1. Introduction

Outline

2. Establishments Covered in the Annual Survey 3. Sources of Coverage and Description of the Annual Survey Sample

4. Canvassing Method Used in the Annual Survey 5. The Annual Survey Establishment Report Form 6. Classification of Establishments by Industries 7. Coordination of Census-BOASI Employment Data

8. Employment, Man-Hours, and Payroll Data in the Annual Survey

9. Material Costs, Inventories, and Value of Products Shipped

10. Expenditures for New Plant and New Equipment 11. Metals Consumed in Metalworking Industries 12. Fuels, Electric Energy, and Water Use

13. Estimating Procedures Used in the 1953 Annual Survey

14. Qualifications of the Published Data

15. Disclosure of Data for Individual Companies 16. Statistics for Selected Individual Products

1. Introduction

The results of the 1953 Annual Survey of Manufactures are shown in this publication. Comparative data are included from the 1952 Annual Survey and from the 1947 Census of Manufactures. (All of the tables in Part I, Chapters II through V of the volume, have already appeared as separate advance releases in the 1953 Annual Survey of Manufactures reports: MAS-53-Series, beginning with August 1954.)

This volume is the fourth in the Annual Survey of Manufactures publication series. The previous three volumes covered the years 1952, 1951, and 1949-1950, respectively.

The annual survey is an integral part of an industrial statistics program which reached its present development following the passage of legislation by the Congress which shifted the Census of Manufactures from a biennial to a quinquennial basis. There is general agreement that a complete and comprehensive census every five years, combined with intercensal annual plant surveys, current commodity surveys, and comparable county employment data (developed jointly by the

and Survivors Insurance), constitute a more efficient means of satisfying the needs of business and government for industrial statistics than a biennial census program. (Manufacturing activities in 1954 was covered by a complete Census of Manufactures. Its results are currently being assembled.)

The Annual Survey of Manufactures, which is based on a representative sample of manufacturing establishments, carries forward the general statistics of manufacturing activity (value added by manufacture, value of products shipped, cost of materials, fuels and electric energy used, employment, man-hours, payrolls, inventories, and capital expenditures), which are covered in detail in the Census of Manufactures. In addition, it fills important gaps in the Bureau's existing monthly, quarterly, and annual reports which cover selected manufactured products.

The annual survey is designed to yield estimates of general statistics for industry groups, important individual industries, geographic divisions and States, and for cross-tabulations of important major industry groups by division and by State. It also provides broad industrial and geographic totals for inventories, fuels, and capital expenditures, as well as United States totals for the more important classes of products shipped by manufacturing establishments. To meet the needs for small area manufacturing data, comparable county-by-industry group employment figures have been developed in the County Business Patterns series published jointly by the Bureau of the Census and the Bureau of Old-Age and Survivors Insurance.

The 1953 Annual Survey was conducted by the Bureau as one of several programs with funds provided by the Congress to conduct Spot checks" on business conditions and to furnish a background against which Federal agencies can measure the impact of the mobilization effort on all important segments of manufacturing.

The 1950-1952 annual surveys were undertaken with funds provided, in large part, through the National Production Authority. The first annual survey, covering 1949, was financed by money specifically appropriated by the Congress for this

2. Establishments Covered in the Annual Survey

a. Definition of Manufacturing Establishments:

Following previous census procedures, the annual survey data are collected on reports received from individual manufacturing establishments. The term "establishment' danotes a single plant or factory in which manufacturing operations are performed. The term is not necessarily identical with the business unit or company, which may consist of one or more establishments. A company that operates establishments in more than one county is generally required to submit a separate report for each location. Companies that are engaged in different lines of activity at the same general location are required to submit separate reports if these operations are large and distinctive in character. (See General Explanations," 1947 Census of Manufactures, Volume I, Section 5.)

Manufacturing production is usually carried on for the wholesale market, for transfer between plants of the same company, or for industrial users, rather than for direct sale to household consumers. Some manufacturers in a few industries, however, sell chiefly to household consumers, at retail prices, through the mails, through house-to-house routes, or through salesmen. Certain activities of service nature (china decorating, engraving, etc.), when performed primarily "for the trade,'' are included in manufacturing; when these activities are performed primarily for the household consumer, they are considered nonmanufacturing.

The scope of the annual surveys is identical with the Standard Industrial Classification System, with the following two minor exceptions:

(1) Manufacturing establishments with no paid employees were omitted from the surveys (except for certain jobbers which are described in (2) below). The exclusion of such establishments has virtually no effect on manufacturing statistics totals, except those relating to "number of establishments' (See "General Explanations, " 1947 Census of Manufactures, Volume I, Section 9.)

(2) Apparel and leather jobbers, who assign their materials to contract factories ("contractors") for fabrication, are covered in the annual survey although they are not classified as manufacturing establishments in the Standard Industrial Classification Manual. These establishments are included in order to obtain more complete data on: cost of materials consumed, value of products shipped, inventories, and value added by manufacture, for the manufacturing industries in which they are classified. The inclusion of these establishments has only very slight effect, however, on the figures for employment, payrolls, and man-hours.

The annual surveys include the following types of establishments, which, although included in the S. I. C. System, were omitted from the 1947 Census of Manufactures: (1) logging camps and logging contractors, and (2) sawmills which produce less than 200, 000 board feet of lumber a year.

Military arsenals, Navy Yards, Government printing plants, and other government owned and operated establishments, are not included in the annual survey. On the other hand, Governmentowned plants operated by private contractors are covered in the survey.

3. Sources of Coverage and Description of the Annual Survey Sample

Major changes from the previous Annual Survey samples were introduced for 1953. A new, independent sample was selected. It was enlarged to 52,000 establishments, compared with about 45,000 in the earlier years. The sampling plan was completely revised, and the selection was made from a newly defined sampling frame or universe. a. Earlier Annual Survey Samples:

The 1952 and earlier Annual Survey samples had been drawn chiefly from the 1947 Census list of manufacturers. In addition, Bureau of Old- Age and Survivors Insurance (BOASI) lists, of manufacturing companies reporting that they were starting new businesses or were hiring employees for the first time, were used in the earlier samples to cover new enterprises. "Successor" firms (i. e. new owners purchasing previously existing firms, firms re-organized as to legal form, and estates and receiverships) were also covered by associating the successors with those "predecessor' companies that had been selected originally for the sample.