1992 CENSUS OF CONSTRUCTION INDUSTRIES Introduction =>GENERAL The 1992 Census of Construction Industries covers all employer establishments (establishments with payroll) primarily engaged in contract construction or construction on their own account for sale as defined in the 1987 Standard Industrial Classification (SIC) Manual (see end of file). This industrial classification system has been developed by experts on classification in government and private industry under the guidance of the Office of Management and Budget and is in general use among government agencies and among organizations outside the government. Each establishment receiving a questionnaire was requested to report the percent of total dollar value of business done for each kind-of-business activity engaged in during 1992. This information was used for the computer assignment of appropriate industry classifications. During this work, various tests were also made using other data reported on the questionnaire. The proportion of construction work to total business was checked to verify that the establishment was primarily in construction. Also taken into consideration were the types of structures worked on during the year and the extent of work undertaken for other contractors. Construction establishments often engage in various construction activities. It is necessary, however, to assign a single industry code to the establishment based on its major activity. Therefore, the statistics shown for an industry reflect not only the primary activity of the establishments in the industry, but also their secondary activities. The industry reports, however, do present data on the extent of secondary activities. Prior to 1992, this census also included one industry classified in the Real Estate area, SIC 6552, Land Subdividers and Developers, Except Cemeteries. This industry is covered in the 1992 Census of Finance, Insurance, and Real Estate Industries. => Three Broad Types of Construction Activity General contractors in both the building and the heavy construction field usually assume responsibility for an entire construction project, but may subcontract to others all of the actual construction work or those portions of the project requiring special skills or equipment. Special trade contractors may work for general contractors, for other subcontractors, or may work directly for the owner of the property. Building construction by general contractors or by operative builders. General building contractors are primarily engaged in the construction of dwellings, office buildings, stores, farm buildings, and other building projects. Operative builders who build on their own account for sale are also included here. However, investment builders who build structures on their own account for rent are classified in Real Estate. Heavy construction general contractors. Heavy construction general contractors are primarily engaged in the construction of highways, bridges, pipelines, sewers and water lines, marine construction, power, and petro- chemical plants and other nonbuilding construction projects. Special trade contractors are classified in heavy construction if they are specifically engaged in the following activities: grading for highway and airport runways; guardrail construction; installation of highway signs; asphalt and concrete construction of roads, highways, streets and public sidewalks; trenching, cable laying; conduit construction; underwater rock removal; pipeline wrapping; or land clearing and leveling. Construction by other special trade contractors. These contractors include plumbers, painters, carpenters, electricians, brick layers, roofers, etc. For the most part, they perform their work at the site of construction, although they may also have shops where they perform work incidental to the job site. =>ESTABLISHMENT BASIS OF REPORTING The census of construction industries is conducted on an establishment basis. A "construction establishment" is defined as a relatively permanent office or other place of business where the usual business activities related to construction are conducted. With some exceptions, a relatively permanent office is one which has been established for the management of more than one project or job and which is expected to be maintained on a continuing basis. Such "establishment" activities include, but are not limited to estimating, bidding, purchasing, supervising, and operation of the actual construction work being conducted at one or more construction sites. Separate construction reports were not required for each project or construction site. Companies with more than one construction establishment were required to submit a separate report for each establishment operated during all or any part of 1992. The census of construction industries figures represent a summary of records for individual establishments rather than for companies. If an establishment was engaged in construction and one or more distinctly different lines of economic activity (wholesale or retail trade, service, manufacturing, mining, etc.) at the same place of business, it was requested to file a separate report for each activity, provided that the activity was of substantial size and separate records were maintained or substantially accurate estimates could be prepared. If a separate establishment report could not be prepared for each activity, then a construction report was requested covering all activities of that establishment providing that the 1992 value of construction work exceeded the gross receipts from each of its other activities. Construction businesses with no payroll during 1992 (nonemployers) were not required to file census reports. Tabulation of data for these businesses are based on administrative records and are shown only in U.S. Summary Files and the Geographic Area Files series. Refer to the file on "Methodology (CC92.MTH)" for details. Foreign construction activities were not included in this census. =>CENSUS REPORT FORMS Information for the 1992 Census of Construction Industries was obtained from employer establishments primarily through the use of 22 questionnaires, determined by industry classification and size. Standard forms and short forms were developed for each of the following SIC groups: 15, 16, 171, 172, 173, 174, 175, 176, 177, 178, and 179. Establishments with 1991 administrative payroll of $1,080,000 or more received the standard form. For those sample establishments with payroll under that amount, half received the standard form and half received the short form. The short forms covered only major items and omitted some of the detail found in the longer forms. In reviewing and developing the questionnaires, comments and recommendations were elicited from construction trade associations and appropriate advisory groups. Also, approximately 6,000 establishments in SIC's 1521, 1629, and 1799 were surveyed in the Census of Construction Industries 1989 Pretest. This survey consisted of four panels which received one of four experimental questionnaries and one panel which received the control questionnaire. Along with the questionnaire, these establishments received an evaluation questionnaire, which requested information about respondents' reactions to the questionnaire, problems in completing the questionnaire, and how long it took to complete the questionnaire. Results from the 1989 Pretest questionnaire are reflected as reworded questions, improved instructions and restructured value of business questions in the 1992 questionnaires. =>DATA PROCESSING The 1992 census report forms were mailed out in December 1992. They were mailed from and returned to the Census Bureau's Data Preparation Division in Jeffersonville, IN, where routine editing and coding of the report forms were also accomplished. Collection of these report forms was essentially completed in July 1993. The returned reports underwent extensive processing. A preliminary edit done at the time of data entry identified obviously deficient reports and reports needing clarification. When necessary, these problems were resolved by further contact with the respondents. Next, the data were transmitted to Census Bureau headquarters near Washington, DC. Data records, then, underwent a detailed computer review and analysis. The records containing significant problems were referred for further analytical review and, if necessary, contacts were made with the respondents. The computer performed most classification coding (such as industry coding, geographic coding, and size coding), and imputation for missing items or for reports not received in time for tabulation. The imputation was performed on an industry (or industry group) and State (or geographic group) basis using all available response and administrative data. The data records were then tabulated on an industry basis. Industry totals were subjected to analytical review, and selected statistics were prepared for the preliminary files. Corrections resulting from this review were made to the computer records and final tabulations were produced. The review of a preliminary file for an industry often uncovered the need for corrections or revisions to the data for another industry for which a preliminary file had already been produced. The final files incorporate all revisions and corrections made during the review of the preliminary files and contain considerable more data than were produced in those files. =>GEOGRAPHIC CLASSIFICATION Information for the 1992 Census of Construction Industries' final industry file series (CC92FXXX.) is classified on the basis of two types of geographic distributions: (1) physical location of the establishment, and (2) location of construction work. A separate code was assigned on each basis allowing us to present data by both physical locations of the establishment and location of construction work. The geographic area file series (CC92AX.) presents similar data by industry for each State and Region (physical location of the establishment) and for selected MSA's, CMSA's and PMSA's. =>DUPLICATION IN VALUE OF CONSTRUCTION WORK The aggregate of value of construction work reported by all construction establishments in each of the several industry, geographic area, or other groupings in this census contains varying amounts of duplication, since the construction work of one firm may be subcontracted to other construction firms and also be included in the subcontractors' value of construction work. To avoid this duplication, a "net" value of construction work figure has been derived for each establishment by subtracting the costs for construction work subcontracted to others from the value of construction work. Duplication in value of business between other construction and nonconstruction industries, results from the use of products of these other industries as input materials by construction establishments. "Value added," avoids this duplication and is, for most purposes, the best measure for comparing the relative economic importance of industries or areas. "Value added," is defined in the 1992 Census of Construction Industries as equal to dollar value of business done less costs for construction work subcontracted to others and payments for materials, components, supplies, and fuels. =>COMPARABILITY OF CENSUS OF CONSTRUCTION INDUSTRIES DATA WITH OTHER DATA Data contained in the reports of the 1992 Census of Construction Industries are not the same as the data published in the Census Bureau's monthly Construction Reports, Series C30, Value of New Construction Put in Place. The main difference is that the C30 series covers all new construction put in place without regard to who is performing the construction activity; whereas the construction census figures cover both new construction and maintenance and repair work done by establishments classified in the construction industry. Significant amounts of construction are done by establishments classified outside of construction (in real estate, manufacturing, utilities and communications, for example), both as "force account" construction and construction done for others. In addition, the value in place series includes construction-related expenses such as architectural and engineering costs and the costs of materials supplied by owners which are normally not reflected in the census of construction industries. Data contained in the reports of the census of construction industries may also differ from industry data in "Employment and Earnings Statistics," published by the Bureau of Labor Statistics, and "Statistics of Income," published by the Internal Revenue Service. These differences arise from varying definitions of scope, coverage, timing, classification, and methodology. Standard Industrial Classification Manual: 1987. For sale by Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Stock No. 041-001-00314-2. =>SPECIAL TABULATIONS Special tabulations of data collected in the 1992 Census of Construction Industries may be obtained on computer tape or in tabular form. The data will be in summary form and subject to the same rules prohibiting disclosure of confidential information (including name, address, kind of business, or other data for individual business establishments or companies) as are the regular files. Special tabulations are prepared on a cost basis. A request for a cost estimate, as well as exact and detailed specifications of the type and format of the data to be provided, should be directed to the Chief, Construction Statistics Division, Bureau of the Census, Washington, DC, 20233. To discuss a special tabulation before submitting specifications, call (301) 457-4680.