Introduction => WHAT'S NEW IN THIS REPORT With the 1992 Selected Characteristics (AR92-2) publication, the U.S. Census Bureau is highlighting export trade and its impact on employment for both the manufacturing and the wholesale sectors. => GENERAL DESCRIPTION This analytical report (AR92-2) is based on data on export activity reported by manufacturing establishments for the 1992 Census of Manufactures and by wholesale establishments for the 1992 Census of Wholesale Trade. The report includes information on characteristics of manufacturing and wholesale establishments that reported export activity. These characteristics are featured in six sets of tables: the odd-numbered tables describing manufactures and the even-numbered tables wholesalers. They include number of exporting establishments (tables 1a-2c), shipments (or sales), and employment related to manufactured exports by employment size of establishment (tables 3a-4c), and exporting intensity (ratio of the value of export shipments to the total value of shipments for manufactures and ratio of the value of export sales to total sales for wholesalers) of exporting establishments by employment size of establishment (tables 5a- 6c). Each set includes estimates at the major group (or industry group for wholesalers), State, and State by major group (or State by industry group for wholesalers) levels. For tables 3a-4c, total value of shipments (or total sales for wholesalers) and total employment are presented so that data users may compare exports and export-related employment to overall manufacturing and wholesale activity. In the case of the manufacturing sector, the export data shown in this report are limited to those manufactured goods that are directly exported from the manufacturing establishment. Many respondents do not know the final destination of the products produced in their plants when the export is made by an independent exporting firm or the actual shipments of the products are made from company-operated warehouses or other distribution points. In order to minimize the understating of the true value of all exports, the U.S. Census Bureau decided to compile export sales collected from the wholesale industry. Such shipments and sales still understate the true value of all exports since the data were not inflated upward to equal the official export data compiled by the U.S. Census Bureau, Foreign Trade Division. In 1992, $413.6 billion of goods were exported from manufacturing and wholesale establishments while the Foreign Trade Division reported $425.7 billion in U.S. total domestic exports for the same year. The estimates of export shipments shown in this report also do not account for the indirect requirements supporting manufactured exports. Indirect requirements refers to all of the inputs acquired by manufacturing establishments to produce the product being exported and the requirements of these suppliers. => DOLLAR VALUES All dollar values presented in this report are expressed in current dollars; i.e., 1992 data are expressed in 1992 dollars. Consequently, when making comparisons to prior years, users of the data should consider the price changes that have occurred. => USES OF DATA The exports data, particularly the data on the number of export-related jobs, are used extensively in the analysis and promotion of exports by government agencies. The International Trade Administration (ITA) is the primary user of these data. Members of Congress have a particular interest in the data shown for their State. State agencies also are using the data to promote export activity. In addition, many consulting firms, academic institutions, and private companies use the report to analyze trade, to make recommendations, and to compare export activity. => SUMMARY OF RESULTS In 1992, 132,736 manufacturing and wholesale establishments engaged in exporting activities in the United States. Their distribution by sector is shown below: Sector Establishments Exporting Establishment establishments ratio Total 864,602 132,736 15 Manufacturing 369,145 82,553 22 Wholesale 495,457 50,183 10 These exporting establishments generated $413.6 billion of export shipments and sales and 1.3 million full-time jobs that year as shown below: Sector Total Export shipments/ shipments/ Total Export sales sales employment employment (millions) (millions) (1,000) (1,000) Total 6,231,558.0 413,585.8 22,647.5 1,334.9 Manufacturing 2,993,037.6 248,958.6 16,856.2 1,186.6 Wholesale 3,238,520.4 164,627.2 5,791.3 148.3 -> Manufacturing In 1992, over 82,000 manufacturing establishments engaged in exporting activities from the United States. On the average, 22 percent of all U.S. manufacturing establishments exported manufactured products. The percent of exporting establishments varies among the major groups from 7 to 59 percent with Major Group 21, Tobacco Products and Major Group 38, Instruments and Related Products leading at 59 percent, followed by Major Group 36, Electronic and Other Electric Equipment (49 percent); Major Group 28, Chemicals and Allied Products (46 percent); and Major Group 30, Rubber and Miscellaneous Plastics Products (37 percent) rounding out the top five. Manufacturing establishments that export are located in each of the 50 States and the District of Columbia. California leads all States with 11,694 such establishments and the District of Columbia has the fewest with 45. Although these establishments are found throughout the country, they are not evenly distributed. Six States (California and Texas in the West, Illinois and Ohio in the Midwest, and New York and Pennsylvania in the Northeast) account for 42 percent of all U.S. exporting manufacturing establishments and 38 percent of all U.S. export manufacturing shipments. The State of Washington accounts for 2.2 percent of all U.S. exporting manufacturing establishments, but when its export shipments are added to those of the six States, the percent of all U.S. export manufacturing shipments accounted for increases to 48 percent. The ratio of exporting manufacturing establishments to total manufacturing establishments varies greatly at the State level, from a low of 12 percent for the District of Columbia and Wyoming to a high of 29 percent for Connecticut, Massachusetts, and New Hampshire. Small establishments (less than 100 employees) accounted for 77 percent of exporting manufacturing establishments. This is not surprising since they accounted for 90 percent of all manufacturing establishments. Large establishments (500 employees or more) accounted for only 4 percent of exporting establishments and 1 percent of all manufacturing establishments. However, 71 percent of the large manufacturing establishments exported products in 1992, compared to only 19 percent for small establishments. In the United States, the total value of shipments for exporting establishments accounted for approximately 64 percent of the total value of shipments for all manufactures. The share of total value of shipments attributable to exporting establishments was 36 percent and 81 percent, respectively, for small and large establishments. Looking at the top ten major groups, based on the total number of establishments, the percent of total value of shipments for exporting establishments ranged from 28 percent in Major Group 27, Printing and Publishing to a high of 79 percent in Major Group 35, Industrial Machinery and Equipment. When all major groups are considered, the manufacturing sector's lower limit of the range remains unchanged but the higher limit increases to 96 percent in Major Group 21, Tobacco Products. On the average, the value of export shipments was 13 percent of the total value of shipments for exporting establishments, regardless of size. For the top ten major industry groups, based on the total number of establishments, the ratio varied from 6 percent in Major Group 27, Printing and Publishing to 21 percent in Major Group 35, Industrial Machinery and Equipment. When all major groups are considered, the manufacturing sector's lower limit of the range drops to 4 percent in Major Group 29, Petroleum and Coal Products, but the higher limit remains unchanged. For manufacturing establishments that responded to the census inquiry on exports, 20 percent indicated an intensity level of 20 percent or more. The intensity level varies minimally by employment size. Export intensity does differ among the respondents at the major group and State levels. Approximately 38 percent of the establishments classified in Major Group 38, Instruments and Related Products had an intensity level of 20 percent or more. In contrast, only 7 percent of the establishments classified in Major Group 25, Furniture and Fixtures had an intensity level of 20 percent or more. Seventy-four percent of the establishments located in Alaska reported an intensity level of 20 percent or more compared to only 10 percent for Alabama. -> Wholesale In 1992, over 50,000 wholesale establishments engaged in exporting activities from the United States. On the average, 10 percent of all U.S. wholesale establishments exported goods. The percent of exporting establishments varies among the industry groups from 2 to 17 percent. The top six industries are Industry Group 505, Metals and Minerals, except Petroleum and Industry Group 508, Machinery, Equipment, and Supplies, at 17 percent; followed by Industry Groups 515, Farm-Product Raw Materials and 516, Chemicals and Allied Products with 16 percent each; and Industry Groups 506, Electrical Goods, and 509, Miscellaneous Durable Goods, both with 15 percent. Wholesale establishments that export are located in each of the 50 States and the District of Columbia. California leads all States with 8,860 such establishments, and Wyoming has the fewest with 28. Just like their manufacturing counterparts, these are not evenly distributed. Six States (California and Texas in the West; New Jersey, New York, and Pennsylvania in the Northeast; and Florida in the South) account for 59 percent of all U.S. exporting wholesale establishments and 55 percent of all U.S. export wholesale sales. Again, the State of Washington accounts for 4.1 percent of all U.S. exporting wholesale establishments, but when its export sales are added to those of the six, it increases the percent of all U.S. export wholesale sales accounted for to 62 percent. At the State level, the ratio of exporting wholesale establishments to total wholesale establishments varies greatly from a low of 3 percent for Indiana, Iowa, Kentucky, Mississippi, South Dakota, and Wyoming to a high of 21 percent for Arkansas. Small establishments (less than 5 employees) accounted for 44 percent of exporting establishments while accounting for 48 percent of all wholesale establishments. Large establishments (100 employees or more) accounted for just 2 percent of exporting establishments and 1 percent of all wholesale establishments. Contrary to exporting manufacturing establishments, the distribution by employment size of exporting wholesale establishments was fairly even, ranging from a low of 9 percent for establishments with less than 5 employees to a high of 16 percent for those with 100 employees or more. In the United States, the total sales for exporting wholesale establishments accounted for 18 percent of the total sales for all wholesalers. The share of total sales attributable to exporting establishments was 14 percent and 22 percent, respectively, for small and large establishments. Looking at the top ten industry groups based on the total number of establishments, the percent of total sales for exporting establishments ranged from 10 percent in Industry Group 511, Paper and Paper Products to 29 percent in Industry Group 509, Miscellaneous Durable Goods. When all major groups are considered, the wholesale sector's results are substantially different and range from a low of 3 percent in Industry Group 518, Beer, Wine, and Distilled Alcoholic Beverages, to a high of 43 percent in Industry Group 515, Farm-Product Raw Materials. On the average, the value of export sales was 29 percent of the total sales for exporting establishments, regardless of size. For the top ten industry groups based on the total number of establishments, the ratio varied from 13 percent in Industry Group 507, Hardware and Plumbing and Heating Equipment and Supplies to 41 percent in Industry Group 519, Miscellaneous Nondurable Goods. When all the major groups are considered, the wholesale sector's lower limit remained unchanged at 13 percent, though now Industry Group 502, Furniture and Home Furnishings, shared that position with industry group 507, but the higher limit increases to 68 percent in Industry Group 515, Farm-Product Raw Materials. For wholesale establishments that responded to the census inquiry on exports, 38 percent indicated an intensity level of 20 percent or more. Contrary to what occurred in the manufacturing sector, the intensity level by employment size does vary in two of the ranges. In the 2- to 9-percent range, we go from a low of 24 percent for the establishments with less than 5 employees to a high of 47 percent for those with 100 employees or more, and in the 50- through 100-percent range, we go from a low of 9 percent for the establishments with 100 employees or more to a high of 39 percent for those with less than 5 employees. These disparities in export intensity occur among the respondents at the industry group and State levels. Seventy-six percent of the establishments classified in Industry Group 515, Farm-Product Raw Materials had an intensity level of 20 percent or more. In contrast, only 21 percent of the establishments classified in Industry Group 507, Hardware, and Plumbing and Heating Equipment and Supplies had an intensity level of 20 percent or more. Fifty-four percent of the establishments located in Florida reported an intensity level of 20 percent or more compared to 9 percent for South Dakota. => SCOPE OF CENSUSES AND DEFINITION OF MANUFACTURING AND WHOLESALE 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 Manual (SIC). This is the system of industrial classification developed by experts on classification in government and private industry under 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 to be nonmanufacturing when they are performed primarily to the order of the household consumer. The 1992 Census of Wholesale Trade, part of the 1992 Economic Census, covered wholesale trade as defined in the SIC Manual. It included all establishments with one or more paid employees primarily engaged in selling merchandise to retailers; other wholesalers; and industrial, commercial, institutional, farm, or professional users. Companies selling products to which they have title, as well as those acting as agents or brokers in buying or selling merchandise for others, are included. The census excluded governmental organizations classified in the covered industries except for wholesale liquor establishments operated by State and local governments. The basic tabulations in this report do not include data for establishments which are "auxiliary" (primary function is providing a service, such as warehouses) to other establishments within the same organization. Data for auxiliaries are presented in a subsequent report issued as part of the 1992 Enterprise Statistics reports. Wholesale firms without employees are excluded from the census. In the census of retail trade, the sales of firms with no paid employees are derived from administrative records of other Federal agencies rather than from a direct canvass. These sources proved impractical for wholesale firms without paid employees. In the census of wholesale trade, the sales value is the gross volume of business conducted. Firms which operated wholly or partly on a commission basis must provide both the gross volume of business conducted and commission receipts on census forms. Agents and brokers do not report to other Federal agencies the gross selling value of goods. Moreover, administrative records make no distinction between commission receipts and sales of products by wholesalers. => MANUFACTURING AND WHOLESALE UNIVERSE AND CENSUS REPORT FORMS -> Manufacturing The 1992 Census of Manufactures universe included approximately 380,000 establishments. The amounts of information requested from manufacturing establishments were dependent on the size of the establishment and whether it was included in the Annual Survey of Manufactures sample. 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: 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 their annual payroll and most recent industry classification. The industry-based payroll cutoffs were determined such that these nonmailed establishments were expected to account for less than 3 percent of the value of shipments within each four-digit industry. Generally, all single-establishment companies with less than 5 employees were excused, while all establishments with more than 20 employees were mailed forms. Establishments Sent a Report Form The 237,000 establishments covered in the mail canvas were divided into three groups: ASM sample establishments. This group consisted of approximately 62,000 establishments covering all the units of large manufacturing companies and a sample of the medium and smaller establishments. The probability of selection was proportionate to product class size, as measured in the 1987 Census of Manufactures. These establishments received an expanded long form in 1992. Small single-establishment companies (non-ASM). This group consisted of approximately 63,000 establishments. For selected industries that contained a large number of small establishments included in the mail panel, an abbreviated or "short" form was used. In general, the short form was limited to collecting totals for the various items that were present on the long form. Large and medium establishments (non-ASM). The remaining 112,000 establishments were mailed the census long form. -> Wholesale The 1992 Census of Wholesale Trade universe includes approximately 495,000 establishments. All wholesale firms that had at least one quarter of payroll in 1992 were included in the census and were mailed either a regular census form or a short form designed to collect basic data and classification information only. The coverage and the method of obtaining census information from each follows. Small companies. Other than those included in the 10-percent sample described below, these were mailed the short forms, which did not include questions on sales by commodity lines and employment by principal activity. Large companies All agents, brokers, multiunit firms, single unit firms above the payroll size cutoff established to separate large from small employers, and a 10- percent sample of the small employers were mailed the appropriate report forms. Although the payroll cutoff varied by kind of business, small employers generally included firms with one to three employees and represented about 10 percent of total wholesale sales. For large companies, a report of company organization is conducted periodically to identify firms which operated establishments at more than one location and to obtain information on payroll and mid-March employment at each location. The 1991 Report of Company Organization was used as a coverage check in the census. In the 1992 census, all multiestablishment firms were asked to notify the U.S. Census Bureau of any establishments for which a form was not received. Report forms were subsequently provided to the firms for these establishments. Establishments receiving the regular census forms were classified on the basis of their answers to questions on sales by commodity lines and other inquiries. Those that received short forms were classified on the basis of their self-designation and answers to other inquiries. => DETAILED DESCRIPTION OF CENSUS METHODS AND ESTIMATING PROCEDURE For the manufacturing sector, information on export shipments, total value of shipments, and total employment is collected on all report forms used in the 1992 Census of Manufactures. For wholesale trade, information on export sales, total sales, and total employment is collected on the report forms for the 1992 Census of Wholesale Trade. Nonresponse to the total value of shipments, total sales, and total employment questions was handled through the use of administrative records and estimation procedures as described in the following publications: the 1992 Census of Manufactures Geographic Area Series and the 1992 Census of Wholesale Trade Geographic Area Series. The U.S. Census Bureau developed an imputation (estimation) procedure to address nonresponse to the exports question on the census forms. Parameters (exports shipments to total value of shipments ratios in the case of manufactures; export sales to total sales ratios in the case of wholesalers) developed from response data were used in the imputation procedure. The first phase of the imputation procedure involved developing a set of parameters for manufactures, at the two-digit major group by census geographic division level, and for wholesalers, at the three-digit industry group by census geographic division level, that represented the probability of an establishment having exports. These probabilities were derived by computing the ratio of all establishments reporting a nonzero exports value to the total number of establishments responding to the exports item (including zero values). Based on these probabilities, a random sample of manufacturing and wholesale nonrespondents was selected and defined as having exports. The second phase involved imputing the value of exports for establishments defined as being exporters. Using reporters of exports, a percentage of export shipments to total value of shipments was computed at the two-digit major group level for each census geographic division for manufactures, while a percentage of export sales to total sales was computed at the three-digit industry for each census geographic division for wholesalers. For manufacturing establishments defined as being exporters, an exports value was imputed using the establishment's value of shipments and the appropriate percentage. For wholesale establishments defined as being exporters, an exports value was imputed using the establishment's sales and the appropriate percentage. Export-related employment was imputed by assuming that the ratio of the establishment's export-related employment to total employment was the same as the ratio of the establishment's value of exports shipments to total value of shipments for manufactures, or was the same as the ratio of the establishment's export sales to total sales for wholesalers. Exports- related employment was imputed for all manufacturing and wholesale establishments with a value of exports, including those establishments imputed as exporters as described above. => CONFIDENTIALITY OF DATA The U.S. Census Bureau is prohibited by law from publishing any statistics that disclose information reported by individual companies. Whenever the total value of shipments in the case of manufactures (total sales in the case of wholesalers) cannot be shown without disclosing information for individual companies, the complete line has been suppressed. Data for these suppressed lines are, however, included in higher level totals. Additional disclosure analysis is performed for exports shipments (sales) and export-related employment and they may be suppressed even though the value of shipments (sales) data are publishable.