=> General

This report, from the 1992 Census of Manufactures, is 1 of a series of 51
reports for each State and the District of Columbia. Each report contains
such statistics as number of estabishments, employment, payroll, value
added by manufacture, cost of materials consumed, and capital expenditures
for each State and its important metropolitan areas (MA's), counties, and
places, by industry groups and individual industries. Selected statistical
totals for "all manufacturing" have been shown for metropolitan areas with
250 employees or more and for counties and places with 500 employees or
more.

Additional separate reports have been issued for 83 industry reports, each
of which provides statistics for individual industries or groups of related
industries and for special subjects such as manufacturers' shipments to the
Federal Government and concentration ratios in manufacturing.

The General Summary report contains industry, product class, and geographic
area statistics summarized in one report. The introduction to the General
Summary discusses, at greater length, many of the subjects described in
this introduction. For example, the General Summary text discusses the
relationship of value added by manufacture to national income by industry
of origin, the changes in statistical concepts over the history of the
censuses, and the valuation problems arising from intracompany transfers
between manufacturing plants of a company and between manufacturing plants
and sales offices and sales branches of a company.

=> Scope of Census and Definition of Manufacturing

The 1992 Census of Manufactures covers all establishments with one paid
employee or more primarily engaged in manufacturing as defined in the 1987
Standard Industrial Classification (SIC) Manual. This is the system of
industrial classification developed by experts on classification in
Government and private industry under the guidance of the Office of
Information and Regulatory Affairs, Office of Management and Budget. This
classification system is used by Government agencies as well as many
organizations outside the Government.

The SIC Manual defines manufacturing as the mechanical or chemical
transformation of substances or materials into new products. The assembly
of component parts of products also is considered to be manufacturing if
the resulting product is neither a structure nor other fixed improvement.
These activities are usually carried on in plants, factories, or mills that
characteristically use power-driven machines and materials-handling
equipment.

Manufacturing production is usually carried on for the wholesale market,
for transfers to other plants of the same company, or to the order of
industrial users rather than for direct sale to the household consumer.
Some manufacturers in a few industries sell chiefly at retail to household
consumers through the mail, through house-to-house routes, or through
salespersons. Some activities of a service nature (enameling, engraving,
etc.) are included in manufacturing when they are performed primarily for
trade. They are considered nonmanufacturing when they are performed
primarily to the order of the household consumer.

=> Relationship Between Annual Survey and Census of Manufactures

The Bureau of the Census conducts the annual survey of manufactures (ASM)
in each of the 4 years between the censuses of manufactures. The ASM is a
probability-based sample of approximately 62,000 establishments and
collects the same industry statistics (employment, payroll, value of
shipments, etc.) as the census of manufactures. In addition to collecting
the information normally requested on the census form, the establishments
in the ASM sample are requested to supply information on assets, capital
expenditures, retirements, depreciation, rental payments, supplemental
labor costs, costs of purchased services, and foreign content of materials
consumed. Except for supplemental labor costs, the extra ASM items are
collected only in census years.

=> Establishment Basis of Reporting

The census of manufactures is conducted on an establishment basis. A
company operating at more than one location is required to file a separate
report for each location. The ASM also is conducted on an establishment
basis, but separate reports are filed for just those establishments
selected in the sample. Companies engaged in distinctly different lines of
activity at one location are requested to submit separate reports if the
plant records permit such a separation and if the activities are
substantial in size.

In 1992, as in earlier years, a minimum size limit was set for inclusion of
establishments in the census. All establishments employing one person or
more at any time during the census year are included. The same size
limitation has applied since 1947 in censuses and annual surveys of
manufactures. In the 1939 and earlier censuses, establishments with less
than $5,000 value of products were excluded.  The change in the minimum
size limit in 1947 does not appreciably affect the historical comparability
of the census figures except for data on number of establishments for a few
industries. This report excludes information for separately operated
administrative offices, warehouses, garages, and other auxiliary units that
service manufacturing establishments of the same company (see Auxiliaries).

=> Manufacturing Universe and Census Report Forms

The 1992 Census of Manufactures universe includes approximately 380,000
establishments. The amounts of information requested from manufacturing
establishments were dependent upon a number of factors. The more important
considerations were the size of the company and whether it was included in
the annual survey of manufactures. The methods of obtaining information for
the various subsets of the universe to arrive at the aggregate figures
shown in the publication are described below:

1. Small single-establishment companies not sent a report form.

In the 1992 Census of Manufactures, approximately 143,000 small single-
establishment companies were excused from filing reports.  Selection of
these small establishments was done on an industry-by-industry basis and
was based on annual payroll and total shipments data as well as on the
industry classification codes contained in the administrative records of
Federal agencies. The cutoffs were selected so that these administrative-
record cases would account for no more than 3 percent of the value of
shipments for all manufacturing. Generally, all single-establishment
companies with less than 5 employees were excused, while all establishments
with more than 20 employees were mailed forms.

Information on the physical location of the establishment, as well as
information on payrolls, receipts (shipments), and industry classification,
was obtained from the administrative records of other Federal agencies
under special arrangements which safeguarded their confidentiality.
Estimates of data for these small establishments were developed using
industry averages in conjunction with the administrative information. The
value of shipments and cost of materials were not distributed among
specific products and materials for these establishments but were included
in the product and material "not specified by kind" (n.s.k.) categories.

The industry classification codes included in the administrative-record
files were assigned on the basis of brief descriptions of the general
activity of the establishment. As a result, an indeterminate number of
establishments were erroneously coded at the four-digit SIC level. This was
especially true whenever there was a relatively fine line of demarcation
between industries or between manufacturing and nonmanufacturing activity.

Sometimes these administrative-record cases were only given a two- or
three-digit SIC group. For the 1992 Census of Manufactures, these
establishments were sent a separate classification form, which requested
information on the products and services of the establishment. This form
was used to code many of these establishments to the four-digit SIC level.
Establishments that did not return the classification form were coded later
to those four-digit SIC industries identified as "not elsewhere classified"
(n.e.c.) within the given two- or three-digit industry groups.

As a result of these situations, a number of small establishments may have
been misclassified by industry. However, such possible misclassification
has no significant effect on the statistics other than on the number of
companies and establishments.

The total establishment count for individual industries should be viewed as
an approximation rather than a precise measurement. The counts for
establishments with 20 employees or more are far more reliable than the
count of total number of establishments.

2. Establishments sent a report form.

The over 237,000 establishments covered in the mail canvass were divided
into three groups:

a. ASM sample establishments.

This group consisted of approximately 62,000 establishments covering all
the units of large manufacturing establishments as well as a sample of the
medium and smaller establishments. The probability of selection was
proportionate to size (see Appendix B, Annual Survey of Manufactures).

In a census of manufactures year, the ASM report form (MA-1000) replaces
the first page of the regular census form for those establishments included
in the ASM. In addition to information on employment, payroll, and other
items normally requested on the regular census form, establishments in the
ASM sample were requested to supply information on assets, capital
expenditures, retirements, depreciation, rental payments, supplemental
labor costs, and costs of purchased services. See the Explanation of Terms
menu choice in the DocView software for an explanation of these items.

The census part of the report form is 1 of approximately 200 versions
containing product, material, and special inquiries. The diversity of
manufacturing activities necessitated the use of these many forms to
canvass the 459 manufacturing industries. Each form was developed for a
group of related industries.

Appearing on each form was a list of products primary to the group of
related industries as well as secondary products and miscellaneous services
that establishments classified in these industries were likely to be
performing. Respondents were requested to identify the products, the value
of each product, and, in a large number of cases, the quantity of the
product shipped during the survey year. Space also was provided for the
respondent to describe products not specifically identified on the form.

The report form also contained a materials-consumed inquiry, which varied
from form to form depending on the industries being canvassed.  The
respondents were asked to review a list of materials generally used in
their production processes. From this list, each establishment was
requested to identify those materials consumed during the survey year, the
cost of each, and, in certain cases, the quantity consumed. Once again,
space was provided for the respondent to describe significant material not
identified on the form.

Finally, a wide variety of special inquiries was included to measure
activities peculiar to a given industry, such as operations performed and
equipment used.

b. Large and medium establishments (non-ASM).

Approximately 112,000 establishments were included in this group. A
variable cutoff, based on administrative-record payroll data and determined
on an industry-by-industry basis, was used to select those establishments
that were to receive 1 of the approximately 200 census of manufactures
regular forms. The first page, requesting establishment data for items such
as employment and payroll, was standard but did not contain the detailed
statistics included on the ASM form. The product, material, and special
inquiry sections supplied were based on the historical industry
classification of the establishment.

c. Small single-establishment companies (non-ASM).

This group consisted of approximately 63,000 establishments. For those
industries where application of the variable cutoff for administrative-
record cases resulted in a large number of small establishments being
included in the mail canvass, an abbreviated or "short" form was used.
These establishments received 1 of the approximately 80 versions of the
short form, which requested summary product and material data and totals
but no details on employment, payrolls, cost of materials, inventories, and
capital expenditures.

Use of the short form has no adverse effect on published totals for
the industry statistics; the same data were collected on the short form as
on the long form. However, detailed information on materials consumed was
not collected on the short form; thus, its use would increase the value of
the n.s.k. categories.

=> Auxiliaries

Auxiliaries are establishments whose employees are primarily engaged in
performing supporting services for other establishments of the same
company, rather than for the general public or for other business firms.
They can be at different locations from the establishments served or at the
same location as one of those establishments but not operating as an
integral part thereof and serving two establishments or more. Where
auxiliary operations are conducted at the same location as the
manufacturing operation and operate as an integral part thereof, they
usually are included in the report for the operating manufacturing
establishment.

Included in the broad category of auxiliaries are administrative offices.
Employees in administrative offices are concerned with the general
management of multiestablishment companies; i.e., with the general
supervision and control of two units or more, such as manufacturing plants,
mines, sales branches, or stores. The functions of these employees may
include the following:

1. Program planning, including sales research and coordination of
   purchasing, production, and distribution

2. Company purchasing, including general contracts and purchasing methods

3. Company financial policy and accounting

4. General engineering, including design of product machinery and
   equipment, and direction of engineering effort conducted at the
   individual operation locations

5. Company personnel matters

6. Legal and patent matters

Other types of auxiliaries serving the plants or central management of the
company include purchasing offices, sales promotion offices, research and
development organizations, etc.

In the 1992 census, as in previous censuses, respondents were asked to file
separate report forms (ES-9200) for auxiliary units which were at different
locations from the establishments served or at the same location as one of
those establishments but not operating as an integral part thereof and
serving two establishments or more.

This report includes information for separately operated auxiliaries
tabulated from form ES-9200. Data for these establishments are included at
the total manufacturing level in each file of this report and are shown
separately in files MC92A4 and MC92A9. Also included in this report are
data for those auxiliary operations that are conducted at the same location
as the manufacturing operation and are collected as an integral part of the
census of manufactures report form for the operating manufacturing
establishment.  These data are not shown separately in the files.

A separate report on all separately operated auxiliaries, including those
serving nonmanufacturing establishments, will be issued as part of the
Enterprise Statistics program of the 1992 Economic Census. This report will
provide data by industry of the establishment served, by primary activity
of the parent company, by size of auxiliary, and by size of the parent
company. Data will be presented on employment by type of activity performed
by the employees and primary activity of the auxiliary. Information also
will be shown on capital expenditues, inventories, and cost of research and
development.

=> Industry Classification of Establishments

Each of the establishments covered in the census was classified in 1 of 459
manufacturing industries in accordance with the industry definitions in the
1987 SIC Manual. The 1987 edition of this manual represents a major
revision for manufacturing industries from the 1972 edition and its 1977
supplement. Appendix A of the 1987 Manual notes the revisions in the four-
digit industry levels between 1972/77 and 1987.

An industry is generally defined as a group of establishments producing the
same product or a closely related group of products. The product groupings
from which industry classifications are derived are based on considerations
such as similarity of manufacturing processes, types of materials used,
types of customers, and the like. The resulting group of establishments
must be significant in terms of number, value added by manufacture, value
of shipments, and number of employees. The system operates in such a way
that the definitions progressively become narrower with successive
additions of numerical digits. For 1992, there are 20 major groups (two-
digit SIC), 139 industry groups (three-digit SIC), and 459 industries
(four-digit SIC). This represents an expansion of four-digit industries
from 452 in 1972/77 and a reduction of three-digit groups from 143 in
1972/77. Product classes and products of the manufacturing industries have
been assigned codes based on the industry from which they originate. There
are about 11,000 products identified by a seven-digit code. The seven-digit
products are considered the primary products of the industry with the same
four digits.

Accordingly, an establishment is usually classified in a particular
industry on the basis of its major activity during a particular year; i.e.,
production of the products primary to that industry exceeds, in value,
production of the products primary to any other single industry.  In a few
instances, however, the industry classification of an establishment is not
only determined by the products it makes but also by the process employed
in operations. Refining of nonferrous metals from ore or rolling and
drawing of nonferrous metals (processes which involve heavy capitalization
in specialized equipment) would be classified according to the process used
during a census year. These establishments then would be "frozen" in that
industry during the following ASM years.

In either a census or ASM year, establishments included in the ASM sample
with certainty weight, other than those involved with heavily capitalized
activities described above, are reclassified by industry only if the change
in the primary activity from the prior year is significant or if the change
has occurred for 2 successive years. This procedure prevents
reclassification when there are minor shifts in product mix.

In ASM years, establishments included in the ASM sample with noncertainty
weight are not shifted from one industry classification to another. They
are retained in the industry where they were classified in the base census
year (see the Annual Survey of Manufactures Sampling and Estimating
Methodologies menu choice in the DocView software).  However, in the
following census year, these ASM plants are allowed to shift from one
industry to another.

The results of these rules covering the switching of plants from one
industry classification to another are that, at the aggregate level,
some industries comprise different mixes of establishments between survey
years and establishment data for such industry statistics as employment and
payroll may be tabulated in different industries between survey years.
Hence, comparisons between prior-year and current-year published totals,
particularly at the four-digit SIC level, should be viewed with caution.
This is particularly true for the comparison between the data shown for a
census year versus the data shown for the previous ASM year.

As previously noted, the small establishments that may have been
misclassified by industry are usually administrative-record cases whose
industry codes were assigned on the basis of incomplete descriptions of the
general activity of the establishment. Such possible misclassifications
have no significant effect on the statistics other than on the number of
companies and establishments.

While some establishments produce only the primary products of the industry
in which they are classified, all establishments of an industry rarely
specialize to this extent. The industry statistics (employment,
inventories, value added by manufacture, total value of shipments including
resales and miscellaneous receipts, etc.) shown in files MC92F1 through
MC92F5A, therefore, reflect not only the primary activities of the
establishments in that industry but also their secondary activities. The
product statistics in file MC92F6A represent the output of all
establishments whether or not they are classified in the same industry as
the product. For this reason, in relating the industry statistics,
especially the value of shipments to the product statistics, the
composition of the industry's output shown in table 5b should be
considered.

The extent to which industry and product statistics may be matched with
each other is measured by two ratios which are computed from the figures
shown in file MC92F5B. The first of these ratios, called the primary
product specialization ratio, measures the proportion of product shipments
(both primary and secondary) of the establishments classified in the
industry represented by the primary products of those establishments. The
second ratio, called the coverage ratio, is the proportion of primary
products shipped by the establishments classified in the industry to total
shipments of such products by all manufacturing establishments.

However, establishments making products falling into the same industry
category may use a variety of processes and materials to produce them.
Also, the same industry classification (based on end products) may include
both establishments that are highly integrated and those that put only the
finishing touches on an already highly fabricated item.  For example, the
refrigeration equipment industry includes instances of almost complete
integration (production of the compressor, condensing unit, electric motor,
casting, stamping of the case, and final assembly) all carried on at one
plant. On the other hand, the condensing unit, the motor, and the case may
be purchased and only assembled into the finished product.

In some instances, separate industry categories have been established for
integrated and nonintegrated establishments. For other industries, the
census provides separate statistics on the production of intermediate
commodities made and used in the producing plant. For some industries
characterized by many plants of the same company, separate figures on
interplant transfers of products usually are shown.

Differences in the integration of production processes, types of
operations, and alternatives in types of materials used should be
considered when relating the industry statistics (employment, payrolls,
value added, etc.) to the product and material data.

=> GEOGRAPHIC AREAS COVERED

-> The State.

Total data for each State and the District of Columbia are published in
files MC92A1 through MC92A4. File MC92A4 presents data by State for two-,
three-, and four-digit SIC industries with 100 manufacturing employees or
more, except those whose inclusion would disclose data for individual
companies.

-> Metropolitan areas (MA's).
   (Each CMSA, MSA, and PMSA is defined as of June 30, 1993.)

An MA is an integrated economic and social unit with a large population
nucleus of at least 50,000 inhabitants (according to the 1990 Census of
Population or subsequent social census).  Each MA consists of one or more
counties or statistically equivalent areas meeting published standards of
population and metropolitan character; in the six New England States
(Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and
Vermont), cities and towns (rather than counties) are used as the component
geographic units.

An MA with a population of at least 1million or more may be subdivided into
primary metropolitan statistical areas (PMSA's). A PMSA consists of a large
urbanized county or a cluster of counties (cities and towns in New England)
that demonstrate very strong internal economic and social links separate
from the ties to other portions of its MA.

Where PMSA's are defined, the MA of which they are component parts is
redesignated as a consolidated metropolitan statistical area (CMSA).

File MC92A4 shows all manufacturing totals for CMSA's, MSA's, and PMSA's.
This file also includes industry detail at two-, three-, and four-digit SIC
level for CMSA's, MSA's, and PMSA's with 250 manufacturing employees or
more, except those whose inclusion would disclose the data for individual
companies.

-> Industrial counties or county equivalents.
   (Those defined as of January 1, 1992)

Counties are the primary divisions of States, except in Louisiana where
they are called parishes and in Alaska where they are called boroughs and
census areas. Maryland, Missouri, Nevada, and Virginia have one place or
more that is independent of any county organization and constitutes primary
divisions of their States. These places are treated as counties. File
MC92A4 presents total data for counties, as well as data by county for
two-, three-, and four-digit industries with 500 manufacturing employees or
more, except those whose inclusion would disclose data for individual
companies.

-> Consolidated cities.

Consolidated cities are consolidated governments which consist of
separately incorporated municipalities. File MC92A4 presents total data for
consolidated cities with 500 manufacturing employees or more, as well as
data by consolidated city for two-, three-, and four-digit industries with
500 manufacturing employees or more.

-> Places with 500 manufacturing employees or more.

The term "places" includes boroughs, towns, and villages, except boroughs
in Alaska and New York For census purposes, places are defined as
incorporated municipalities with populations of at least 2,500 or
unincorporated municipalities with populations of at least 25,000 based on
the 1990 population census or subsequent special census. In addition, a few
"industrial park" areas of substantial manufacturing activity but with
population below the specified limits have been included in the 1992 Census
of Manufactures. File MC92A4 presents total data for places with 500
manufacturing employees or more, as well as data by places for two-,
three-, and four-digit industries with 500 manufacturing employees or more,
except those whose inclusions would disclose data for individual companies.

=> CENSUS DISCLOSURE RULES

In accordance with Federal law governing census reports, no data are
published that would disclose the data for an individual establishment
or company. However, the number of establishments classified in a specific
industry is not considered a disclosure, so this information may be
released even though other information is withheld.

The disclosure analysis for the industry statistics in file MC92A4 of this
report is based on the total value of shipments. When the total value of
shipments cannot be shown without disclosing information for individual
companies, the complete line is suppressed except for new capital
expenditures. However, the suppressed data are included in higher-level
totals. A separate disclosure analysis is performed for new capital
expenditures that can be suppressed even though value of shipments data are
publishable.

=> SPECIAL TABULATIONS

Special tabulations of data collected in the 1992 Census of Manufactures
may be obtained on computer diskette 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 publications.

Special tabulations are prepared on a cost basis. A request for a cost
estimate, as well as exact specifications on the type and format of the
data to be provided, should be directed to the Chief, Manufacturing and
Construction Division, Bureau of the Census, Washington, DC 20233.