Structural business statistics for manufacturing, mining and quarrying

A local kind-of-activity unit (Local KAUs) is defined as a functional unit, which at a single physical location is engaged mainly in activities within a specific activity group. This definition conforms to the one framed by ISIC Rev. 4.

An establishment is defined the same way as local KAU.

An enterprise is defined as an organisational unit comprising all economic activities engaged in by one and the same owner. Hence an enterprise is a legal entity covering one or more productive units (local KAUs). As these productive units can have different industries enterprise figures and local KAU figures often differ.

The following guidelines are used in order to divide the activity of an enterprise into separate local KAUs:

• Activities engaged in by an enterprise in different municipalities, are treated as separate local KAUs.
• Activities in different industry classes (4-digit) can be classified as separate local KAUs when this is necessary for statistical purposes, even if the activity is located at the same site. To divide a local unit into several local KAUs, each of the activities has to be of a certain size, normally engaging at least 5 persons. Some exceptions have been made to this rule, dependent on the feasibility of this on the hands of the respondents.
  
  

Auxiliary units are locally distinct units, which mainly provide services for one or more local KAUs in the enterprise of which the unit is a part. Typical examples are central and local administrative offices, sales offices, stock departments etc. These units submit separate reports, but they are not regarded as separate local KAUs. Auxiliary units submit reports on persons employed, compensation of employees, working expenses, investments, etc.. An auxiliary unit is grouped under the same industry as the local KAUs within the enterprise or groups of companies to which the unit mainly render its services. If the unit serves various local KAUs of different industry groups, more auxiliary units may be organised within a locally limited area. The value of the services from such auxiliary units (the value of production) is set equal to compensation of employees and cost of goods and services consumed. These services are entered as cost of goods and services consumed by the receiver (internal delivery).

Local KAUs under construction. In order to make the survey of current investment expenditure in manufacturing, mining and quarrying as complete as possible, investment reports are collected from large local KAUs under construction, even if they do not start operating in the year surveyed. These units are not counted as separate local KAUs.

Characteristics or variables are collected from enterprises using forms or annual accounts. The forms are adjusted to the local KAUs’ connection with enterprises and sizes. One of the main goals of manufacturing statistics is to distribute structural data as value added, employment and investments by region and industry. A multi-unit enterprise will normally conduct activities in several industries and/or in several municipalities. For this reason we collect more characteristics on local KAU level on multi-unit enterprises than single unit enterprise for which there is identical information on enterprise and local KAU.

Employment is the sum of all owners and employees who work in the unit. In manufacturing statistics one person can be considered as employed in more than one unit. The number of persons employed will therefore not be directly comparable to employment numbers in other statistics. Employment figures show an annual mean.

Employees. The Structural Business Statistics are from 2015 based on a new data basis for wage earners. The main source in the period to 2014 was NAV Employee Register (State Register). In 2015 the reporting to this registry coordinated with the reporting of payroll and personnel data to the Tax Administration Authority and Statistics Norway. The common reporting system is called “A-ordning”. “A-ordning” generally provides data with higher quality and accuracy at the individual level, and it covers more wage earner conditions than the State Register. In the State Register, employees who work less than four hours per week on average were not included.

The number of employees in the structural statistics shows an average of the number that has been employed throughout the year.

One person can only have one employment in the same local KAU, but can be registered as employed in several local KAUs at the same time.

Turnover is defined as the enterprise's operating income, minus government subsidies/refunds and profit on disposals (sales etc.) of fixed assets. VAT is not included in turnover.

Purchase of goods for resale is the value of all goods bought by the enterprise for resale without further processing.

Total purchase of goods and services is the value of all goods and services bought during the year for resale, for use in the enterprise's own production process or for stock. Purchase of tangible fixed assets is not included.

Compensation of employees includes wages and salaries, national insurance premium, pension payments and other staff expenses. Compensation of employees does not include payment to owners of sole proprietorships or general partnership, or payment to family members without fixed wages.

Production value is defines as turnover corrected for changes in stock of finished goods, work in progress and goods and services bought for resale.

This variable is estimated for preliminary figures. For more information, see chapter 3.6.

Cost of goods and services consumed is the value of goods and services consumed as input in the production process, excluding fixed assets (consumption is recorded as consumption of fixed capital).

Value added at market prices is the sum of production value minus the cost of goods and services consumed.

Value added at factor prices is the sum of value added at market prices plus subsidies and minus taxes (except VAT).

Gross operating surplus is the sum of value added (at factor prices) minus compensation of employees.

Gross investment is defined as acquisition of fixed assets as buildings and constructions, machines, tools, furniture and fixtures, and cars and other means of transportation (except for private use) - both new and used. Improvements are added, whereas sales of used capital stock are deducted. Gross investments are stated with deductions for input VAT.

Norwegian Standard Industrial Classification (SIC2007), which is based on the industrial classifications approved by the EU (NACE Rev.2 ) and the UN (ISIC Rev.4).

The survey is also classified according to EUROSTAT's special aggregates for technology levels found in the Eurostat manual on the production of structural business statistics. Four technology level categories are included in the StatBank:

High technology manufacturing covers the industries 21, 26 and 30.3.
Medium-high technology manufacturing covers the industries 20, 25.4, 27, 28, 29, 30.2, 30.4, 30.9 and 32.5.
Medium-low technology manufacturing covers the industries 18.2, 19, 22, 23, 24, 25.1, 25.2, 25.3, 25.5, 25.6, 25.7, 25.9, 30.1 and 33.
Low technology manufacturing covers the industries 10, 11, 12, 13, 14, 15, 16, 17, 18.1, 31, 32.1, 32.2, 32.3, 32.4 and 32.9

Name: Structural business statistics for manufacturing, mining and quarrying
Topic: Energy and manufacturing

Division for Structural Business Statistics

Preliminary figures are published on national level.

Final figures are published both on a national level and on county level. Figures on municipality level can be found in StatBank.

Annually.

Preliminary figures are published 10 months after the end of the reference year. Only enterprise figures.
Final figures are published within 18 months after the end of the reference year. Both enterprise and Local KAU figures.

Annual reports to EUROSTAT.

 Micro data is stored short-term in SAS program and long-term in txt format.

The manufacturing statistics offer a detailed overview on activity in the sector, based on accounting figures.

It was published for the first time in 1876, and has been published in its current form since 1997.

The first reference year with published preliminary figures, is 2007.

Manufacturing statistics are produced with background in the need for data for the annual national accounts, and in accordance to EU regulations for structural statistics.

Public authorities, professional and industrial organisations, researchers and research institutions and private users are some of the most important users of the manufacturing statistics.

No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 08 am. Prior to this, a minimum of three months' advance notice is given inthe Statistics Release Calendar. This is one of Statistics Norway’s key principles for ensuring that all users are treated equally.

As not all local KAUs within manufacturing are included in the survey population, there will be some differences towards other surveys which include employment figures. Files including all active local KAUs exist back to the reference year 1998.

Statistical Act §§2-2, 2-3 and 3-2.

Regulation (EC) no. 295/2008 of 11 March 2008 concerning structural business statistics (recast). In addition, Norway undertakes, through the EEA agreement, to adhere to EU Council regulation (EF) no. 1893/2006 of 20 December 2006 on NACE Rev. 2.

The annual manufacturing statistics cover Local KAUs (kind-of-activity units) in manufacturing, mining and quarrying, as defined by the Norwegian Standard Industrial Classification (SIC). Information on oil and gas extraction is not included.

The manufacturing statistics are prepared based on information from questionnaires and data from administrative registers. A form and a copy of the standard financial report that the tax authorities collect from the enterprises (the Standard Industry Form) are therefore collected from all enterprises with manufacturing activity with at least ten employees. The Standard Industry Form covers income statement and balance sheet which enterprises are required to report to the tax authorities.

For the remaining local KAUs total figures are estimated based on annual accounts, employment and sales. All joint-stock companies are required to send their annual accounts to the Norwegian Register of Company Accounts in Brønnøysund. The annual accounts include the income statement as well as the balance sheet, but the specifications vary and are not as detailed as the Standard Industry Form.

The majority of entries to the Central Register of Establishments and Enterprises of Statistics Norway have been taken from the Central Coordinating Register for Legal Entities in Brønnøysund. The Central Coordinating Register for Legal Entities contains all enterprises in the Value Added Tax Register of the Directorate of Taxes and in the Register of Employers of the National Insurance Administration.

The statistical population consists of all active enterprises in the reference year. Enterprises without local KAU's are excluded from final figures, but may sometimes be included in the preliminary figures. The population is divided into strata (nonoverlapping, exhaustive groups) by industry divisions and employment. Some groups are sampled more frequently, some less.

Detailed accounting data from the sample and administrative data form the basis for calculating the economic structures in the industry.

The questionnaires are sent out in May, at a time where most of the enterprises have finished their Standard Industry Form, to the sample. Those who do not respond within 6 months receive a compulsory fine.

For other enterprises, administrative data is used.

The data collected are sent through a thorough revision on micro level. Consistency controls are conducted between items on the form, against the previous year, against production statistics, against the Central Register of Establishments and Enterprises, against the Standard Industry Form and against the annual reports.

For preliminary figures particularly critical controls are industry division, employment and sales. The figures will not be revised as thoroughly as final figures.

For final figures particularly critical controls include, amongst others, industry division, employment, sales, compensation of employees and investments.

For enterprises in the sample, where we have a complete Standard Industry form and questionnaire, no variables are estimated. For enterprises where we only have a Standard Industry form the questionnaire variables are estimated. For other enterprises all variables, except turnover and employment, are estimated on the basis of sample figures.

Turnover and employment are considered as known variables for all enterprises and are therefore used as a basis for computing missing variables. Previously an industry mean based on sample units was used to estimate missing data for non-sample units (ratio estimates). As of the statistical year 2011 the method is based on finding a sample unit similar to the non-sample unit to be estimated, based on a set of criteria, and using the sample-unit to estimate the missing values (nearest neighbour estimation). The nearest neighbour criterion is industry combined with the turnover/employment ratio, in that order.

For preliminary figures, the production value will be estimated with background in the relationship between production value and sales in the industry division from last reference year. Total purchase of goods and services, compensation for employees and gross investments are collected from administrativ data sources when available. When not, total purchase of goods and services and compensation for employees will be estimated with the same method used for the production value. Gross investments are not estimated.

Not relevant

If less than three units are represented in the content in a table cell, the figures are not published. The reason is the risk that the units can be identified. This is especially critical when publishing figures at a low geographic level. This is resolved by suppressing these figures in the table.

Preliminary figures are published before the end of revision and may therefore deviate some from the final figures, which are published within 18 months of the end of the reference year.

For the final figures , data files exist electronically back to the reference year 1966.

Mainly, the data are comparable when it concerns coverage and variables, but there have been changes in the Standard Industrial Classification, sample size and minor adjustments in a few definitions.

A new version of Norwegian industry classification (SIC2007) was implemented in January 2009. Structural data for manufacturing, mining and quarrying will be affected as from the publishing of preliminary figures for 2008. This will affect the comparability with previous years.

Due to a reclassification of enterprises from industry to service activities the 2008-figures have been recalculated without these enterprises, so that 2008 and 2009 are comparable. The tables below show the change in per cent (2008-2009) when the enterprises are excluded and included.

While working with 2010-figures we have corrected and updated 2009-figures.

Measurement errors are errors that occur during data collection and are caused by the survey instrument: the form, questionnaire or measuring device used for data collection may lead to the recording of wrong values. The respondent may also consciously or unconsciously, give erroneous data or interviewers may influence the answers given by respondents. A typical error may be use of a wrong scale, such as sums given in crowns (kroner) instead of thousand crowns.

Processing errors are errors introduced during data processing in Statistics Norway, such as coding, data entry, data editing, imputation etc. Typical examples are wrong interpretation of digits and letters written on paper forms during optical scanning, for instance that 1 is interpreted as 7, or that wrong assessments cause correct figures to be interpreted as wrong and being corrected to a wrong number.

Non response errors are errors caused by unit non-response, i.e. that the unit (for instance an individual or a company) has failed to respond, or item non response, i.e. that the unit has failed to respond to some but not all the questions in the survey.

Since we receive a response from 95 per cent of the units in the sample, the problem with non-response errors are small.

Sampling errors arise from the fact that the estimates are based on a sample and not a census of the entire population.

Under this residual heading we find coverage errors and model assumption errors. Coverage errors (or frame errors) are due to divergences between the target population and the frame population. Coverage errors comprise over coverage, under coverage, delayed updating or classification errors in the survey frame. Model assumption errors are errors in seasonal adjustment of time series. These errors are due to deviation between the true model and the assumed model used in the seasonal adjustment. There is also a chance of errors linked to the use of administrative data.

Not relevant