Information about http://www.census.gov/epcd/naics/naics_19.pdf

Part IX--Proposed New Industry Structure for Wood Product…

Tags: additional detail, american industry classification, construction product, data users, digit level, furniture section, industry classification system, industry structure, interested data, jack e triplett, laminated wood, naics structure, north american industry classification system, north american industry classification system naics, number 19, sawmill, structure xx, wood construction, wood container, wood preservation,
Pages: 12
Language: english
Created: Mon Jun 3 10:10:52 1996
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Part IX--Proposed New Industry Structure for Wood Product Manufacturing, Except
Furniture

Section A--NAICS Structure

North American Industry Classification System

(NAICS)

Agreement Number 19

    This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following subsector:
Wood Product Manufacturing, Except Furniture
    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   Wood Product Manufacturing, Except Furniture
XXX       Sawmill Product and Wood Preservation Manufacturing
XXXX          Sawmill Product and Wood Preservation Manufacturing
XXX       Laminated Wood Product Manufacturing
XXXX          Laminated Wood Product Manufacturing
XXX       Other Wood Product Manufacturing
XXXX          Wood Construction Product Manufacturing
XXXX          Wood Container and Package Product Manufacturing
XXXX          All Other Wood Product Manufacturing

Attachment 2--North American Industry Classification System
Draft Classification for:
Wood Product Manufacturing, Except Furniture

    Representatives of the statistical agencies of Canada, Mexico, and the United States agree
to a draft industry classification for these industries.
    The draft classification provides for the subsector Wood Product Manufacturing, Except
Furniture. This subsector is further subdivided into three industry groups and five industries.

A General Outline

    The Wood Product Manufacturing, Except Furniture industries produce wood products
such as lumber, hardwood and softwood plywood and veneers, wood containers, wood
flooring and trusses, mobile homes, and prefabricated wood buildings.
    The production processes of the Wood Product Manufacturing, Except Furniture
industries include sawing, planing, shaping, laminating and sometimes assembly of wood,
starting from logs that are cut into bolts, planks, or boards that then may be further cut, or
shaped by lathes or other shaping tools. The boards or other shapes also may be subsequently
planed or smoothed, and assembled into finished products such as wooden containers.
    The Sawmill Product and Wood Preservation Manufacturing industries include
establishments whose production process begins with wooden logs that are then transformed
into boards, poles, ties, and beams. Establishments that process wood to prevent rotting by
impregnation with creosote or other chemical compounds also are included in this industry
group.
    The Laminated Wood Product Manufacturing industries include establishments that
produce hardwood and softwood plywood, particle board, oriented strand board, and glue
laminated wood products, including plywood covered with other materials such as plastic and
metals. Plywood and particle board products that are included in this industry group are
generally produced by a process involving high-pressure compression and through the use of
glues either in combination or separately.
    There are three NAICS industries in the Other Wood Product Manufacturing industry
group. The Wood Construction Product Manufacturing industry includes establishments that
manufacture doors, windows, closets, wall coverings, parquet flooring, staves, partitions, and
general products for woodwork. Excluded from this industry is the manufacture of wooden
houses and furniture.
    Establishments in the Wood Container and Package Product Manufacturing industries
manufacture products for packing and packaging, such as pallets, barrels, casks, crates, vats,
containers, jewelry boxes, and decorative and ornamental boxes.
    Finally, establishments in the All Other Wood Product Manufacturing industries produce
cork and cork products, manufactured wooden houses, plaiting materials, such as wicker,
reeds, etc., turned items, etc.

Limitations and Constraints of the Classification

   Developing an industry classification for Wood Product Manufacturing, Except Furniture
industries was difficult for the three countries. First, the wood industry in Mexico is small
and relatively unspecialized. Therefore the NAICS industries are quite aggregated to ensure
that information can be published in all three countries. For example, in Mexico the treatment
and preservation of wood generally takes place at sawmills as part of the production of poles
and ties. There are few establishments where it is the primary activity. Therefore, NAICS
combines these activities into one industry.
    Another factor that limited the formulation of classes in this subsector are differences in
climate among the three countries. The climate has led to higher levels of development and
specialization in the wood industry in the United States and Canada, particularly with regard
to construction and construction materials. Mexico does not grow hardwood trees. Each
country may, however, publish additional national industries that comprise subdivisions of
NAICS industries to present data for activities that are nationally significant.

Relationship to ISIC

    Most four-digit NAICS industries in this subsector are contained within Division 20,
Manufacture of Wood Products, of the current International Standard Industrial Classification
of all Economic Activities (ISIC, Revision 3) of the United Nations. The following NAICS
industry cannot be assigned to an ISIC Division: All Other Wood Product Manufacturing.
This industry includes the manufacture of wooden heels that are classified in ISIC Division
19, Manufacture of Leather, Leather Products, and Footwear. However, this is a very small
activity and should not significantly affect the comparability between this NAICS subsector
and ISIC Division 20.

Changes to the National Classifications

    The changes to the current national classifications were varied in nature. In some cases,
changes applied to all three countries while in others the changes affected only one or two of
the countries.
    For Canada, the major structural change entailed moving the production of building board
(CSIC 2714) to the Wood Product Manufacturing, Except Furniture subsector both to achieve
international comparability and to better meet the production process principle. CSIC 2542,
Kitchen Cabinet and Bathroom Vanities, was moved from the Canadian Wood major group to
better adhere to the production process, and ultimately to achieve three country comparability.
 In addition, sawmills were redefined to exclude wood and wood products made from
purchased lumber. Wooden coffins were moved from this subsector to Miscellaneous
Manufacturing because establishments tend to make this product from plastic and metal as
well as wood. Other structural changes for Canada, such as the movement of the
manufacture of wooden cigar cases and jewelry boxes, wooden boot and shoe heels,
billboards, and other wooden signs and cork gaskets, etc. are minor.
    For Mexico, the major change is the movement of wood furniture from CMAP Subsector,
Wood and Wood Products, Including Furniture, to the new NAICS Furniture Manufacturing
subsector. In the current Mexican structure, the manufacture of furniture is classified in
groups allocated to the type of input material, that is, wood, metal, plastic, etc. Furniture is
more and more being made of multiple materials and design is an important component of its
production process. Thus, a separate NAICS subsector was created for the manufacture of
furniture from all types of material.
    For the United States, the major change is the movement of 1987 SIC 2411, Logging,
from the Lumber and Wood Products, Except Furniture major group to the Forestry and
Logging subsector. The move was made to better meet production principles, and to match
Canada's and Mexico's classification of this activity. Another important structural change
was to move the manufacture of 1987 SIC 2434, Wood Kitchen Cabinets, from this group to
the NAICS Furniture Manufacturing subsector for production principles. The manufacture of
wooden chair frames was also moved from here to the Furniture Manufacturing subsector to
reach international comparability. Other structural changes include the movement of cork
gaskets, wood heels, wood signs, and burnt wood articles to this group from various other
manufacturing subsectors.

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.
    The industries have high specialization ratios, and they are economically significant. The
NAICS industries are large aggregations, but this was necessitated by the considerations
discussed above under Limitations and Constraints of the Classification. The classification is
suitable for sampling, data-publishing, and other aspects of survey operations. Finally, while
disruptions to time series exist, they are not generally significant. The statistical agencies can
develop statistical "links," to enable the re-tabulation of time series on the 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 IX, 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 industry subsector
covered in Part IX 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 and U.S. description                                                          code                  code        1987 SIC description

  XX                Wood Product Manufacturing, Except Furniture
  XXX                Sawmill Product and Wood Preservation Manufacturing
  XXXX                 Sawmill Product and Wood Preservation Manufacturing
  XXXXX                  Sawmills and Planing Mills                                        R                     2421        Sawmills and Planing Mills, General
                                                                                                                 2429        Special Product Sawmills, NEC
  XXXXX                   Wood Preserving                                                  E                     2491        Wood Preserving
  XXX                 Laminated Wood Product Manufacturing
  XXXX                  Laminated Wood Product Manufacturing
  XXXXX                   Hardwood Veneer and Plywood Manufacturing                        E                    2435         Hardwood Veneer and Plywood
  XXXXX                   Softwood Veneer and Plywood Manufacturing                        E                    2436         Softwood Veneer and Plywood
  XXXXX                   Structural Wood Member Manufacturing, Except Trusses             R                   *2439         Structural Wood Members, NEC (except trusses)
  XXXXX                   Reconstituted Wood Product Manufacturing                         E                    2493         Reconstituted Wood Products
  XXX                 Other Wood Product Manufacturing
  XXXX                  Wood Construction Product Manufacturing
  XXXXX                   Hardwood Dimension Mills                                         R                   *2426         Hardwood Dimension and Flooring Mills (except flooring)
  XXXXX                   Wood Window and Door Manufacturing                               N                   *2431         Millwork
  XXXXX                   Other Millwork Manufacturing, Including Flooring                 R                   *2426         Hardwood Dimension and Flooring Mills (hardwood flooring)
                                                                                                               *2431         Millwork
  XXXXX                  Truss Manufacturing                                               N                   *2439         Structural Wood Members, NEC (trusses)
  XXXX                  Wood Container and Package Product Manufacturing
  XXXXX                  Wood Container and Package Product Manufacturing                  N                    2441         Nailed and Lock Corner Wood Boxes and Shook
                                                                                                                2448         Wood Pallets and Skids
                                                                                                                2449         Wood Containers, NEC
                                                                                                               *2499         Wood Products, NEC (wood tubs and vats, jewelry and cigar boxes)

  XXXX                  All Other Wood Product Manufacturing
  XXXXX                   Manufactured Homes, (Mobile) Manufacturing                       E                    2451         Mobile Homes
  XXXXX                   Prefabricated Wood Building and Component Manufacturing          E                    2452         Prefabricated Wood Buildings and Components
  XXXXX                   Other Wood Product Manufacturing                                 R                   *2426         Hardwood Dimension and Flooring Mills (wood stock and turnings)

                                                                                                               *2499         Wood Products, NEC (other wood products)
                                                                                                               *3053         Gaskets, Packing, and Sealing Devices (cork gaskets, packaging,
                                                                                                                             and sealing devices)

                                                                                                               *3131         Boot and Shoe Cut Stock and Findings (wood heels)
*3993   Signs and Advertising Specialties (wood signs)
                                                                                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

2411                    Logging                                                           Logging Operations (Included in Support Activities for Forestry subsector)
2421@                   Sawmills and Planing Mills, General                               Sawmills and Planing Mills (pt)
2426 @                  Hardwood Dimension and Flooring Mills
                          Hardwood Flooring                                               Millwork Manufacturing, Including Flooring (pt)
                          Wood Stock and Turnings                                         Other Wood Product Manufacturing (pt)
                          Office Chair Frames                                             Wood Office Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector)

                          Chair Frames for Nonupholstered Furniture (Household)           Wood Household Furniture Manufacturing, Except Upholstered (pt) (Included in Furniture
                                                                                          Manufacturing subsector)

                          Chair Frames for Upholstered Furniture (Household)              Upholstered Wood Household Furniture Manufacturing (pt) (Included in Furniture
                                                                                          Manufacturing subsector)

                          Other Hardwood Dimension Except Flooring                        Hardwood Dimension Mills
2429@                   Special Product Sawmills, NEC                                     Sawmills and Planing Mills (pt)
2431@                   Millwork
                          Wood Window and Door Manufacturing                              Other Millwork Manufacturing, Including Flooring (pt)
2434                    Wood Kitchen Cabinets                                             Wood Kitchen Cabinet Manufacturing (Included in Furniture Manufacturing subsector)
2435                    Hardwood Veneer and Plywood                                       Hardwood Veneer and Plywood Manufacturing
2436                    Softwood Veneer and Plywood                                       Softwood Veneer and Plywood Manufacturing
2439@                   Structural Wood Members, NEC
                          Except Trusses                                                  Structural Wood Member Manufacturing, Except Trusses
                          Trusses                                                         Truss Manufacturing

2441                    Nailed and Lock Corner Wood Boxes and Shook                       Wood Containers and Package Product Manufacturing (pt)
2448                    Wood Pallets and Skids                                            Wood Containers and Package Product Manufacturing (pt)
2449                    Wood Containers, NEC                                              Wood Containers and Package Product Manufacturing (pt)
2451                    Mobile Homes                                                      Manufactured Homes, (Mobile) Manufacturing
2452                    Prefabricated Wood Buildings and Components                       Prefabricated Wood Building and Component Manufacturing
2491                    Wood Preserving                                                   Wood Preserving
2493                    Reconstituted Wood Products                                       Reconstituted Wood Product Manufacturing
2499                    Wood Products, NEC
                          Wood Tubs and Vats, Jewelry and Cigar Boxes                     Other Wood Container Manufacturing (pt)
                          Wood Laundry Hampers                                            Household Wood Furniture Manufacturing, Except Upholstered (pt) (Included in Furniture
                                                                                          Manufacturing subsector)
          Laundry Hampers Made from Rattan, Reed or Willow   Other Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector)
          Mirror and Picture Frames                          All Other Miscellaneous Manufacturing (pt) (To Be Included in Miscellaneous
                                                             Manufacturing subsector)

          Other Wood Products                                Other Wood Product Manufacturing (pt)
3053@   Gaskets, Packing, and Sealing Devices
          Cork Gaskets, Packing, and Sealing Devices         Other Wood Product Manufacturing (pt)
          Metal Gaskets, Packing, and Sealing Devices        Other Miscellaneous Fabricated Metal Product Manufacturing (pt) (Included in Fabricated
                                                             Metal Product Manufacturing subsector)

          Plastics Gaskets, Packing, and Sealing Devices     All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product
                                                             Manufacturing subsector)

          Rubber Gaskets, Packing, and Sealing Devices       All Other Rubber Product Manufacturing (pt) (Included in Rubber and Plastic Product
                                                             Manufacturing subsector)

3131@   Boot and Shoe Cut Stock and Findings
          Wood Heels                                         Other Wood Product Manufacturing (pt)
          Metal Buckles                                      Fastener, Button, Needle, and Pin Manufacturing (pt) (To be Included in Miscellaneous
                                                             Manufacturing subsector)

          Other Footwear Cut Stock                           Miscellaneous Leather and Allied Product Manufacturing (pt) (Included in Leather and
                                                             Allied Product Manufacturing subsector)



3993@   Signs and Advertising Specialties
          Wood Signs                                         Other Wood Product Manufacturing (pt)
          Electric Signs                                     Electric Sign Manufacturing (Included in Electrical Equipment, Appliance, and Component
                                                             Manufacturing subsector)

          Metal Signs                                        All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal
                                                             Product Manufacturing subsector)

          Flexographic Printing of Advertising Specialties   Commercial Flexographic Printing (pt) (Included in Printing and Related Support Activities
                                                             subsector)

          Gravure Printing of Advertising Specialties        Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities
                                                             subsector)

          Lithographic Printing of Advertising Specialties   Commercial Lithographic Printing (pt) (Included in Printing and Related Support Activities
                                                             subsector)

          Screen Printing of Advertising Specialties         Commercial Screen Printing (pt) (Included in Printing and Related Support Activities
                                                             subsector)
         Other Printing of Advertising Specialties               Other Commercial Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

3999   Manufacturing Industries, NEC
        Burnt Wood Articles                                      Other Wood Product Manufacturing (pt)
        Beauty and Barber Chairs                                 Metal Office and Public Building Furniture Manufacturing (pt) (Included in Furniture
                                                                 Manufacturing subsector)

         Fur Bleaching, Currying, Scraping, Tanning and Dyeing   Leather and Hide Tanning and Finishing Manufacturing (pt) (Included in Leather and Allied
                                                                 Product Manufacturing subsector)

         Lamp Shades of Paper and Textile                        Other Lighting Equipment Manufacturing (pt) (Included in Electrical Equipment,
                                                                 Appliance, and Component Manufacturing subsector)

         Matches                                                 Other Miscellaneous Chemical Product Manufacturing (pt) (Included in Chemical Product
                                                                 Manufacturing subsector)

         Metal Products, Such As Combs, Hair Curlers, Etc.       All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal
                                                                 Product Manufacturing subsector)

         Plastics Products, Such As Combs, Hair Curlers, Etc.    All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product
                                                                 Manufacturing subsector)

         Flexographic Printing Eyeglass Frames for the Trade     Commercial Flexographic Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

         Gravure Printing Eyeglass Frames for the Trade          Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

         Lithographic Printing Eyeglass Frames for the Trade     Commercial Lithographic Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

         Screen Printing Eyeglass Frames for the Trade           Commercial Screen Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

         Other Printing Eyeglass Frames for the Trade            Other Commercial Printing (pt) (Included in Printing and Related Support Activities
                                                                 subsector)

         Tape Measures                                           Hand and Edge Tool Manufacturing (pt) (Included in Fabricated Metal Product
                                                                 Manufacturing subsector)

         Other                                                   All Other Miscellaneous Manufacturing (pt) (To Be Included in Miscellaneous
                                                                 Manufacturing subsector)
Description of Changes to the U.S. System

    A number of 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 or Mexico moved toward the
U.S. classification are not, of course, listed in this section.
    Two new industries were added to the 1997 industry structure for this industry
subsector. Truss Manufacturing was created from part of 1987 SIC 2439, Structural
Wood Members, NEC. This change was in response to an industry proposal and also
groups similar production processes together.
    Wood Window and Door Manufacturing was created from part of 1987 SIC 2431,
Millwork. The change was in response to an industry proposal, and conforms to
production concepts.
    Two complete industries were transferred out of 1987 Major Group 24, Lumber
and Wood Products.
    1987 SIC 2411, Logging, was transferred into the Support Activities for Forestry
subsector. This change was necessary to align the U.S. classification with Canada and
Mexico, and because logging is not a production process that is similar to the
manufacture of wood products from logs.
    1987 SIC 2484, Wood Kitchen Cabinets, was transferred into the Furniture
Manufacturing subsector. This change reflects production processes that are
essentially identical with those for furniture.
    Three activities were transferred out of 1987 Major Group Lumber and Wood
Products.
    Wood chair frames and wood chair seats were transferred from 1987 SIC 2426,
Hardwood Dimension and Flooring Mills, to (1) Wood Office Furniture
Manufacturing, (2) Wood Household Furniture Manufacturing, and (3) Upholstered
Wood Household Furniture Manufacturing. This change was necessary to align the
U.S. classification with Canada and Mexico.
    Laundry hampers were transferred from 1987 SIC 2499, Wood Products, NEC,
and placed by component material in their respective industries within the Furniture
Manufacturing subsector. This change was necessary to align the U.S. classification
with Canada and Mexico.
    Mirror and picture frames were transferred 1987 SIC 2499, Wood Products, NEC,
into the All Other Miscellaneous Manufacturing subsector. This change promotes
international comparability with Canada and reflects similar production functions
regardless of material.
    Four activities were transferred into the Wood Product Manufacturing, Except
Furniture subsector.
    Cork gaskets were transferred 1987 SIC 3053, Gaskets, Packing and Sealing
Devices, into Other Wood Product Manufacturing. This change promotes
international comparability with Mexico, and reflects similar production functions
regardless of material.
    Wood heels were transferred from 1987 SIC 3131, Boot and Shoe Cut Stock and
Findings, into Other Wood Product Manufacturing. This change promotes
international comparability with Mexico, while reflecting similar production functions.
    Wood signs were transferred from 1987 SIC 3993, Signs and Advertising
Specialities, into Other Wood Product Manufacturing. This change promotes
international comparability with Mexico, while reflecting similar production functions.
    Burnt wood articles were transferred from 1987 SIC 3999, Manufacturing
Industries, NEC, into Other Wood Product Manufacturing. This change was necessary
to align the U.S. classification with Canada and Mexico.
    Also several activities were transferred within the Lumber and Wood Products
Major Group. The number of industries decreased from 17 in 1987 to 14 in 1997. For
time series linkage 11 of the 17 1987 industries are comparable within the three
percent of the 1997 industries.