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Part VI--Proposed New Industry Structure for Electrical Equipment,…
Tags: additional detail, american industry classification, component manufacturing, data users, digit level, electric lamp bulb, electric lighting, electrical appliance, electrical equipment, household appliance, industry classification system, industry structure, interested data, lighting equipment, lighting fixture, naics structure, north american industry classification system, north american industry classification system naics, number 9, structure xx,Pages: 15
Language: english
Created: Mon Jun 3 09:13:35 1996
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Part VI--Proposed New Industry Structure for Electrical Equipment, Appliance and
Component Manufacturing
Section A--NAICS Structure
North American Industry Classification System
(NAICS)
Agreement Number 9
This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following industries: Electrical Equipment,
Appliance and Component 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 August 30, 1995 - September 1, 1995 in Washington, D.C.
Accepted: Signature Date
Canada /S/ Jacob Ryten 9/1/95
Mexico /S/ Enrique Ordaz 9/1/95
United States /S/ Jack E. Triplet 9/1/95
ATTACHMENT 1--NAICS STRUCTURE
XX Electrical Equipment, Appliance, and Component Manufacturing
XXX Electric Lighting, Equipment and Sign Manufacturing
XXXX Electric Lamp Bulb and Part Manufacturing
XXXX Electric Sign and Lighting Fixture Manufacturing
XXX Household Appliance Manufacturing
XXXX Small Electrical Appliance Manufacturing
XXXX Major Appliance Manufacturing
XXX Electrical Equipment Manufacturing
XXXX Electrical Equipment Manufacturing
XXX Other Electrical Equipment and Component Manufacturing
XXXX Accumulator and Battery Manufacturing
XXXX Communication and Energy Wire Manufacturing
XXXX Accessories and Conductors for Carrying Current Manufacturing
XXXX All Other Electrical Equipment and Component Manufacturing
Attachment 2--North American Industry Classification System
Draft Classification for:
Electrical Equipment, Appliance and Component Manufacturing
Representatives of the statistical agencies of Canada, Mexico, and the United States agree
to a draft industrial classification for these industries.
This draft classification applies to the subsector, Electrical Equipment, Appliance and
Component Manufacturing. This subsector is sub-divided into four industry groups and nine
industries. This subsector is part of the Manufacturing sector.
A General Outline
The Electrical Equipment, Appliance and Component Manufacturing industries create
products that generate, distribute and use electrical power. While establishments classified in
many parts of manufacturing make products that use electricity, the manufacture of electric
lighting equipment and signs and household appliances require particular attention to the
application of electricity. That is the reason for their inclusion in this subsector.
Electrical Equipment Manufacturing establishments produce goods that generate and
distribute electrical power, or that are made with similar production technology, such as
motors, generators, transformers and switchgear apparatus. Other Electrical Equipment and
Component Manufacturing establishments produce devices for storing electrical power
(e.g., accumulators), for transmitting electricity (e.g., insulated wire), and accessories for
carrying current. Activities in both Electrical Equipment Manufacturing and Other Electrical
Equipment and Component Manufacturing industry groups all involve the manufacture of
machinery for the generation and distribution of power.
Limitations and Constraints of the Classification
In the Electrical Equipment, Appliance and Component Manufacturing subsector, most
activities identified in one country exist in the others. The way activities are combined in
establishments differs to some extent in the different countries. For example, Canada cannot
separate the manufacturing of household cooking equipment from refrigerators and freezers
because these activities are often combined in Canadian establishments. Often an activity is
not economically significant to the same degree in all countries. For example, size constraints
in Canada prohibit separating the manufacture of batteries from accumulators. For those
reasons, some NAICS industries in this subsector are broader than would be desirable in a
system that distinguishes as does NAICS among production processes. Each country will
publish additional categories that comprise subdivisions of NAICS industries to present data
for activities that are nationally significant.
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 comparability of these statistics.
Relationship to ISIC
Most of the NAICS four-digit industries created in this subsector can be assigned to
Division 28, Manufacture of Fabricated Metal Products, Except Machinery and Equipment or
Division 31, Manufacture of Electrical Machinery and Apparatus, nec of the current
International Standard Industrial Classification of all Economic Activities (ISIC, Revision 3)
of the United Nations. Therefore, data tabulated using NAICS can readily be re-tabulated
according to ISIC with the following exception: NAICS industry, All Other Electrical
Equipment and Component Manufacturing includes non-electrical products of graphite or
carbon because those nonelectrical products are made in the same establishments as electrical
graphite and carbon products. In ISIC, this activity is included in Division 26, Manufacture
of Other Non-Metallic Mineral Products.
Some Changes to the National Classifications
For Canada, the Electrical Equipment, Appliance and Component Manufacturing
subsector is part of the existing Canadian classification's Electrical and Electronic Products
Industries major group. A large part of that major group will form part of the new NAICS
Computer and Electronic Product Manufacturing subsector. As well, establishments that
draw wire and insulate it are classified in Primary Metal Manufacturing in NAICS. This
subsector includes electric signs that are classified in Miscellaneous Manufacturing in the
current Canadian classification. The structures of the NAICS and Canadian classifications are
similar. There are fewer industries in NAICS, but national industries will provide the same
level of detail as before.
For Mexico, the Electrical Equipment, Appliance and Component Manufacturing
subsector includes many of the activities currently in the Mexican classification's
Manufacture and Assembly of Machinery, Equipment and Electrical Accessories and
Manufacture and Assembly of Electric and Non-Electric Appliances and Accessories for
Home Use. However, NAICS includes the manufacturing of turbines and some engines in
Machinery Manufacturing, rather than in electrical machinery and it classifies electrical
apparatus for transportation equipment in Transportation Equipment Manufacturing. The
structure of the NAICS subsector is not similar to that of the corresponding areas of the
Mexican classification. There are fewer industries in NAICS, but national industries will
provide the same level of detail as before.
For the United States, a major change to the structure encompasses the transfer of twelve
industries out of the existing 1987 SIC major group, Electronic and Other Electrical
Equipment and Components Except Computer Equipment, to the proposed new NAICS
subsector, Computer and Electronic Product Manufacturing. The industries moved are those
that manufacture electronic components such as printed circuit boards and semiconductors
and related devices. Two industries that produce electrical equipment/components for motor
vehicles, aircraft etc. have been moved to the Transportation Equipment Manufacturing
subsector.
Additional changes for the United States for this subsector include moving the
manufacture of electric signs from the Miscellaneous Manufacturing subsector and the
creation of a new industry from the Primary Metal Manufacturing subsector for the
manufacture of insulated wire and cable from purchased wire. The relocation of insulated
wire from Primary Metal Manufacturing to the Electrical Equipment, Appliance and
Component Manufacturing subsector is a significant improvement of the classification with
respect to the production principle as it now allows for a distinction between establishments
that first draw wire and then insulate it and those that only insulate.
Achievement of Objectives
The classification meets the objectives for the North American Industry Classification
System (NAICS). It is comprised of industries that group establishments with similar
production processes, that is, it applies the production-oriented economic concept. In the
main, the hierarchical structure of the classification also follows the production concept.
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.
Other objectives of the NAICS project are not as relevant in this area of the classification
as in others. These objectives are the delineation of new and emerging industries, service
industries, and industries engaged in the production of advanced technologies. The industrial
sector in question is relatively mature, generally produces goods, and employs relatively
stable technology. Therefore, the emphasis is on the objectives listed above.
The industries have high specialization ratios, and they are economically significant. The
detail and structure of the classification are balanced in size. This enhances the
classification's suitability for sampling, data-publishing and other aspects of survey
operations. Finally, disruptions to time series, while they exist, have been minimized. The
statistical agencies can develop statistical "links", to enable the re-tabulation of time series on
the new NAICS classification structure.
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 three NAICS industry subsectors presented in Part 1, 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 I 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 1987 SIC description
1997 NAICS and U.S. description code code
XX Electrical Equipment, Appliance and Component
Manufacturing
XXX Electric Lighting Equipment and Sign Manufacturing
XXXX Electric Lamp Bulb and Part Manufacturing E 3641 Electric Lamp Bulbs and Tubes
XXXX Electric Sign and Lighting Fixture Manufacturing
XXXXX Electric Sign Manufacturing N *3993 Signs and Advertising Specialties (Electric
signs)
XXXXX Residential Electric Lighting Fixture Manufacturing E 3645 Residential Electric Lighting Fixtures
*3999 Manufacturing Industries, NEC (Lamp shades of
paper or textile)
XXXXX Commercial, Industrial, and Institutional Electric E 3646 Commercial, Industrial, and Institutional Electric
Lighting Fixture Manufacturing Lighting Fixtures
XXXXX Other Lighting Equipment Manufacturing R 3648 Lighting Equipment, NEC
*3699 Electrical Machinery, Equipment, and Supplies,
NEC (Christmas tree lighting sets and electric
insect lamps)
XXX Household Appliance Manufacturing
XXXX Small Electrical Appliance Manufacturing
XXXXX Electric Housewares and Fan Manufacturing R *3634 Electric Housewares and Fans (Except wall and
baseboard heating units for permanent
installation)
XXXXX Household Vacuum Cleaner Manufacturing R 3635 Household Vacuum Cleaners
*3639 Household Appliances, NEC (Floor waxing and
floor polishing machines)
XXXX Major Appliance Manufacturing
XXXXX Household Cooking Appliance Manufacturing E 3631 Household Cooking Equipment
XXXXX Household Refrigerator and Home and Farm R *3585 Refrigeration and Heating Equipment (Water
Freezer Manufacturing Coolers)
3632 Household Refrigerators and Home and Farm
Freezers
XXXXX Household Laundry Equipment Manufacturing E 3633 Household Laundry Equipment
XXXXX Other Household Appliance Manufacturing R *3639 Household Appliances, NEC (Except floor
waxing and floor polishing machines, and
household sewing machines)
XXX Electrical Equipment Manufacturing
XXXX Electrical Equipment Manufacturing
XXXXX Power, Distribution and Specialty Transformer R *3548 Electrical and Gas Welding and Soldering
Manufacturing Equipment (Transformers for arc-welders)
3612 Power, Distribution, and Specialty Transformers
XXXXX Switchgear and Switchboard Apparatus E 3613 Switchgear and Switchboard Apparatus
Manufacturing
XXXXX Motor and Generator Manufacturing E 3621 Motors and Generators
XXXXX Relay and Industrial Control Manufacturing E 3625 Relays and Industrial Controls
XXX Other Electrical Equipment and Component Manufacturing
XXXX Accumulator and Battery Manufacturing
XXXXX Storage Battery Manufacturing E 3691 Storage Batteries
XXXXX Dry and Wet Primary Battery Manufacturing E 3692 Primary Batteries, Dry and Wet
XXXX Communication and Energy Wire Manufacturing
XXXXX Fiber Optic Cable Manufacturing N *3357 Drawing and Insulating of Nonferrous Wire
(Fiber Optic Cable-Insulating Only)
XXXXX Other Communication and Energy Wire N *3357 Drawing and Insulating of Nonferrous Wire
Manufacturing (Except Fiber Optic-Insulating Only)
XXXX Accessories and Conductors for Carrying Current
Manufacturing
XXXXX Current-Carrying Wiring Device Manufacturing E 3643 Current-Carrying Wiring Devices
XXXXX Noncurrent-Carrying Wiring Device Manufacturing E 3644 Noncurrent-Carrying Wiring Devices
XXXX All Other Electrical Equipment and Component
Manufacturing
XXXXX Carbon and Graphite Product Manufacturing E 3624 Carbon and Graphite Products
XXXXX All Other Electrical Industrial Equipment and Supply R 3629 Electrical Industrial Apparatus, NEC
Manufacturing
*3699 Electrical Machinery, Equipment, and Supplies,
NEC (Other electrical industrial apparatus)
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
3612 Power, Distribution, and Specialty Transformers Power, Distribution, and Specialty Transformer Manufacturing (pt)
3613 Switchgear and Switchboard Apparatus Switchgear and Switchboard Apparatus Manufacturing
3621 Motors and Generators Motor and Generator Manufacturing
3624 Carbon and Graphite Products Carbon and Graphite Product Manufacturing
3625 Relays and Industrial Controls Relay and Industrial Control Manufacturing
3629 Electrical Industrial Apparatus, NEC All Other Electrical Industrial Equipment and Supply Manufacturing (pt)
3631 Household Cooking Equipment Household Cooking Appliance Manufacturing
3632 Household Refrigerators and Home and Farm Freezers Household Refrigerator and Home and Farm Freezer Manufacturing (pt)
3633 Household Laundry Equipment Household Laundry Equipment Manufacturing
3634 Electric Housewares and Fans
Heating, cooking, and other electric housewares including Electric Housewares and Fan Manufacturing (pt)
fans
Wall and baseboard heating units for permanent installation Heating Equipment Manufacturing, Except Electric and Warm Air
Furnaces (Included in Machinery Manufacturing subsector)
3635 Household Vacuum Cleaners Household Vacuum Cleaner Manufacturing (pt)
3639 Household Appliances, NEC
Floor waxing and floor polishing machines Household Vacuum Cleaner Manufacturing (pt)
Household sewing machines All Other Industrial Machinery Manufacturing (pt) (Included in
Machinery Manufacturing subsector)
Other household appliances Other Household Appliance Manufacturing (pt)
3641 Electric Lamp Bulbs and Tubes Electric Lamp Bulb and Part Manufacturing
3643 Current-Carrying Wiring Devices Current-Carrying Wiring Device Manufacturing
3644 Noncurrent-Carrying Wiring Devices Noncurrent-Carrying Wiring Device Manufacturing
3645 Residential Electric Lighting Fixtures Residential Electric Lighting Fixture Manufacturing
3646 Commercial, Industrial, and Institutional Electric Lighting Commercial, Industrial, and Institutional Electric Lighting Fixture
Fixtures Manufacturing
3647 Vehicular Lighting Equipment Vehicular Lighting Equipment Manufacturing (Included in
Transportation Equipment Manufacturing subsector)
3648@ Lighting Equipment, NEC Other Lighting Equipment Manufacturing (pt)
3651 Household Audio and Video Equipment Audio and Video Equipment Manufacturing (Included in Computer and
Electronic Product Manufacturing subsector)
3652 Phonograph Records and Prerecorded Audio Tapes and Disks
Record publishing Record Production (pt) (Included in new Information sector)
Integrated Record Companies (pt.) (Included in new Information sector)
Reproduction of recording media Prerecorded Compact Disc, Tape, and Record Manufacturing (Included in
Computer and Electronic Product Manufacturing subsector)
3661 Telephone and Telegraph Apparatus
Telephone and telegraph apparatus, except telephone Telephone Apparatus Manufacturing (Included in Computer and
transformers, and consumer external modems Electronic Product Manufacturing subsector )
Telephone transformers Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)
(Included in Computer and Electronic Product Manufacturing subsector)
Consumer external modems Other Electronic Component Manufacturing (pt) (Included in Computer
and Electronic Product Manufacturing subsector)
3663 Radio and Television Broadcasting and Communication Broadcast and Studio Equipment Manufacturing for Radio, TV, and
Equipment Cable (pt) (Included in Computer and Electronic Product Manufacturing
subsector)
3669 Communications Equipment, NEC Other Communication Equipment Manufacturing (Included in Computer
and Electronic Product Manufacturing subsector)
3671 Electron Tubes Electron Tube Manufacturing (Included in Computer and Electronic
Product Manufacturing subsector)
3672 Printed Circuit Boards Printed Circuit Board Manufacturing (Included in Computer and
Electronic Product Manufacturing subsector)
3674 Semiconductors and Related Devices Semiconductor and Related Device Manufacturing (Included in Computer
and Electronic Product Manufacturing subsector)
3675 Electronic Capacitors Electronic Capacitor Manufacturing (Included in Computer and
Electronic Product Manufacturing subsector)
3676 Electronic Resistors Electronic Resistor Manufacturing (Included in Computer and Electronic
Product Manufacturing subsector)
3677 Electronic Coils, Transformers, and Other Inductors Electronic Coil, Transformer, and Other Inductor Manufacturing (pt)
(Included in Computer and Electronic Product Manufacturing subsector)
3678 Electronic Connectors Electronic Connector Manufacturing (Included in Computer and
Electronic Product Manufacturing subsector)
3679 Electronic Components, NEC
Electronic control modular chips for motor vehicles Motor Vehicle Electrical and Electronic Equipment Manufacturing (pt)
(Included in Transportation Equipment Manufacturing subsector)
Communication equipment Broadcast and Studio Equipment Manufacturing for Radio, TV and Cable
(Included in Computer and Electronic Product Manufacturing subsector)
Other electronic components Other Electronic Component Manufacturing (pt) (Included in Computer
and Electronic Product Manufacturing subsector)
3691 Storage Batteries Storage Battery Manufacturing
3692 Primary Batteries, Dry and Wet Dry and Wet Primary Battery Manufacturing
3694 Electrical Equipment for Internal Combustion Engines Motor Vehicle Electrical and Electronic Equipment Manufacturing (pt)
(Included in Transportation Equipment Manufacturing subsector)
3695 Magnetic and Optical Recording Media Magnetic and Optical Recording Media Manufacturing (pt) (Included in
Computer and Electronic Product Manufacturing subsector)
3699@ Electrical Machinery, Equipment, and Supplies, NEC
Christmas tree lighting sets and electric insect lamps Other Lighting Equipment Manufacturing (pt)
Bar code scanners Other Computer Peripheral Equipment Manufacturing (pt) (Included in
Computer and Electronic Product Manufacturing subsector)
Electric outboard motors Other Engine Manufacturing (pt) (Included in Machinery Manufacturing
subsector)
Flight simulators and electronic teaching machines Other Commercial and Service Industry Machinery Manufacturing (pt)
(Included in Machinery Manufacturing subsector)
Lasers Classified according to function
Other electrical machinery, equipment, and supplies All Other Electrical Industrial Equipment and Supply Manufacturing (pt)
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 or Mexico moved
toward the U.S. classification are not, of course, listed in this section.
Three new industries were added to the 1997 industry structure for this subsector.
Electric Sign Manufacturing from part of 1987 SIC Code 3993, Signs and
Advertising Specialties, to achieve international comparability. The U.S. and Canada
moved to match Mexico.
Fiber Optic Cable Manufacturing (not drawn) from part of 1987 SIC 3357,
Drawing and Insulating of Nonferrous Wire, for reasons of international comparability
and because of the highly specialized production processes involved, and because this
is a newly-emerging technology.
Other Communication and Energy Wire Manufacturing (insulating of only) from
part of 1987 SIC Code 3357, Drawing and Insulating of Nonferrous Wire, for
purposes of
international comparability and to better reflect production principles. The U.S.
moved to match Canada and Mexico.
Sixteen industries were transferred out of 1987 SIC Major Group 36, Electronic
and Other Electrical Equipment and Components, Except Computer Equipment. Of
the sixteen industries, twelve are included in 1997 NAICS Subsector, Computer and
Electronic Product Manufacturing, a new subsector; two transferred to NAICS
Subsector, Transportation Equipment Manufacturing; and two were divided into
several activities that were transferred into the 1997 NAICS Subsectors, Computer and
Electronic Product Manufacturing and Transportation Equipment Manufacturing; and
the new Information sector.
The following twelve industries were transferred to 1997 NAICS Subsector,
Computer and Electronic Product Manufacturing:
Household Audio and Video Equipment
Telephone and Telegraph Apparatus
Radio and Television Broadcasting and Communication Equipment
Communications Equipment, NEC
Electron Tubes
Printed Circuit Boards
Semiconductors and Related Devices
Electronic Capacitors
Electronic Resistors
Electronic Coils, Transformers, and Other Inductors
Electronic Connectors
Magnetic and Optical Recording Media.
Two industries were transferred from 1987 SIC Major Group 36, Electronic and
Other Electrical Equipment and Component, Except Computer Equipment, to 1997
NAICS Subsector, Transportation Equipment Manufacturing. They were 1987 SIC
3647, Vehicular Lighting Equipment, and 1987 SIC 3694, Electrical Equipment for
Internal Combustion Engines.
Record publishing moved from part of 1987 SIC 3652, Phonograph Records and
Prerecorded Audio Tapes and Disks, to the new NAICS Information sector. The
remaining activities were transferred to 1997 NAICS Subsector, Computer and
Electronic Product Manufacturing.
1987 SIC 3679, Electronic Components, NEC, was split three ways. One part,
electronic control modular chips for motor vehicles, was transferred to 1997 NAICS
Subsector, Transportation Equipment Manufacturing, and the other two parts,
communication equipment and other electronic components, moved to two separate
industries within 1997 NAICS Subsector, Computer and Electronic Product
Manufacturing.
Three activities transferred into the 1997 Electrical Equipment, Appliance and
Component subsector:
Transformers for arc-welders from part of 1987 SIC 3548, Electrical and Gas
Welding and Soldering Equipment, to Power, Distribution, and Specialty Transformer
Manufacturing, to achieve international comparability. Canada had this in CSIC
Major Group 33, Electrical and Electronic Products Industries.
Lamp shades of paper and textiles from part of 1987 SIC 3999, Manufacturing
Industries, NEC, to Residential Electric Lighting Fixture Manufacturing, to achieve
international comparability. Canada had lamp shades in CSIC MG 33, Electrical and
Electronic Products Industries.
Water coolers from part of 1987 SIC 3585, Refrigeration and Heating Equipment,
to Household Refrigerator and Home and Farm Freezer Manufacturing, to achieve
international comparability. The U.S. and Canada moved to match Mexico.
Also, several activities transferred within the Electrical Equipment, Appliance and
Component Manufacturing subsector. The number of electrical equipment, appliance
and component manufacturing industries decreased from 37 in 1987 to 23 in 1997.
Excluding the sixteen industries that were moved out of this subsector, all but 2 of the
22 remaining 1987 industries are comparable within three percent of the 1997
industries; both of the time series breaks involve splitting activities out of old NEC
categories.