1. Copyright 2010, The World Bank Group. All Rights Reserved. Industrial statistics Data and data collection 1 Business statistics and registers

2. Copyright 2010, The World Bank Group. All Rights Reserved. Statistical units For industrial statistics the statistical unit should ideally be the establishment It is the most detailed unit for which the range of data required is normally available In the case of mining, the definition of location should be such that the establishment includes the enterprise’s collection of wells, shafts or pits that tap a single field For electricity, gas and water industries the best solution may be to collect the required information from the responsible authorities 2

3. Copyright 2010, The World Bank Group. All Rights Reserved. Characteristics of units Data should be collected to establish:  Location  Period of operation  Type of economic organization  Type of ownership 3

4. Copyright 2010, The World Bank Group. All Rights Reserved. Data issues The records of transactions maintained by businesses are the main source of information for industrial inquiries Concepts used in business accounting and those used in business statistics differ In business statistics, the recording of costs of production must cover all costs of goods and services used in production during an accounting period In business accounting, these costs may be reported in different segments of the accounts depending on the business accounting tradition of the country Some operating revenues are recorded on a net basis in business accounting, but should be recorded on a gross basis in business statistics 4

5. Copyright 2010, The World Bank Group. All Rights Reserved. People employed Number of persons employed is an important data item Information should be obtained about: – Total number of persons employed, by sex, of which: Working proprietors Unpaid family workers Employees Number of leased employees Employees in the informal sector 5

6. Copyright 2010, The World Bank Group. All Rights Reserved. Average number employed Average number of persons employed is the best indicator for the size class of a business Information should be obtained about: o Average number of persons employed, by sex o Of which: employees o Of which: production workers and other employees 6

7. Copyright 2010, The World Bank Group. All Rights Reserved. Hours worked Information to be obtained about hours worked is: o Hours worked by employees, of which by production workers and other employees o Hours worked by leased employees 7

8. Copyright 2010, The World Bank Group. All Rights Reserved. Compensation of employees Information about compensation of employees includes: Wages and salaries in cash and in kind of employees, of which production workers, of which: - Employees engaged in research and development - Employees engaged in mineral exploration and evaluation - Employees engaged in software and database development - Employees engaged in production of artistic originals - Employees engaged in own-account fixed assets formation and major repair - Other employees Payments to directors of incorporated enterprises for their attending meetings Social insurance contributions payable by employers 8

9. Copyright 2010, The World Bank Group. All Rights Reserved. Purchases for intermediate consumption Purchases of goods and services for intermediate consumption include a long list of items Most items can be attributed more or less exclusively to specific industries Goods and services delivered by other establishments of the same enterprise must be considered as bought 9

10. Copyright 2010, The World Bank Group. All Rights Reserved. Items of capital formation Capital formation includes the following data items: Cost of materials for own-account capital formation Of which: o For research and development o For mineral exploration and evaluation o For software and database development o For production of artistic originals o For own-account fixed assets formation and major repair 10

11. Copyright 2010, The World Bank Group. All Rights Reserved. Data items on quantity Quantity items are asked for two main purposes: for plausibility checks of cost items and as a contribution to the compilation of supply and use tables. Main categories are: -Quantity of individually important materials and supplies -Quantity of individual fuels and gas purchased -Quantity of electricity purchased -Quantity of electricity generated -Quantity of electricity sold -Total energy consumed (terrajoules) -Quantity of water purchased -Quantity of water abstracted for own use -Quantity of water sold -Total water used (cubic meters -Quantity of wastewater treated on site prior to discharge -Quantity of wastewater discharged without treatment 11

12. Copyright 2010, The World Bank Group. All Rights Reserved. Turnover The terms turnover, sales and shipments may be used interchangeably, depending on countries and industries Turnover/sales/shipments is the value of receipts for services and other revenues Revenue from goods and services to other enterprises and to establishment of the same enterprise are to be recorded separately 12

13. Copyright 2010, The World Bank Group. All Rights Reserved. E-commerce E-commerce is an increasingly important phenomenon Some countries include an e-commerce item in standard industrial questionnaires Other countries have separate e-commerce surveys, in which more detail about the particulars of e-commerce can be asked for 13

14. Copyright 2010, The World Bank Group. All Rights Reserved. Inventories The value of inventories and work-in-progress is needed to calculate the production of enterprises Changes can be asked for explicitly or be calculated by the statistical office Main data items include total inventories, inventories of materials, inventories of finished goods and inventories of goods for resale The value of work-in-progress requires special estimation 14

15. Copyright 2010, The World Bank Group. All Rights Reserved. Investments The information to be collected about assets, capital expenditures, retirements and depreciation includes: Gross value of fixed assets (at acquisition cost) - Dwellings - Other buildings and structures - Machinery and equipment - Transport equipment - ICT equipment - Other machinery and equipment - Intellectual property products, of which research and development, mineral exploration and evaluation, computer software and databases, entertainment, literary and artistic originals For each data item, values at the beginning of the reference period are asked, as well as additions to and disposals of capital stock. 15

16. Copyright 2010, The World Bank Group. All Rights Reserved. Value of production Value of production is calculated as: Gross output + Value of sale/turnover/shipments of all goods and services purchased for resale in the same condition as received - Purchases of goods and services for resale in the same condition as received + Receipts for industrial work done or industrial services rendered to others + Other revenues + Value of own-account fixed assets + Change in work-in-progress + Change in inventories of finished goods +/- Change in inventories of goods purchased for resale in the same condition as received 16

17. Copyright 2010, The World Bank Group. All Rights Reserved. Environmental protection Environmental protection includes all actions and activities that are aimed at the prevention, reduction and elimination of pollution as well as any other degradation of the environment This includes measures taken in order to restore the environment after it has been degraded Actions and activities are only included if environmental protection is their prime objective Actions and activities that have a favorable impact on the environment but that serve other goals, e.g. cost savings or normal hygiene, do not come under environmental protection 17

18. Copyright 2010, The World Bank Group. All Rights Reserved. Environment protection expenditure Environmental protection expenditure consists of the total expenditures (current and capital) of an industry whose primary purpose is the protection of the environment It comprises uses of environmental protection services (such as wastewater treatment), gross capital formation for environmental protection, etc. The use of so-called ‘connected products’ is also included Connected or adapted products are products which are less polluting and more expensive than ‘normal products’ 18

19. Copyright 2010, The World Bank Group. All Rights Reserved. Performance indicators – growth rates Growth rates indicators include: (a) Value added growth is the annual (quarterly) percentage change of value added of industrial activity (b) Growth of employment in the industrial sector is the annual (monthly or quarterly) percentage change of persons employed 19

20. Copyright 2010, The World Bank Group. All Rights Reserved. Performance indicators - ratios Ratio indicators for industrial performance include: (a) Output per person employed is obtained by dividing the total output by the number of persons employed (b) Output per hour worked (c) Value added per person employed (d) Ratio of orders received to shipment (e) New orders received (f) Unfilled orders at the end of the inquiry period (g) Inventories-to-shipment ratio 20

21. Copyright 2010, The World Bank Group. All Rights Reserved. Environmental performance indicators Important indicators are: (a) Intensity of energy consumption by activity (b) Water-use intensity by economic activity (c) Ratio of environmental protection expenditure to value added 21

22. Copyright 2010, The World Bank Group. All Rights Reserved. Performance indicators - shares Share indicators include: (a) Share of industrial activity value added in total value added (b) Employment in industrial activity as a share of total employment 22

23. Copyright 2010, The World Bank Group. All Rights Reserved. Data collection strategy The aim of industrial statistics programmes is to obtain comprehensive and accurate statistical information on the industrial activity within the economy This may be achieved through statistical sample surveys or a combination of surveys with administrative sources A sample survey is an efficient method for obtaining statistical information from large populations A statistical business register is an essential tool for data collection 23

24. Copyright 2010, The World Bank Group. All Rights Reserved. FIRST 1 The Fully Integrated Rational Survey Technique (FIRST) is an option for a survey program that can be used to efficiently capture comprehensive statistical information from enterprises FIRST requires two basic sets of statistical information (a) some census enumeration (b) good supporting documentation on sample areas The FIRST methodology requires the statistical universe to be divided into two parts, namely: (a) A list frame of a relatively small number of large units (b) Rest of the units 24

25. Copyright 2010, The World Bank Group. All Rights Reserved. FIRST 2 Any successful survey requires a clear and unambiguous definition of the statistical universe Covering all economic activities of the economy in an integrated manner has a distinct advantage over conducting a set of separate activity surveys Besides reducing survey costs, an integrated survey ensures a non overlapping coverage of groups of establishments by kind of economic activity The FIRST methodology offers the additional advantage of providing comprehensive information collected in a short time span with relatively modest means 25

26. Copyright 2010, The World Bank Group. All Rights Reserved. List frame In the surveys conducted using FIRST, the list frame is usually drawn from a business register or another directory of units This list is used for carrying out a FIRST survey preferably by mailed questionnaire Units have a fixed address and are required by national law to maintain proper business accounts for their transaction Availability of a list frame permits a single-stage sampling for this subsector For most establishment surveys, all units above a certain size (cut- off point) are included in the survey Adopting an integrated sample design for both structural and short- term surveys reduces inconsistencies Short-term data can be obtained using a rotating panel sample design 26

27. Copyright 2010, The World Bank Group. All Rights Reserved. Area frame All units not covered by the list-frame segment are known as the non-list-frame segment Data collection for this subsector requires sampling of area units from an area frame Ideally the area frame is formed in the latest economic or population census In an area sampling technique for surveying households and establishments, a sample of area units is selected at the first stage Next, in each of the selected first-stage units, the identification and listing are required of all establishments that are neither included in nor linked to any enterprise appearing in the list frame 27