1 This publication, Manufacturing Industry, Australia, 2001-02 and 2002-03 (cat. no. 8221.0), is the first to present manufacturing industry data compiled from the 2001-02 and 2002-03 collections, together with some revised and comparative statistics for 2000-01. This is also the first issue where the Australian Business Number (ABN) is the primary basis for the statistical units used to collect the data. (As a consequence, the scope of the collection has been expanded to include non-employers, although this has not had a significant effect upon the statistics presented.) For the last published survey (2000-01), the employing ABS 'management unit' was the sole statistical unit used to collect data. For more information about these changes to the annual manufacturing collection and how they affect data outputs, see Appendices 2 and 3.
2 Manufacturing, as specified in Division C of the Australian and New Zealand Standard Industrial Classification (ANZSIC) (cat. no. 1292.0), broadly relates to the physical or chemical transformation of materials or components into new products, whether the work is performed by power-driven machines or by hand.
3 The manufacturing collection is conducted on an annual basis as a component of the Economic Activity Survey (EAS). The sample design uses a mixture of direct collection above defined size cut-offs and the use of business income tax returns (BIT data) below these cut-offs. Full details of the sample design are contained in Appendix 2.
4 For the census collection year 2001-02:
5 For 2002-03:
- Just over 15,000 manufacturing businesses, which were above defined size cut-offs, were asked to provide employment details and data obtained from statements of financial performance and position, mainly by mail out questionnaires. A subsample of approximately 9,100 manufacturing businesses were asked to provide additional structural and performance data. Selected businesses were also asked to supply key details of their operations by state and territory, enabling the production of the state/territory estimates contained in table 2.2.
- Key financial data, representing approximately 118,000 manufacturing businesses below the $500,000 cut-off, which had been supplied by them to the Australian Taxation Office (ATO) on business income tax returns (BIT data), were then drawn upon to supplement the ABS's directly collected information for the Australian, state and territory data in this publication.
- To enable the production of state/territory industry class and sub-state/territory regional estimates (to be released in 2005):
- All manufacturing businesses which received ABS mail out questionnaires were also asked to provide location and employment details.
- ATO BIT data were also drawn upon for approximately 16,300 manufacturing businesses, which were between the $500,000 and $2,000,000 cut-offs and not selected for direct collection.
- A sample of approximately 8,900 manufacturing businesses were asked to provide employment details and data obtained from statements of financial performance and position, mainly by mail out questionnaires. Selected businesses were also asked to supply key details of their operations by state and territory, enabling the production of the state/territory estimates contained in table 3.2.
- Key financial data, representing approximately 120,000 manufacturing businesses below the $500,000 cut-off, which had been supplied by them to the Australian Taxation Office (ATO) on business income tax returns (BIT data), were then drawn upon to supplement the ABS's directly collected information.
STATISTICAL UNITS DEFINED ON THE ABS BUSINESS REGISTER
6 The ABS uses an economic statistics units model on the ABS Business Register (ABSBR) to describe the characteristics of businesses, and the structural relationships between related businesses. Within large and diverse business groups, the units model is used also to define reporting units that can provide data to the ABS at suitable levels of detail.
7 In mid 2002, to better use the information available as a result of The New Tax System (TNTS), the ABS changed its economic statistics units model. The new units model allocates businesses to one of two sub-populations. The vast majority of businesses are in what is called the ATO maintained population, while the remaining businesses are in the ABS maintained population. Together, these two sub-populations make up the ABSBR population.
ATO maintained population
8 Most businesses and organisations in Australia need to obtain an Australian Business Number (ABN), and are then included on the whole-of-government register of businesses, the Australian Business Register (ABR), which is maintained by the ATO. Most of these businesses have simple structures; therefore, the unit registered for an ABN will satisfy ABS statistical requirements. For these businesses, the ABS has aligned its statistical units structure with the ABN unit. The businesses with simple structures constitute the ATO maintained population, and the ABN unit is used as the statistical unit for all ABS economic collections.
ABS maintained population
9 For the population of businesses where the ABN unit is not suitable for ABS statistical requirements, the ABS maintains its own units structure through direct contact with the business. These businesses constitute the ABS maintained population. This population consists typically of large, complex and diverse businesses. The new statistical units model described below has been introduced to cover such businesses.
Enterprise group: This is a unit covering all the operations in Australia of one or more legal entities under common ownership and/or control. It covers all the operations in Australia of legal entities which are related in terms of the current Corporations Law (as amended by the Corporations Legislation Amendment Act 1991), including legal entities such as companies, trusts and partnerships. Majority ownership is not required for control to be exercised.
Enterprise: The enterprise is an institutional unit comprising:
(i) a single legal entity or business entity, or
(ii) more than one legal entity or business entity within the same enterprise group and in the same institutional sub-sector (i.e. they are all classified to a single Standard Institutional Sector Classification of Australia (SISCA) sub-sector).
Type of activity unit (TAU): The TAU is comprised of one or more business entities, sub-entities or branches of a business entity within an enterprise group that can report production and employment data for similar economic activities. When a minimum set of data items are available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the ANZSIC). Where a business cannot supply adequate data for each industry, a TAU is formed which contains activity in more than one industry subdivision.
10 For more information about the effects of the introduction of the new economic statistics units model, refer to Information Paper: Improvements in ABS Economic Statistics [Arising from the New Tax System] (cat. no. 1372.0).
Comparison over time
11 For the 2000-01 year, the manufacturing collection used the management unit as the statistical unit. For 2001-02 and later years, the statistical unit is the ABN unit for businesses with simple structures, and the TAU for businesses with complex structures. In most cases, ABN units / TAUs will concord with the management units used prior to the 2001-02 year.
SCOPE AND COVERAGE
12 The scope of the 2001-02 and 2002-03 manufacturing collections comprises all businesses (including non-employing businesses) on the ABSBR at time of selection, whose industry is classified to ANZSIC Division C MANUFACTURING. For details of the structure of this division, users should consult the Australian and New Zealand Standard Industrial Classification (ANZSIC) (cat. no. 1292.0), which is also available through the ABS web site <http://www.abs.gov.au> (using the Home page Search facility to find Division C).
13 The ANZSIC-based industry statistics presented in this publication are compiled differently from activity statistics. Each ABN unit or TAU on the ABSBR has been classified (by the ATO and the ABS respectively) to a single industry irrespective of any diversity of activities undertaken. The industry class allocated is the one which provides the main source of income. A manufacturing business is one predominantly engaged in manufacturing activities, but the data collected for it cover all activities of the business (including non-manufacturing activities). Conversely, there are some businesses predominantly engaged in non-manufacturing activities which also undertake limited manufacturing activities; these are excluded from the collection.
14 Some manufacturing businesses engage, in a significant way, in activities which are normally carried out by different industries. For example, a predominantly manufacturing business may also undertake significant amounts of wholesaling. Similarly, a manufacturing business may produce significant volumes of goods which are normally produced in different manufacturing industries. Where a business makes a significant economic contribution to industries classified to different ANZSIC subdivisions, the ABS includes the business in the ABS maintained population, and 'splits' the TAU's reported data between the industries involved. Significance is determined using total income.
15 A TAU's reported data will be split if the inclusion of data relating to the secondary activity in the statistics for the industry of the primary activity distorts (by overstating or understating) either the primary or secondary industry statistics at the ANZSIC subdivision level by:
16 The ABS attempts to obtain data for those businesses which ceased operation during the year, but it is not possible to obtain data for all of them.
- 3% or more, where the industries of the primary and secondary activities are in the same ANZSIC division
- 2% or more, where the industries of the primary and secondary activities are in different ANZSIC divisions.
17 The period covered by the collection is, in general, the 12 months ended 30 June. Where businesses are unable to supply information on this basis, an accounting period for which data can be provided is used for data other than that relating to employment.
18 Financial data presented incorporate all units in scope of the manufacturing collection that were in production stage at any time during the year. They also include any temporarily inactive units, i.e. those units which were in the development stage or which were not in production, but which still existed and held assets and liabilities and/or incurred some non-operating expenses (e.g. depreciation, administration costs).
RELIABILITY OF ESTIMATES
19 For information on this subject, see Technical Notes 1 and 2.
STATE AND TERRITORY ESTIMATES
20 State and territory summary estimates for MANUFACTURING subdivisions are presented in tables 2.2 and 3.2, for 2001-02 and 2002-03 respectively. To enable the production of these estimates for each year, selected businesses which received the mail out questionnaire (and which were considered to operate in more than one state and/or territory) were also asked to report data for employment, wages and salaries, and sales of goods and services for each state and/or territory in which they operated, if more than one.
21 The relevant data for all other businesses, including those whose contribution was sourced from BIT data, were allocated to their state/territory of operations as recorded on the ABSBR. Further statistical modelling enabled the production of the state and territory estimates shown.
OTHER STATE AND REGIONAL DATA
22 State industry class estimates and regional or sub-state/territory estimates will be produced for 2001-02 as data cubes or Microsoft Excel files; for further information, see Appendix 1. Future issues of the publication Manufacturing Industry, Australia (cat. no. 8221.0) will continue to publish state and territory estimates of sales and service income, wages and salaries, IVA and employment, at the industry subdivision level.
23 For further information about the availability of these data, please contact John Ridley on Sydney 02 9268 4541 or via the web to firstname.lastname@example.org.
EXPORTS BY MANUFACTURERS
24 All businesses which received an ABS mail out questionnaire were asked whether they exported and, if so, what percentage of their sales of goods produced was exported by the business or by an agent on its behalf. Because the ATO data do not contain this information, businesses whose contribution to MANUFACTURING estimates was sourced from BIT data do not contribute to the export tables included in this publication. The effect of the exclusion of these businesses is likely to be minimal, in view of their small contribution to overall estimates.
25 The data presented in tables 2.6 and 3.6 are derived by applying the percentage of exports reported for each exporting unit and then aggregating that figure. These data also exclude data for those businesses which operated during the particular reference period, but were not operating at 30 June (e.g. operated during 2002-03, but were not operating at 30 June 2003).
26 For the purposes of tables 2.7 and 3.7, manufacturing businesses have been categorised by the extent (if any) of their involvement in exporting. For each such category, the tables present its share (relative to total Australian manufacturing) of the three key data items: Sales and service income, Wages and salaries, and Industry Value Added.
27 The statistics presented in tables 2.6 and 3.6 relating to the value of exports by manufacturers or their agents are not intended to be directly comparable with the value of exports classified by manufacturing industry of origin as published by the ABS in international trade statistics. These latter statistics are intended to measure total exports regardless of which business or organisation does the exporting (and to identify the probable industry from which the goods originated), whereas the statistics in this publication's tables only relate to exports directly undertaken by the manufacturer or by its agent. The data in tables 2.6 and 3.6 showing these exports can, therefore, be expected to show a much lower value than the exports data from the international trade series. The main reason is that for many exports of goods manufactured in Australia, the actual exporting activity is undertaken by a business other than the manufacturer.
28 Also, the value of goods produced on a commission or fee basis for non-manufacturing businesses and which are then exported is not included in any of these data. Examples of relevant commission work are the 'slaughtering fee' charged by an abattoir for processing livestock owned by a meat exporter and the 'tolling fee' charged by an aluminium smelter to process ores owned by other (e.g. mining) businesses. Also excluded from these tables are any exports by manufacturers of goods which were not produced by that manufacturer. These and other goods exported (e.g. re-exports) are included in the international trade data. Finally, differences in valuation of exports arise because the value of exports in the international trade series would include the value to the manufacturer plus profit margins for the exporter and for any intermediaries between the manufacturer and the exporter.
29 Data in this publication have been adjusted to allow for lags in processing new businesses to the ABSBR. The effect of these adjustments on Australian estimates of sales and service income are:
30 Most states and territories and most industries were affected to a similar degree.
- for 2001-02, an increase of 0.8%
- for 2002-03, an increase of 1.0% .
CHAIN VOLUME MEASURES
31 The chain volume measures based on annual data, which were last published in the 2000-01 issue of this publication, will not be available until a longer span of data based on the new statistical infrastructure is available for those series. For further information on chain volume measures, refer to Information Paper: Introduction of Chain Volume Measures in the Australian National Accounts (cat. no. 5248.0).
32 Employment estimates (and related ratios and data relating to employment size groups) have been excluded from this issue, due to reliability problems with the modelling of ATO BIT data intended to provide employment estimates for non-sampled ABN units. When these problems are resolved, estimates will be made available.
33 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated: without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.
34 The ABS produces industry estimates for a range of selected industries (including Manufacturing) and these results are to be available in Australian Industry, 2001-02 and 2002-03 (cat. no. 8155.0) to be released in early 2005. National estimates of income, expenditure, assets and liabilities and associated ratios will be available at the ANZSIC division level. Data presenting greater detail are considered experimental at this stage, while the methodology used to produce them is reviewed and improved. These consist of national estimates of income, expenses, operating profit before tax (OPBT), and wages and salaries, at the ANZSIC group level, and state/territory estimates of these items at the ANZSIC division level.
35 Users may also wish to refer to the following publications:
36 Current publications and other products released by the ABS are listed in the Catalogue of Publications and Products (cat. no. 1101.0). The Catalogue is available from any ABS office or from this site. The ABS also issues a daily Release Advice on the web site which details products to be released in the week ahead.
Australian Industry, 2000-01, cat. no. 8155.0, released on 27 August 2003 - Annual publication
Australian Labour Market Statistics, cat. no. 6105.0 - Quarterly publication
Australian National Accounts: National Income, Expenditure and Product, cat. no. 5206.0 - Quarterly publication
Australian National Accounts: State Accounts, 2002-03, cat. no. 5220.0, released on 12 November 2003 - Annual publication
Australian System of National Accounts: Concepts, Sources and Methods, 2000, cat. no. 5216.0, released on 21 December 2000 - Irregular publication
Business Indicators, Australia, cat. no. 5676.0 - Quarterly publication
Business Operations and Industry Performance, Australia, 2000-01, cat. no. 8140.0, released on 6 December 2002 - Final issue
Environment Protection, Mining and Manufacturing Industries, Australia, 2000-2001, cat. no. 4603.0, released on 4 September 2002 - Irregular publication
Information Paper: ABS Statistics and The New Tax System, 2000, cat. no. 1358.0, released on 26 April 2000 - Irregular publication
Information Paper: Improvements in ABS Economic Statistics [Arising from The New Tax System], cat. no. 1372.0, released on 6 May 2002 - Irregular publication
Information Paper: Introduction of Chain Volume Measures in the Australian National Accounts, 1997, cat. no. 5248.0, released on 19 March 1998
- Irregular publication
International Trade in Goods and Services, Australia, cat. no. 5368.0 - Monthly publication
International Trade Price Indexes, Australia, cat. no. 6457.0 - Quarterly publication
Job Vacancies, Australia, cat. no. 6354.0 - Quarterly publication
Labour Costs, Australia, 2002-03, cat. no. 6348.0.55.001, released on 11 June 2004 - Irregular electronic publication
Labour Price Index, Australia, cat. no. 6345.0 - Quarterly publication (renamed from Wage Cost Index, Australia)
Manufacturing, Australia, 2002, cat. no. 8225.0, released on 2 April 2003 - Final issue
Private New Capital Expenditure and Expected Expenditure, Australia, cat. no. 5625.0 - Quarterly publication
Producer Price Indexes, Australia, cat. no. 6427.0 - Quarterly publication
Research and Experimental Development, Businesses, Australia, 2002-03, cat. no. 8104.0, released on 6 September 2004 - Annual publication
Wage Cost Index, Australia, cat. no. 6345.0 - renamed, from September Quarter 2004 issue. See Labour Price Index, Australia
Year Book Australia, 2004, cat. no. 1301.0, released on 27 February 2004 - Annual publication
ABS DATA AVAILABLE ON REQUEST
37 As well as the statistics included in this and related publications, the ABS may have other relevant data available on request and for a charge. Inquiries should be made to the National Information and Referral Service on 1300 135 070.
BACK SERIES AND ADDITIONAL DATA
38 For the last published (2000-01) manufacturing collection, information was collected from manufacturing management units. (See Appendix 3 for information about bridged ABN unit / TAU estimates also available for that year.)
39 The 1999-2000 manufacturing collection was the last to collect information primarily from manufacturing establishments as well as collecting limited data from a relatively small sample of manufacturing management units.
40 A considerable volume of data (primarily manufacturing establishment based data but some manufacturing management unit based data) is available from past annual manufacturing collections. Firstly, a range of manufacturing industry statistics publications is available for previous years. In addition, more detailed information to satisfy individual user requirements may be available on request and for a charge. In general, this consists of finer industry dissections of manufacturing establishment data than that previously presented in the manufacturing series of publications. Additional data may also be available from the 2001-02 and 2002-03 collections. As a guide, a list of data items included on each of the 2001-02 and 2002-03 manufacturing survey forms and a selection of data variables that can be derived from them are shown in Appendix 1.
41 For management units, chain volume measures of IVA are available from 1995-96 to 2000-01. For establishments, chain volume measures on a true ANZSIC basis are only available from 1989-90; however, chain volume measures of IVA on an ANZSIC basis are available back to 1984-85. They were compiled by converting estimates for earlier years onto an ANZSIC basis using the relationships that applied between the previous Australian Standard Industrial Classification (ASIC) and ANZSIC in the years 1990-91 and 1991-92. These estimates are available for Australia back to 1984-85. It should be noted that the relationships that applied in 1990-91 and 1991-92 are less likely to apply the earlier the reference year.
42 However, it is important that users are aware that the data as contained in this publication are not comparable with earlier years' data. This is due to the introduction of the new statistical infrastructure with the 2001-02 collection, as explained in Appendix 2.
43 Where figures have been rounded, discrepancies may occur between totals and the sums of the component items.
44 Proportions, ratios and other calculated figures shown in this publication have been calculated using unrounded estimates and may be different from, but are more accurate than, calculations based on the rounded estimates.