedures and the interactive analytical software. Dennis Shoemaker and Kim Wortman , Special Assistants, John D. Ward , Chief, Analytical Branch, and Brandy L. Yarbrough , Chief, Edit Branch, were responsible for developing the systems and procedures for data collection, editing, review, and correction. Donna L. Hambric , Chief of the Economic Planning Staff, was responsible for overseeing the systems and information for dissemination. Douglas J. Miller , Chief, Tables and Dissemination Branch, assisted by Lisa Aispuro , Jamie Fleming , Keith Fuller , Andrew W. Hait , and Kathy G. Padgett were responsible for developing the data dissemination systems and procedures. The Geography Division staff, Robert LaMacchia , Chief, developed geographic coding procedures and associated computer programs. The Economic Statistical Methods and Programming Division, Howard R. Hogan , Chief, developed and coordinated the computer processing systems. Barry F. Sessamen , Assistant Division Chief for Post Collection, was responsible for design and implementation of the processing system and computer programs. Gary T. Sheridan , Chief, Macro Analytical Branch, assisted by Apparao V. Katikineni and Edward F. Johnson provided computer programming and implementation. The Systems Support Division provided the table composition system. Robert Joseph Brown , Table Image Processing System (TIPS) Senior Software Engineer, was responsible for the design and development of the TIPS, under the supervision of Robert J. Bateman , Assistant Division Chief, Information Systems. The staff of the National Processing Center performed mailout preparation and receipt operations, clerical and analytical review activities, and data entry. Margaret A. Smith , Bernadette J. Beasley , Michael T. Browne , and Alan R. Plisch of the Administrative and Customer Services Division, Walter C. Odom , Chief, provided publication and printing management, graphics design and composition, and editorial review for print and electronic media. General direction and production management were provided by James R. Clark , Assistant Division Chief, and Susan L. Rappa , Chief, Publications Services Branch. Special acknowledgment is also due the many businesses whose cooperation contributed to the publication of these data. 

## ACKNOWLEDGMENTS

# Engineered Wood Member (Except Truss) Manufacturing: 2002

2002 Economic Census Manufacturing

Industry Series Issued January 2005

EC02-31I-321213 (RV)



# U.S. Department of Commerce Donald L. Evans, Secretary Theodore W. Kassinger, Deputy Secretary Economics and Statistics Administration Kathleen B. Cooper, Under Secretary for Economic Affairs U.S. CENSUS BUREAU Charles Louis Kincannon, Director

## Vacant, Principal Associate Director for Programs Frederick T. Knickerbocker, Associate Director for Economic Programs Thomas L. Mesenbourg, Assistant Director for Economic Programs William G. Bostic, Jr., Chief, Manufacturing and Construction Division ECONOMICS AND STATISTICS ADMINISTRATION 

## Economics and Statistics Administration Kathleen B. Cooper, Under Secretary for Economic Affairs

U.S. CENSUS BUREAU Charles Louis Kincannon, Director Hermann Habermann, Deputy Director and Chief Operating Officer

# CONTENTS

Introduction to the Economic Census v  Manufacturing ix  Tables 1. Historical Statistics for the Industry: 2002 and Earlier Years 1  2. Industry Statistics for Selected States: 2002 2  3. Detailed Statistics by Industry: 2002 3  4. Industry Statistics by Employment Size: 2002 4  5. Industry Statistics by Primary Product Class Specialization: 2002 5  6a. Products Statistics: 2002 and 1997 6  6b. Product Class Shipments for Selected States: 2002 and 1997  7. Materials Consumed by Kind: 2002 and 1997 8  Appendixes A. Explanation of Terms A–1  B. NAICS Codes, Titles, and Descriptions B–1  C. Methodology C–1  D. Geographic Notes  E. Metropolitan and Micropolitan Statistical Areas  F. Comparability of Product Classes and Product Codes: 2002 to 1997 F–1 

Not applicable for this report.



# Manufacturing

 Industry Series Engineered Wood Member (Except Truss) Mfg iii U.S. Census Bureau, 2002 Economic Census

# Introduction to the Economic Census

PURPOSES AND USES OF THE ECONOMIC CENSUS The economic census is the major source of facts about the structure and functioning of the nation’s economy. It provides essential information for government, business, industry, and the general public. Title 13 of the United States Code (Sections 131, 191, and 224) directs the Census Bureau to take the economic census every 5 years, covering years ending in “2” and “7.” The economic census furnishes an important part of the framework for such composite measures as the gross domestic product estimates, input/output measures, production and price indexes, and other statistical series that measure short-term changes in economic conditions. Specific uses of economic census data include the following: • Policymaking agencies of the federal government use the data to monitor economic activity and

to assess the effectiveness of policies. • State and local governments use the data to assess business activities and tax bases within

their jurisdictions and to develop programs to attract business. • Trade associations study trends in their own and competing industries, which allows them to

keep their members informed of market changes.• Individual businesses use the data to locate potential markets and to analyze their own production and sales performance relative to industry or area averages. INDUSTRY CLASSIFICATIONSData from the 2002 Economic Census are published primarily according to the 2002 North American Industry Classification System (NAICS). NAICS was first adopted in the United States, Canada, and Mexico in 1997. The 2002 Economic Census covers the following NAICS sectors: 21 Mining 22 Utilities 23 Construction 31-33 Manufacturing 42 Wholesale Trade 44-45 Retail Trade 48-49 Transportation and Warehousing 51 Information 52 Finance and Insurance 53 Real Estate and Rental and Leasing 54 Professional, Scientific, and Technical Services 55 Management of Companies and Enterprises 56 Administrative and Support and Waste Management and Remediation Services 61 Educational Services 62 Health Care and Social Assistance 71 Arts, Entertainment, and Recreation 72 Accommodation and Food Services 81 Other Services (except Public Administration) (Not listed above are the Agriculture, Forestry, Fishing, and Hunting sector (NAICS 11), partially covered by the census of agriculture conducted by the U.S. Department of Agriculture, and the Public Administration sector (NAICS 92), largely covered by the census of governments conducted by the Census Bureau.) The 20 NAICS sectors are subdivided into 100 subsectors (three-digit codes), 317 industry groups (four-digit codes), and, as implemented in the United States, 1,179 industries (six-digit codes). Introduction v 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## RELATIONSHIP TO HISTORICAL INDUSTRY CLASSIFICATIONSPrior to the 1997 Economic Census, data were published according to the Standard Industrial Classification (SIC) system. While many of the individual NAICS industries correspond directly to industries as defined under the SIC system, most of the higher level groupings do not. Particular care should be taken in comparing data for retail trade, wholesale trade, and manufacturing, which are sector titles used in both NAICS and SIC, but cover somewhat different groups of industries. The 1997 Economic Census Bridge Between NAICS and SIC demonstrates the relationships between NAICS and SIC industries. Where changes are significant, it may not be possible to construct time series that include data for points both before and after 1997. Most industry classifications remained unchanged between 1997 and 2002, but NAICS 2002 includes substantial revisions within the construction and wholesale trade sectors, and a numberof revisions for the retail trade and information sectors. These changes are noted in industry definitions and will be demonstrated in the Bridge Between NAICS 2002 and NAICS 1997

. For 2002, data for enterprise support establishments (those functioning primarily to support the activities of their company’s operating establishments, such as a warehouse or a research anddevelopment laboratory) are included in the industry that reflects their activities (such as warehousing). For 1997, such establishments were termed auxiliaries and were excluded from industry totals. BASIS OF REPORTING The economic census is conducted on an establishment basis. A company operating at more than one location is required to file a separate report for each store, factory, shop, or other location. Each establishment is assigned a separate industry classification based on its primary activity andnot that of its parent company. (For selected industries, only payroll, employment, and classification are collected for individual establishments, while other data are collected on a consolidated basis.) GEOGRAPHIC AREA CODING Accurate and complete information on the physical location of each establishment is required to tabulate the census data for states, metropolitan and micropolitan statistical areas, counties, and corporate municipalities (places) including cities, towns, townships, villages, and boroughs. Respondents were required to report their physical location (street address, municipality, county, and state) if it differed from their mailing address. For establishments not surveyed by mail (and those single-establishment companies that did not provide acceptable information on physical location), location information from administrative sources is used as a basis for coding. AVAILABILITY OF ADDITIONAL DATA All results of the 2002 Economic Census are available on the Census Bureau Internet site (www.census.gov) and on digital versatile discs (DVD-ROMs) for sale by the Census Bureau. The American FactFinder system at the Internet site allows selective retrieval and downloading of the data. For more information, including a description of reports being issued, see the Internet site, write to the U.S. Census Bureau, Washington, DC 20233-6100, or call Customer Services at 301- 763-4100. HISTORICAL INFORMATION The economic census has been taken as an integrated program at 5-year intervals since 1967 and before that for 1954, 1958, and 1963. Prior to that time, individual components of the economic census were taken separately at varying intervals. The economic census traces its beginnings to the 1810 Decennial Census, when questions on manufacturing were included with those for population. Coverage of economic activities was expanded for the 1840 Decennial Census and subsequent censuses to include mining and some commercial activities. The 1905 Manufactures Census was the first time a census was taken apart vi Introduction 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## from the regular decennial population census. Censuses covering retail and wholesale trade and construction industries were added in 1930, as were some service trades in 1933. Censuses of construction, manufacturing, and the other business censuses were suspended during World War II.The 1954 Economic Census was the first census to be fully integrated, providing comparable census data across economic sectors and using consistent time periods, concepts, definitions, classifications, and reporting units. It was the first census to be taken by mail, using lists of firms provided by the administrative records of other federal agencies. Since 1963, administrative records also have been used to provide basic statistics for very small firms, reducing or eliminating the need to send them census report forms. The range of industries covered in the economic census expanded between 1967 and 2002. The census of construction industries began on a regular basis in 1967, and the scope of serviceindustries, introduced in 1933, was broadened in 1967, 1977, and 1987. While a few transportation industries were covered as early as 1963, it was not until 1992 that the census broadened to include all of transportation, communications, and utilities. Also new for 1992 was coverage of financial, insurance, and real estate industries. With these additions, the economic census and the separate census of governments and census of agriculture collectively covered roughly 98 percent of all economic activity. New for 2002 is coverage of four industries classified in the agriculture, forestry, and fishing sector under the SIC system: landscape architectural services, landscaping services, veterinary services, and pet care services. Printed statistical reports from the 1992 and earlier censuses provide historical figures for the study of long-term time series and are available in some large libraries. Reports for 1997 were published primarily on the Internet and copies of 1992 reports are also available there. CD-ROMs issued from the 1987, 1992, and 1997 Economic Censuses contain databases that include all or nearly all data published in print, plus additional statistics, such as ZIP Code statistics, published only on CD-ROM. SOURCES FOR MORE INFORMATION More information about the scope, coverage, classification system, data items, and publications for the 2002 Economic Census and related surveys is published in the Guide to the 2002 Economic Census at www.census.gov/econ/census02/guide. More information on the methodology, procedures, and history of the census will be published in the History of the 2002 Economic Census at www.census.gov/econ/www/history.html.

Introduction vii 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

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viii Introduction 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

# Manufacturing

SCOPE The Manufacturing sector (sector 31-33) comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction. Establishments in the manufacturing sector are often described as plants, factories, or mills andcharacteristically use power-driven machines and materials-handling equipment. However, establishments that transform materials or substances into new products by hand or in the worker’s home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing. The materials, substances, or components transformed by manufacturing establishments are rawmaterials that are products of agriculture, forestry, fishing, mining, or quarrying, as well as products of other manufacturing establishments. The materials used may be purchased directly from producers, obtained through customary trade channels, or secured without recourse to the market by transferring the product from one establishment to another, under the same ownership. The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or consumption, or it may be semifinished to become an input for an establishment engaged in further manufacturing. For example, the product of the alumina refinery is the input used in the primary production of aluminum; primary aluminum is the input to an aluminum wiredrawing plant; and aluminum wire is the input for a fabricated wire product manufacturing establishment. The subsectors in the manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills. In the machinery area, where assembling is a key activity, parts and accessories for manufactured products are classified in the industry of the finished manufactured item when they are made for separate sale. For example, a replacement refrigerator door would be classified with refrigerators and an attachment for a pieceof metal working machinery would be classified with metal working machinery. However, components, input from other manufacturing establishments, are classified based on the production function of the component manufacturer. For example, electronic components are classified in Subsector 334, Computer and Electronic Product Manufacturing; and stampings are classified in Subsector 332, Fabricated Metal Product Manufacturing. Manufacturing establishments often perform one or more activities that are classified outside the manufacturing sector of NAICS. For instance, almost all manufacturing has some captive research and development or administrative operations, such as accounting, payroll, or management. These captive services are treated the same as captive manufacturing activities. When the servicesare provided by separate establishments, they are classified to the NAICS sector where such services are primary, not in manufacturing.The boundaries of manufacturing and the other sectors of the classification system can be somewhat blurry. The establishments in the manufacturing sector are engaged in the transformation ofmaterials into new products. Their output is a new product. However, the definition of what constitutes a new product can be somewhat subjective. As clarification, the following activities are Manufacturing ix 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## considered manufacturing in NAICS: milk bottling and pasteurizing; water bottling and processing; fresh fish packaging (oyster shucking, fish filleting); apparel jobbing (assigning of materials to contract factories or shops for fabrication or other contract operations); as well as contracting on materials owned by others; printing and related activities; ready-mixed concrete production; leather converting; grinding of lenses to prescription; wood preserving; electroplating, plating, metal heat treating, and polishing for the trade; lapidary work for the trade; fabricating signs and advertising displays; rebuilding or remanufacturing machinery (i.e., automotive parts); ship repair and renovation; machine shops; and tire retreading. Exclusions. There are activities that are sometimes considered manufacturing, but for NAICS are classified in another sector. These activities include logging, classified in Sector 11, Agriculture, Forestry, Fishing and Hunting is considered a harvesting operation; the beneficiating of ores and other minerals, classified in Sector 21, Mining, is considered part of the activity of mining; theconstruction of structures and fabricating operations performed at the site of construction by contractors, is classified in Sector 23, Construction; establishments engaged in breaking of bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products, such as liquors or chemicals; the customized assembly of computers; sorting of scrap; mixing paints to customer order; and cutting metals to customer order, classified in Sector 42, Wholesale Trade or Sector 44-45, Retail Trade, produce a modified version of the same product, not a new product;and publishing and the combined activity of publishing and printing, classified in Sector 51, Information, perform the transformation of information into a product where as the value of the product to the consumer lies in the information content, not in the format in which it is distributed (i.e., the book or software diskette). The tabulations for this sector do not include central administrative offices, warehouses, or other establishments that serve manufacturing establishments within the same organization. Data for such establishments are classified according to the nature of the service they provide. For example, separate headquarters establishments are reported in NAICS Sector 55, Management of Companies and Enterprises. The reports described below exclude establishments of firms with no paid employees. These “nonemployers,” typically self-employed individuals or partnerships operating businesses thatthey have not chosen to incorporate, are reported separately in Nonemployer Statistics. The contribution of nonemployers, relatively small for this sector, may be examined at www.census.gov/nonemployerimpact. The reports described below cover all manufacturing establishments with one or more paid employees. Definitions. Industry categories are defined in Appendix B, NAICS Codes, Titles, and Descriptions. Other terms are defined in Appendix A, Explanation of Terms. REPORTS The following reports provide statistics on this sector: Industry Series. There are 473 reports, each covering a single NAICS industry (six-digit code). These reports include such statistics as number of establishments, employment, payroll, value added by manufacture, cost of materials consumed, value of shipments, capital expenditures, etc. The industry reports also include data for states with 100 employees or more in the industry. The data in industry reports are preliminary and subject to change in the following reports. Geographic Area Series. There are 51 separate reports, one for each state and the District of Columbia. Each state report presents similar statistics at the “all manufacturing” level for each state and its metropolitan and micropolitan areas with 250 employees or more, and for counties,consolidated cities, and places with 500 employees or more. The state reports also include sixdigit NAICS level data for industries with 100 employees or more in the state. Subject Series: x Manufacturing 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## • Industry-Product Analysis Summary. This report presents value of shipments, value ofproduct shipments, percentage of product shipments of the total value of shipments, and percentage of distribution of value of product shipments on the NAICS six-digit industry level and by the six- and seven-digit product code levels. It also includes miscellaneous receipts at the six- and seven-digit product code levels by NAICS six-digit industry levels.

• General Summary. This report contains industry and geographic area statistics summarized in

one report. It includes higher levels of aggregation than the industry and state reports, as well as revisions to the data made after the release of the industry and state reports.

• Product Summary. This report summarizes the products data published in the industry

reports. This report also includes a table with data for products that are primary to more than one industry, which are not in the industry reports.

• Materials Summary. This report summarizes the materials data published in the industry

reports.

• Concentration Ratio Summary. This report publishes data on the percentage of value of shipments and value added accounted for by the 4-, 8-, 20-, and 50-largest companies for each manufacturing industry. Also shown in this report are Herfindahl-Herschmann indexes for each industry.

• Location of Manufacturing Plants Summary. This report contains statistics on the number

of establishments for the three-and six-digit NAICS industry by state, county, place, and ZIP Code by employment-size of the establishment. ZIP Code Statistics. This report contain statistics on the number of establishments for the threeand six-digit NAICS industry by employment-size of the establishment by ZIP Code. Other reports. Data for this sector are also included in reports with multisector coverage, including Nonemployer Statistics, Comparative Statistics, Bridge Between 2002 NAICS and 1997 NAICS, Business Expenses, and the Survey of Business Owners reports. GEOGRAPHIC AREAS COVERED The level of geographic detail varies by report. Maps are available at www.census.gov/econ2002maps. Notes specific to areas in the state are included in Appendix D, Geographic Notes.

1. The United States as a whole. 2. States and the District of Columbia.3. Metropolitan and micropolitan statistical areas with 250 employees or more. A core based statistical areas (CBSA) contains a core area with a substantial population nucleus, together with adjacent communities having a high degree of social and economic integration with that core.CBSAs are differentiated into metropolitan and micropolitan statistical areas based on size criteria. Both metropolitan and micropolitan areas are defined in terms of entire counties, and are listed in Appendix E, Metropolitan and Micropolitan Statistical Areas. a. Metropolitan Statistical Areas (metro areas). Metro areas have at least one urbanized area of50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties. b. Micropolitan Statistical Areas (micro areas). Micro areas have at least one urban cluster of at least 10,000 but less than 50,000 population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties.c. Metropolitan Divisions (metro divisions). If specified criteria are met, a metro area containing a single core with a population of 2.5 million or more may be subdivided to form smaller groupings of counties referred to as Metropolitan Divisions. Manufacturing xi 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## d. Combined Statistical Areas (combined areas). If specified criteria are met, adjacent metro and micro areas, in various combinations, may become the components of a new set ofareas called Combined Statistical Areas. The areas that combine retain their own designations as metro or micro areas within the larger combined area. 4. Counties and county equivalents defined as of January 1, 2002, with 500 employees or more.Counties are the primary divisions of states, except in Louisiana where they are called parishes and in Alaska where they are called boroughs, census areas, and city and boroughs. Maryland, Missouri, Nevada, and Virginia have one place or more that is independent of any county organization and constitutes primary divisions of their states. These places are treated as counties and as places. 5. Economic places with 500 employees or more. a. Municipalities of 2,500 inhabitants or more defined as of January 1, 2002. These are areas of significant population incorporated as cities, boroughs, villages, or towns according to the 2000 Census of Population. For the economic census, boroughs and census areas in Alaska and boroughs in New York are not included in this category. b. Consolidated cities defined as of January 1, 2002. Consolidated cities are consolidated governments that consist of separately incorporated municipalities. c. Townships in Michigan, New Jersey, and Pennsylvania, and towns in New York, Wisconsin, and the six New England states with 10,000 inhabitants or more (according to the 2000 Census of Population).d. Balance of county. Areas outside the entities listed above, including incorporated municipalities with populations of fewer than 2,500, town and townships not qualifying as noted above, and the remainders of counties outside places are categorized as “Balance of county.” DOLLAR VALUES All dollar values presented are expressed in current dollars; i.e., 2002 data are expressed in 2002 dollars, and 1997 data, in 1997 dollars. Consequently, when making comparisons with prior years, users of the data should consider the changes in prices that have occurred. All dollar values are shown in thousands of dollars. COMPARABILITY OF THE 1997 AND 2002 ECONOMIC CENSUSES Both the 2002 Economic Census and the 1997 Economic Census present data based on the North American Industry Classification System (NAICS). While there were revisions to selected industries for 2002, this sector is not affected by those revisions. For 2002, there have been several additional data tables added, which did not exist in 1997. These tables for 2002 include products primary to more than one industry, industry-product analysis, e-commerce value of shipments, and leased and nonleased detail employment statistics by subsectors. RELIABILITY OF DATA All data compiled for this sector are subject to nonsampling errors. Nonsampling errors can be attributed to many sources: inability to identify all cases in the actual universe; definition andclassification difficulties; differences in the interpretation of questions; errors in recording or coding the data obtained; and other errors of collection, response, coverage, processing, and estimation for missing or misreported data. Selected data in tables titled “Detailed Statistics” are based on the Annual Survey of Manufactures and are subject to sampling errors as well as nonsampling errors. xii Manufacturing 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## No direct measurement of these effects has been obtained except for estimation for missing or misreported data, as by the percentages shown in the tables. Precautionary steps were taken in all phases of the collection, processing, and tabulation of the data in an effort to minimize the effects of nonsampling errors. More information on the reliability of the data is included in Appendix C, Methodology. DISCLOSURE In accordance with federal law governing census reports (Title 13 of the United States Code), no data are published that would disclose the operations of an individual establishment or company. However, the number of establishments in a specific industry or geographic area is not considereda disclosure; therefore, this information may be released even though other information is withheld. Techniques employed to limit disclosure are discussed at www.census.gov/epcd/ec02/disclosure.htm. The disclosure analysis for “industry statistics” files is based on the total value of shipments. When the total value of shipments cannot be shown without disclosing information for individualcompanies, the complete line is suppressed except for capital expenditures. Nonetheless, the suppressed data are included in higher-level totals. A separate disclosure analysis is performed forcapital expenditures, which can be suppressed even though value of shipments data are published. AVAILABILITY OF MORE FREQUENT ECONOMIC DATA The Census Bureau conducts the Annual Survey of Manufactures (ASM) in each of the 4 years between the economic censuses. The ASM is a probability-based sample of approximately 55,000 establishments and collects many of the same industry statistics (including employment, payroll, value of shipments, etc.) as the economic census. However, there are selected statistics not included in the ASM. Among these are the number of companies and establishments, detailed product and materials data, and substate geographic data. In addition to the ASM, the Census Bureau conducts the Current Industrial Reports (CIR) program. The CIR program publishes selected detailed product statistics for selected manufacturing industries at the U.S. level annually and, insome cases, monthly and/or quarterly. The Census Bureau also conducts the monthly Manufacturers’ Shipments, Inventories, and Orders (M3) Program, which publishes detailed statistics for manufacturing industries at the U.S. level.In addition, the County Business Patterns program offers annual statistics on the number of establishments, employment, and payroll classified by industry within each county, and Statistics ofU.S. Businesses provides annual statistics classified by the employment size of the enterprise, further classified by industry for the United States, and by broader categories for states and metropolitan areas. CONTACTS FOR DATA USERSQuestions about these data may be directed to the U.S. Census Bureau, Manufacturing & Construction Division, Information Services Center, 301-763-4673 or ask.census.gov. ABBREVIATIONS AND SYMBOLS The following abbreviations and symbols are used with these data: A Standard error of 100 percent or more D Withheld to avoid disclosing data of individual companies; data are included in higher level totals F Exceeds 100 percent because data include establishments with payroll exceeding revenue N Not available or not comparable S Withheld because estimates did not meet publication standards X Not applicable Z Less than half the unit shown a 0 to 19 employees b 20 to 99 employees c 100 to 249 employees Manufacturing xiii 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

## e 250 to 499 employees f 500 to 999 employees g 1,000 to 2,499 employees h 2,500 to 4,999 employees i 5,000 to 9,999 employees j 10,000 to 24,999 employees k 25,000 to 49,999 employees l 50,000 to 99,999 employees m 100,000 employees or more p 10 to 19 percent estimated q 20 to 29 percent estimated r Revised s Sampling error exceeds 40 percent nsk Not specified by kind – Represents zero (page image/print only) (CC) Consolidated city (IC) Independent city

xiv Manufacturing 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

# Table 1. 

# Historical Statistics for the Industry: 2002 and Earlier Years [Data based on the 2002 Economic Census and the 2002 Annual Survey of Manufactures (ASM). For information on confidentiality protection, sampling error, nonsampling error, and explanation of terms, see note at end of table. For meaning of abbreviations and symbols, see introductory text]

Industry and year 1 All employees Production workers Com panies2 All estab

lish ments3 Number4 Payroll ($1,000) Number4 Hours (1,000) Wages ($1,000) Value added ($1,000) Total cost of materials ($1,000) Total value of shipments

($1,000) Total capital expendi

tures ($1,000) 321213, Engineered wood member (except truss) manufacturing 2002   90 120 6 903 231 333 5 775 12 392 179 194 641 740 1 316 093 1 953 897 r34 978 2001  N N 5 724 193 583 4 932 11 091 154 889 583 350 1 165 356 1 755 446 18 683 2000  N N 5 709 185 192 4 844 10 925 141 393 495 571 1 165 735 1 690 861 59 991 1999  N N 5 884 192 765 5 049 11 699 150 127 537 359 1 243 101 1 766 770 84 216 1998  N N 5 811 173 489 4 869 10 887 132 829 560 184 1 066 818 1 620 870 69 985 1997  32 53 5 372 154 564 4 469 9 701 118 939 476 346 974 548 1 431 123 53 742

1 Statistics presented for years ending in 2 and 7 are census data. Interim census years are derived in a representative sample of manufacturing establishments canvassed in the Annual Survey of Manufactures (ASM). 2 For the census, a company is defined as a business organization consisting of one establishment or more under common ownership or control. 3 Includes establishments with payroll at any time during the year. 4Number of employees figures represent average number of production workers for pay period that includes the 12th of March, May, August, and November p lus other employees for payroll period that includes the 12th of March. Note: The data in this table are based on the 2002 Economic Census and the 2002 Annual Survey of Manufactures (ASM). To maintain confidentiality, the Ce nsus Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain sampling errors and nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# Manufacturing

 Industry Series Engineered Wood Member (Except Truss) Mfg 1 U.S. Census Bureau, 2002 Economic Census

# Table 2. 

# Industry Statistics for Selected States: 2002 [States that are a disclosure or with less than 100 employees are not shown. Data based on the 2002 Economic Census. For information on confidentiality protection, nonsampling error, explanation of terms, and geographical definitions, see note at end of table. For information on geographic areas followed by *, see AppendixD. For meaning of abbreviations and symbols, see introductory text]

Industry and geographic area All establishments2 All employees Production workers

E 1 Total With 20 em ploy ees or more Number3 Payroll ($1,000) Number3 Hours (1,000) Wages ($1,000) Value added ($1,000) Total cost of materials ($1,000) Total value of shipments

($1,000) Total capital expendi

tures ($1,000) 

### 321213, Engineered wood member

(except truss) manufacturing United States –  120 64 6 903 231 333 5 775 12 392 179 194 641 740 1 316 093 1 953 897 r34 978 Alabama –  6 3 499 18 074 424 955 14 433 74 941 109 959 178 076 r3 058 California 1  10 2 381 13 177 283 595 8 514 34 916 65 225 100 158 r545 Oregon –  18 13 1 430 48 437 1 232 2 605 39 614 145 187 311 557 461 014 r11 405 Washington 3  10 7 276 7 178 252 554 6 285 16 210 29 578 45 752 r455

1 Some payroll and sales data for small single establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. This technique was also used for a small number of other establishments whose reports were not received at the time data were tabulated. The following symbols are shown where estimated data account for 10 percent or more of the figures shown: 1–10 to 19 percent; 2–20 to 29 percent; 3–30 to 39 percent; 4–40 to 49 percent; 5–50 to 59 percent; 6–60 to 69 percent; 7–70 to 79 percent; 8–80 to 89 percent; 9–90 percent or more. 2 Includes establishments with payroll at any time during the year. 3Number of employees figures represent average number of production workers for pay period that includes the 12th of March, May, August, and November p lus other employees for payroll period that includes the 12th of March. Note: The data in this table are based on the 2002 Economic Census. To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C. For geographical defi nitions, see Appendix D.



# 2 Engineered Wood Member (Except Truss) Mfg Manufacturing

 Industry Series U.S. Census Bureau, 2002 Economic Census

# Table 3. 

# Detailed Statistics by Industry: 2002 [Data based on the 2002 Economic Census and the 2002 Annual Survey of Manufactures (ASM). For information on confidentiality protection, sampling error, nonsampling error, and explanation of terms, see note 2 at end of table. For meaning of abbreviations and symbols, see introductory text] Item Value 

### 321213, Engineered wood member (except truss) manufacturing Companies 1 number   90 All establishments2 number   120 Establishments with 1 to 19 employees number   56 Establishments with 20 to 99 employees number   43 Establishments with 100 employees or more number   21 All employees3 number   6 903 Total compensation $1,000   293 750 Annual payroll $1,000   231 333 Total fringe benefits $1,000   62 417 Production workers, average for year number   5 775 Production workers on March 12 number   5 673 Production workers on May 12 number   5 801 Production workers on August 12 number   5 849 Production workers on November 12 number   5 769 Production worker hours 1,000   12 392 Production worker wages $1,000   179 194 Total cost of materials $1,000   1 316 093 Materials, parts, containers, packaging, etc., used $1,000   1 235 827 Resales $1,000   40 263 Purchased fuels $1,000   7 671 Purchased electricity $1,000   23 182 Contract work $1,000   9 150 Quantity of electricity purchased for heat and power 1,000 kWh   467 077 Quantity of electricity generated less sold for heat and power 1,000 kWh   – Total value of shipments $1,000   1 953 897 Primary products value of shipments $1,000   1 838 101 Secondary products value of shipments $1,000   63 617 Total miscellaneous receipts $1,000   52 179 Value of resales $1,000   41 983 Contract receipts $1,000   D Other miscellaneous receipts $1,000   D Primary products specialization ratio percent   97 Value of primary products shipments made in all industries $1,000   1 992 978 Value of primary products shipments made in this industry $1,000   1 838 101 Value of primary products shipments made in other industries $1,000   154 877 Coverage ratio percent   92 Value added $1,000   641 740 Total inventories, beginning of year $1,000   181 832 Finished goods inventories $1,000   112 893 Work in process inventories $1,000   15 252 Materials and supplies inventories $1,000   53 687 Total inventories, end of year $1,000   193 837 Finished goods inventories $1,000   113 658 Work in process inventories $1,000   18 423 Materials and supplies inventories $1,000   61 756 Gross value of depreciable assets (acquisition costs) at beginning of year $1,000   r948 533 Total capital expenditures (new and used) $1,000   r34 978 Buildings and other structures (new and used) $1,000   r6 821 Machinery and equipment (new and used) $1,000   r28 157 Automobiles, trucks, etc., for highway use $1,000   r1 701 Computers and peripheral data processing equipment $1,000   r1 957 All other expenditures for machinery and equipment $1,000   r24 499 Total retirements $1,000   r13 479 Gross value of depreciable assets at end of year $1,000   r970 032 Depreciation charges during year $1,000   r62 638 Total rental payments $1,000   18 262 Buildings and other structures $1,000   9 883 Machinery and equipment $1,000   8 379 Total other expenses4 $1,000   61 167 Response coverage ratio5 percent   52 Repair and maintenance services of buildings and/or machinery4 $1,000   7 141 Communications services4 $1,000   1 026 Legal services4 $1,000   430 Accounting, auditing, and bookkeeping services4 $1,000   362 Advertising and promotional services4 $1,000   463 Expensed computer hardware and supplies and purchased computer services4 $1,000   619 Refuse removal (including hazardous waste) services4 $1,000   1 275 Management consulting and administrative services4 $1,000   558 Taxes and license fees4 $1,000   4 827 All other expenses4 $1,000   44 465

1 For the census, a company is defined as a business organization consisting of one establishment or more under common ownership or control. 2 Includes establishments with payroll at any time during the year. 3Number of employees figures represent average number of production workers for pay period that includes the 12th of March, May, August, and November plus other employees for payroll period that includes the 12th of March. 4Based on 2002 Annual Survey of Manufactures (ASM) sample data. 5A response coverage ratio is derived for this item by calculating the ratio of the weighted employment (establishment data multiplied by sample weight) for those Annual Survey of Manufactures (ASM) establishments that reported to the weighted total employment for all ASM establishme nts classified in this industry. Note 1: The amounts shown for other expenses reflect only those services that establishments purchase from other companies. Note 2: The data in this table are based on the 2002 Economic Census and the 2002 Annual Survey of Manufactures (ASM). To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain sampling errors and nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data on ly. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# Manufacturing

 Industry Series Engineered Wood Member (Except Truss) Mfg 3 U.S. Census Bureau, 2002 Economic Census

# Table 4. 

# Industry Statistics by Employment Size: 2002 [Data based on the 2002 Economic Census. For information on confidentiality protection, nonsampling error, and explanation of terms, see note at end of table. For meaning of abbreviations and symbols, see introductory text]

Employment size class All employees Production workers

E 1 All estab lish ments2 Number3 Payroll ($1,000) Number3 Hours (1,000) Wages ($1,000) Value added ($1,000) Total cost of materials ($1,000) Total value of shipments

($1,000) Total capital expendi

tures ($1,000) 

### 321213, Engineered wood member

(except truss) manufacturing All establishments –  120 6 903 231 333 5 775 12 392 179 194 641 740 1 316 093 1 953 897 r34 978 Establishments with



1 to 4 employees 9  24 51 1 679 44 90 1 383 3 736 10 595 14 447 4 363 5 to 9 employees 7  11 73 2 467 57 128 2 104 6 902 14 270 21 333 r259 10 to 19 employees 5  21 291 8 712 245 522 6 937 23 513 46 945 70 214 r1 036 20 to 49 employees 1  29 f D D D D D D D D 50 to 99 employees 1  14 1 080 37 787 900 1 950 28 348 93 984 242 190 337 293 r7 338 100 to 249 employees –  14 2 359 81 905 1 893 4 152 61 195 252 606 459 923 707 058 r6 012 250 to 499 employees –  7 gDDDD D D D D 500 to 999 employees –  ––––– – – – –– 1,000 to 2,499 employees –  ––––– – – – –– 2,500 employees or more –  ––––– – – – –– Administrative records4 9  18 80 2 680 70 151 2 242 7 667 15 385 23 052 r431

1 Some payroll and sales data for small single establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. This technique was also used for a small number of other establishments whose reports were not received at the time data were tabulated. The following symbols are shown where estimated data account for 10 percent or more of the figures shown: 1–10 to 19 percent; 2–20 to 29 percent; 3–30 to 39 percent; 4–40 to 49 percent; 5–50 to 59 percent; 6–60 to 69 percent; 7–70 to 79 percent; 8–80 to 89 percent; 9–90 percent or more. 2 Includes establishments with payroll at any time during the year. 3Number of employees figures represent average number of production workers for pay period that includes the 12th of March, May, August, and November p lus other employees for payroll period that includes the 12th of March. 4Some payroll and sales data for small single establishment companies with up to 20 employees (cutoff varied by industry) were obtained from administrative records of other government agencies rather than from census report forms. These data were then used in conjunction with industry averages to estimate statistics for these small establishments. Data are also included in respective size classes shown. Note: The data in this table are based on the 2002 Economic Census. To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# 4 Engineered Wood Member (Except Truss) Mfg Manufacturing

 Industry Series U.S. Census Bureau, 2002 Economic Census

# Table 5. 

# Industry Statistics by Primary Product Class Specialization: 2002 [Data based on the 2002 Economic Census. For information on confidentiality protection, nonsampling error, and explanation of terms, see note at end of table. For meaning of abbreviations and symbols, see introductory text] Industry or

product class code Industry or primary product class All employees Production workers All estab

lish ments 1 Number2 Payroll ($1,000) Number2 Hours (1,000) Wages ($1,000) Value added ($1,000) Total cost of materials ($1,000) Total value of shipments

($1,000) Total capital expendi

tures ($1,000) 321213 Engineered wood member (except truss) manufacturing 120  6 903 231 333 5 775 12 392 179 194 641 740 1 316 093 1 953 897 r34 978 3212130 Engineered wood members (except trusses) 120  6 903 231 333 5 775 12 392 179 194 641 740 1 316 093 1 953 897 r34 978

1 Includes establishments with payroll at any time during the year. 2 Number of employees figures represent average number of production workers for pay period that includes the 12th of March, May, August, and November p lus other employees for payroll period that includes the 12th of March. Note: The data in this table are based on the 2002 Economic Census. To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# Manufacturing

 Industry Series Engineered Wood Member (Except Truss) Mfg 5 U.S. Census Bureau, 2002 Economic Census

# Table 6a. 

# Products Statistics: 2002 and 1997 [Includes quantity and value of products of this industry produced by (1) establishments classified in this industry (primary) and (2) establishments classified in other industries (secondary). Transfers of products of this industry from one establishment of a company to another establishment of the same company (interplant transfers) are also included. Data based on the 2002 Economic Census. For information on confidentiality protection, nonsampling error, and explanation of terms, see note 2 at end of table. For meanin g of abbreviations and symbols, see introductory text]

Product code Product Product shipments Number of companies with

shipments of

$100,000

or more Quantity of production for

all purposes Quantity Value ($1,000) 321213 Engineered wood member (except truss) manufacturing 2002   N X X 1 992 978 1997  N X X 1 326 062 3212130 Engineered wood members (except trusses) 2002   N X X 1 992 978 1997  N X X 1 326 062 32121301 Laminated veneer lumber 2002   N X X 511 256 1997  N X X 314 631 3212130111 Laminated veneer lumber mil bd ft  2002   44 X S 511 256 1997  6 X 20.3 314 631 32121302 Other engineered structural wood members, except trusses and laminated veneer lumber 2002   N X X 1 382 995 1997  N X X 1 011 431 3212130221 Glued laminated timber, beams mil bd ft  2002   43 X S 202 192 1997  29 X 326.4 333 364 3212130231 Wood I joists, I beams mil lin ft  2002   66 X S 845 405 1997  8 X 520.9 515 751 3212130241 Other engineered structural wood members mil cu ft  2002   40 X S 335 398 1997  9 X S 162 316 3212130Y Engineered wood members (except trusses), nsk, total 2002   N X X 98 727 1997  NXX – 3212130YWW Engineered wood members (except trusses), nsk, for nonadministrative record establishments 2002   N X X 76 275 1997  NXX – 3212130YWY Engineered wood members (except trusses), nsk, for administrative record establishments 2002   N X X 22 452 1997  NXX – Note 1: For some establishments, data have been estimated from central unit values that are based on quantity value relationships of reported data. The following symbols are used when percentage of each quantity figure estimated in this manner equals or exceeds 10 percent of published figure: p–10 to 19 percent estimated; q–20 to 29 percent estimated. If 30 percent or more is estimated, figure is replaced by S. Note 2: The data in this table are based on the 2002 Economic Census. To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# 6 Engineered Wood Member (Except Truss) Mfg Manufacturing

 Industry Series U.S. Census Bureau, 2002 Economic Census

# Table 6b. 

# Product Class Shipments for Selected States: 2002 and 1997 [Not applicable for this report.]



# Manufacturing

 Industry Series Engineered Wood Member (Except Truss) Mfg 7 U.S. Census Bureau, 2002 Economic Census

# Table 7. 

# Materials Consumed by Kind: 2002 and 1997 [Includes quantity and cost of materials consumed or put into production by establishments classified only in this industry. Data based on the 2002 Economic Census. For information on confidentiality protection, nonsampling error, and explanation of terms, see note 2 at end of table. For meaning of abbreviations and symbols,see introductory text] Material code Material consumed Quantity Delivered cost ($1,000) 

### 321213 Engineered wood member (except truss) manufacturing 00900001 Total materials  2002   X 1 235 827 1997  X 869 602 32100023 Hardwood rough lumber mil bd ft  2002   S 363 938 1997  N N 32100029 Softwood rough lumber mil bd ft  2002   S 34 067 1997  N N 32100027 Hardwood dressed lumber mil bd ft  2002   p3.3 2 437 1997  N N 32100033 Softwood dressed lumber mil bd ft  2002   S 176 947 1997  p364.1 186 789 32121201 Softwood plywood mil sq ft sm  2002   D D 1997  N N 32742005 Gypsum building board  2002   X 199 1997  X N 33251009 Builders’ hardware (including door locks, locksets, lock trim, screen hardware, etc.)  2002   X 3 916 1997  X N 32799301 Mineral wool insulation (fibrous glass, rock wool, etc.)  2002   X D 1997  X N 00190056 Windows and window units, including wood, metal, and vinyl thousands  2002   S 382 1997  N N 32191100 Wood doors and door units  2002   X D 1997  X N 33232103 Metal doors and door units thousands  2002   D D 1997  N N 33711000 Kitchen cabinets, wood  2002   X D 1997  X N 32121901 Reconstituted wood products (including particleboard, oriented strandboard, medium density fiberboard, and hardboard)  2002   X 92 300 1997  X 88 732 33232207 Metal siding, including aluminum, steel  2002   X D 1997  X N 33231201 Fabricated structural iron, steel, and aluminum (including truss plates)  2002   X 2 116 1997  X N 001900B3 Current carrying wiring devices (including switches, connectors, lampholders, etc.)  2002   X D 1997  X N 31411001 Floor coverings, textile  2002   X D 1997  X N 00970099 All other materials and components, parts, containers, and supplies  2002   X 436 946 1997  X 568 160 00971000 Materials, ingredients, containers, and supplies, nsk  2002   X 118 621 1997  X 25 921 Note 1: For some establishments, data have been estimated from central unit values that are based on quantity value relationships of reported data. The following symbols are used when percentage of each quantity figure estimated in this manner equals or exceeds 10 percent of published figure: p–10 to 19 percent estimated; q–20 to 29 percent estimated. If 30 percent or more is estimated, figure is replaced by S. Note 2: The data in this table are based on the 2002 Economic Census. To maintain confidentiality, the Census Bureau suppresses data to protect the identity of any business or individual. The census results in this table contain nonsampling errors. Data users who create their own estimates using data from American FactFinder tables should cite the Census Bureau as the source of the original data only. For explanation of terms, see Appendix A. For full technical documentation, see Appendix C.



# 8 Engineered Wood Member (Except Truss) Mfg Manufacturing

 Industry Series U.S. Census Bureau, 2002 Economic Census

# Appendix A. Explanation of Terms

BEGINNING- AND END-OF-YEAR INVENTORIES Respondents were asked to report their beginning-of-year and end-of-year inventories at cost ormarket. Effective with the 1982 Economic Census, this change to a uniform instruction for reporting inventories was introduced for all sector reports. Prior to 1982, respondents were permitted to value inventories using any generally accepted accounting method (FIFO, LIFO, market, to name a few). Beginning in 1982, LIFO users were asked to first report inventory values prior to the LIFO adjustment and, then, to report the LIFO reserve and the LIFO value after adjustment for the reserve. Inventory data by stage of fabrication Total inventories and three detailed components (1)finished goods, (2)work-in-process, and (3)materials, supplies, fuels, etc., were collected.When using inventory data by stage of fabrication for “all industries” and at the three-digit subsector level, it should be noted that an item treated as a finished product by an establishment in one industry may be reported as a raw material by an establishment in a different industry. For example, the finished-product inventories of a steel mill would be reported as raw materials by a stamping plant. Such differences are present in the inventory figures by stage of fabrication shown for all publication levels. COST OF MATERIALSThis term refers to direct charges actually paid or payable for items consumed or put into production during the year, including freight charges and other direct charges incurred by the establishment in acquiring these materials. It includes the cost of materials or fuel consumed, whether purchased by the individual establishment from other companies, transferred to it from other establishments of the same company, or withdrawn from inventory during the year. Included in this item are:

1. Cost of parts, components, containers, etc. Includes all raw materials, semifinished goods, parts, containers, scrap, and supplies put into production or used as operating supplies and for repair and maintenance during the year. 2. Cost of products bought and sold in the same condition. 3. Cost of fuels consumed for heat and power. Includes the cost of materials or fuel consumed, whether purchased by the individual establishment from other companies, transferred to it from other establishments of the same company, or withdrawn from inventory during the year. 4. Cost of purchased electricity. The cost of purchased electric energy represents the amount actually used during the year for heat and power. In addition, information was collected on the quantity of electric energy generated by the establishment and the quantity of electric energy sold or transferred to other plants of the same company. 5. Cost of contract work. This term applies to work done by others on materials furnished by the manufacturing establishment. The actual cost of the material is to be reported on the cost of materials, parts, and containers line of this item. The term ‘‘Contract Work’’ refers to the fee a company pays to another company to perform a service. Appendix A A–1 Manufacturing U.S. Census Bureau, 2002 Economic Census

## Specific materials consumedIn addition to the total cost of materials, which every establishment was required to report, information also was collected for most manufacturing industries on the consumption of major materials used in manufacturing. The inquiries were restricted to those materials that were importantparts of the cost of production in a particular industry and for which cost information was available from manufacturers’ records. If less than $25,000 of a listed material was consumed by an establishment, the cost data could be reported in the “Cost of all other materials” Census material code 00970099. Also, the cost of materials for small establishments for which administrative records or short forms were used was imputed into the “Materials not specified by kind” Census materials code 00971000. Duplication in cost of materials and value of shipment The aggregate of the cost of materials and value of shipments figures for industry groups and for all manufacturing industries includes large amounts of duplication since the products of some industries are used as materials by others. This duplication results, in part, from the addition of related industries representing successive stages in the production of a finished manufactured product. Examples are the addition of flour mills to bakeries in the food group and the addition of pulp mills to paper mills in the paper and allied products group of industries.Estimates of the overall extent of this duplication indicate that the value of manufactured products exclusive of such duplication (the value of finished manufactures) tends to approximate twothirds of the total value of products reported in the survey. Duplication of products within individual industries is significant within a number of industrygroups, e.g., machinery and transportation industries. These industries frequently include complete machinery and their parts. In this case, the parts made for original equipment are materials consumed for assembly plants in the same industry.Even when no significant amount of duplication is involved, value of shipments figures are deficient as measures of the relative economic importance of individual manufacturing industries or geographic areas because of the wide variation in ratio of materials, labor, and other processing costs of value of shipments, both among industries and within the same industry. Before 1962, cost of materials and value of shipments were not published for some industrieswhich included considerable duplication. Since then, these data have been published for all industries at the U.S. level and beginning in 1964, for all geographic levels. SELECTED PURCHASED SERVICES Annual Survey of Manufactures (ASM) establishments were requested to provide information on the cost of selected purchased services for the repair and maintenance services of buildings and/or machinery; communication services; legal services; accounting, auditing, and bookkeeping services; advertising and promotional services; expensed computer hardware and supplies andpurchased computer services; refuse removal services; management consulting and administrative services; taxes and license fees; and all other expenses not previously stated. Each of theseitems reflects the costs paid directly by the establishment and excludes salaries paid to employees of the establishment for these services. These expenses are normally considered as nonproduction related costs purchased from other companies. Included in the cost of selected purchased services for the repair and maintenance services of buildings and/or machinery are payments made for all maintenance and repair work on buildings and equipment. Payments made to other establishments of the same company and for repair and maintenance of any leased property also are included. Excluded from this item are extensive repairs or reconstruction that was capitalized, which is considered capital expenditures; costsincurred directly by the establishment in using its own work force to perform repairs and maintenance work; and repairs and maintenance provided by the building or machinery owner as part of the rental contract. A–2 Appendix A Manufacturing U.S. Census Bureau, 2002 Economic Census

## Included in the cost of selected purchased services for communication is the actual expense incurred or payable during the year for any type of communication. Such types of communicationinclude telephone, data transmission, telegraph, Internet, connectivity, FAX, telex, photo transmission, paging, cellular telephone, on-line access and related services, etc. Included in the cost of selected purchased services for legal services are payments made to othercompanies for these services that were paid directly by the establishment. Excluded are the salaries paid to employees of the establishment for these services. Included in the cost of selected accounting, auditing, and bookkeeping services are payments made to other companies for these services that were paid directly by the establishment. Excluded are the salaries paid to employees of this establishment for these services. Included in the cost of selected advertising and promotional services are payments made to othercompanies for these services that were paid directly by the establishment. These include payments for printing, media coverage, and other services and materials. Excluded are the salaries paid to employees of this establishment for these services.Included in the cost of selected expensed computer hardware and supplies and purchased computer services are actual expenses incurred or payable during the year for this item. Purchases forcomputer hardware and supplies, computer services (software, data transmission, processing services, Web design, etc.) are all included. Excluded are services provided by other establishments of the same company (such as a separate central data processing unit). Included in the cost of selected purchased refuse removal services are payments made to othercompanies for these services that were paid directly by the establishment, including costs for hazardous waste removal or treatment. Excluded are all costs included in rental payments or as capital expenditures and the salaries paid to employees of the establishment for these services. Included in the cost of selected purchased management consulting and administrative services arepayments made to other companies for these services that were paid directly by the establishment. Excluded are the salaries paid to employees of this establishment for these services. Included in the cost of selected purchased taxes and license fees are payments made to other companies for these services that were paid directly by the establishment, excluding income,sales, payroll, and excise taxes. Excluded are also the salaries paid to employees of this establishment for these services. Response coverage ratio A response coverage ratio is a measure of the extent to which respondents report for an item. The estimate is made by calculating the ratio value of the weighted total employment data for all theASM establishments that report the item to the weighted total employment data for all ASM establishments classified in an industry (reporters and nonreporters). DEPRECIATION CHARGES FOR FIXED ASSETSThis item includes depreciation and amortization charged during the year against assets. Depreciation charged against fixed assets acquired since the beginning of the year and against assets sold or retired during the year are components of this category. Respondents were requested to make certain that they did not report accumulated depreciation. NUMBER OF EMPLOYEESThis item includes all full-time and part-time employees on the payrolls of operating manufacturing establishments during any part of the pay period that included the 12th of the months specified on the report form. Included are employees on paid sick leave, paid holidays, and paid vacations; not included are proprietors and partners of unincorporated businesses. These individuals comprise of all full-time and part-time employees who are on the payrolls of establishments who worked or received pay for any part of the pay period including the 12th of March, May, August, and November. Appendix A A–3 Manufacturing U.S. Census Bureau, 2002 Economic Census

## The “all employees” number is the average number of production workers plus the number of other employees in mid-March. The number of production workers is the average for the payroll periods including the 12th of March, May, August, and November Production Workers The “production workers” number includes workers (up through the line-supervisor level) engagedin fabricating, processing, assembling, inspecting, receiving, storing, handling, packing, warehousing, shipping (but not delivering), maintenance, repair, janitorial and guard services, product development, auxiliary production for plant’s own use (e.g., power plant), recordkeeping, and other services closely associated with these production operations at the establishment covered by the report. Employees above the working-supervisor level are excluded from this item. All Other Employees The “other employees” covers nonproduction employees of the manufacturing establishment including those engaged in factory supervision above the line-supervisor level. It includes sales(including driver-salespersons), sales delivery (highway truck drivers and their helpers), advertising, credit, collection, installation and servicing of own products, clerical and routine office functions, executive, purchasing, financing, legal, personnel (including cafeteria, medical, etc.), professional, and technical employees. Also included are employees on the payroll of the manufacturing establishment engaged in the construction of major additions or alterations utilized as a separate work force. TOTAL FRINGE BENEFITSThis item is the employer’s costs for social security tax, unemployment tax, workmen’s compensation insurance, state disability insurance pension plans, stock purchase plans, union-negotiated benefits, life insurance premiums, and insurance premiums on hospital and medical plans for employees.Fringe benefits are divided into legally required expenditures and payments for voluntary programs. The legally required portion consists primarily of federal old age and survivors’ insurance, unemployment compensation, and workers’ compensation. Payments for voluntary programs include all programs not specifically required by legislation, whether they were employer initiatedor the result of collective bargaining. They include the employer portion of such plans as insurance premiums, premiums for supplemental accident and sickness insurance, pension plans, supplemental unemployment compensation, welfare plans, stock purchase plans on which the employer payment is not subject to withholding tax, and deferred profit-sharing plans. They exclude such items as company-operated cafeterias, in-plant medical services, free parking lots, discounts on employee purchases, and uniforms and work clothing for employees. GROSS VALUE OF DEPRECIABLE ASSETS (ACQUISITION COSTS) AT BEGINNING OF YEAR (BOY) AND END OF YEAR (EOY) Total value of depreciable assets is collected on all census forms. It shows the value of depreciable assets for the beginning of year (BOY) and end of year (EOY). The data encompass all fixed depreciable assets on the books of establishments. The values shown (book value) represent the actual cost of assets at the time they were acquired, including all costs incurred in making the assets usable (such as transportation and installation). Included are all buildings, structures, machinery, and equipment (production, office, and transportation equipment) for which depreciation reserves are maintained. Excluded are nondepreciable capital assets including inventories and intangible assets, such as timber and mineral rights. The definition of fixed depreciable assets is consistent with the definition of capital expenditures. For example, expenditures include actual capital outlays during the year rather than the final value of equipment put in place and buildings completed during the year. Accordingly, the value of assets at the end of the year includes the value of construction in progress. A–4 Appendix A Manufacturing U.S. Census Bureau, 2002 Economic Census

## In addition, respondents were requested to make certain that assets at the beginning of the year plus capital expenditures, less retirements, equaled assets at the end of the year. ESTABLISHMENT An establishment is a single physical location where business is conducted or where services or industrial operations are performed. Data in this sector includes those establishments wheremanufacturing is performed. A separate report was required for each manufacturing establishment (plant) with one employee or more that were in operation at any time during the year. An establishment not in operation for any portion of the year was requested to return the report form with the proper notation in the “Operational Status” section of the form. In addition, the establishment was requested to report data on any employees, capital expenditures, inventories, or shipments from inventories during the year. CompanyA company or (“enterprise”) is comprised of all the establishments that operate under the ownership or control of a single organization. A company may be a business, service, or membership organization; consist of one or several establishments; and operate at one or several locations. It includes all subsidiary organizations, all establishments that are majority-owned by the company or any subsidiary, and all the establishments that can be directed or managed by the company or any subsidiary. A company may have one or many establishments. Examples include product and service sales offices (retail and wholesale), industrial production plants, processing or assembly operations,mines or well sites, and support operations (such as an administrative office, warehouse, customer service center, or regional headquarters). Each establishment should receive, complete, and return a separate census form.If the company operated at different physical locations, even if the individual locations were producing the same line of goods, a separate report was requested for each location. If the company operated in two or more distinct lines of manufacturing at the same location, a separate report was requested for each activity. PAYROLL This item includes the gross earnings of all employees on the payrolls of operating manufacturing establishments paid in the calendar year. Respondents were told they could follow the definition of payrolls used for calculating the federal withholding tax. It includes all forms of compensation, such as salaries, wages, commissions, dismissal pay, bonuses, vacation and sick leave pay, andcompensation in kind, prior to such deductions as employees’ social security contributions, withholding taxes, group insurance, union dues, and savings bonds. The total includes salaries ofofficers of corporations; it excludes payments to proprietors or partners of unincorporated concerns. Also excluded are payments to members of Armed Forces and pensioners carried on the active payrolls of manufacturing establishments.The census definition of payrolls is identical to that recommended to all federal statistical agencies by the Office of Management and Budget. It should be noted that this definition does notinclude employers’ social security contributions or other nonpayroll labor costs, such as employees’ pension plans, group insurance premiums, and workers’ compensation.The ASM provides estimates of employers’ total supplemental labor costs (those required by federal and state laws and those incurred voluntarily or as part of collective bargaining agreements). PRODUCT CODES AND CLASSES OF PRODUCTS NAICS United States industries are identified by a six-digit code. The longer code accommodates the large number of sectors and allows more flexibility in designing subsectors. Each product or service is assigned a ten-digit code. The product coding structure represents an extension by the Census Bureau of the six-digit industry classifications of the manufacturing and mining sectors. The classification system operates so that the industrial coverage is progressively narrower with the successive addition of digits. Appendix A A–5 Manufacturing U.S. Census Bureau, 2002 Economic Census

## As in previous censuses, data were collected for most industries on the quantity and value of individual products shipped. Since the 1997 census programs, information is collected on the output of almost 10,000 individual product items. In the manufacturing sector for 2002, there are 21 subsectors (three-digit NAICS), 86 industrygroups (four-digit NAICS), 184 NAICS industries (five-digit NAICS) that are comparable with Canadian and Mexican classification, and 473 U.S. industries (six-digit NAICS). Product classes and products of the manufacturing industries have been assigned codes based on the industry from which they originate. There are 1,450 product classes (seven-digit codes), 5,674 census products,and an additional 3,746 ten-digit product codes. The ten-digit products are considered the primary products of the industry with the same first six digits. The list of products for which separate information was collected was prepared after consultation with industry and government representatives.Comparability with previous figures was given considerable weight in the selection of product categories, so that comparable 1992 information is presented for most products. Typically, both quantity and value of shipments information were collected. However, if quantitywas not significant or could not be reported by manufacturers, only value of shipments was collected. Shipments include both commercial shipments and transfers of products to other plants of thesame company. For industries in which a considerable portion of the total shipments is transferred to other plants of the same company, separate information on interplant transfers also was collected. Moreover, for products that are used to a large degree within the same establishment asmaterials or components in the fabrication of other products, total production and often consumption of the item within the plant (quantity produced and consumed) was collected. Typically,the information on production also was collected for products for which there are significant differences between total production and shipments in a given year because of wide fluctuations in finished goods inventories. Other measures of output of products with long production cycles were used as appropriate and feasible. PRODUCTION-WORKER HOURSThis item covers all hours worked or paid for at the manufacturing plant, including actual overtime hours (not straight-time equivalent hours). It excludes hours paid for vacations, holidays, or sick leave when the employee was not at the establishment. QUANTITY OF ELECTRICITY PURCHASED FOR HEAT AND POWER Data on the cost of purchased electric energy were collected on all census forms. However, dataon the quantity of purchased electric energy were collected only on the Annual Survey of Manufactures (ASM) form. In addition, information is collected on the quantity of electric energy generated by the establishment and the quantity of electric energy sold or transferred to other plants of the same company. RENTAL PAYMENTS Total rental payments are collected on all census forms. However, the breakdown between rental payments for buildings and other structures and rental payments for machinery and equipment is collected only on the ASM forms. This item includes rental payments for the use of all items for which depreciation reserves would be maintained, if they were owned by the establishment, e.g.,structures and buildings, and production, office, and transportation equipment. Excluded are royalties and other payments for the use of intangibles and depletable assets and land rents where separable. When an establishment of a multiestablishment company was charged rent by another part of the same company for the use of assets owned by the company, it was instructed to exclude that cost from rental payments. A–6 Appendix A Manufacturing U.S. Census Bureau, 2002 Economic Census

## However, the book value (original cost) of these company-owned assets was to be reported as assets of the establishment at the end of the year. If there were assets at an establishment rented from another company and the rents were paid centrally by the head office of the establishment, the company was instructed to report these rental payments as if they were paid directly by the establishment. RETIREMENTS OF DEPRECIABLE ASSETS Included in this item is the gross value of assets sold, retired, scrapped, destroyed, etc., duringthe calendar year. When a complete operation or establishment changed ownership, the respondent was instructed to report the value of the assets sold at the original cost as recorded in the books of the seller. The respondent also was requested to report retirements of equipment or structures owned by a parent company that the establishment was using as if it were a tenant. CAPITAL EXPENDITURES FOR NEW AND USED PLANT AND EQUIPMENT Represents the total new and used capital expenditures reported by establishments in operation and any known plants under construction. These data include expenditures for:

1. Permanent additions and major alterations to manufacturing and mining establishments.2. New and used machinery and equipment used for replacement and additions to plant capacity, if they are of the type for which depreciation, depletion, or (for mining establishments) Office of Minerals Exploration accounts are ordinarily maintained. In addition, for mining establishments, these data include expenditures made during the year for development and exploration of mineral properties. For manufacturing establishments, these data are broken down into three types.a. Automobiles, trucks, etc. for highway use. These include vehicles acquired under a leasepurchase agreement and excludes vehicles leased or normally designed to transport materials, property, or equipment on mining, construction, petroleum development, and similar projects. These vehicles are of such size or weight as to be normally restricted by state laws or regulations from operating on public highways. It also excludes purchases of vehicles that are purchased by a company for highway use. b. Computers and peripheral data processing equipment. This item include all purchases of computers and related equipment. c. All other expenditures for machinery and equipment excluding automobiles and computer equipment.Capital expenditures include work done by contract, as well as by the establishment’s own workforce. These data exclude expenditures for land and mineral rights and cost of maintenance and repairs charged as current operating expenses.

VALUE ADDED This measure of manufacturing activity is derived by subtracting the cost of materials, supplies, containers, fuel, purchased electricity, and contract work from the value of shipments (products manufactured plus receipts for services rendered). The result of this calculation is adjusted by the addition of value added by merchandising operations (i.e., the difference between the sales value and the cost of merchandise sold without further manufacture, processing, or assembly) plus thenet change in finished goods and work-in-process between the beginning- and end-of-year inventories. Appendix A A–7 Manufacturing U.S. Census Bureau, 2002 Economic Census

## For those industries where value of production is collected instead of value of shipments, value added is adjusted only for the change in work-in-process inventories between the beginning and end of year. For those industries where value of work done is collected, the value added does not include an adjustment for the change in finished goods or work-in-process inventories. “Value added” avoids the duplication in the figure for value of shipments that results from the use of products of some establishments as materials by others. Value added is considered to be the best value measure available for comparing the relative economic importance of manufacturing among industries and geographic areas. VALUE OF SHIPMENTS This item covers the received or receivable net selling values, f.o.b. plant (exclusive of freight and taxes), of all products shipped, both primary and secondary, as well as all miscellaneous receipts, such as receipts for contract work performed for others, installation and repair, sales of scrap, and sales of products bought and sold without further processing. Included are all items made by or for the establishments from material owned by it, whether sold, transferred to other plants of the same company, or shipped on consignment. The net selling value of products made in one plant on a contract basis from materials owned by another was reported by the plant providing the materials.In the case of multiunit companies, the manufacturer was requested to report the value of products transferred to other establishments of the same company at full economic or commercial value, including not only the direct cost of production but also a reasonable proportion of “all other costs” (including company overhead) and profit.In addition to the value for NAICS defined products, aggregates of the following categories of miscellaneous receipts are reported as part of a total establishment’s value of product shipments: Reported contract work — receipts for work or services that a plant performed for others on theirmaterials. Value of resales — sales of products brought and sold without further manufacture, processing, or assembly. Other miscellaneous receipts — such as repair work, installation, sales of scrap, etc. Industry primary product value of shipments represents one of the three components of value of shipments. These components are: Primary products value of shipments. Secondary product value of shipments. Total miscellaneous receipts. Primary product shipments is used in the calculations of industry specialization ratio and industry coverage ratio. The term “Value of primary products shipments made in this industry” is used in this publication and refers to the same data. Duplication in cost of materials and value of shipment The aggregate of the cost of materials and value of shipments figures for industry groups and for all manufacturing industries includes large amounts of duplication since, the products of some industries are used as materials by others. This duplication results, in part, from the addition of related industries representing successive stages in the production of a finished manufactured product. Examples are the addition of flour mills to bakeries in the food group and the addition of pulp mills to paper mills in the paper and allied products group of industries.Estimates of the overall extent of this duplication indicate that the value of manufactured products exclusive of such duplication (the value of finished manufactures) tends to approximate twothirds of the total value of products reported in the annual survey. Duplication of products within individual industries is significant within a number of industrygroups, e.g., machinery and transportation industries. These industries frequently include complete machinery and their parts. In this case, the parts made for original equipment are materials consumed for assembly plants in the same industry.Even when no significant amount of duplication is involved, value of shipments figures are deficient as measures of the relative economic importance of individual manufacturing industries or geographic areas because of the wide variation in ratio of materials, labor, and other processing costs of value of shipments, both among industries and within the same industry. A–8 Appendix A Manufacturing U.S. Census Bureau, 2002 Economic Census

## Before 1962, cost of materials and value of shipments were not published for some industries that included considerable duplication. Since then, these data have been published for all industries at the U.S. level and beginning in 1964, for all geographic levels. Specialization and coverage ratio These items are not collected on the report forms, but are derived from the data shown in Table 3. An establishment is classified in a particular industry, if its shipments of primary products of that industry exceed in value its shipments of the products of any other single industry. An establishment’s shipments include those products assigned to an industry (primary products), those considered primary to other industries (secondary products), and receipts for miscellaneous activities (merchandising, contract work, resales, etc.). Specialization and coverage ratio have been developed to measure the relationship of primary product shipments to the data on shipments for the industry shown in Tables 1 through 5 and data on product shipments shown in Tables 6a and 6b. Specialization ratio represents the ratio of primary product shipments to total product shipments (primary and secondary, excluding miscellaneous receipts) for the establishments classified in the industry. Coverage ratio represents the ratio of primary products shipped by the establishments classified in the industry to the total shipments of such products that are shipped by all manufacturing establishments wherever classified.

Appendix A A–9 Manufacturing U.S. Census Bureau, 2002 Economic Census

# Appendix B. NAICS Codes, Titles, and Descriptions

321213 ENGINEERED WOOD MEMBER (EXCEPT TRUSS) MANUFACTURING This U.S. industry comprises establishments primarily engaged in manufacturing fabricated or laminated wood arches and/or other fabricated or laminated wood structural members.

Appendix B B–1 Manufacturing U.S. Census Bureau, 2002 Economic Census

# Appendix C. Methodology

SOURCES OF THE DATA The manufacturing sector includes approximately 350,000 establishments. This number includesthose industries in the North American Industry Classification System (NAICS) definition of manufacturing. The amount of information requested from manufacturing establishments was dependent upon a number of factors. The more important considerations were the size of the company and whether it was included in the Annual Survey of Manufactures (ASM). Establishments in the 2002 Economic Census are divided into those sent report forms and those not sent report forms. The coverage of and the method of obtaining census information from each are described below:

1. Establishments sent a report form: a. ASM sample establishments. This group accounts for approximately 15 percent of all manufacturing establishments. The ASM panel covers all the units of large manufacturingestablishments, as well as a sample of the medium and smaller establishments. The probability of selection was proportionate to size. For more information, see the Description of the ASM Survey Sample. In an economic census year, the ASM report form (MA-10000) replaces the first page of theregular census form for those establishments included in the ASM. In addition to information on employment, payroll, and other items normally requested on the regular census form, establishments in the ASM sample were requested to supply additional information on gross book value of assets and capital expenditures. ASM establishments were also requested to provide information on retirements, depreciation, rental payments, and supplemental labor costs. For establishments not included in the ASM, these additionalitems were estimated using relationships observed in the ASM establishment data. The census statistics for these variables are a sum of the ASM establishment data and the estimated data for non-ASM establishments. ASM establishments were also requested to provide information for selected purchased services. The census statistics for the purchasedservice items were derived solely from the ASM establishments. See Appendix A. Explanation of Terms, for an explanation of these items. The census part of the report form is 1 of220 versions containing product, material, and special inquiries. The diversity of manufacturing activities necessitated the use of this many forms to canvass the 473 manufacturing industries. Each form was developed for a group of related industries. Appearing on each form was a list of products primary to the group of related industries, as well as secondary products and miscellaneous services that establishments classified inthese industries were likely to perform. Respondents were requested to identify the products, the value of each product, and, in certain cases, the quantity of the product shipped during the survey year. Space also was provided for the respondent to describe products not specifically identified on the form. The report form also contained a materials-consumed inquiry, which varied from form to form depending on the industries being canvassed. The respondents were asked to reviewa list of materials generally used in their production processes. From this list, each establishment was requested to identify those materials consumed during the survey year, the cost of each, and, in certain cases, the quantity consumed. Once again, space was provided Appendix C C–1 Manufacturing U.S. Census Bureau, 2002 Economic Census

## for the respondent to describe significant materials not listed on the form. A wide variety of special inquiries were included to measure activities peculiar to a given industry, such as operations performed and equipment used.b. Large and medium establishments (non-ASM). Approximately 30 percent of all manufacturing establishments were included in this group. A variable cutoff, based on administrativerecord payroll data and determined on an industry-by-industry basis, was used to select those establishments that were to receive 1 of the 220 economic census — manufacturing regular forms. The first page, requesting establishment data for items such as employment and payroll, was standard but did not contain the detailed statistics included on the ASMform. The product, material, and special inquiry sections supplied were based on the historical industry classification of the establishment. c. Small single-establishment companies (non-ASM). This group includes approximately 15 percent of all manufacturing establishments. For those industries where application of thevariable cutoff for administrative-record cases resulted in a large number of small establishments being included in the mail canvass, an abbreviated “short form” was used. These establishments received 1 of the 31 versions of the short form, which requested summaryproduct and material data and totals but no details on employment, payroll, cost of materials, inventories, and capital expenditures. Use of the short form has no adverse effect on published totals for the industry statistics, because the same data were collected on the short form as on the long form. However, detailed information on products and materials consumed was not collected on the short form; thus, its use would increase the value of the “not specified by kind” (nsk) categories. 2. Establishments not sent a report form: a. Small single-establishment companies not sent a report form. Approximately 40 percent of the manufacturing establishments were small single-establishment companies that were excused from filing a census report. Selection of these establishments was based on two factors: annual payroll and the Census Bureau’s ability to assign the correct six-digit NAICS industry classification to the establishment. For each six-digit NAICS industry code, anannual payroll cutoff was determined. These cutoffs were derived so that the establishments with payroll less than the cutoff were expected to account for no more than 3 percent of the value of shipments for the industry. Generally, all single-establishment companies with less than 5 employees were excused, while all establishments with more than 20 employees were mailed forms. Establishments below the cutoff that could not be directlyassigned a six-digit NAICS code were mailed a classification report that requested information for assigning NAICS industry codes. Establishments below the cutoff that could bedirectly assigned a six-digit NAICS code were excused from filing any report. For below cutoff establishments, information on the physical location, payroll, and receipts was obtained from the administrative records of other federal agencies under special arrangements that safeguarded their confidentiality. Estimates of data for these small establishments were developed using industry averages in conjunction with the administrative information. The value of shipments and cost ofmaterials were not distributed among specific products and materials for these establishments, but were included in the product and material “not specified by kind” (nsk) categories. The industry classification codes included in the administrative-record files were assigned on the basis of brief descriptions of the general activity of the establishment. As a result, an indeterminate number of establishments were erroneously coded to a six-digit NAICS industry. This was especially true whenever there was a relatively fine line of demarcation between industries or between manufacturing and nonmanufacturing activity.Sometimes the administrative-record cases had only two- or three-digit NAICS group classification codes available in the files. For manufacturing, these establishments were sent a C–2 Appendix C Manufacturing U.S. Census Bureau, 2002 Economic Census

## separate classification form, which requested information on the products and services ofthe establishment. This form was used to code many of these establishments to the appropriate six-digit NAICS level. Establishments that did not return the classification form were coded later to those six-digit NAICS industries identified as “All other” industries within the given subsector.As a result of these situations, a number of small establishments may have been misclassified by industry. However, such possible misclassification has no significant effect on the statistics, other than on the number of companies and establishments.The total establishment count for individual industries should be viewed as an approximation rather than a precise measurement. The counts for establishments with 20 employees or more are far more reliable than the count of total number of establishments.b. All nonemployers, i.e., all firms subject to federal income tax, with no paid employees, during 2002 are excluded as in previous censuses. Data for nonemployers are not included in this report, but are released in the annual Nonemployer Statistics series. The report forms used to collect information for establishments in this sector are available at help.econ.census.gov/econhelp/resources/. A more detailed examination of census methodology is presented in the History of the Economic Census at www.census.gov/econ/www/history.html. INDUSTRY CLASSIFICATION OF ESTABLISHMENTS The classifications for all establishments covered in the 2002 Economic Census — Manufacturing are classified in 1 of 473 industries in accordance with the industry definitions in the North American Industry Classification System (NAICS), United States, 2002 manual. There were no changes between the 2002 edition and the 1997 edition affecting this sector. When applicable, Appendix F of this report shows the product class and product comparability between the two systems for data in this report.In the NAICS system, an industry is generally defined as a group of establishments that have similar production processes. To the extent practical, the system uses supply-based or productionoriented concepts in defining industries. The resulting group of establishments must be significant in terms of number, value added by manufacture, value of shipments, and number of employees. The coding system works in such a way that the definitions progressively become narrower withsuccessive additions of numerical digits. In the manufacturing sector for 2002, there are 21 subsectors (three-digit NAICS), 86 industry groups (four-digit NAICS), 184 NAICS industries (five-digitNAICS) that are comparable with Canadian and Mexican classification, and 473 U.S. industries (sixdigit NAICS). Product classes and products of the manufacturing industries have been assignedcodes based on the industry from which they originate. There are 1,450 product classes (sevendigit codes), 5,674 census products, and an additional 3,746 ten-digit product codes. The tendigit products are considered the primary products of the industry with the same first six digits. For the 2002 Economic Census — Manufacturing, all establishments were classified in particular industries based on the products they produced. If an establishment made products of more than one industry, it was classified in the industry with the largest product value. For 2002, there were no “resistance rules” or “frozen industries.” In ASM years, establishments included in the ASM sample with certainty weights are reclassified by industry only if the change in the primary activity from the prior year is significant or if the change has occurred for 2 successive years. This procedure prevents reclassification when there are minor shifts in product mix. In ASM years, establishments included in the ASM sample with noncertainty weight are not shiftedfrom one industry classification to another. They are retained in the industry where they were classified in the base census year. However, in the following census year, these ASM plants are allowed to shift from one industry to another. Appendix C C–3 Manufacturing U.S. Census Bureau, 2002 Economic Census

## The results of these rules covering the switching of plants from one industry classification to another are that some industries comprise different mixes of establishments in different survey years. Hence, comparisons between prior-year and current-year published totals, particularly atthe six-digit NAICS level, should be viewed with caution. This is particularly true for the comparison between the data shown for a census year versus the data shown for the previous ASM year. As previously noted, the small establishments that may have been misclassified by industry areusually administrative-record cases whose industry codes were assigned on the basis of incomplete descriptions of the general activity of the establishment. Such possible misclassificationshave no significant effect on the statistics other than on the number of companies and establishments. Establishments frequently make products classified both in their industry (primary products) and other industries (secondary products). Industry statistics (employment, payroll, value added by manufacture, value of shipments, etc.) reflect the activities of the establishments that may make both primary and secondary products. Product statistics, however, represent the output of allestablishments without regard for the classification of the producing establishment. For this reason, when relating the industry statistics, especially the value of shipments, to the product statistics, the composition of the industry’s output should be considered. The extent to which industry and product statistics may be matched with each other is measuredby the primary product specialization ratio and the coverage ratio. The primary product specialization ratio is the proportion of industry shipments accounted for by the primary products ofestablishments classified in the industry. The coverage ratio is the proportion of product shipments accounted for by establishments classified in the industry. ESTABLISHMENT BASIS OF REPORTING The 2002 Economic Census — Manufacturing is conducted on an establishment basis. A companyoperating at more than one location is required to file a separate report for each location or establishment. The ASM also is conducted on an establishment basis, but separate reports are filed for just those establishments selected in the sample. Companies engaged in distinctly different lines of activity at one location are requested to submit separate reports, if the plant records permit such a separation and if the activities are substantial in size. In 2002, as in earlier years, a minimum size limit was set for inclusion of establishments in the census. All establishments employing one person or more at any time during the census year are included. The same size limitation has applied since 1947 in censuses and annual surveys of manufactures. In the 1939 and earlier censuses, establishments with less than $5,000 value of products were excluded. The change in the minimum size limit in 1947 does not appreciablyaffect the historical comparability of the census figures, except for data on number of establishments for a few industries. The 2002 Economic Census — Manufacturing excludes data for central administrative offices (CAOs). These would include separately operated administrative offices, warehouses, garages, and other auxiliary units that service manufacturing establishments of the same company. These data are published in a separate report series. DESCRIPTION OF THE ASM SURVEY SAMPLE The ASM sample is drawn for the second survey year after a census. The most recent sample was drawn for the 1999 survey year based on the 1997 Economic Census — Manufacturing. This sample will be in place through the 2003 ASM. In 1997, there were approximately 370,000 individual manufacturing establishments. For sample efficiency and cost considerations, the establishments in the 1997 manufacturing population were partitioned into two components for developing estimates within the ASM. The details of each are described below:

1. Mail stratum. The mail stratum of the survey is comprised of larger single-location manufacturing companies and all manufacturing establishments of multiunit companies (companies C–4 Appendix C Manufacturing U.S. Census Bureau, 2002 Economic Census

## that operate at more than one physical location). Approximately 200,000 of the 370,000 establishments in the 1997 census were assigned to the mail stratum. On an annual basis, the mail stratum is supplemented with larger, newly active single-location companies identified from a list provided by the Internal Revenue Service (IRS) and new manufacturing locations of multiunit companies identified from the Census Bureau’s Company Organization Survey (COS). For the 1999 survey, a new sample of approximately 58,000 individual establishments wasselected from the mail stratum assembled from the 1997 census. Supplemental samples representing both 1998 and 1999 births (newly active establishments that were not included in the 1997 census) were also selected. Establishments selected for the sample are mailed an ASM survey questionnaire for each year through 2003. The 1999-2003 ASM sample design is similar to the one used since 1984. Companies in the1997 Economic Census — Manufacturing with manufacturing shipments of at least $500 million were defined as company certainties. For these large companies, each manufacturingestablishment is included in the mail sample. For the 1999-2003 sample, there are approximately 500 certainty companies collectively accounting for over 18,000 establishments. For the remaining portion of the mail component of the survey, the establishment was definedas the sample unit. All establishments with 250 employees or more were defined as employment certainties. Across these arbitrary certainty classes, there were approximately 25,000establishments included in the sample with certainty. Collectively, these certainty establishments accounted for approximately 80 percent of the total value of shipments in the 1997 Economic Census — Manufacturing.Smaller establishments in the remaining portion of the mail stratum were sampled with probabilities ranging from .02 to 1.00. The initial probabilities of selection assigned to these establishments were proportionate to a measure-of-size determined for each establishment. The measure-of-size was a function of the establishment’s 1997 industry classification and its 1997 product class data. For each product class (1,755) and six-digit industry (473), a desired reliability constraint was specified. Using a technique developed by Dr. James R. Chromy of the Research Triangle Institute, the initial establishment probabilities were optimized such that the expected sample satisfied all industry and product class reliability constraints, whilethe sample size was minimized. This technique reduces the likelihood of selecting nonrepresentative samples for individual product classes or industries. This method of assigning probabilities based on product class shipments is motivated by theCensus Bureau’s primary desire to produce reliable estimates of both product class and industry shipments. The high correlation between shipments and employment, value-added, and other general statistics assures that these variables will also be well represented by the sample. The actual sample selection procedure uses an independent chance of selection method (Poisson sampling) that permits us to prevent small establishments from being selected in consecutive samples without introducing a bias into the survey estimates.2. Nonmail stratum. The initial nonmail component of the survey was comprised of approximately 170,000 small, single-establishment companies that were tabulated as administrativerecords in the 1997 Economic Census — Manufacturing. The nonmail stratum is also supplemented annually using the list of newly active single-location companies provided by the Internal Revenue Service (IRS) and payroll cutoffs. Companies with payroll below the payroll cutoff are added to the nonmail stratum. For this portion of the population, sampling is not used. The data for this group are estimated based on selected information obtained annually from the administrative records of the IRS and Social Security Administration (SSA). This administrative information, which includes payroll, total employment, industry classification, and physical location, is obtained under conditions which safeguard the confidentiality of both tax and census records. RELIABILITY OF DATA All data compiled in the economic census are subject to nonsampling errors. Nonsampling errorscan be attributed to many sources during the development or execution of the census. The following are two ways that further explain this method: ASM Estimating Procedure. Most of the ASM Appendix C C–5 Manufacturing U.S. Census Bureau, 2002 Economic Census

## estimates derived for the mail stratum are computed using a difference estimator. At the establishment level, there is a strong correlation between the current-year data values and the corresponding 1997 (base) data values. Therefore, within the mailed stratum, for each item at each level ofaggregation, an estimate of the “difference” between the current year and the base year is computed from sample cases and added to the corresponding base-year values. For the 1998-2002 ASM estimates, the 1997 Economic Census — Manufacturing values serve as the base year. For the 2003 ASM, the base will be updated to be the 2002 Economic Census — Manufacturing.Due to the positive year-to-year correlation, estimates derived using this methodology are generally more reliable than comparable estimates developed from the current sample data alone. Estimates for the capital expenditures variables are not generated using the difference estimator because the year-to-year correlations are considerably weaker. The standard linear estimator is used for these variables. For the nonmail stratum, estimates for payroll and employment are directly tabulated from the administrative-record data provided by IRS and SSA. Estimates of data other than payroll and employment are developed from industry averages. Although the nonmail stratum contained approximately 170,000 individual establishments in 1999, it accounts for less than 2 percent of the estimate for total value of shipments at the total manufacturing level.Corresponding estimates for the mail and nonmail components are combined to produce the estimates included in this publication. ASM Data Qualifications. The estimates developed from the sample are apt to differ somewhat from the results of a survey covering all companies in the sample lists, but otherwise conducted under essentially the same conditions as the actual samplesurvey. The estimates of the magnitude of the sampling errors (the difference between the estimates obtained and the results theoretically obtained from a comparable, complete-coverage survey) are provided by the standard errors of estimates. The particular sample selected for the ASM is one of many similar probability samples that, by chance, might have been selected under the same specifications. Each of the possible sampleswould yield somewhat different sets of results, and the standard errors are measures of the variation of all the possible sample estimates around the theoretically comparable, complete-coverage values.Estimates of the standard errors have been computed from the sample data for selected ASM statistics in this report. They are represented in the form of relative standard errors (the standard errors divided by the estimated values to which they refer).In conjunction with its associated estimate, the relative standard error may be used to define confidence intervals (ranges that would include the comparable, complete-coverage value for specified percentages of all the possible samples). The complete-coverage value would be included in the range:• From one standard error below to one standard error above the derived estimate for about twothirds of all possible samples. • From two standard errors below to two standard errors above the derived estimate for about 19

out of 20 of all possible samples. • From three standard errors below to three standard errors above the derived estimate for nearly

all samples. An inference that the comparable, complete-survey result would be within the indicated ranges would be correct in approximately the relative frequencies shown. Those proportions, therefore, may be interpreted as defining the confidence that the estimates from a particular sample woulddiffer from complete-coverage results by as much as one, two, or three standard errors, respectively.

C–6 Appendix C Manufacturing U.S. Census Bureau, 2002 Economic Census

## For example, suppose an estimated total is shown at 50,000 with an associated relative standard error of 2 percent, that is, a standard error of 1,000 (2 percent of 50,000). There is approximately 67 percent confidence that the interval 49,000 to 51,000 includes the complete-coverage total, about 95 percent confidence that the interval 48,000 to 52,000 includes the complete-coveragetotal, and almost certain confidence that the interval 47,000 to 53,000 includes the completecoverage total. In addition to the sample errors, the estimates are subject to various response and operational errors: errors of collection, reporting, coding, transcription, imputation for nonresponse, etc. These operational errors also would occur if a complete canvass were to be conducted under thesame conditions as the survey. Explicit measures of their effects generally are not available. However, it is believed that most of the important operational errors were detected and corrected during the Census Bureau’s review of the data for reasonableness and consistency. The small operational errors usually remain. To some extent, they are compensating in the aggregated totals shown. When important operational errors were detected too late to correct the estimates, the data were suppressed or were specifically qualified in the tables. As derived, the estimated standard errors included part of the effect of the operational errors. Thetotal errors, which depend upon the joint effect of the sampling and operational errors, are usually of the order of size indicated by the standard error, or moderately higher. However, for particular estimates, the total error may considerably exceed the standard errors shown. Any figures shown in the tables in this publication having an associated standard error exceeding 15 percent may be combined with higher level totals, creating a broader aggregate, which then may be of acceptable reliability. DUPLICATION IN COST OF MATERIALS AND VALUE OF SHIPMENTSData for cost of materials and value of shipments include varying amounts of duplication, especially at higher levels of aggregation. This is because the products of one establishment may bethe materials of another. The value added statistics avoid this duplication and are, for most purposes, the best measure for comparing the relative economic importance of industries and geographic areas. VALUE OF INDUSTRY SHIPMENTS COMPARED WITH VALUE OF PRODUCT SHIPMENTS The 2002 Economic Census — Manufacturing shows value of shipments data for industries andproducts. In the industry statistics tables and files, these data represent the total value of shipments of all establishments classified in a particular industry. The data include the shipments ofthe products classified in the industry (primary to the industry), products classified in other industries (secondary to the industry), and miscellaneous receipts (repair work, sale of scrap, research and development, installation receipts, and resales). Value of product shipments shown in theproducts statistics tables and files represent the total value of all products shipped that are classified as primary to an industry regardless of the classification of the producing establishment. DISCLOSURE In accordance with federal law governing census reports (Title 13 of the United States Code), no data are published that would disclose the operations of an individual establishment or company. However, the number of establishments in a specific industry or geographic area is not considereda disclosure; therefore, this information may be released even though other information is withheld. Techniques employed to limit disclosure are discussed at www.census.gov/epcd/ec02/disclosure.htm. The disclosure analysis for the industry statistics files is based on the total value of shipments. When the total value of shipments cannot be shown without disclosing information for individualcompanies, the complete line is suppressed except for capital expenditures. Nonetheless, the suppressed data are included in higher-level totals. A separate disclosure analysis is performed forcapital expenditures, which can be suppressed even though value of shipments data are published. Appendix C C–7 Manufacturing U.S. Census Bureau, 2002 Economic Census

# Appendix D. Geographic Notes

Not applicable for this report.

Appendix D D–1 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

# Appendix E. Metropolitan Areas and Micropolitan Statistical Areas

Not applicable for this report.

Appendix E E–1 2002 Economic Census U.S. Census Bureau, 2002 Economic Census

# Appendix F. Comparability of Product Classes and Product Codes: 2002 to 1997

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# F–2 Appendix F Manufacturing U.S. Census Bureau, 2002 Economic CensusEC02-31I-321213 (RV)2002 Engineered Wood Member (Except Truss) Manufacturing: 20022002 Economic CensusManufacturingIndustry SeriesUSCENSUSBUREAU