Information about http://www.census.gov/epcd/naics/naics_13.pdf
Part III--Proposed New Industry Structure for Computer and Electronic…
Tags: additional detail, aggregates, american industry classification, communications equipment, comparability, data users, digit level, electronic product, industry classification system, industry structure, interested data, jack e triplett, mexico city, naics structure, north american industry classification system, north american industry classification system naics, number 13, peripheral equipment, structure xx, video equipment,Pages: 16
Language: english
Created: Mon Jun 3 09:36:59 1996
Display cached document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Part III--Proposed New Industry Structure for Computer and Electronic Product
Manufacturing
Section A--NAICS Structure
North American Industry Classification System
(NAICS)
Agreement Number 13
This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following subsector:
Computer and Electronic Product Manufacturing
The detailed NAICS structure along with a brief description of the structure is attached
(Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS
structure to interested data users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the structure is made. Each
country may add additional detailed industries, below the 4-digit level of NAICS, as
necessary to meet national needs, so long as this additional detail aggregates to a 4-digit
NAICS level in order to ensure full comparability among the three countries. This NAICS
structure was presented and provisionally accepted at the NAICS Committee meeting held on
September 27, 1995 - September 29, 1995 in Mexico City, Mexico.
Accepted Signature Date
Canada /S/ Jacob Ryten 9/29/95
Mexico /S/ Enrique Ordaz 9/29/95
United States /S/ Jack E. Triplett 9/29/95
ATTACHMENT 1--NAICS STRUCTURE
XX Computer and Electronic Product Manufacturing
XXX Computer and Peripheral Equipment Manufacturing
XXXX Computer and Peripheral Equipment Manufacturing
XXX Communications Equipment Manufacturing
XXXX Telephone Apparatus Manufacturing
XXXX Broadcast and Studio Equipment for Radio, TV, and Cable
Manufacturing
XXXX Other Communications Equipment Manufacturing
XXX Audio and Video Equipment Manufacturing
XXXX Audio and Video Equipment Manufacturing
XXX Semiconductor and Electronic Component Manufacturing
XXXX Semiconductor and Electronic Component Manufacturing
XXX Navigational, Measuring, Medical and Control Instrument
Manufacturing
XXXX Navigational, Measuring, Medical and Control Instrument
Manufacturing
XXX Manufacturing and Reproduction of Magnetic and Optical Media
XXXX Manufacturing and Reproduction of Magnetic and Optical Media
(Includes the manufacturing of blank audio and video tapes, diskettes and
CD-ROMs, and reproduction of software, audio, video, and multimedia
products)
Attachment 2--North American Industry Classification System
Draft Classification for:
Computer and Electronic Product Manufacturing
Representatives of the statistical agencies of Canada, Mexico, and the United States agree
to a draft industrial classification for these industries.
The draft classification provides for the subsector, Computer and Electronic Product
Manufacturing. This subsector is further subdivided into six industry groups and eight
industries. The subsector will be part of the Manufacturing sector of the classification.
A General Outline
The Computer and Electronic Product Manufacturing industries produce computers,
computer peripherals, communications equipment, and similar electronic products, together
with components for such products. The treatment of this subsector in NAICS differs
substantially from past national classifications in all three countries, and also from other
international classifications.
First, in NAICS the computer and electronic product manufacturing industries have been
elevated to a separate subsector that brings together in the classification the manufacture of
electronic products and their components. In previous national classification systems, and in
the International Standard Industrial Classification of All Economic Activities (ISIC, Revision
3) of the United Nations, these industries are placed in machinery industries or with electrical
equipment. Computer and electronic product manufacturing industries have been elevated in
the hierarchy of NAICS because of the economic importance they have attained, because their
rapid growth suggests that they will become even more important in the economies of all
three North American countries in the future, and because their manufacturing processes are
fundamentally different from the manufacturing processes of other machinery and electrical
components with which they have been grouped in the past, and are grouped in ISIC.
Computers, communications equipment, and other electronic devices can of course be
regarded as types of machines, which has been the view embodied in past classification
systems. However, in NAICS the application of mechanical principles defines the Machinery
subsector, because it describes the production processes (gear cutting and so forth) that must
be used to manufacture machinery that functions on mechanical principles. Mechanical
principles are not significant in the operation of computers and other electronic devices, and
the production of computers, communications equipment and other electronic devices is not
characterized by the processes that are used in the Machinery subsector.
Instead, the design and use of integrated circuits and the application of highly specialized
miniaturization technologies are common elements in the production technologies of the
Computer and Electronic Product Manufacturing subsector. The production processes are in
a constant state of technological development, such that heavy research and development
expenditures are necessary to cope with rapid obsolescence of tangible and intangible assets.
The manufacture of these products is grouped together because similar production processes
are used.
A second substantive difference between NAICS and most other classification systems
involves the grouping itself. In NAICS, the manufacture of integrated circuits and related
electronic components is placed in the same subsector as the manufacturing of computers,
communications equipment and other end products for which these components are an
essential part of the end-product technology. Moreover, NAICS combines in the same
subsector end products that have different uses--for example, computers, communications
equipment, and audio equipment--but have similar and converging technologies.
Convergence of technology motivates the NAICS groupings. Digitalization of sound
recording, for example, causes both the medium (the "compact disk") and the equipment to
resemble the technologies for recording, storing, transmitting and manipulating data.
Communications technology and equipment have been converging with computer technology.
Machines already exist that can send fax messages, copy electronically, and print documents.
Transmission technology may take the form of a dedicated, separately-housed machine (end
product), or the same technology may be incorporated into a board mounted inside a
computer (in which case it is technically an electronic component); thus, the component/end
product distinction no longer justifies separating electronic components in a separate part of
the classification system from electronic end products. Combining in the same subsector the
production of equipment designed for different end uses, and also combining in the same
subsector the components with the end-use equipment, is justified by rapid convergence in the
production technologies and by the expected continued convergence of technology.
When technologically related components are in the same sector, it makes it easier to
adjust the classification for future changes, without needing to redefine its basic structure.
The creation of the Computer and Electronic Product Manufacturing subsector will assist in
delineating new and emerging industries because the activities that will serve as the probable
sources of new industries--such as computer manufacturing and communications equipment
manufacturing, or computers and audio equipment--are brought together. As new activities
emerge, they are less likely therefore to cross the subsector boundaries of the classification.
In addition, the three countries put a priority in NAICS on the delineation of industries
engaged in the production of advanced technologies. The creation of this subsector is a
response to that priority. It groups activities that are constantly developing and applying new
scientific and engineering knowledge.
Though the three countries' statistical agencies agree that the growth of computer and
electronic components in all three countries is likely to be significant in the future, and that
accordingly it merits treatment as a subsector in NAICS, many differences currently exist in
the degrees of specialization and differentiation in the three countries. The United States has
more diversification and more specialization in these high technology sectors than does either
Canada or Mexico. For this reason, it was necessary to specify NAICS 4-digit industries in
this sector at a relatively broad level of detail. By setting up a forward-looking classification,
it will be easier to subdivide NAICS 4-digit industries in the future, as the sector expands in
all three countries, without requiring major shifts in the classification system. This is
especially important in view of the fact that the technologies that are common across all of the
industries in this subsector may converge in the future as well as differentiate.
The Computer and Electronic Product Manufacturing subsector is subdivided into six
industry groups. Computer and Peripheral Equipment Manufacturing comprises the
production of computers and associated products such as storage devices and monitors.
Communication Equipment Manufacturing includes the manufacture of telephone apparatus
and radio and television studio and broadcast equipment. Audio and Video Equipment
Manufacturing covers household and commercial radios, televisions, video equipment and
similar articles. Semiconductor and Electronic Component Manufacturing includes the
manufacture of a broad range of components used as parts in this subsector. The loading of
circuit boards is classified here. Navigational, Measuring, Medical and Control Instrument
Manufacturing includes the manufacture of such products as radar and sonar equipment and
industrial process control equipment.
The sixth industry group, Manufacturing and Reproduction of Magnetic and Optical
Media, includes the production of media such as video tapes and CD-ROMs, and the mass
duplication of these media. It should be noted that the manufacture of packaged software is
placed in this sector; however, the publishing of software, and its distribution electronically, is
placed in the new NAICS Information sector, to be published separately, while traditional
custom applications of software to client specification are in the Professional, Scientific and
Technical Services subsector. These changes were made to represent better the different ways
that software is produced and distributed. Sources within the industry and without have noted
that the attempt, in past classification systems, to locate all software in a single portion of the
classification system (the Services sector, or the Manufacturing sector) obliterates useful
distinctions in software production and distribution, and tends, whatever the decision, to
become rapidly obsolete as the nature and use of software changes. The NAICS structure is
intended to facilitate the production of data on such changes, rather than obliterating them.
Consideration was given to subdividing this industry. Two possibilities were considered.
Establishments could be distinguished based on the type of media, for example, CD-ROMs
and diskettes or on the type of application, for example software and entertainment. This was
not done for two reasons. First, the production process is often the same for a particular
medium regardless of the application. For example, a blank CD-ROM can be used for
recording music or for recording software. The format used for recording music CD-ROMs is
also commonly used in multimedia software applications. Secondly, some establishments
combine the production of the possible subdivisions. Establishments exist that produce both
diskettes and CD-ROMs. These technological and establishment organization issues
precluded a subdivision of the industry for NAICS. It is also the case that any subdivisions
would be very small in Canada and Mexico.
Limitations and Constraints of the Classification
In the Computer and Electronic Product Manufacturing subsector, most activities that
were identified in one country exist in the others. However, as noted above, often an activity
is not economically significant to the same degree in all countries. For example, a broad
NAICS Computer and Peripheral Equipment Manufacturing industry was created because in
Canada and Mexico establishments that primarily manufacture computers also produce
peripherals to a significant degree. In Canada, a computer manufacturing industry would
have a specialization ratio of only 70%. In addition, there is evidence that the lines between
computer and peripheral equipment manufacturing are becoming less precise even in the U.S.
The U.S. specialization ratio for computer manufacturing declined from 87% to 82% between
1987 and 1992. As another example, a relatively broad NAICS industry was created for
Semiconductor and Electronic Component Manufacturing, partly because any possible
subdivisions are small or confidential in Canada and Mexico.
Each country may publish additional national industries that comprise subdivisions of
NAICS industries, to present data for activities that are nationally significant. Though these
national industries are also constrained by the desire to preserve time series comparability
within each country's statistics, so far as possible, the three countries are committed to
increased international comparability of industrial statistics in these high technology sectors,
as development in the three economies makes it feasible.
Bringing electronic components and end products together in the classification has
inevitably produced some anomalies at the boundary of the sector. For example, most of the
traditional instrument industries have been located in this subsector because electronic
measuring devices and instruments have rapidly displaced mechanical and electrical types
that served similar functions. It was, however, not practical to split off all of the traditional
forms of instruments, partly for the sake of preserving time series, partly because the
establishments themselves have shifted from the old to the new technology, and partly
because the rapid eclipse of some traditional instrument types may mean that an industry or
industries for mechanical instrument manufacturing (in Miscellaneous Manufacturing) would
soon become obsolete, even if it were established in NAICS. As a consequence, however,
some activities that are neither electronic nor "high tech" (watch springs, for example) appear
anomalously in this subsector.
For those users requiring detailed commodity information, each country will publish
information on the products of these industries. Efforts are also underway to harmonize the
commodity classifications to allow for greater comparability of these statistics.
Relationship to ISIC
The Computer and Electronic Product Manufacturing subsector does not closely match
any existing Division of the current International Standard Industrial Classification of all
Economic Activities (ISIC, Revision 3) of the United Nations. Computers and peripherals are
classified in ISIC Division 30, Manufacture of Office, Accounting and Computing
Machinery. Communications equipment, audio and video equipment and most electronic
components are in ISIC Division 32, Manufacture of Radio, Television and Communication
Equipment and Apparatus. Navigational, measuring and controlling equipment are included
in ISIC Division 33, Manufacture of Medical, Precision and Optical Instruments, Watches
and Clocks. Other activities in this subsector are classified in three additional ISIC Divisions.
However, of the eight NAICS 4-digit industries in this subsector, six of them are each
contained entirely within a single ISIC Division. The other two NAICS industries cross two
ISIC Divisions: Semiconductor and Electronic Component Manufacturing is largely included
in ISIC Division 32, but includes the manufacture of electronic coils, transformers, connectors
and switches that are classified in ISIC Division 31, Manufacture of Electrical Machinery and
Apparatus, NEC. Manufacturing and Reproduction of Magnetic and Optical Media is split
between ISIC Division 24, Manufacture of Chemicals and Chemical Products (the
manufacture of media) and ISIC Division 22, Publishing, Printing and Reproduction of
Recorded Media (mass duplication); in North America, these activities take place in the same
establishments, so they are combined in NAICS.
Most of ISIC Division 32 is included in this subsector. However, the other ISIC Divisions
(31, 24 and 22) linked to the Computer and Electronic Component Manufacturing subsector
all have significant activities that are classified elsewhere in NAICS.
Some Changes to the National Classifications
For all countries, the creation of the Computer and Electronic Product Manufacturing
subsector represents a significant change to the structure of the current national
classifications.
For Canada, the subsector is largely the sum of three industry groups in Electrical and
Electronic Products Industries (CSIC 334, 335 and 336) and instruments now in Other
Manufacturing Industries (part of 391). The amount of detail of this NAICS subsector is less
than that contained in the Canadian classification.
For Mexico, the Computer and Electronic Product Manufacturing subsector has coverage
similar to the Mexican classification s Manufacture and Assembly of Electronic Radio,
Television, Communications and Medical Equipment (CMAP 3832), combined with the
computers and peripherals activities from Manufacture and Assembly of Office Calculating
and Data Processing Machines (3823). The amount of detail of this NAICS subsector is
similar to that of these areas of the Mexican classification.
For the United States, this subsector includes activities from three major groups.
Computers and peripherals are now in Computer and Office Equipment, 1987 Industry Group
357; instruments are now a large part of 1987 SIC Major Group 38, Measuring, Analyzing,
and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks;
and the remaining NAICS activities in this subsector are largely classified in 1987 Major
Group 36, Electronic and Other Electric Equipment (especially 365, 366 and 367). NAICS
provides much less industry detail than the 1987 U.S. SIC. However, the U.S. national
industries will provide similar detail below the NAICS industry level.
Achievement of Objectives
The classification meets the objectives for the North American Industry Classification
System (NAICS). It includes industries that group establishments with similar production
processes, that is, it applies the production-oriented economic concept. The hierarchical
structure of the classification also follows the production concept. For example, computer
peripherals and electronic components are both used in the manufacture of computers;
however, components are separated from peripherals in the hierarchy because the production
process used in the manufacture of peripherals is more like that of computers, with assembly
of parts being important, while the manufacture of electronic components is driven by
miniaturization techniques.
The industries have high specialization ratios, and they are economically significant.
Some are much larger than others, but this was necessitated by the considerations discussed
above under Limitations and Constraints of the Classification. The classification is still
suitable for sampling, data-publishing and other aspects of survey operations. Finally, while
disruptions to time series exist, they are mostly at the level of the aggregation structure. The
statistical agencies can develop statistical "links" to enable the re-tabulation of time series on
the new NAICS classification structure.
The classification achieves comparability for the three participating countries. Based on
existing data, all three countries expect to be able to publish data regularly at the industry (4-
digit) level of the structure. All countries agree on the detailed definitions of the industries.
Section B-Annex: United States National Industry Detail
As explained in the Structure presentation of this notice, for a number of reasons 4-digit
industries in the NAICS industry subsector presented in Part III, Section A--Attachment 1,
contain less detail than is currently in the U.S. SIC system, and less detail than is required to
meet important analytical requirements in the U.S. The three country agreement on NAICS
envisions that each country may develop national detailed industries below the NAICS
industry level, so long as the national detail can be aggregated to the NAICS classification,
thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS subsector covered in
Part III of this notice. For cases where no 5-digit detail is shown, the ECPC is proposing that
the NAICS 4-digit industries will also represent the most detailed U.S. industries.
TABLE 1
The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and * means "part of". The abbreviation NEC is used for Not Elsewhere Classified.
1987
Status SIC
1997 NAICS & U.S. description code code 1987 SIC description
XX Computer and Electronic Product Manufacturing
XXX Computer and Peripheral Equipment Manufacturing
XXXX Computer and Peripheral Equipment Manufacturing
XXXXX Electronic Computer Manufacturing E 3571 Electronic Computers
XXXXX Computer Storage Device Manufacturing E 3572 Computer Storage Devices
XXXXX Computer Terminal Manufacturing E 3575 Computer Terminals
XXXXX Other Computer Peripheral Equipment Manufacturing R 3577 Computer Peripheral Equipment, NEC
*3578 Calculating and Accounting Machines, Except
Electronic Computers (point of sale terminals and fund
transfer devices)
*3699 Electrical Machinery Equipment and Supplies, NEC
(bar code scanners)
XXX Communication Equipment Manufacturing
XXXX Telephone Apparatus Manufacturing R *3661 Telephone and Telegraph Apparatus (except telephone
transformers and external PC consumer modems)
XXXX Broadcast and Studio Equipment for Radio, TV, and Cable R 3663 Radio and Television Broadcasting and
Manufacturing Communication Equipment
*3679 Electronic Components, NEC (communication
equipment)
XXXX Other Communication Equipment Manufacturing E 3669 Communications Equipment, NEC
XXX Audio and Video Equipment Manufacturing
XXXX Audio and Video Equipment Manufacturing E 3651 Household Audio and Video Equipment
XXX Semiconductor and Electronic Component Manufacturing
XXXX Semiconductor and Electronic Component Manufacturing
XXXXX Electron Tube Manufacturing E 3671 Electron Tubes
XXXXX Printed Circuit Board Manufacturing E 3672 Printed Circuit Boards
XXXXX Semiconductor and Related Device Manufacturing E 3674 Semiconductors and Related Devices
XXXXX Electronic Capacitor Manufacturing E 3675 Electronic Capacitors
XXXXX Electronic Resistor Manufacturing E 3676 Electronic Resistors
XXXXX Electronic Coil, Transformer, and Other Inductor R *3661 Telephone and Telegraph Apparatus (telephone
Manufacturing transformers)
3677 Electronic Coils, Transformers, and Other Inductors
*3825 Instruments for Measuring and Testing of Electricity
and Electrical Signals (portable instrument
transformers)
XXXXX Electronic Connector Manufacturing E 3678 Electronic Connectors
XXXXX Other Electronic Component Manufacturing R *3661 Telephone and Telegraph Apparatus (external PC
consumer modems)
*3679 Electronic Components, NEC (other electronic
components including loaded printed circuit boards)
XXX Navigational, Measuring, Medical, and Control Instrument
Manufacturing
XXXX Navigational, Measuring, Medical, and Control Instrument
Manufacturing
XXXXX Search, Detection, Navigation, Guidance, Aeronautical, and E 3812 Search, Detection, Navigation, Guidance,
Nautical System and Instrument Manufacturing Aeronautical, and Nautical Systems and Instruments
XXXXX Automatic Control for Regulating Residential and Commercial E 3822 Automatic Controls for Regulating Residential and
Environment and Appliance Manufacturing Commercial Environments and Appliances
XXXXX Industrial Instrument for Measurement, Display, and Control E 3823 Industrial Instruments for Measurement, Display, and
of Process Variables, and Related Products Control of Process Variables; and Related Products
XXXXX Totalizing Fluid Meter and Counting Device Manufacturing E 3824 Totalizing Fluid Meters and Counting Devices
XXXXX Instruments for Measuring and Testing of Electricity and R *3825 Instruments for Measuring and Testing of Electricity
Electrical Signal Manufacturing and Electrical Signals (except portable instrument
transformers)
XXXXX Analytical Instrument Manufacturing E 3826 Laboratory Analytical Instruments
XXXXX Other Measuring and Controlling Device Manufacturing R *3829 Measuring and Controlling Devices, NEC (except
medical thermometers)
XXXXX Watch, Clock, and Part Manufacturing R *3495 Wire Springs (clock and watch springs)
*3579 Office Machines, NEC (time clocks and other time
recording devices)
3873 Watches, Clocks, Clockwork Operated Devices, and
Parts
XXXXX X-Ray Apparatus and Tubes and Related Irradiation Apparatus E 3844 X-Ray Apparatus and Tubes and Related Irradiation
Apparatus
XXXXX Electromedical and Electrotherapeutic Apparatus R *3842 Orthopedic, Prosthetic, and Surgical Appliances and
Supplies (electronic hearing aids)
3845 Electromedical and Electrotherapeutic Apparatus
XXX Manufacturing and Reproduction of Magnetic and Optical Media
XXXX Manufacturing and Reproduction of Magnetic and Optical Media
XXXXX Reproduction of Software R *7372 Prepackaged Software (reproduction of software)
XXXXX Prerecorded Compact Disk, Except Software, Tape, and N *3652 Phonograph Records and Prerecorded Audio Tapes
Record Manufacturing and Disks (reproduction of all other media except
video)
*7819 Services Allied to Motion Picture Production
(Reproduction of video)
XXXXX Magnetic and Optical Recording Media Manufacturing E 3695 Magnetic and Optical Recording Media
TABLE 2
The abbreviation "pt" means "part of", @ means time series break has been created that is greater than 3% of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used
for Not Elsewhere Classified.
1987 SIC code 1987 SIC description 1997 U.S. description
3495 Wire Springs
Clock and Watch Springs Watch, Clock and Part Manufacturing (pt)
Wire Springs, Except Clock and Watch Springs Wire Spring Manufacturing (Included in Fabricated Metal Product
Manufacturing subsector)
3571 Electronic Computers Electronic Computer Manufacturing
3572 Computer Storage Devices Computer Storage Device Manufacturing
3575 Computer Terminals Computer Terminal Manufacturing
3577 Computer Peripheral Equipment, NEC Other Computer Peripheral Equipment Manufacturing (pt)
3578@ Calculating and Accounting Machines, Except Electronic Computers
Point of Sales Terminals and Fund Transfer Devices Other Computer Peripheral Equipment Manufacturing (pt)
Calculating and Accounting Machines, Except Point of Sales Terminals and Fund Office Machinery Manufacturing (pt) (Included in Machinery
Transfer Devices Manufacturing subsector)
3579@ Office Machines, NEC
Pencil Sharpeners and Staplers Lead Pencils, Crayons and Artists' Supplies (pt) ( Included in
Miscellaneous Manufacturing subsector)
Timeclocks and Other Time Recording Devices Watch, Clock, and Part Manufacturing (pt)
Other Office Machinery Manufacturing (pt) (Included in Machinery
Manufacturing subsector)
3651 Household Audio and Video Equipment Audio and Video Equipment Manufacturing
3652@ Phonograph Records and Prerecorded Audio Tapes and Disks
Record Publishing (Included in Information subsector)
Reproduction of All Other Media Except Video Prerecorded Compact Disk, Tape and Record Manufacturing (pt)
External PC Consumer Modems Other Electronic Component Manufacturing (pt)
Telephone Transformers Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)
(Included in Electrical Equipment, Appliance and Component
Manufacturing subsector)
Telephone and Telegraph Apparatus, Except Telephone Transformers and Telephone Apparatus Manufacturing
Consumer External Modems
3663 Radio and Television Broadcasting and Communication Equipment Broadcast and Studio Equipment for Radio, TV, and Cable (pt)
Manufacturing
3669 Communications Equipment, NEC Other Communication Equipment Manufacturing
3671 Electron Tubes Electron Tube Manufacturing
3672 Printed Circuit Boards Printed Circuit Board Manufacturing
3674 Semiconductors and Related Devices Semiconductor and Related Device Manufacturing
3675 Electronic Capacitors Electronic Capacitor Manufacturing
3676 Electronic Resistors Electronic Resistor Manufacturing
3677 Electronic Coils, Transformers, and Other Inductors Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)
3678 Electronic Connectors Electronic Connector Manufacturing
3679 Electronic Components, NEC
Communication Equipment Broadcast and Studio Equipment for Radio, TV and Cable Manufacturing
(pt)
Electronic Control Modular Chips for Motor Vehicles Electrical Equipment for Internal Combustion Engine Manufacturing (pt)
(Included in Transportation Equipment Manufacturing subsector)
Other Electronic Components Including Loaded PC Boards Other Electronic Component Manufacturing (pt)
3695 Magnetic and Optical Recording Media Magnetic and Optical Recording Media Manufacturing
3699@ Electrical Machinery, Equipment, and Supplies, NEC
Bar Code Scanners Other Computer Peripheral Equipment Manufacturing (pt)
Christmas Tree Lighting Sets and Electric Insect Lamps Other Lighting Equipment Manufacturing (pt) (To Be Included in
Electrical Equipment, Appliance and Component Manufacturing
subsector)
Electric Outboard Motor; Other Engine Manufacturing (pt) (Included in Machinery Manufacturing
subsector)
Lasers Classified according to function
Other Electrical Machinery, Equipment, and Supplies Other Electrical Industrial Apparatus Manufacturing (pt) (Included in
Electrical Equipment, Appliance, and Component Manufacturing
subsector)
3812 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Search, Detection, Navigation, Guidance, Aeronautical, and Nautical
Instruments System and Instrument Manufacturing
3822 Automatic Controls for Regulating Residential and Commercial Environment and Automatic Control for Regulating Residential and Commercial
Appliances Environment and Appliance Manufacturing
3823 Industrial Instruments for Measurement, Display, and Control of Process Variables; Industrial Instrument for Measurement, Display, and Control of Process
and Related Products Variables; and Related Product Manufacturing
3824 Totalizing Fluid Meters and Counting Devices Totalizing Fluid Meter and Counting Device Manufacturing
3825 Instruments for Measuring and Testing of Electricity and Electrical Signals
Portable Instrument Transformers Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)
Except Portable Instrument Transformers Instruments for Measuring and Testing of Electricity and Electrical Signal
Manufacturing
3826 Laboratory Analytical Instruments Analytical Instrument Manufacturing
3829 Measuring and Controlling Devices, NEC
Medical Thermometers Surgical Appliance and Supply Manufacturing (pt) (Included in
Miscellaneous Manufacturing Subsector)
Except Medical Thermometers Other Measuring and Controlling Device Manufacturing
3842@ Orthopedic, Prosthetic, and Surgical Appliances and Supplies
Electronic Hearing Aids Electromedical and Electrotherapeutic Apparatus (pt.)
Other Surgical Appliance and Supply Manufacturing (pt.) (To be Included in
Miscellaneous Manufacturing subsector)
3844 X-Ray Apparatus and Tubes and Related Irradiation Apparatus X-Ray Apparatus and Tubes and Related Irradiation Apparatus
3845 Electromedical and Electrotherapeutic Apparatus Electromedical and Electrotherapeutic Apparatus (pt.)
3873 Watches, Clocks, Clockwork Operated Devices and Parts Watch, Clock, and Part Manufacturing (pt)
7372@ Prepackaged Software
Reproduction of Software Reproduction of Software
Other (Included in Information subsector)
7819@ Services Allied to Motion Picture Production
Reproduction of Video Prerecorded Compact Disk, Tape and Record Manufacturing (pt)
Other (Included in Services subsector)
Description of Changes to the U.S. System
A number of the changes listed in this section were made for reasons of
international comparability. Where one or more of the three North American countries
had different definitions of an industry classification, adjustments to the definitions in
one or more countries were required. In constructing NAICS, the three countries
agreed to move, where change was required to attain international comparability, in
the direction of the country or countries whose existing classification definitions most
closely corresponded to the production-oriented concept adopted for NAICS. Cases
where the U.S. changed are listed below; other cases where Canada Mexico moved
toward the U.S. classification are not, of course, listed in this section.
This is a new subsector for 1997. Computer and Electronic Product Manufacturing
is composed of industries from 1987 Major Group 35, Industrial Commercial
Machinery and Computer Equipment; 1987 Major Group 36, Electronic and Other
Electrical Equipment and Components, Except Computer Equipment; and 1987 Major
Group 38, Measuring, Analyzing and Controlling Instruments; Photographic, Medical
and Optical Goods; Watches and Clocks.
The following four complete industries were transferred into this subsector from
1987 Major Group 35, Industrial Commercial Machinery and Computer Equipment:
SIC 3571, Electronic Computers
SIC 3572, Computer Storage Devices
SIC 3575, Computer Terminals
SIC 3577, Computer Peripheral Equipment, NEC
The following twelve complete industries were transferred into this subsector from
1987 Major Group 36, Electronic and Other Electrical Equipment and Components,
Except Computer Equipment:
SIC 3651, Household Audio and Video Equipment
SIC 3661, Telephone and Telegraph Apparatus
SIC 3663, Radio and Television Broadcasting and Communication Equipment
SIC 3669, Communications Equipment, NEC
SIC 3671, Electron Tubes
SIC 3672, Printed Circuit Boards
SIC 3674, Semiconductors and Related Devices
SIC 3675, Electronic Capacitors
SIC 3676, Electronic Resistors
SIC 3677, Electronic Coils, Transformers, and Other Inductors
SIC 3678, Electronic Connectors
SIC 3695, Magnetic and Optical Recording Media
Eight complete industries were transferred into this subsector from 1987 Major
Group 38, Measuring, Analyzing and Controlling Instruments; Photographic, Medical
and Optical Goods; Watches and Clocks. Those industries are:
SIC 3812, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical
Systems and Instruments
SIC 3822, Automatic Controls for Regulating Residential and Commercial
Environments and Appliances
SIC 3823, Industrial Instruments for Measurement, Display, and Control of
Process Variables; and Related Products
SIC 3824, Totalizing Fluid Meters and Counting Devices
SIC 3826, Laboratory Analytical Instruments
SIC 3844, X-Ray Apparatus and Tubes and Related Irradiation Apparatus
SIC 3845, Electromedical and Electrotherapeutic Apparatus
SIC 3873, Watches, Clocks, Clockwork Operated Devices, and Parts
These 34 complete industries were transferred into this new subsector for one or
more of the following reasons: (1) the changes were in response to public requests; (2)
the changes were supported by similar processes; and (3) the changes produced
international comparability.
One industry, SIC 3825, Instruments for Measuring and Testing of Electricity and
Electrical Signals, moved in its entirety to this subsector, but was split; portable
instrument transformers to NAICS industry, Electronic Coil, Transformer, and Other
Inductor Manufacturing, and the rest going to NAICS industry, Instruments for
Measuring and Testing of Electricity and Electrical Signal Manufacturing.
Two new industries were formed from very similar activities that were formerly
partly included in manufacturing and partly in services.
Prerecorded Compact Disk, Except Software, Tape, and Record Manufacturing
was formed from part of 1987 SIC 3652, Phonograph Records and Prerecorded Audio
Tapes and Disks, and from part of 1987 SIC 7819, Services Allied to Motion Picture
Production.
Reproduction of Software was created from part of 1987 SIC 7372, Prepackaged
Software. The ECPC recognizes that some establishments combine the production of
prepackaged software and the production of other prerecorded compact disks, tapes,
and records and that the production process is often the same. Therefore, it may be
necessary to combine these activities into one industry. The ECPC requests specific
comments on this proposal. (The publishing portions of these three 1987 SIC
industries have been moved to the new NAICS Information sector.) These changes
are made in response to an industry proposal, to improve international comparability,
and to recognize that the production of prepackaged software is a manufacturing, not a
services, activity.
Eleven activities were transferred into 1997 Computer and Electronic Product
Manufacturing.
Point of sales terminals and fund transfer devices were transferred from 1987 SIC
3578, Calculating and Accounting Machines, Except Electronic Computers, into Other
Computer Peripheral Equipment Manufacturing, in response to a proposal from the
industry and to create a better production-oriented industry.
Time clocks and other time recording devices were transferred from 1987 SIC
3579, Office Machines, NEC, into Watch, Clock and Part Manufacturing. This
improves international comparability and is supported by similarity in production
processes.
Phonograph records and prerecorded audio tapes and disks, except record
publishing, were transferred from 1987 SIC 3652, Phonograph Records and
Prerecorded Audio Tapes and Disks, into Prerecorded Compact Disk, Tape, and
Record Manufacturing. This improves international comparability and is supported by
similarity in production processes.
Telephone and telegraph apparatus, except telephone transformers and consumer
external PC modems, were transferred from 1987 SIC 3661, Telephone and Telegraph
Apparatus, into Telephone Apparatus Manufacturing. This improves international
comparability and is supported by similarity in production processes.
The communication equipment formerly in 1987 SIC 3679, Electronic
Components, NEC, was transferred into Broadcast and Studio Equipment
Manufacturing for Radio, TV, and Cable. This improves international comparability
and is supported by similarity in production processes.
Other electronic components, including loaded printed circuit boards, were
transferred from 1987 SIC 3679, Electronic Components, NEC, into Other Electronic
Component Manufacturing. This improves international comparability and is
supported by similarity in production processes.
Other measuring and controlling devices, except medical thermometers, were
transferred from 1987 SIC 3829, Measuring and Controlling Devices, NEC, into Other
Measuring and Controlling Device Manufacturing. This improves international
comparability and is supported by similarity in production processes.
Bar code scanners were transferred from 1987 SIC 3699, Electrical Machinery,
Equipment and Supplies, NEC, into Other Computer Peripheral Equipment
Manufacturing. This improves international comparability and is supported by
similarity in production processes.
Reproduction of software was transferred from 1987 SIC 7372, Prepackaged
Software, into Reproduction of Software. This improves international comparability
and is supported by similarity in production processes.
Reproduction of video was transferred from 1987 SIC 7819, Services Allied to
Motion Picture Production, into Magnetic and Optical Media Manufacturing. This
improves international comparability and is supported by similarity in production
processes.
Clock and watch springs were transferred from 1987 SIC 3495, Wire Springs, into
Watch, Clock, and Part Manufacturing. This improves international comparability
with Mexico, Canada, and the ISIC.
There are 29 industries in this new subsector. For time series linkage 19 of the 29
1997 industries are comparable within three percent of the old 1987 industries.